Governments.
Selling something finite that costs a lot to make in exchange for something that costs zero which they can make in any amounts any time.
🤡
The best thing governments can do for Bitcoin is believe that it will fizzle out and die.
“Something is happening and you don’t know what it is, do you Mr Jones?”
The BTC dilemma for central banks: buy it and boost adoption, or ignore it and lose ascendancy.
They can’t hide.
Who will light the fire first?
While vulgar folly wonders wisdom watches for the trick.
Balthazar
What does “backed by the government” even mean?
One not so often repeated distinction between gold and Bitcoin.
It’s trivial to audit the circulating supply of one of them.
The separation of money and state can never be a smooth and linear process.
Reminder: Monetary fabric of Zim is way more colourful 🙂
Bitcoin upends the old model of a low cost deposit float funding loans because it’s the first money that comes with a built in self custody and payments functionality.
The bank deposit float could disappear completely at one extreme.
Or it could survive to some degree because users will continue to prefer bank custody over an account rather than manage it themselves.
Either way depositors now have a choice over whether they want bank risk or not.
And the result will be more considered allocation to interest bearing asset as distinct from allocation to cash custody and payment functionality.
This will probably lead to a reduced supply of money for lending activity and one driven by institutional investment more than by naive deposit activity.
And almost certainly to far more prudent and independently determined bank leverage ratios.
Bitcoin halving matters more than global macro.
BTC.D
Set to start reminding the world of the real meaning of shitcoin.
It’s the nature of politicians that they will Al eventually turn to the printing press.
If you ever want to land in SH in Zimbabwe to see how badly Bitcoin is needed HMU. 🙂
Men with steel balls now replaced with ESG, Equity hires, KYC, FDIC, AT1s, Tier 1, Tier 2, risk weighting, ream’s of regulation.
It doesn’t work.
Why does anyone think 10:1 leverage is ok for a bank?
Reminder. Long term, fixed rate debt is an asset.
Those risk free assets.