I love Sunday.

Woke up early, got a workout done, watched 2 hours of #Bitcoin content, catched up on some reading.

The day just started and so much has alreasy been done.

Last item on the list is to head out and enjoy the sun.

Have a great end of week fellow Bitcoiners.

The US central bank's recent unprecedented increase in interest rates comes at a precarious time, considering the current high level of leverage within the system. The following figures signal the possibility of an impending deleveraging event. Despite this, the US has managed to postpone any immediate repercussions due to its dominant position, with the USD being the world's reserve currency. However, a shift in global mindset and erosion of trust in the US could rapidly alter the situation.

The US is grappling with significant public debt, nearing 32 trillion dollars, and interest payments on this debt have climbed to nearly 1 trillion dollars.

The debt-to-GDP ratio is close to 120%, and research conducted by the World Bank suggests that countries with debt-to-GDP ratios exceeding 77% for extended periods tend to experience significant economic growth slowdowns. Each percentage point above this threshold costs countries approximately 0.017 percentage points in economic growth. It raises the question of whether this high level of debt-to-GDP ratio is becoming the new norm for the US.

The US consumer credit card total balance has surged to approximately 760 billion dollars, with interest rates on credit card debt soaring above 16% as a consequence of the most recent hike cycle.

Residential mortgages also contribute to the debt situation, with numbers surpassing 13 trillion dollars, and the interest rate on these mortgages stands close to 7%.

Mounting pressure on US consumers raises default and bankruptcy concerns. History indicates that debt-based systems with easy monetary policy, and central and fractional reserve banking always lead to major deleveraging events, hurting average people.

#Bitcoin fixes this.

In our current monetary system, the rich tend to get richer while the poor become even poorer. The system favors the wealthy, mainly those who own assets, as they enjoy easier access to capital. This privilege grants them the ability to acquire assets at pre-inflation rates whenever new money is printed and added to the economy. In contrast, the less privileged can only obtain assets at post-inflation prices.

This phenomenon is referred to as the Cantillon effect, wherein the distribution of new money is not equal among all individuals. This phenomenon widens the wealth gap and cannot be fixed without an entire overhaul of the system itself.

#Bitcoin fixes this.

In society, the primary economic challenge lies in adapting to changes at the micro level. Therefore, it makes sense to entrust the ultimate decisions to those intimately familiar with these situations. These individuals, often the people on the ground, possess a direct understanding of the relevant economic changes and have immediate access to the necessary resources to respond properly.

Relying on a central authority, such as a central bank, to process and integrate all this information before making decisions aimed at "stabilizing" prices is inefficient and unlikely to yield effective results. Hence, a #decentralized approach becomes critical. By embracing a free market system, we can ensure that responses to economic changes are promptly executed at the micro level.

An economy involves numerous moving pieces, making it impractical for a group of disconnected unelected officials to effectively manage. History has shown that interventionism fails to stabilize prices and often leads to increased occurrences of boom and bust cycles and capital misallocation.

To address these issues, it's crucial to return to a sound money free market monetary system. Embracing #Bitcoin, with its decentralized nature and predictable monetary policy, can significantly reduce disruptions to the free market, offering a solution to navigate economic complexities.

As per the Federal Reserve Bank of St. Louis website:

"#Money is a store of value".

By their own definition we can conclude that #Fiat is not money.

The #USD has lost approximately 95-98% of its purchasing power since the creation of the Federal Reserve Bank in 1913.

#Bitcoin fixes this with its fixed supply.

We are faced with a choice that will shape the future: supporting a decentralized monetary system that levels the playing field, safeguards against tampering, and resists censorship, or endorsing projects that enable centralization and manipulation, granting those in privileged positions undue power in terms of surveillance and censorship. This decision transcends mere profits and challenges our morals and ethics. If you are pursuing short-term fiat profits, take a moment to introspect and consider your moral compass and time preferences. Seeking fiat profits alone will not bring lasting change; your gains will eventually be debased, leaving you in the same place, and possibly worse off. We must think beyond the present, looking 10 to 20 years into the future. Consider the consequences that centralized projects and the rise of central bank digital currencies (#CBDCs) could have on our freedom to transact, a pillar of our liberty. It's time to be purpose-driven, transcending profit-driven motives. Embrace the role of a sovereign individual, choose a future built on decentralized principles.

I choose #Bitcoin for its decentralized and censorship-resistant nature, which paves the way for an equitable and transparent monetary system

“As the morality of a society declines, freedom declines. As the morality of a nation increases, its freedom increases.” - Max Hillebrand

#Bitcoin is a moral force, empowering individuals and safeguarding them against monetary debasement with its fixed supply. Conversely, #fiat currency is immoral, benefiting the privileged and politically connected through the act of monetary inflation. Under a fiat system the rich get richer and the poor get poorer.

#Fiat incentivises immoral behavior. Too much power in the hands of a few has historically always resulted in corruption and economic destruction. #Bitcoin on the other hand solves this problem by eliminating anyone’s ability to control the money supply.

When using #fiat currency, your time preference tends to increase. The constant erosion of purchasing power can lead to overconsumption and fewer savings. On the other hand, adopting #Bitcoin can lower your time preference. Its inherent inability to be debased incentivizes saving and fosters a long-term mindset.

Central planners' ability to plunder society through the unrestricted expansion of the #money supply yields a society enslaved by debt and misaligned incentives. As individuals tirelessly struggle to compensate for currency debasement, long-term thinking gives way to short sightedness and survival. The normalization of theft on a macro scale invariably taints society's fabric at the micro level, compelling individuals to secure personal survival at any cost, often at the expense of others.

#Bitcoin fixes this.

Thanks for your contributions! You are truly making a difference.

The accumulation of capital through savings is crucial for sustainable and long-term economic growth. When resources are allocated organically based on individual preferences and market signals, it results in efficient capital investment and productive ventures. However, our current system is challenged by central bank expansionary monetary policy, which leads to the debasement of the currency and undermines the significance of savings while distorting market signals. Consequently, the formation of capital is hampered, and sustainable economic advancement is obstructed.

#Bitcoin offers a solution by providing a decentralized monetary system with a fixed supply currency. By removing intervention by central planners and upholding a dependable monetary unit, Bitcoin contributes to a more robust economic system driven by free market forces.

Sound #money requires a fixed supply, and is immune to debasement by any governing authority. This crucial aspect preserves your future purchasing power. As demand for sound money increases, its fixed supply ensures price appreciation over time. In contrast, unsound money, in other words #fiat loses value due to expansionary monetary policy by central planners, eroding its purchasing power. #Bitcoin is the only asset in existence with a hard cap on supply. It is the embodiment of absolute scarcity and is therefore the soundest of all money.

Not your keys, not your #Bitcoin.

Self-custody lies at the core of Bitcoin and is a critical practice that every individual should strive for.

Self-custody eliminates counterparty risk, freeing you from the need to rely on third-party institutions to safeguard your wealth. Instead, you become the sole custodian of your assets, ensuring that you have complete control over your financial future.

Embracing self-custody also encourages you to enhance your security practices. By taking responsibility for protecting your Bitcoin, you are motivated to strengthen your security measures and implement robust protocols. This not only protects your assets from potential threats but also empowers you with the knowledge and skills to navigate the digital landscape confidently.

Fortunately, there is a wide range of self-custody solutions available to cater to various needs and preferences. Starting with software wallets, you can easily manage your Bitcoin holdings on your preferred device. For enhanced security and what I’d recommend, hardware wallets offer the advantage of storing your private keys offline, shielding them from potential online threats. Additionally, for those seeking advanced security measures, multi-signature software and hardware wallets provide an added layer of protection through the involvement of multiple keys and signatories.

Self-custody grants you total #freedom, #security, and control over your wealth. It empowers you, ensuring that your financial destiny remains firmly in your own hands.

Even if you're not convinced that #Bitcoin is destined to become the future settlement layer and reserve asset, you owe it to yourself to seriously consider it as a backup plan. Think of it as stockpiling seizure resistant wealth, much like storing food and supplies in preparation for a natural disaster. Bitcoin serves as a safeguard, providing a means to protect your wealth in the event of a financial catastrophe.

Unlike #Gold, which is difficult to transport and has been subject to confiscation in the aftermath of financial systemic collapses, Bitcoin offers greater mobility and resistance to seizure.

We've witnessed how #Fiat currencies can rapidly lose their purchasing power, rendering them practically useless. Look no further than the examples of #Argentina, #Venezuela, and #Lebanon to see the devastating consequences. In such scenarios, Bitcoin emerges as a viable alternative, preserving the value of your assets and ensuring financial resilience.

#Money plays a crucial role in facilitating human prosperity. Its existence has enabled us to efficiently coordinate economic activities and encouraged specialization, leading to substantial advancements.

Unfortunately, these fundamental functions of money have come under threat with the introduction of the Fiat standard and the increasing interventionism by central banks. By monopolizing money and its issuance, central planners have assumed control over the economy. In doing so, they disrupt the free market, resulting in the misallocation of capital, which leads to inefficiencies and the formation of economic bubbles. Ultimately, this benefits only a select few at the expense of the broader population.

However, there is now an alternative. #Bitcoin, with its decentralized nature and fixed total supply, presents a solution to these issues. It levels the playing field and addresses the Cantillon effect, providing a more equitable and sustainable monetary system.

Mark Twain once said, "It's Easier to Fool People Than It Is to Convince Them That They Have Been Fooled".

Out of fear and insecurity the masses accept the status quo as fact and struggle with the idea that governments, corporations and the mainstream media would lie to them or push a certain narrative given their “expert” status.

It takes a certain level of humbleness to accept and live with the fact that you were fooled for the majority of your life. Studying #Bitcoin smoothes out the intellectual and ego blow. It teaches you to be critical and to have an open mind on all the information you consume. Hence, the ethos, “Don’t Trust. Verify!”

Bitcoin replaces fear with much needed hope.

#StudyBitcoin

The #BlackRock ETF cuts both ways for #Bitcoin. On one side, it validates Bitcoin as an asset class, fostering wider acceptance. However, convenience may tempt individuals to opt for the ETF instead of self-custody. To safeguard the principles of decentralization, we must prioritize education on self-custody.

The #Bitcoin issuance schedule is predictable and scheduled since its genesis. #Fiat issuance, however, moves in the wrong direction with no cap, and an ever increasing supply until its imminent collapse. Planning into the future and adopting a low time preference is easier with Bitcoin in comparison to Fiat. Choose stability, a fixed total supply, and the transparency of Bitcoin.

#Bitcoin epitomizes freedom and the right to transact. It's:

🔓 Permissionless: Anyone can use the network.

🛡️ Censorship Resistant: No one can stop you from transacting.

☮️ Decentralized: No single entity can change its rules.

Bitcoin is self-sovereign #money.