#Money can be seen as a share in the global economic market, and when new units are printed, the equitable distribution principle resembles the fair issuance of shares in a company.
However, the challenge lies in the uneven distribution of newly created money, akin to a company issuing more stocks without diluting all shareholders equally.
This unequal distribution, often influenced by economic policies, can lead to disparities in wealth accumulation, affecting different segments of the population disproportionately.
Striking a balance in monetary policies is crucial to minimize these inequalities and ensure a fair and stable financial system.
Thanks 🙏 is always nice to read eloquent messages. 🤦🏽
Resistance to new technologies is a historical pattern seen across various industries.
Just as candle makers may have resisted the advent of light bulbs and hand shoemakers the introduction of shoe factories, it's understandable that central banks and governments might show resistance to #Bitcoin.
#Bitcoin, as a decentralized digital currency, challenges the traditional monetary system and the control mechanisms that central authorities have over currencies.
The potential shift of power and the unfamiliarity of this disruptive technology can lead to apprehension and pushback from established institutions. Embracing innovation often requires overcoming resistance and adapting to new paradigms.
#Money tends to flow towards those who create value in the economy.
While early #Bitcoin adopters might have accumulated wealth, the true #Bitcoin millionaires of the future are likely to be those who contribute significantly to economic value creation.
#Bitcoin, in this context, can serve as a store of value for those who generate wealth through innovation, entrepreneurship, and meaningful contributions to society.
Its role may evolve beyond being a speculative investment to becoming a tool for preserving and transferring wealth generated by those actively involved in value creation.
Incorporating #Bitcoin into your portfolio can be a strategic move for several reasons.
Firstly, it serves as a potential hedge against traditional asset classes, as it operates independently of traditional financial markets.
Secondly, Bitcoin's finite supply and decentralized nature make it resistant to inflationary pressures that can impact fiat currencies.
As #SatoshiNakamoto hinted, the potential for #Bitcoin's value to increase significantly, especially if it gains wider adoption, is a compelling aspect.
The decentralized and borderless nature of #Bitcoin provides diversification benefits and can act as a store of value, adding resilience to your overall investment strategy.
However, it's essential to consider your risk tolerance and conduct thorough research before making any investment decisions.
Why the #BTFP? Why the FED needs to lend to banks and buy their underwater treasuries to protect against a massive sell off or them.
Banks often invest a significant portion of depositors' money in government bonds due to their perceived safety and liquidity.
However, when the central bank, like the Federal Reserve, raises interest rates and new bonds are issued at higher yields, the value of existing bonds may decrease.
This interest rate risk can lead to a reduction in the market value of the bonds held by banks, affecting the collateral used to secure customer deposits.
If the decline is substantial and not adequately managed, it could potentially threaten the bank's solvency, highlighting the importance of effective risk mitigation strategies in the face of changing economic conditions.
The #BankTermFundingProgram (#BTFP) was a program established by the Federal Reserve Board in March 2023 to provide liquidity to eligible depository institutions in the United States. (To avoid the massive sell-off of treasuries)
The program offered short-term loans of up to one year to banks, savings associations, credit unions, and other eligible institutions, with the goal of helping them meet the needs of their depositors during a period of financial stress.
The #BTFP was designed to be a temporary program, and it ceased making new loans on March 11, 2024. However, the program remains available to existing borrowers until their loans mature.
#CPI (Consumer Price Index) is a widely used metric to measure inflation, but it's essential to recognize its limitations.
IMPORTANT
It is determined by institutions responsible for monetary policy, which may create a potential conflict of interest.
Being both the judge and the party being judged raises concerns about impartiality. Critics argue that relying solely on CPI might not capture the full scope of inflation, as it's influenced by the same entities responsible for issuing money.
Alternative metrics and independent assessments can provide a more comprehensive view of economic conditions.
Understanding #Bitcoin requires a nuanced grasp of technology, finance, and economics. It's important to recognize that even in developed countries, not everyone has the same level of expertise or exposure to these complex concepts.
Blaming individuals for not comprehending #Bitcoin shouldn't be the default, as it involves a multifaceted understanding.
Moreover, in regions like #Argentina where inflation awareness is high, not everyone may fully understand the intricacies of #Bitcoin despite recognizing the issues it aims to address.
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People ask me why #bitcoin? does it solve problem? My answer is, a key 🔑 will not help you open a lock if you don’t know that what you are holding is a key.
When an abundance of #money floods the market without a corresponding increase in tangible assets, it creates a scenario where "too much money chasing too few goods" prevails.
This imbalance leads to scarcity in real value, propelling prices skyward as the purchasing power of the currency diminishes amid the excess monetary supply.
#Read #follow
#Scarcity often fuels entrepreneurial interest, as seen with historical examples like the #Gold Rush. In the case of #Bitcoin, its digital and programmatically scarce nature, coupled with the difficulty adjustment, creates a resilient scarcity. This dynamic attracts entrepreneurs seeking to capitalize on its unique properties, potentially fostering innovation and investment in the cryptocurrency space.
ECB 😓🤦🏽 
Attempting a hard fork from #Bitcoin is akin to copying #Wikipedia because, like the split version of #Wikipedia lacking the original's extensive backlinks and dedicated volunteer community, a minority hard fork of #Bitcoin inherently lacks the robust network effect, numerous nodes, and significant miner computation.
This results in a less decentralized and less censorship-resistant system compared to the original #Bitcoin network. The strength of these decentralized networks lies in their collective support and infrastructure, making any fork without such elements less effective from the outset.
#BrokenMoney
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#Bitcoin's economic incentives play a crucial role in unlocking the potential of renewable energies located in remote and challenging areas, such as waterfalls.
#Bitcoin miners, driven by the pursuit of profits, can set up operations in these locations, providing a means to harness untapped energy resources.
This not only benefits the cryptocurrency network by increasing its decentralization but also aids in the efficient utilization of renewable energy that might otherwise go untapped due to geographic constraints.
In essence, #Bitcoin miners act as a catalyst for the development and utilization of renewable energy in hard-to-reach areas, contributing to a more widespread adoption of sustainable power sources.
Example of OTEC technology
#Bitcoin's impact on the environment can be perceived positively due to the economic incentives it creates, encouraging the development of cutting-edge technologies like #OceanThermalEnergyConversion (OTEC).
By fostering innovation in renewable energy, #BitcoinMining operations may leverage #OTEC, tapping into the vast potential of the ocean's thermal gradients to generate clean electricity.
This convergence of cryptocurrency and sustainable technology showcases how economic incentives from #Bitcoin can drive solutions for age-old problems, ultimately contributing to a more environmentally conscious and technologically advanced future.
#PyrolysisReactorTechnologyIncorporated (PRTI) converts tires into energy for #BitcoinMining is an innovative concept.
The process of pyrolysis involves breaking down tires into valuable byproducts like oil, gas, and carbon char.
By utilizing the energy generated from this process to power #Bitcoin miners, the initiative not only addresses tire disposal issues but also harnesses renewable energy for cryptocurrency mining, potentially contributing to sustainable practices in both waste management and energy production.