Are you afraid of missing out on Bitcoin?

So I’ve been thinking about Bitcoin again…

The narrative of Bitcoin assumes that the cost of commodities and utilities will stay low. This assumes a high-valued stable U.S. dollar will continue to be the centerpiece of the financial system. If this assumption is false, Bitcoin will fail when things really fall apart.

People like to say that Bitcoin is a hedge against a falling U.S. dollar or inflation. And this is actually quite funny because it’s being marketed so aggressively by Grayscale on CNBC, who brings no debate to the forum for their advertiser. Why would the government want to promote a real competitor to the U.S. dollar, which is the center of world trade? I think they are using Bitcoin as a distraction to keep people from depleting the physical precious metals markets. It works for them now, while they prepare for a reset, and they’ll easily squash it later.

When the dollar really falls in value, which is the definition of inflation, the price of electricity will soar. This is mathematics. In order to process using Bitcoin the same daily volume of current global credit card transactions, it would require several times the amount of electricity that the world uses in one year. This isn’t fixable. How will that work when inflation starts roaring? And if inflation isn’t coming then there’s no narrative for Bitcoin.

There is a reason why currencies have been traditionally backed by gold and silver and why the dollar leaving that relationship 50 years (in 1971) was a really bad idea. Look, when things break under the weight of all this debt, they will have no other option but to revalue the gold that 100+ sovereign nations have locked up in their vaults. And with that backing, the governments will create a digital dollar or another one-world currency.

There is no way they could or would toss the current financial system, throwing away the entire bond market for Bitcoin. This is so illogical it boggles my mind why more people aren’t talking about it. The narrative is wrong, and maybe there’s some intentionality behind this. Bitcoin is a short-term trade, a way for hedge funds to make a killing fast and for your everyday Joe to lose a lot of money if he intends to hold. Bitcoin is not a long-term solution to our systemic woes.

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