Bitcoin is failing as Digital Gold, But it’s Exposing The Worthlessness of Fiat Currencies at ZERO PERCENT interest rates – Austerity Measures or Fiat dollar collapse – April 28, 2021,
Never before has the Western World been this weak, the world is moving in a direction of egalitarianism and this type of phenomenon only occurs when humans believe that they’ve figured this economic thing out. Austrian economics according to the egalitarians is a thing of the past, private property is a thing of the past, now we as a human race must focus on equal outcome for all people even if some of those people aren’t willing to make the same sacrifices as others.
The great thing about egalitarianism is that we have a history of what it does to a nation, Argentina is a great example of an egalitarian society in an effort to create a society of equals, the Argentine peso collapses over and over and over again. Now, when the Argentine peso collapses and is reset, what people have to understand is that their egalitarian economic model doesn’t change, because it’s part of their democratic republic, it’s embedded into their culture, it’s better to be poor than to be a wealthy nation of unequal, of course, we know that there are wealthy elites in Argentina, but that’s beside the point, the point I’m trying to make here is egalitarianism makes a particular group of people feel good about themselves.
How this ties into Bitcoin is that Bitcoin at the very least is an honest digital currency, sure it has no value outside of cyberspace, but nor do digital fiat dollars if I’m stuck on an island with no internet and I’m a millionaire in cyberspace, that means nothing on this island with no internet connection.
But if you’re betting on the technological advancements you have to like Bitcoin, now, I wouldn’t call bitcoin digital gold, but it’s certainly can be imagined as an asset that when compared to Politically based fiat dollars appears to be the superior DIGITAL option, especially for larger denominated digital transactions.
But why is this happening exactly? Why is this Bitcoin invention continuously going up in value? Well, my bets are on the fact that central bank interest rates can never normalize without the economic destruction of the most egalitarian governments.
You see going back to Franklin D. Roosevelt as an example, none of his egalitarian were ever paid for, in fact, Richard Nixon had to end the convertibility of U.S dollars to Gold to pay for FDR’s ‘New Deal’, but oh wait I forgot to add that the 36th U.S. President of the United States created the modern-day Welfare State.
You see Lyndon B. Johnson was as egalitarian as they come and Richard Nixon who oddly enough had ties to Roger Stone did the exact same thing Donald Trump did when coming to power. When Donald Trump came to power, Donald Trump had the opportunity to cut the size of government and roll back everything Barack Obama and other egalitarian presidents before him did.
But Donald Trump would do no such thing, instead, Donald Trump similar to Richard Nixon GREW the size and power of the Federal Government, and what came out of it, was “Jimmy Joe Carter Biden”. You see when you lose the moral high ground, you lose it and from that, you get the rise of Bitcoin.
Until Donald Trump, I had never heard any president call out the Federal Reserve before. Donald Trump using the media pressured Jerome Powell to lower interest rates. Now, why would Donald Trump do this? Well, Donald Trump did it because he claimed to have built the greatest economy ever, which it obviously wasn’t, and because of this slashing of regulations which was a form of austerity measures, Jerome Powell began raising interest rates, because the data showed the economy was improving.
But you see similar to Richar Nixon, Donald Trump wanted to have his cake and eat it too and if I was a central banker and I saw how passionate Donald Trump supporters were, I personally wouldn’t put my personal livelihood at risk for sound economics, so Jerome Powell did what any sane central banker would do, which was to do what former President Donald Trump asked which was to lower interest rates THE FIRST CHANCE he got.
There was a MINOR liquidity issue that gave Jerome Powell the chance to lower interest rates, and he did. Now what Jerome Powell would have done had Trump not threatened him, was to allow those bad financial institutions to fail, because that’s what’s supposed to happen, by Emperor Trump gave Powell orders which Powell followed and now here we are with Bitcoin as of today’s date nearing $55K in U.S dollars.
Now, we can clearly see that Bitcoin is not mirroring Gold, but it is behaving a lot like the real estate market. The price of real estate continues to soar worldwide with interest rates at near zero, it’s not that homes are being built better than they were before, but fiat egalitarian currencies are stuck at zero and well, people who can afford to buy real estate buy it, because if interest rates aren’t going to rise and government spending is, the currency is obviously going to become worthless over time.
Now in Bitcoins, they have something special, people believe in it and although it should be considered worthless, I’d argue that it has more value digitally than digital U.S dollars. Because at the very least it’s transparent!
Bitcoin is failing as digital gold due to its massive energy use and competition from ether, Goldman Sachs says | BusinessInsider.com
Interesting times ahead!