The Chinese Communist Party has always been hostile to Bitcoin, The current Price of Bitcoin is reflective of the DEFLATIONARY economy! – May 24, 2021,
I’m getting rather annoyed reading these mainstream media articles claiming that China has something to do with the declining price of Bitcoin, as someone with friends in Bitcoin, I’ll tell you what I know, people are running out of fiat money to pay their bills.
A lot of people are living off of asset appreciation, there’s a lot of people with a lot of money, who spend more than they make. This will all be exposed if there’s a serious economic downturn, but a lot of people have fallen for this arbitrage nonsense and I don’t know what to call it, but it’s all part of the greater bubble that’s deflating.
I’m doing pretty well for myself, but maybe I may have been doing a whole lot better if I was the type of risk-taker that many of my associates are. I only know it as arbitrage there could be another name for it, but how it works is they’re all living off of debt, they’ve bet big that zero percent interest rates are forever, there’s going to be a fed-coin and all a person needs to worry about is servicing their debts.
Now, some of the people I know in this space have a lot of Bitcoins, because they got in early, however, ha the price rose, so did their spending and liabilities, well for some of them, the price drop f bitcoin, destroyed their ability to service their debts, because not only were they in bitcoin, they were in all the other coins, and they assumed if there was a price decline, one would go up while the other went down, meaning they imagined their crypto assets to be like a well-diversified portfolio of stocks, bonds, and mutual funds.
One has already sold his beautiful house because of the price shock, I don’t think most people comprehend how much Bitcoin has gone up, some people haven’t been so silly as to not sell and take some profits, the problem is that a lot of people in Bitcoin I’ve come to discover don’t have any financial education and it’s really hard to teach a bitcoin multi-millionaire financial education after they’ve made so much money by simply buying and holding.
I often write that the economy is deflating, and prices are rising, but that concept is hard for people to grasp because they base their money on fiat dollars, I on the other hand base my money on Gold prices. I understand the gold markets, most people in gold aren’t true believers, they buy and hold gold for FIAT price inflation. I have a job working for fiat dollars I also have stock in fiat dollars, why in the hell would I sell my gold for fiat dollars? unless I’m on the verge of bankruptcy, that’s my thinking!
True believers don’t sell their gold, they have children and pass it down. It’s the same dynamic Bitcoiners are trying to mirror with their buy-and-hold mantra, but most people aren’t following that guideline. Most hoarders of Bitcoin are there because they have a number in their heads that they’re willing to sell for.
If it appears like the price they’re willing to sell their bitcoin for appears that it will never arrive many will sell, and the overleveraged bitcoiners are being forced to sell. The overleveraged Bitcoiners typically have a whole lot of money and treat their bitcoins almost like a home equity line of credit, you have to remember that you don’t have to sell an entire bitcoin!
With that said, the Chinese Communist Party has made itself quite clear long ago, Bitcoin is allowed in China to facilitate the ACCEPTANCE of the Digital renminbi (e-RMB). The CCP loves stealing intellectual property rights and when all the Bitcoin miners began going to China, for its lower energy prices, China which has a history of run-on banks, saw Bitcoin as means to ban cash.
The Chinese are fiat money hoarders, Canadians who work at the border often stop Chinese people from entering Canada with SUITCASES filled with fiat currency. Some of us who study war question if the Chinese military is even loyal to the Chinese Communist Party because in practice Chinese people avoid the renminbi like the plague, only using it when they’re forced to or if they have it, they’ll sell it the first chance they get.
This is one of the reasons the Chinese Communist Party seized Hong Kong. With that said anyone in the Bitcoin space knows about China, and the reason why I think the mainstream media is pushing this narrative that the drop in Bitcoin has to do with China is that they’re trying to hide deflation.
For most young people, they don’t understand deflation or what it means, so during the great deflation, FDR had a problem, America had a gold standard, U.S dollars could be traded in for Gold, meaning that there limits to how big Government could get, now, to fix America’s prior economic problems, the Federal government could have simply promoted anti-racism, which was the real cause of the Great depression.
Black people and Asians were driving down the cost of labor, there existed no minimum wage back then, and entitled white liberals wanted to artificially push up the price of labor to gain an economic advantage over the minorities. Viola a minimum wage and social security was born, one of the most RACIST laws in U.S history, the minimum wage law is so racists that some of the socialists’ countries Bernie Sanders love so much banned minimum wages at a federal level.
If that sounds like a brain fuck, it because you’ve been brainwashed by Leftists your entire life. The Jim Crow Dmeocrats in the south overwhelmingly supported FDR, even though on the surface he appeared to condemn them! He had done for them what no other Democrat had dared to do, which was to stop the minorities from gaining economic power.
The blacks you see in both America, Europe, and South Africa are the direct result of the minimum wage law, a lot of blacks unknowingly embraced socialism because, hey let’s call it for what it is, so far socialism, whether it’s been national or democratic, has worked wonders for white people. In South Africa as many white South Africans will tell you, most of the black population that’s there now, immigrated there from other African nations, these immigrants were driving down wages, guess what the white South Africans did? They created and then rose the minimum wage, now similar to America, the black population has not only become more violent but also more hostile to the white population.
This is what socialism does, it creates groups of people who want to use force to achieve an objective, it worked for the white population, why can’t it work for them? I’m not saying it’s right I’m merely trying to explain to you why price inflation is used to hide DEFLATION!
When prices or wages go up, people FEEL richer, temporarily, the wealth effect, furthermore, the regulations(like minimum wages or permits to do certain jobs) imposed by government create an artificial barrier to entry into particular job markets, this also creates deflation in the real economy, but inflation in the fiat pricing markets.
Bitcoin is a superior digital dollar, but money was never supposed to be perfect, money is based on DEMAND! in the forex markets there’s currently a DEMAND for U.S dollars, people outside the United States don’t give a shit what happens inside the United States, in the forex markets, what people care about is the U.S dollar being the gold standard of currencies.
Bitcoin will never be able to compete with this, but it doesn’t mean that bitcoin can’t rise in value to the U.S dollar, the issue with Bitcoin, is that nobody I don’t think investors in bitcoin understand that the economy is DEFLATING and the governments and central banks response to said deflation could be anything.
Currently, people are being paid to do nothing, tomorrow it could be something else, but as I like to point out the Eurodollar is detached from the U.S economy, the U.S national debt is an American problem, the world doesn’t give a shit, the world is merely looking for something PHYSICAL to tie their wealth too, some have purchased art, some buy gold, some real estate, others buy bitcoin, if an asset can’t cash flow or even arbitrage that asset is worthless during a deflationary cycle.
Now because Bitcoin isn’t anything physical, I question its value when deflation becomes overtly apparent. Now, how the fed reacts to deflation could destroy the U.S dollar, I don’t think they’ll do it, because if the U.S loses its reserve status, we’re talking about the potential of world war 3 here, because the Eurodollar system means that people outside of the U.S are heavily invested in the SUCCESS of the Federal Reserve.
With China, the thing to remember is that they’ve become a manufacturing powerhouse and they too want to keep the Federal Reserve alive, because if let’s say the U.S dollar loses status, all of sudden China will have a German problem. In Germany, they helped create the European Union, because otherwise most of Europe wouldn’t be able to buy anything from Germany, because it would be too expensive.
Well this has been my argument with Bitcoin, if Bitcoin becomes too expensive or if China becomes too expensive, it actually loses value. A market economy serves the CONSUMER, there is no such thing as this perfect utopia, a market economy is plagued with deflation problems, inflation is achieved in a market economy via INNOVATION! If we had a gold standard, this wouldn’t be as hard to explain, it’s because we’re under a Fiat system why the uses of the word “Inflation” have morphed.
Under a gold standard, money could only be printed if there was a demand from the private sector for it, and yes, even in a gold standard there is fractional reserve banking, but the fractional reserve banking can crash in a gold standard system if let’s say there are deflationary pressures and people want out of the paper markets. This is natural in a market economy, however, the Government has completely changed the narrative in the name of the greater good.
Anyway, China has little to do with the declining price of Bitcoin! What I will say to people in Bitcoin be careful because some of that money that left isn’t coming back and some of the new money is bitcoin is there purely for speculative purposes.
Interesting times ahead!
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