The Debt Ceiling and Fiat Price Inflation: Why Bitcoin is rising in Fiat Dollar-denominated value and how economic deflation will catch most investors off guard – October 15, 2021,

Bitcoin is making new record highs and quite frankly it wouldn’t surprise me if it continues to rise, I’ve never been one to believe in Technical analysis when it comes to my investing decisions. The Technical investors have been claiming that Bitcoin will drop to $20,000 or even lower based on the charts. Bitcoin isn’t hindered in the manner commodities or even other technologies are hindered.

Even Apple has to adhere to central authorities, Bitcoin has no such master, Bitcoins’ only master is the confidence in the Fiat Money system. If the Fiat money system as we know it today fails, Bitcoin is worthless, Bitcoin has no history outside of Fiat money and the reality of the situation is that Bitcoin is an improvement of Fiat digital dollars.

Why leave my money in a bank to collect no interest and be charged potential bank fees, when I can leave my “money” in Bitcoin? Sure Bitcoin has its limitations in the real economy but based on current market conditions it has the U.S digital dollar beat by $60,000. Furthermore, when you listen to the governments of the world, with the exception of maybe Brazil, you don’t hear too many world leaders talking about AUSTERITY measures, if you’re a believer in climate change and you believe that your government should do something about, you’re a believer in inflation and debasement.

If fiat dollars are guaranteed to buy fewer goods and services in the future, Bitcoin is a sure bet. What I don’t think people in Bitcoin see coming is economic DEFLATION. Economic deflation isn’t a commonly used term, because it exposes everything, including legal tender laws. Economic deflation is what most people hate most about free-market capitalism.

The wealth effect is REAL, especially if you have a low financial IQ. If you have zero financial education and you hear doom and gloom in the marketplace, you will spend less, because you have no financial education and it’s better to be safe than sorry. Financial education has been omitted from public schools, in almost every country in the world.

Why? Because a smart democracy will not tolerate financial buffoonery by its political classes, furthermore Switzerland gives the world a glimpse into the future of Western Democracies in the event more people comprehend that INNOVATION is the driver of prosperity. In Switzerland, their Federal Government CURRENTLY is almost powerless.

In countries like Canada and America, the Federal Government is everywhere and has its greedy hands in everything, this creates price inflation because the Federal Government doesn’t intervene for free, government workers with above-market government wages get paid to harass people and this works, because it gets people ignorant of government finances to obey, their bankrupt government.

A financially educated democracy wouldn’t tolerate this nonsense, because a financially educated democracy would know that it didn’t need Fiat money or legal tender laws. Why most people haven’t created their own money and dumped their fiat money is that they’re fearful of the heavy hand of government. If you listen to people like Kevin O’Leary as an example, he wants Bitcoin to be REGULATED, why? Because he’s a believer in legal tender laws.

Government is there to protect our Liberties, Freedoms, and Property, the government should not exist to create legal tender laws. The Bitcoin digital cryptocurrency equates to humans being freed of legal tender laws. Bitcoin can operate outside of the Fiat system, now although many of us consider it worthless without the fiat system, it’s a glimpse into the future of a DIGITALLY DECENTRALIZED monetary system.

Gold and Silver already exist as a decentralized system of payment. Mind you when I write about Gold and Silver I’m not referring to a Gold Standard. FDR already exposed the flaws of a Gold Standard, when I write about Gold and Silver I’m talking about them being used a money and potentially their own decentralized form of payment.

Now, to be clear, I’m not against governments having their own currency, what I’m writing is that transactions in those currencies should be completely optional. If let’s say a person uses a U.S dollar, there are benefits to using it, like insurance, certain types of insurances can only exist if you use U.S dollars, whereas if your Gold, Silver or Bitcoin are stolen, you might not have the same level of insurance available.

Why this type of world would be superior to the world we have today is that it would force governments to live within their means. Currently, if a politician has a horrible idea, that dumb idea can be financed, because we’re stuck under this fiat money system. Whereas if people could cash out of the fiat system, politicians could come up with whatever idea they want to, but they wouldn’t be able to steal from people to implement it.

Currently, the economy is DEFLATING and this deflation is being hidden by fiat price inflation, which of course, gives humans the wealth effect. There comes a time, however, that economic deflation starts to take over, economic deflation usually shows itself with SHORTAGES of real goods, now I’m curious to see what happens to the price of Bitcoin once economic deflation starts to take over.

In India as an example shortages have forced people to liquidate their Gold for Fiat Rupees. Because Gold and Silver have value outside of the digital world, there’s a floor for how low the price can go. With Bitcoin, it’s a digital network, that’s reliant on infrastructures often controlled by the government.

I personally don’t know what that means during an economic deflationary cycle. From where I stand today, I imagine the Bear jumping out of the window, but maybe the reality will be different, once it becomes clear that the economy is deflating.

Interesting times ahead!