Chaos
Daily Ramble
Chaos in the capital. My American friends, expat and pat alike, are asking “did you see, did you see?” I hadn’t. I just don’t track the drama happening in the US political arena these days. I used to. I don’t know exactly when it changed but it happened as I learned more about monetary history.
Did monetary history cause me to separate from political drama? I think so. I have to thank Bitcoin for starting me down the “what is money?” path. See, there’s an inevitable path that all new Bitcoiners take, and the first part of that path starts with the question “what is money?” Anyone intellectually honest about that question eventually concludes that fiat money is horrible in comparison to Bitcoin. Learning about money comes with an unintentional history lesson too.
It’s not a hard history lesson to understand: centralized money creation is abused through inflation. What’s less obvious is that as the money supply is inflated, violence erupts because the equilibrium in the social fabric holding society together is disrupted. And the money supply is ALWAYS inflated because it’s politically easier to print more money than increase taxes. It’s almost mathematical: money is printed —> those closest to the money printer receive more —> an inequality gap is created —> violence erupts to close the gap.
The Central Banks of the world have printed an insane amount of money in the last year. And there is no sign that this will let up. Am I happy that chaos and violence is erupting in the US right now? Not at all — I have no desire to watch it. But am I surprised? Not at all — it’s a predictable outcome when society is tilted too far towards those at the top.
The sad part is seeing justifiable anger directed at the symptoms instead of the root cause: an unjust and criminally abusive monetary system. I’m sure those protesters felt great unleashing their rage yesterday, but I can’t see it doing a thing to change the course of history. What will change history is moving out of politically managed dollars/euros and into mathematically managed Bitcoin.
Favorite Thing on the Interwebs Today
15 years ago, the future was foretold in Idiocracy.
Bitcoin Price Prediction
Yesterday: $32.8k - $37k
Today: $35.5k - $40k
Tomorrow: $30k - $40k
Yesterday’s prediction topped out at $37k and it’s exactly where the day ended. After, the price crashed all the way to $35.5k and is now pushing towards $39k and beyond. $40k is a big round number and likely to take a moment to break through as sellers step in to take some profits, but I don’t see much of a decline ahead. Why? Because the outcome of the US elections are finalizing a Democratic majority in the legislative and executive branches. A Democratic majority makes it easier to print money, which is exactly what I anticipate happening at an accelerating pace. Bitcoin is the only exit to the money printing disaster and with a fixed supply, the outcome is Number Go Up for Bitcoin.
Bitcoin Ed Bite
Bitcoin can only manage a few transactions a second while Visa manages thousands, how can Bitcoin possibly work for global payments? Glad you asked.
The future of Bitcoin is unknown, but what’s becoming more clear is that Bitcoin is becoming the central bank of the internet. Only it’s a central bank where everyone knows exactly how Bitcoin works and how much bitcoin exists, now and forever more. But central banks are not where money moves quickly between individuals. Instead, like the banking industry has been built around central banks, the Lighting Network has been built on top of Bitcoin. The Lightning Network allows for instaneous transactions with more privacy while dwarfing Visa’s transaction capacity. From time to time, the channels on the Lightning Network will need to settle back to the Bitcoin blockchain, just as from time to time banks settle with the central bank.
It’s happening, whether you’re watching or not: a new financial system is being born.
Thanks for reading,
Kent
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