
In the pre-Bitcoin era, everyone was trapped in a system where the Federal Reserve and other Central Banks around the world could create money at will and increase or decrease interest rates to avoid inflation. An independent entity, having the power to rule over the economy with clout on our monetary supply. When fiat is saved, the velocity of money slows, and economic activity grinds lower - for this reason, the planners wished to encourage spending, and not saving, through quantitative easing.
Now west and in an age where we see investors OPTING OUT of this economic riddle by taking their money "out of the matrix" and hiding it in Bitcoin; the computational solution of mathematical problems generates a type of digital currency in which a record of transactions is maintained and new units of currency, and which operates independently of a central bank. They did this as a consequence of the value of assets today being too high. They needed to invest in something, anything because their cash and bonds were quickly running out because of fiat printing. Previously, they didn’t have any other rational spending options, so they used to buy overvalued real estate, stocks, and other financial instruments, but now they have a much better option: buying Bitcoin.
The difference now is that printing fiat is no longer encouraging people to spend their money; rather, the reverse is actually true when that lever is pulled. Instead, it is now inciting the excessive purchase and hoarding of the Bitcoinin much the same way that people hoarded cash during the great depression. The more the Central Banks print fiat, the more popular Bitcoin becomes as the smart money to escape the legacy monetary system, but italso works the other way around: the more Bitcoin that is bought, the more the Central Banks are forced to print due to fiat leaving the system for Bitcoin. Thus, a negative feedback loop ensues.
To make things even worst, this disappearing act of fiat into Bitcoin is starting to accelerate since the 2020 halving event in May. Not a day goes by when we don't hear of multiple billions being sunk into the Bitcoin by a new financial institution, while much fewer of the cryptocurrency is being sold than bought. The Federal Reserve saw weakness in the economy, and Congress announced that they are printing another 1 trillion dollars to hand out to theAmericans. Naturally, on the same day, Bitcoin skyrocketed to an all-time high. At a certain point, the exponential flow into Bitcoin will begin to affect the fiat supply by reducing it significantly. This will cause deflation, and the central bank will print orders of magnitude more fiat, which encourages more panicked Bitcoin purchases ever to preserve wealth, and the cycle continues.
This "Bitcoin Option" presents the leaks in the system that our monetary planners didn't anticipate. They either still do not see them or feel as if they are impossible to stop due to their completely decentralized nature. There is no CEO to drag before congress, no central server to shut down. These leaks may ultimately disrupt the entire banking system through hyperinflation with Bitcoin as an accelerant, without any shots being fired.
I see a very uncomfortable future for those who don't own Bitcoin. The transition to the new system will impoverish many of the middle class that were dangling on the edge of poverty before. The price of a whole coin is accelerating away from the financial reach of a middle-class person, and it seems like it will continue to do so, with its value per coin being $24,000 as of today. As Bitcoin appreciates higher and higher, the US dollar and other currencies continue todebase themselves, trying to catch up in overall value. The planners persist infilling the gas tank faster as it continues to pour out onto the road.
In the end, a complete reordering of the entire global economic system will need to occur as the world economy stalls in its depreciating orbit and is caught in the gravity of, well, the Bitcoin- The new world reserve currency. Millions of people are bound to lose their fixed income, 401K, life-savings. cash, and bonds to hyper-inflation. At the same time, Bitcoiners have now become the new global face of wealth and leisure, bringing in freedom, altruistic endeavors and floating over the waves of devalued dollars in an ocean of paper money. The Federal government scrambles as their financial instruments begin fail completely. There is a physical struggle for control over the people who have decided to free themselves as the power structure decentralizes. Cryptocurrency exchanges become our new economic pillars funneling the monetary energy into and out of the old financial matrix we were all so wrapped up in at one point. As people desperately attempt to secure a handful of Satoshis, the price of a full Bitcoin moves completely out of sight, and well beyond the average speculative investment level - the "I'll just get a coin for $100" are absolute history...If only you did.
The haves and the have-nots are reordered into the early adopters and the latecomers, those with Bitcoin and those without.