The popular “both Bitcoin and the dollar can coexist” narrative making the rounds on podcasts the last couple weeks is weak.
The market isn’t stupid. If given the opportunity to own bitcoin or USD, they’re gonna own bitcoin. If the market owns bitcoin then they won’t own US Treasuries. If they don’t own US Treasuries then the Fed will have to buy up ALL the US treasuries. If the Fed is buying ALL the US Treasuries then the private rate for debt will be much much higher than it already is…and asset values typically propped up by with credit will plummet.
From a first principles basis, there is no way a credit based fiat system can “coexist” with bitcoin. Bitcoin obsoletes the current super cheap credit-based monetary system.
It’s uncomfortable and inconvenient - yes - but that is why bitcoin will ultimately be so valuable.
8r0ck3feller / 8R0ck3feller
npub1h4…a2jcm
2024-10-10 10:17:34
Author Public Key
npub1h4lrzqnrne72xj00yl3zzr0k6qn93cqe5g4vvkfechs6mn89mwyqfa2jcmPublished at
2024-10-10 10:17:34Event JSON
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"content": "The popular “both Bitcoin and the dollar can coexist” narrative making the rounds on podcasts the last couple weeks is weak.\n\nThe market isn’t stupid. If given the opportunity to own bitcoin or USD, they’re gonna own bitcoin. If the market owns bitcoin then they won’t own US Treasuries. If they don’t own US Treasuries then the Fed will have to buy up ALL the US treasuries. If the Fed is buying ALL the US Treasuries then the private rate for debt will be much much higher than it already is…and asset values typically propped up by with credit will plummet.\n\nFrom a first principles basis, there is no way a credit based fiat system can “coexist” with bitcoin. Bitcoin obsoletes the current super cheap credit-based monetary system. \n\nIt’s uncomfortable and inconvenient - yes - but that is why bitcoin will ultimately be so valuable.",
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