I predict that some time in the next ten years, a single Bitcoin will exceed the price of a median single-family home in the United States. According to Zillow, that price right now is $236,900.
United States Home Prices & Home Values | Zillow
Brush this off, or let me explain how and why it will happen. It all started in 1944 with the Bretton Woods System. Countries abandoned the gold standard for the dollar standard, but the USD was still redeemable for gold.
How a 1944 Agreement Created a New World Order
The Bretton Woods Agreement defined the relationship between gold and the dollar. This new monetary system changed the world.
But, this agreement wasn’t to last because the US government wasn’t responsible with its money supply (sound familiar?). So, in 1971 Nixon took us “temporarily” off the gold standard. Watch.
Nixon Ends Bretton Woods International Monetary System
On August 15, 1971, President Nixon announced on TV 3 dramatic changes in economic policy. He imposed a wage-price freeze. He ended the Bretton Woods interna…
By 1974, inflation reached 11% in a single year. Whoopsie.
Inflation Rate between 1973-1974 | Inflation Calculator
The 11.04% inflation rate means $1 in 1973 is equivalent to $1.11 in 1974. This inflation calculator uses the official US consumer price index.
In order to stabilize the dollar, we created the “Petrodollar” in a deal with the Saudis. Now, all purchases of oil would need to be settled in good old greenbacks.
How Petrodollars Affect The U.S. Dollar
We examine the rise of petrodollars, their influence on the USD as a global reserve currency, and their effects on U.S. markets.
However, being permanently involved in the middle east was not without its own consequences and complications. Fast forward to today and we can clearly draw a line between Iraq, 911, and now this. China pushes back on the Petrodollar.
The rise of China’s petroyuan: from oil futures to the world
China’s yuan-denominated oil futures are being taken seriously by traders, suggesting they can help promote internationalistion of the renminbi to challenge the hegemony of the US dollar in world tra…
Then, Russia and the EU start to pile on.
A ‘growing club’ of ‘very powerful countries’ is steering away from using the dollar
The greenback’s status as the world’s major reserve currency could come under threat, as a group of countries seeks to undermine its importance, according to Anne Korin of the Institute for the Analy…
Adding more strain to the US dollar, is that nagging fiscal irresponsibility. Don’t blame the Fed for printing, they have no choice! We are currently running around 4% of GDP in the hole. That’s approximately $1 Trillion dollars per year we have to print.
Good thing we have a printing press, keep cranking those dollars out. But, there’s just one tiny problem. Our government’s debt is high, and keeps growing each year. The only way we can pay the bill is with incredibly low interest rates.
View data of a measure of the U.S. money supply that includes all components of M1 plus several less-liquid assets.
If interest rates ever start to go back up, it will literally bankrupt the Federal Government. Why does this matter? Well, rates going back up are the Fed’s primary weapon against inflation.
No big deal you say, inflation is low. Nothing to see here. Two problems with this: 1) Is inflation really low? 2) Even if it is, what happens when inflation comes back?Let’s first look at the idea that inflation is actually low. You could use core CPI, but remember that last time we printed a bunch of money it got sucked up by the banks, the stock market and in general the financial system itself.
What might it take to finally bring the whole system down? What about another global recession kicked off by.. I don’t know maybe the fact that the whole world is running zero or negative interest rates for the exact same reason we are? Governments and corporations alike.
Or, some kind of a pandemic? That probably won’t happen…
PLEASE! Take 10 min to watch this.
Dr. Martenson (Ph.D. in Toxicology) is basically freaking out because he THINKS #Wuhan virus has a 1.5-2.5 R0 value (explained in vid). IT HAS SINCE BEEN CONFIRMED AT 3.8, MUCH MORE DANGEROUS THAN DR. MARTENSON KNEW WHEN HE RECORDED THIS.
PeakProsperity.com @chrismartenson
WATCH: Given the severity of the situation, we just released this important video update on the #Coronavirus #pandemic threat
So, how does Bitcoin play into all this? Well there’s never been a form of money like Bitcoin. It has the ability to fulfill the MoE (method of exchange) and the SoV (store of value) at the same time. It’s digitally native, scarce and secure. @hasufl
uncommoncore.co/wp-content/upl…
Bitcoin can act as a life raft to protect people suffering from hyperinflation.
Bitcoin Security: Bubble Boy and the Sewer Rat
A whimsical security analysis of the open, public and decentralized bitcoin system, compared to the closed, proprietary and centralized alternatives. This ta…
Already countries around the world are taking this opportunity to digitize their money. But is this a good thing? Will these state backed digital currencies provide people with freedom, strong property rights, and censorship resistance? Doubtful. Enter Bitcoin, a non sovereign digital bearer asset that can be used around the world to settle large transactions. Here’s @nic__carter to help explain:
nic carter @nic__carter Replying to @nic__carter
For context, the biggest ever BTC transaction had an output of 550,000 BTC or $4.4b in USD terms. The transaction with the most outputs (payments) had 13,107. Most inputs -> 20,000. Bitcoin transactions are giant container ships, not emails.
At the same time, Bitcoin can be moved with incredible speed for everyday payments using the incredible technology of the Lightning Network.
In conclusion, I see Bitcoin as the most likely candidate to back (at least in part) a new world of emerging digital currencies. Bitcoin is a censorship resistant, scarce, digitally native asset that only needs to survive while the current system crumbles around it.
Keep Current with Hans HODL
