Economy Inflation and Bitcoin.....another look

[Eric Silva 2.0]

The interest on the national debt just hit 1 trillion for the first time. This will guarantee prices will continue to rise. The borders are for all practical purposes open so this will guarantee prices will continue to rise. The U.S. is funding wars in Ukraine and the Middle East so you guessed it, prices will rise. Bitcoin is the 11th most valuable asset in the world with Berkshire Hathaway at number ten and Tesla at number twelve. Bitcoin is worth more than companies like Visa, Walmart, JPMorgan and Exxon Mobil. Bitcoin is worth more than Disney, Costco and Coca-Cola combined. As the world economy continues to crumble will more people embrace so-called alternative assets like bitcoin or continue to believe in the paper currencies they were taught to be money?

U.S. debt....... ~33 trillion including unfunded liabilites....... over 100 trillion

U.S. debt to GDP ratio:
1960....52%
1980...34%
2000....54%
Currently....124%

 

[calavera2]

"asset"

The us dollar and debt is backed by the US gov and all that that implies...Bitcoin is traded in....us bank notes and backed by ithe same. If the us dollar falls so does Bitcoin...


I need to load up on some Bitcoin for the next run.

 

[HockeyBjj]

Bitcoin sank harder during the elevated inflation of late 2021-2022 than anything else

It’s not a hedge against economic downturn. It’s just more volition in good stock market conditions it booms, and in bad ones it craters even worse

 

[Eric Silva 2.0]

"asset"

The us dollar and debt is backed by the US gov and all that that implies...Bitcoin is traded in....us bank notes and backed by ithe same. If the us dollar falls so does Bitcoin...


I need to load up on some Bitcoin for the next run.

"If the U.S. dollar fails so does Bitcoin"
Incorrect. Bitcoin will be priced in whatever the new currency will be. I'm assuming we won't be on a bitcoin standard which is a small possibility. The current system won't last. It's just a matter of how fast or slow it continues to crumble.

 

[AWilder]

"If the U.S. dollar fails so does Bitcoin"
Incorrect. Bitcoin will be priced in whatever the new currency will be. I'm assuming we won't be on a bitcoin standard which is a small possibility. The current system won't last. It's just a matter of how fast or slow it continues to crumble.

do you honestly think the governments that maintain their economic hegemony in the world would ever let bitcoin replace them?

 

[BreatheSherBro]

I don't know anything about crypto, but it seems like a big gamble. You can make money with it as long as there are eager buyers and you buy lower than what you will sell it for later, but ultimately it isn't backed by anything (unless I am mistaken) and there are not many things you can buy with it. Most places do not accept bitcoin. Maybe one it will be accepted everywhere, but I think we are a ways off from that.

Everyone who buys it right now is speculating thst it will be worth more later which may or may not happen.

 

[MeatheadMike]

The interest on the national debt rising is not a predictor of future inflation... In fact it's a direct result of the Fed's counter inflation measures.

 

[Eric Silva 2.0]

do you honestly think the governments that maintain their economic hegemony in the world would ever let bitcoin replace them?

No, that is why I said small possibility of a bitcoin standard. I really meant extremely small. The question is what to do if you live in countries with a high inflation rate? Zimbabwe and Venezueal have an inflation rate over 200%. Sudan is over 100%. Turkey and Argentina have inflation rates over 70%. In the U.S. and Europe inflation has been understated and misunderstood for a long time. As it becomes clearer that this problem is here to stay and only will get worse it will be interesting to see how people act and react to worsening conditions.

 

[Eric Silva 2.0]

Bitcoin sank harder during the elevated inflation of late 2021-2022 than anything else

It’s not a hedge against economic downturn. It’s just more volition in good stock market conditions it booms, and in bad ones it craters even worse

Bitcoin is new type of money (a new asset) and just like Amazon and Microsoft it is very volatile. If you can't handle the corrections than a nice utility stock or maybe Proctor and Gamble would be worth considering. Bitcoin is up 127% year to date. It isn't a fringe asset anymore since it's worth more than most blue chip stocks. Even Ethereum is worth more than Bank of America, Pepsico and McDonalds. The world is pivoting away from these predatory companies and into useful money and technology (Bitcoin and Ethereum). It's interesting that most people don't understand what's going on.

EDIT: "It's not a hedge against economic downturn"
Agreed. It's a new asset, a new form of money that's being used mainly as a store of value right now. Admittedly it's volatile so it's not very good value for someone expecting stability. It does protect people from inflating currencies. The paper currencies are guaranteed to continue approaching their true worth (zero). Bitcoin offers an option to protect against continued erosion of purchasing power of paper currencies.

 

[THEfightsAREfixed]

bitcoin seems like a scam, not interested

 

[Rob Battisti]

bitcoin seems like a scam, not interested

Very informed opinion!

 

[Eric Silva 2.0]

The interest on the national debt rising is not a predictor of future inflation... In fact it's a direct result of the Fed's counter inflation measures.

I would correct myself and say that the national debt rising is a predictor of future inflation, not the interest itself. Depending on interest rates, the interest expense will continue rising as a result of this and so will inflation.

"In fact it's a direct result of the Fed's counter inflation measure."
I don't agree with this at all. What counter inflation measures are you specifically refering to? The Fed is the main cause of inflation not the cure. If you look at inflation in the U.S. before and after 1913 this is easy to understand. I would also look at the value of the dollar before and after 1913 to really understand the Fed's role in this. It's crystal clear.

 

[Eric Silva 2.0]

I don't know anything about crypto, but it seems like a big gamble. You can make money with it as long as there are eager buyers and you buy lower than what you will sell it for later, but ultimately it isn't backed by anything (unless I am mistaken) and there are not many things you can buy with it. Most places do not accept bitcoin. Maybe one it will be accepted everywhere, but I think we are a ways off from that.

Everyone who buys it right now is speculating thst it will be worth more later which may or may not happen.

I would agree there is big risk in owning or investing in bitcoin (I don't want to get into other crypto). You are right that there needs to be people willing to buy it so you can sell it for a profit if you are trying to trade. The question is if there is value in the technology and how much is it worth. Then I need to ask myself if bitcoin (digital money) has advantages over the paper currency that I currently transact with. If I live in Venezueala or Turkey, this is an easy answer. I want to own bitcoin. Maybe gold, silver and other hard assets as well but these are necessary for survival. In countries like the U.S. and Japan maybe it isn't as clear. Yes the U.S. dollar has lost over 97% of it's value since 1913 and is guaranteed to continue losing more value (rising prices). The question is whether bitcoin will have a role in the new emerging economic system. I think it's worthy of a discussion at a minimum. The deflationary nature is very helpful to its store of value potential. It also has advantages over paper currency as a medium of exchange. For example, if you are buying something over the internet you can transact in bitcoin without giving your personal information. Credit cards are terrible competitors with bitcoin since they are always ripe with fraud and theft.

 

[mjfan23]

Feds printing press > finite bitcoins

 

[MeatheadMike]

I would correct myself and say that the national debt rising is a predictor of future inflation, not the interest itself. Depending on interest rates, the interest expense will continue rising as a result of this and so will inflation.

"In fact it's a direct result of the Fed's counter inflation measure."
I don't agree with this at all. What counter inflation measures are you specifically refering to? The Fed is the main cause of inflation not the cure. If you look at inflation in the U.S. before and after 1913 this is easy to understand. I would also look at the value of the dollar before and after 1913 to really understand the Fed's role in this. It's crystal clear.

I'm referring to their only tool in countering inflation.... The Fed raised interest rates from near zero in 2021 to levels not seen in 20 years. I thought this would be common knowledge when discussing inflation.

 

[Rob Battisti]

Feds printing press > finite bitcoins

What people don’t realize is that the more the fed prints, the more the money is debased, the more people move fiat into hard assets, the more bitcoin goes up.

“it’s a scam”

Yeah it’s a scam that Blackrock and other asset managers are going to pump billions into. Imagine sitting there on your “it’s a scam” throne while you have a chance at a once in a lifetime asset.

 

[Rob Battisti]

Honestly, how long does the “it’s a scam” line work when the institutional money comes in?

 

[mjfan23]

What people don’t realize is that the more the fed prints, the more the money is debased, the more people move fiat into hard assets, the more bitcoin goes up.

“it’s a scam”

Yeah it’s a scam that Blackrock and other asset managers are going to pump billions into. Imagine sitting there on your “it’s a scam” throne while you have a chance at a once in a lifetime asset.

You got baited in with a troll post. I am bashing the feds inflation creation by continuous printing

 

[Renard]

The price of gold went from $1500 per oz in 2019 to $1900 today. It hasn't truly gone up in price, like any hard asset it's maintaining its' value in the face of money printing and the currency losing value. Central banks and billionaires like Peter Thiel are buying the shit out of it. I don't think you can really go wrong with it. Sometimes you guys overcomplicate things. Bitcoin is more like gambling, people buy it because they hope to strike gold and multiply their investment, it's not about having a store of value, and it's getting the shit legislated out of it because the feds can't have it be competition to CBDCs. They'll kill it if they have to, or transform it with endless legislation until it's just another CBDC.

 

[Rob Battisti]

The price of gold went from $1500 per oz in 2019 to $1900 today. It hasn't truly gone up in price, like any hard asset it's maintaining its' value in the face of money printing and the currency losing value. Central banks and billionaires like Peter Thiel are buying the shit out of it. I don't think you can really go wrong with it. Sometimes you guys overcomplicate things. Bitcoin is more like gambling, people buy it because they hope to strike gold and multiply their investment, it's not about having a store of value, and it's getting the shit legislated out of it because the feds can't have it be competition to CBDCs. They'll kill it if they have to, or transform it with endless legislation until it's just another CBDC.