Feels like some ppl forgot why bitcoin even exists
Sure, number go up is cool
But the whole reason bitcoin exists in the first place
Is not because of number go up
Its becuase of number go down
Im talking about fiat
The evil that is dirty debasing manipulated fake money
Yes thats right. Bitcoin is not the fake money
Fiat is the fake money
Green pieces of cotton, or more accurately, numbers on a screen created out of thin air by a government that promised to back them with real money and then ran a bigger rug pull than any crypto platform ever could
Dollars backed by the FuLL fAitH aNd cREdiT of the US government
When in reality that faith is nothing but broken promises and that credit is littered with implicit defaults
the notes are redeemable for gold, until theyre not
Youre allowed to hold the gold, until youre not
Those dollars are worth a certain amount of gold, until theyre not
Their value is diluted at a “reasonable” rate, until its not
this is the reality fiat.
This is the broken manipulated money system that drives up the cost of living, distorts price signals, and drives massive asset inflation and wealth inequality (forever)
its dirty dog shit manipulated money that steals from you
steals your time and energy and the value of your labor and destroys your future.
It’s designed to enrich those already in power and steal the life force of everyone else.
Printed money does not produce wealth
it transfers wealth
Thats why we’re here. Or at least, thats why bitcoin exists.
Thats the origin story of un-debaseable, uninflatable, un-manipulatable money
That and the power of permission-less-ness and censorship resistance
i just wanted to remind some of you why we’re here .
Yeah number go up is cool and all that
But bitcoin is more than that
the world needs bitcoin
Becuase if bitcoin fails, then we’re left with fiat
And I dont believe a fiat future is good for the world
Here’s what a fiat future looks like
It was 55 years ago in 1971 that the US officially “went off the gold standard”
Again a very cute way of saying the “full faith and credit” is worth less than cat shit wrapped in dog shit
I want to show you what another 55 years of the same broken manipulated money would look like
CPI inflation since 1971 has averaged 3.9% per year
A pretty far cry from the fed’s supposed 2% inflation target
2% inflation cuts the real value of your money in half in about 36 years
3.9% cuts it in half in about 18 years
According to CPI , $100 in 1971 has retained about 12% of its purchasing power,
Meaning today it buys you $12 worth of real goods and services
But as we know, CPI is a manipulated joke
A closer measure to the real inflation rate is the increase in the money supply
That has grown from $600 billion in 1971 to almost $23 trillion today
A 36X increase
Or about 6.7% per year compounded
If you measure the dollar’s debasement by that rate, $100 has retained less than $3 worth of purchasing power
In another 55 years, at that same growth rate, US M2 will surpass $800 trillion. Trillion with a T.
A Trillion is a thousand billion you know
And that 100 dollars from 1971 will be worth less than 8 cents in real purchasing power terms
What about the national debt?
Many people think its already unsustainable at a whopping $39 trillion, with the annual interest expense over $1 trillion
That debt has grown roughly 98 times since it was around $400 billion in 1971
So at that same growth rate of 8.7% per year,
in another 55 years,
it will surpass 3.8 quadrillion
Thats 3,800 trillion
Thats 3,800,000 billion
And the interest expense on that debt would likely surpass 68 trillion dollars per year
Most people would say Oh thats absurd. That’ll never happen
Really? Do you think in 1971 they would have thoguth it realistic that the national debt would ever hit 39 trillion?
Do you see any signs of it slowing down or reversing trend?
On the contrary, its doing the opposite, its accelerating.
even j pow admits the trajectory is unsustainable
but even he cant do anything about it.
becuase its like an anti-virtuous cycle. The more they borrow and print, they more they have to borrow and print
How about housing? You think its unaffordable now
The median home price has increase by average of 5+% per year since 1971.
Its gone from $25000 to over $400000
And in another 55 years , the median home price in the US will be nearly $6.5 million (congrats if you own one i guess)
Do you envision a world in which wages keep pace, and the average family can afford a 6.5 million dollar home?
Or $550K / year college tuition
Or a $625K new car?
Me neither
The numbers become completely absurd
This is why we call it a fiat ponzi
The system is so bloated and broken that it requires perpetual expansion to remain stable
Perpetual expansion means perpetual debasement
Dont give me this BS about it being economic growth
Printing money is not the same as productivity
In fact it actually inflates away the real gains of productivity
“Oh but AI and robotics will drive so much productivity it will lead to abundance”
Did you forget about the central bank’s 2% inflation target?
(the one thats actually a 3.9% inflation track record)
Its an oxymoron. Increased productivity is not allowed to drive prices down and lead to abundance.
The producivity gains are inflated away and funneled to the top. By definition and by design.
We only share in those productivity gains if our money is allowed to capture them in the form of increased purchasing power
Increased purchasing power is the result of falling prices
But prices are not allowed to fall.
So the fiat future is a disaster
Thats why bitcoin was created.
Chancellor on brink of second bailout for banks.
Someone in power always on brink of bailout for someone who’s not you.
The true cost to be paid by your savings, your wages, your children
The world needs permissionless, censorship-resistant, un-debaseable money that no man can print or control.
This is why we have to win.
Number go up is a nice side effect of winning
But if we lose, number go up is a hollow victory
Bitcoin is money. Everything else is dog shit
Quit slacking and start stacking.
