2022-09-03 19:15:57 +02:00
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- Discuss the following quote from the Fiat Standard
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> While many
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people would be tempted to exit fiat debt entirely and shift to holding hard
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bitcoin savings, the continued existence and wide availability of fiat debt
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will offer a strong incentive to borrow fiat and use it to accumulate bitcoin.
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One of the smartest and most far-seeing analysts of bitcoin, Pierre
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Rochard, had identified this phenomenon as early as 2013, outlining how
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bitcoin allows investors worldwide to carry out a speculative attack on all
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national currencies similar to what George Soros and beneficiaries of low
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interest rate lending have been doing to weak national currencies for
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decades, with spectacular success. The speculative attack strategy is to
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borrow the weak currency, and use the proceeds to buy the stronger
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currency. As the borrowing of the weak currency causes an increase in its
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supply, selling it to buy the strong currency causes a decrease in demand
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for it, and results in the decline of its value next to the stronger currency.
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This reduces the value of the loan the attacker owes, and increases the
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value of the currency he holds, a highly lucrative combination. With bitcoin
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a harder currency than all national currencies, it could serve as the perfect
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launchpad for attacks against national currencies. It is a natural evolution
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of the interaction between the two forms of money: hard bitcoin is
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optimized for appreciating as it is held, while fiat is optimized for devaluing
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as it is inflated and lent. The likelihood of speculative attacks casts doubt
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on the monetary upgrade scenario discussed above. How long can fiat
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survive if people can keep inflating its supply by borrowing it to buy harder
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2022-10-06 19:36:12 +02:00
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bitcoin? We have never seen a similar situation and it is hard to estimate how this will unfold.
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2022-10-23 17:25:02 +02:00
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- For episode 6: we got our altitude, now get ready to glide to our destination
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- Make a series on the planning behind Operation Saylor
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- On why it makes sense to borrow in weak currency to buy strong assets
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- On the simulation of it
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- On why it's not such a big deal. People take crazy loans to buy houses, acquire cars and pay for weddings.
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Buying a hard asset is unlikely to "go to zero", and it's rather more probable to simply lose a small % of the
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total value.
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- Show the simulation notebook
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- On orange pilling friends and family
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2022-10-06 19:36:12 +02:00
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- Compare the decentralized nature of marijuana production and consumption
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- Talk about the V for Vendetta movie, perhaps Matrix as well?
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- Present my crazy idea on tipping sats on students
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