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