Us Treasury, Bitcoin, El Salvador discussed on What Bitcoin Did
'cause they found superior alternatives to do what they were always intending to do as they do that as a start to sell bonds to buy bitcoin like why own a us treasury that yields fifty basis point when the government is two or three accident the supply of currency. That essentially will will celebrate. It will impair the credit impulse at the same time that Inducing the credit system to contract. Which because it's as as leveraged as it is will induce Basically the credit system to collapse not because of bitcoin but because the system itself is is so fragile and so unsustainable an ad as that happens it will actually accelerate the the quote need of the central bank to print more money to keep the system propped up and so it will actually feed on itself and accelerate whether the critical mass of bitcoin is ten percent of people or twenty percent of people. It's unclear but i think psychologically once it gets to that point where it's like one in ten people adopted bitcoin or two in ten One in five that that things begin to to really accelerate the that the marginal cost to adopt bitcoin and the uncertainty about it becomes lower and lower and its value proposition is inversely related to. It's really interesting because it feels like feels like we look closer to that point. And i thought we would be during this like i didn't expect to see companies come in by the amount decline sunday to government making bitcoin legal tender. Which is we want two weeks away from. That says seven happens I think that is going to be really interesting project for bitcoin with see how that plays out el salvador. See why she happens to the country. I mean how much are you roy on that almost like a testbed for lens into the future walk. Bitcoin camin for a country where it is legal tender that where is essentially i guess. Taking taking 'em away from their own government for the things they can do. I mean look. We know that don't have their own currency as it is but is putting them in a very different situation. Yeah and i think that you know. It will do wonders for el salvador. Ultimately i think that in terms of the grand scheme of bitcoin. what would most important function as that normalizes kind of re anchors. What is this because You know one brave soul or a group of brave souls. Were willing to to be early in that but the same thing is true. Virtually everything so michael sailor first person to come out and say i'm shifting over my corporate balance sheet to bitcoin to the tune of ninety percent of dude maybe now is like ninety five percents of right that that there there is always Like definition only somebody has to move. I right so i but i do agree with you. That that i wouldn't have expected company like micro strategy to come out and do that is early as they did or el salvador But to that question of it feels feels functionally different today than it did. Twenty four months ago in a in a critical thing happened. Which was there was a massive imbalance in the system. People attributed to cova coleman might have exacerbated that but when the fed came in imprinted three trillion dollars in three months that took people from being a frog in a pot of water that solely boils versus throwing a frog in a boiling pot of water..