I see money and currency working alongside each other.
Bitcoin will actually allow the dollar to last longer than we expect.
And that's because if the US govt is going to build a Bitcoin position, those positions will increase in value faster than the interest on the existing debt, so by owning bitcoin you can prolong the Fiat system.
Bitcoin is not a risk-on tech stock.
When they add Bitcoin to the balance sheet it actually strengthens the credit worthiness of the country.
So the idea of a Bitcoin money and a fiat currency is not that farfetched of an idea because Bitcoin is really just replacing real estate as a base layer pristine collateral.
Replies (3)
You want to have a collateral that increases in market price over time so that the debt ratio decreases.
Fiat currency serves as horrible collateral.
Real estate is used as collateral within the scope of the Fiat system because money loses value and if you own a scarce asset such as real estate it will go up in nominal value and you can use it to hash against your debt and use the cash flow to pay back your debt. But real estate is not meant to be used in that way.
It actually has a utility value.
Land used to build value and was always agriculture based. But since the Fiat era, now buildings can be built and used as a tangible store of value only because our money doesn't serve as a good store of value.
So therefore real estate is really the backbone of the global financial system now whereas gold used to be the backbone of money.
This is a problem because it's not a good form of collateral.
Bitcoin works as a much better form of collateral and I like the idea of dual collateralization of Bitcoin and real.estate.
Bitcoin slowly fullfils the role real estate did which is a real role of money.
There will be different currency systems both public and nation state and private.
