Bitcoin is stalling, and the digital asset index has fallen from its all-time high.
“If you still think [Bitcoin] is a hedge against world events, or represents ‘diversification,’ you must stay out of finance and take up some other hobby, such as stamp collecting, bird watching, or something less harmful to yourself & others,” a no-filter Nassim Taleb tweeted.
This encapsulates monetary culture in the current state of cheap money.
This constant call for the Fed to prop up markets has given the false impression that the US monetary system is on the verge of collapsing, that we are on the verge of a major economic regime shift. However, it is not on the verge of collapsing. The financial nonsense we’re witnessing is just another symptom of a dying economy.
The path to transforming the United States into a more “euphoric utopia” has always been to address corruption, bribery, and lobbying in society’s upper echelons, to root out the corrupt actors within our major monetary, social, and political institutions, except that this is not how the system currently works. We are constantly diverted from addressing major issues by propaganda and manipulation, focusing on minor issues at the bottom of an ever-expanding inventory.
One of those insignificant issues is that we need to “fix the money,” but, contrary to popular belief, the fiat system was created by consensus and natural long-term money cycles, not by conspiracy.
Citizens’ passion and energy are increasingly being directed toward the most implausible solution: the dogmatic mainstream movement of “Bitcoin maximalism.”
The dogma and doctrines of Bitcoin, as spread by crypto swindlers, continue to perpetuate monetary myths and misinformation throughout the general populace while eliciting an emotional reaction in citizens to entice them to join a cult-like movement, one that hopes they have no understanding of how the modern monetary system works or how money is more than monetary, i.e. it is social and political as well.
Bloomberg interviewed attendees after Bitcoin evangelist and dictator Nayib Bukele held “Bitcoin Week” in El Salvador, but almost every claim they made about economics and the monetary system was either incorrect or simply false.
Myth No. 1: The US dollar is about to crash! # Fact 1: The United States has its own printing press, and so long as the Federal Reserve does not print more currency than economic productivity in the real economy, it can print as much as it wants, as long as Washington D.C. allows the debt ceiling to rise, which it always does. When the US has access to unlimited funds and holds global reserve status, it cannot go bankrupt or default on its debt.
#Myth 2: Money printing by the Federal Reserve is causing hyperinflation! # Reality 2: Despite a 40% increase in the money supply, which is only one of many factors contributing to inflation, such as supply chain issues and the great COVID reopening trade, inflation remains at 6.2 percent. This is because the Fed only “prints” bank reserves that cannot enter the real economy and can only be traded between banks.
#Myth 3: But the government exaggerates inflation rates! It’s most likely closer to 15%!!! #Reality 3: The 15% figure is based on ShadowStats and the Chapwood Index, which simply added a random integer to the CPI index with no scientific or economic methodology to support it. That’s it. Despite the fact that many economists dismiss this as deceptive pseudo-economics, it has become unarguable in Bitcoin circles.
Trying to implement ultra-hard money like Bitcoin as the global reserve currency in 2021, when we’re experiencing all-time lows in global poverty, border invasions, and war, is akin to asking Tether’s executives to perform a full audit: it won’t happen.
Bitcoin dogma correctly observes that many systems built for the common good have been corrupted from within, but it proposes the most destructive solution imaginable: abandon efforts to improve these institutions and completely eliminate them, eradicating all laws, rules, and protocols. They claim that this will result in a utopia, but it will instead result in a dystopia akin to The Purge: Anarchy, in which Bitcoin replaces US dollars.
Instead, we must focus on the never-ending list of issues at hand.