Why I stopped investing in the Fiat Ponzi and started saving in Bitcoin

This opinion editorial is by Mickey Koss. He is a West Point graduate with an economics degree. After four years in the infantry, he moved to the Finance Corps. Every year, I could feel the American dream slowly disappearing. While we paid our bills and contributed to retirement accounts, it felt like things were getting tighter every year. It was a little more difficult to contribute what we needed. We found Bitcoin and it gave us hope. “Striking is mutual pain. A game of chicken. The game was changed by Bitcoin. It made striking more valuable for the striker. “-Matt Hill, episode 75 of “Bitcoin Audible,” Now my wife and me are on strike like many others reading this article. After the COVID-19 lockdowns in 2020, I felt a sinking sensation that the world would never again be the same. The results speak for themselves. Ultimately, the results speak for themselves:Top central bank balance sheetsWe Need Better CriticsOne of the most commonly-cited critiques I hear from seemingly-sophisticated investors and economic PhDs alike is that Bitcoin is a Ponzi scheme: a game of the greater fool buying from the scammy huckster as the earlier investors dump their bags on the new.LinkedIn post that inspired this article, accessed on November 27 but since deletedThe above post beautifully illustrated the complete lack of understanding, let alone critical thinking, surrounding this particular line of FUD. It is surprising, but not surprising, given my recent stint as an academic: “The whole thing depends upon even more people parting their savings Is this not true also for the stock market?” The housing market The commodities market? This logic explains why every market that has fluid pricing based on supply/demand is a Ponzi scheme. It seems like it is time to return to the barter economy. Source: The above image shows the Shiller PE ratio of the S&P 500. It is the price to earnings ratio for the stock exchange, adjusted for inflation. Can you say “Cantillon effect?”? Fiat is The PonziCrypto. This is a symptom. Years of nihilism and pent-up nihilism have led to get-rich-quick schemes that see the world falling apart around us. It’s easy to see why. It’s not crypto. And crypto isn’t Bitcoin. Federal Reserve economic data: M2 money supplies vs. S&P 500. In what seems like a blink of an eye, trillions were created to stop the system from collapsing. The stock market boomed suddenly, while everything seemed to be crumbling. I can’t blame the central bankers. They responded to their incentives and did what they needed to, but the results were devastating. The graph below is one of the most striking examples. It shows that you should buy any house, no matter how small. If you don’t have a house yet, saving could be the best option. You may never be able to afford one. It doesn’t take much empathy to understand the financial despair many people are feeling right now. Federal Reserve economic data: M2 Money Supply vs. Housing Price Index. I have to admit that I am not a professional statistician but the charts seem to show some correlation. CPI inflation might not be the problem. Asset price inflation could be causing savers to become part time investors. Supply and demand has a price impact on bitcoin, yes, but does the stock market not require new money to support prices as well?Bitcoin Is SavingsSavings: Money put by the excess of income over expenditures.-Merriam-WebsterSo, why can’t we just save money anymore? These FRED graphs tell it all. You will never catch up if you don’t become a investor. This is what it was, up to now. Bitcoin is our savings in a world that lacks investment worthy items. We won’t sell it even if it reaches $1 million tomorrow. What price would it be worth? To diversify? What? A stock market that is completely dependent on money printing? A property that our tenants will not have to rent after a politician touches a pen. A shiny rock with “intrinsic worth”? What you don’t know is that we’re playing a completely different game right now. What you don’t know is that we’re trying to create something new, a better future and a better world for our children. If you believe bitcoin is doomed, then you should short it. Profit from our demise. I doubt you will. We will continue to buy and hold, front-running Wall Street and anyone else who refuses even to try to understand Bitcoin. We have no resentment or anger toward you. We don’t wish to eat the rich or to destroy the system; we just don’t want to follow your rules anymore. Even if we sink with the ship, we will have lost everything fighting for something we believe in. This guest post is by Mickey Koss. These opinions are not necessarily those of BTC Inc.

 

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