part 3 #StartInvestingInCrypto
Bitcoin is permissionless, trustless, stateless, unregulated, uncensorable, decentralized. Bitcoin is the answer to everything that’s wrong with the futile fiat currency.
Just imagine me and you can transact directly with each other without having to trust any 3rd party.
In spite of Bitcoin being superior to Fiat money, I have a slight contrarian opinion on Bitcoin that it should not be perceived as currency at the moment as we are still early in its adoption cycle.
Instead, investing in Bitcoin should be viewed as investing in an asset just like one would consider investing in any other assets like real estate, stocks, bonds, gold, art, baseball cards etc.
If looked from an investment lense then the question changes to why Bitcoin asset is a good asset class? To answer that let’s look at what has happened in the last 9–10 months.
The US government has systematically weakened the dollar
Most governments usually have 2 tools at their disposal to manipulate the economy — change interest rates and print money to buy assets (Quantitative Easing).
You might be thinking I don’t live in the US. Why do I care what they do? It’s because the US Dollar is the world’s reserve currency. Several countries have pegged their currencies to the USD Dollar.
The US government has printed $9 Trillion Dollars this year to stimulate the economy — that’s two-thirds as much money in the last 6 months as it did over the prior 11 years.
The US government has systematically weakened the dollar
Most governments usually have 2 tools at their disposal to manipulate the economy — change interest rates and print money to buy assets (Quantitative Easing).
You might be thinking I don’t live in the US. Why do I care what they do? It’s because the US Dollar is the world’s reserve currency. Several countries have pegged their currencies to the USD Dollar.
The US government has printed $9 Trillion Dollars this year to stimulate the economy — that’s two-thirds as much money in the last 6 months as it did over the prior 11 years.
