The USD is Tulip Mania—BTC is not

Please don’t pay any attention to this posting. It is not for you… *

This graph presents indisputable fact: It compares US dollar growth as reported by the US government and Bitcoin growth (for all time), extrapolated by pure math.

I wish that this would put to bed the fake news, conspiracy theories, and “nothing backs it” nonsense. Unfortunately, seismic shifts in architecture or process take time for society to understand and accept. Early adopters will be the fortunate buckos. Timid or clueless denizens will complain bitterly about the unfair advantage of those who wise up before it hits a 6 figure exchange rate. Eventually, comparisons with legacy currencies will be utterly meaningless. It will become the currency. It will be the gold-pressed latinum of universal recognition and intrinsic value.

15 years from now, some will look back on our era and claim that the Winkelvoss twins were lucky. Risk, patience and an understanding of economics is not ‘luck’. They have the gift of prescience.

Bitcoin cannot be manufactured. Despite it being open-source and easily copied, it is very unlikely to be displaced by an altcoin or ICO. The fact that there will never be more than 21 million original bitcoin presents incredible opportunity to the frugal and wise—for a short time.

* Hopefully, few people will heed the siren call. Investing is Bitcoin might be good for you, but it is bad for the community. How so?! The more that individuals or institutions hoard, speculate or invest in Bitcoin—as opposed to driving adoption by actually using it—the longer it will take to gain traction as a functional payment instrument, or as the money itself.

So, this article is not for you. Move along. These aren’t the droids you’re looking for.

Credit: (title & image): Peter Bergstrom
Did you catch the omage to both Star Trek and Star Wars? Look again

5 thoughts on “The USD is Tulip Mania—BTC is not

  1. Fact: Since the Bretton-Woods agreement the entire Western world has drunkenly surrounded and gorged themselves the Federal Reserve punch bowl, which has allowed the US government to rise to an artificially and unsustainable position of world economic dominance.

    It’s not conspiracy talk to discuss the end of this phenomenon. It’s mere mathematical analysis – borrowing on credit ALWAYS incurs future payments or future defaults. It’s one or the other. Can’t be both. And the longer the US gov. pushes off the decision between the two, the harder the crash will be.

    This stands entirely opposed to the intentionally and irrevocably capped supply of bitcoin (and many cryptoassets). Whereas most of the reputable cryptoassets guarantee a hedge against inflation by definition, fiat currency literally encourages it. There is a DISincentive to capping growth in a fiat currency system. A money regulator is penalizing himself to not print more.

    I can’t wait until we are all able to leave this punchbowl and never return.

  2. This is such a stupid opinion. Neither are anything like the tulip bubble. Moreover, there is a lot of evidence that the tulip bubble didn’t really even happen as it’s reported.

    You libertarians focus on printed money as the metric for sustainability of the currency. The stupidity is that you don’t actually understand these charts or the inflation or the fact that you probably took your cash and invested it which means you’re not even subject to inflationary pressures.

  3. Anyone who associates Bitcoin with Tulip mania is clueless on Bitcoin (and probably Tulip mania). Bitcoin is not like tulips at all. Tulips can be easily replicated. A tulip is a flower – even a rare one can be replicated ad infinitum. Bitcoin cannot. That makes ALL the difference.

  4. Joshua – printed money does not necessarily cause inflation, but that isn’t really the Libertarian argument. It IS one of the factors, a big one. Money that exists locked away in a safe for 20 years has no inflationary impact, true. But it has *inflationary potential*. You can compare this to kinetic energy stored in a rock sitting on top of a mountain. Sure, that rock can sit there for years, not causing anyone any bother. However, eventually, a big storm will come and water will wash away the sediment that holds it in place and the rock is no longer planted as solidly as it once was – perhaps enough to let it slip just slightly, and gravity steps in to do the rest. The kinetic energy stored in that rock is unlocked as it tumbles down that hill, hitting other rocks, unleashing ever increasing amount of energy. Eventually, it becomes an avalanche.

    As to ‘invested money’ – it’s not actually locked away inside a box marked ‘investment’. It is spent again and again driving inflation.

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