This story has been on my mind for quite some time…
It is complicated and tricky, but it is also fascinating. If you have Bitcoin, you probably want to spend 10 minutes reading this post because it is essential for your future, and so much goodness is coming.
We will start this lesson by discussing debt first and how the world is built on a house of cards.
This structure is going to break in a matter of time. The question is, could Bitcoin save the day?
Then, we will compare traditional debt to Bitcoin debt and look at real-world examples of how Bitcoin can be used to buy a house and all the benefits that come with that.
We will also look at some controversies and criticisms. We will conclude with the transformative potential and price targets for Bitcoin.
One key thing to note is that financial markets are debt refinancing mechanisms.
They are not capital allocators, which means basically everything has changed. Who can finance and refinance with what collateral?
We see a new world where financial plumbing, systemic risk, and liquidity survival are the most important things out there.
Many are talking about central banks being the collateral backstops to keep economies alive, with things like QE provisions serving as the dealers of last resort to backstop collateral.
You have repo operations to stabilize short-term funding rates, which in the U.S. alone is massive. You have FX swaps to cover cross-border dollar shortages. Modern central banking is less about interest rates; it is more about managing the plumbing and keeping the money rolling, and everything is built on a house of cards.
These are all elements we need to
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