1/22 In my estimation, soon, in the not too distant future, as a consequence of fiat collapsing, governments will offer #bonds programs for #Bitcoin that simultaneously rival both interest yielding #DeFi products as well as investment-visa type citizenship programs.

2/22 The fiat system is about to collapse. Interests rates are at zero, some negative. The debt-to-GDP ratios are at historic highs. Economies suffering from lockdowns, but stock markets are up, real estate is up. Why? Money printing.

3/22 By creating tremendous amounts of new currency and handing it to their banking buddies, the Fed is pumping liquidity into the markets while debasing the currency.

Everyone thinks they're getting rich, while it's actually the currency losing value. Same numbers.

4/22 The only way out would be to sharply raise interest rates, which nobody wants to do as it would immediately collapse the economy due to the enormity of the debt.

So there's really only one practical, and very popular, option:

PRINT MORE MONEY

5/22 It's easier to get free money from the gov than ever if you're a bank, but it's also harder than ever to find anything worth investing in.

They want to 'buy low, sell high' - how do you do that when everything's in a bubble?

Bankrupt companies kept alive by Covid relief.

6/22 Price signals don't work anymore. You need something completely unrelated. Something not manipulated by governmental subsidies. Ideally, it wouldn't even pay out in fiat, so it wouldn't be affected by inflation.

Enter #Bitcoin

7/22 #Bitcoin is a decentralized network, relying on voluntary cooperation of its pseudonymous participants to run the same code, which enforces the rules of the Bitcoin protocol.

No CEO.
No Company.
No Nationality.

8/22 #Bitcoin enables the participants of its network to transact directly with one another in #Bitcoin without relying on any intermediaries. Transactions are broadcast to the decentralized network in secs, final settlement in 30 minutes.

* Network for financial transactions.

9/22 #Bitcoin is a decentralized store-of-value. If fiat is under threat globally, how to preserve and grow wealth? Gold in Switzerland? Maybe. Seems so WWII though, shiny rocks in a vault... Isn't there something more adequate for the digital age? And safe?

10/22 Running since 2009, Bitcoin's been up, ticking away and adding another block to the blockchain around every ten minutes. The SHA-256 encryption stands strong, it's difficulty adjustment always optimizing for the hash power provided by the miners. Super stable.

11/22 The inflation of fiat can go on forever - you can never count to the highest number, can you? But #Bitcoin is capped at 21 million Bitcoin total supply. Ever.

47 millionaires in the world, only 21 million Bitcoin. You do the math.

12/22 Bitcoin's inflation until reaching the supply cap of 21 million is known, and the last 2.x million #Bitcoin will be mined at a diminishing rate over the next 120 years. Up to 3.5 million Bitcoin may also have been lost, mostly in the early phase at low value.

13/22 The mechanism by which new #Bitcoin are created, mining, is essentially based around guessing random numbers. Guess the right one & unlock some of the Bitcoin that had not been released into circulation before. Every four years the reward for this lottery gets cut in half.

14/22 This so-called halving event essentially makes it less profitable to be a miner and collecting a reward in newly issued #Bitcoin by guessing the right random number.

The halving usually precedes a subsequent market that peaks 18 months later, followed by a market.

15/22 All of this is done by a network of miners, node operators, investors and users that cooperate voluntarily without necessarily knowing each other's identities, nationalities or religious beliefs or having any other interests in common other than wanting to use #Bitcoin .

16/22 Everyone is incentivized to contribute. Miners collect rewards and fees, nodes add an extra layer of safety to the transactions of the one running the node, investors made an avg of 200% annually over the last 10 years and it is being used constantly for transactions.

17/22 First only techy geeks and freaks had #Bitcoin . Then the libertarian crowd got it. Then some early finance guys started showing up. Then came the bankers. Family offices. Hedgefunds. Then companies. Next governments? Why not?

18/22 It seems clear to me that, just like anyone else in the #Bitcoin network, states are also incentivised to attract the asset as well as those holding it. You want foreign money to wash up on your shores and be spent in your local communities? Hard money, solid money?

19/22 Start giving them preferential treatment! Since #Bitcoin goes up an average of 200% per year anyway, how about a discount for paying taxes in Bitcoin? How about zero capital gains tax? Quicker path to residency permits or even citizenship? Why not?

20/22 As soon as one major nation's central bank starts putting #Bitcoin on its balance sheet, the game is on.

Remember, any nation wanting to do so theoretically can just print their currency into oblivion overnight and buy insane amounts of Bitcoin with it.

21/23 What about a program where you can get temporary or even permanent tax-free residency by locking up some #Bitcoin in a governmental bond-type smart contract? Gov can collect yield, you get protection and perks. Win win.

22/23 #Bitcoin will continue to morph and surprise all of us.

Becoming the unit of account for the financial system of the world is but one step in its path, albeit an unavoidable one.

I think life will be good in the citadels. I think they're already built.

23/23 f you've enjoyed this thread, throw me a like or a follow & share this thread!

It helps keep me motivated to take a break from my relentless shitposting and throw out a thread like this every once in a while.

Thanks!

~End~