I’ve been thinking a lot about why a technology, network, and protocol like Bitcoin matters to the world, as well as the progress made by the leading digital asset over the past decade. Bankers like Jamie Dimon have called it a scam, and venerable titans of finance like Warren Buffet and Charlie Munger have referred to Bitcoin as rat poison squared. Some people think the centralized banking system is feeding a high velocity trash economy as stated below.
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“Manipulative Keynesian Statists want to tell you what to do with your money. They don’t want you to hold your money, they want you to spend it on lubricating their high velocity trash economy. They use inflation to force you to invest in the corrupt system. Bitcoin fixes this.” – Pierre Rochard
Meanwhile, other ex-Wall Street-ers and other traditional finance types understand the value of Bitcoin and a few other cryptocurrencies.
People like Novogratz of Galaxy Digtial Holdings who’ve worked at outfits such as Goldman Sachs, and the Fortress Investment Group, Dan Tapeiro, and still others like Dan Morehead, who’ve managed billion dollars with hedge fund strategies see the blockchain light. They have placed their claim in the cryptocurrency and blockchain sector.
These high finance professionals invest in blockchain-based companies, personally hold Bitcoin and other cryptocurrencies, and some of them even run firms within the sector.
Many more have converted from the traditional finance field and technology and have launched projects within the sector with support from lauded technology incubators like Y Combinator.
Indeed, the leading digital asset and network, Bitcoin and BTC futures is volatile and divisive.
We’ve been tracking the Bitcoin price, and it’s clear; you either love it or you don’t. You either see it as a hype machine or a truth machine.
Why Do Bitcoin Enthusiasts Love Bitcoin?
Those who are a fan of the digital asset and genuinely understand it primarily love it because of the underlying economics present within the protocol.
Bitcoin is scarce, with only 21 million units. There are other real value propositions, such as the fact that users can send value to anyone across the globe without traditional third-party platforms. They love that Bitcoin incentivizes holding of value instead of pushing regular consumption.
The idea is that a wealth move toward Bitcoin should incentivize and increase collective value and minimize wasteful creation and consumption. As mass adoption takes place, more would think about the purchases they make, how they spend their time and where they spend it.
Those who subscribe to Bitcoin economics state that the spending oriented culture creates perverse incentives that destroy wealth. They point to issues planned obsolescence, and the fact that people go into debt to buy clothes and stuff they don’t need, cars they can’t afford, and houses that continue to go up in price, pushing off ownership and instituting a renting economy.
Indeed, the Washington Post noted earlier that more than 5 million Americans are behind on their car payments, student loan debt causes some students to go hungry, and the high cost of housing is pushing people to other areas. Some talk about how Millennials face a wealth gap and postpone creating a family and buying a house, instead favoring adding dogs and cats to their lives due to a wealth gap and other factors.
Bitcoin: The High Velocity Trash Economy Antidote
Bitcoin culture is born out of excessive levels of debt, frustration with government, and a broken economic system. Bitcoiner thinking may revolve around simplification of choices and value creation. Which is one reason why Bitcoin is often referred to as digital gold.
As a former nurse and author of the book The Top Five Regrets of the Dying, Bronnie Ware states, “by simplifying your lifestyle and making conscious choices along the way, it is possible not to need the income that you think you do.“
It’s not working hard to pay off debt and push savings into the future regularly. No, its more about saving now and pushing consumption into the future while allocating money to what accurately matters today. The right-thinking minimizes the need to take on debt and conduct excessive spending.
For instance, concerning student loans, individuals who end up working as a barista even after graduating from college with excess student debt could have just done that from the start and have a simple personal balance sheet.
Healthcare without insurance is killer, with coverage, slightly less so.
Large corporations in the “high velocity trash economy” optimize for taking on debt to conduct buybacks at stock levels that are far from value while managers reward themselves with stock options and benefits.
As noted earlier, even in Silicon Valley, a seeming hotbed of innovation hasn’t produced the substantial value we hope to see.
Startups such as Uber went to market with high valuations but were cut down by the invisible hand. These startups may produce value by improving mobility and ushering in autonomous cars and artificial intelligence, but at the same time still, incinerate massive capital.
Investors in the “high velocity trash economy” wonder how many cash-burning delivery companies can the market support? How many direct consumer startups and high velocity trash economy companies such as WeWork come about before a global economic reset happens?
The fact is that from healthcare to education to jobs, things aren’t making as much sense. People are pushing back and not always in the most healthy ways. Politicians receive push back across the world through protests around taxes and other economic issues. Argentina, Chile, France, Lebonan, and other countries undergo regular protests due to economic unrest.
There’s an increase in populist leaders for a reason.
Real progress is needed, and it won’t be fixed by financialization but by changing cultures.
“Thanks to Bitcoin, savings-induced deflation will transform human civilization for the better: long-term thinking will be incentivized. The present high-velocity trash economy was built by Statist Keynesians and is subsidizing short-term thinking.” – Pierre Rochard
A solution like Bitcoin is not necessarily the whole solution but can serve as a vital component in bringing about a healthier and sound economy.
A high velocity trash economy is about quantity, that hasn’t worked.
The new luxury is time, freedom, mental health and a search for quality.
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