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The Bitcoin Usurping

Since the USD is the world’s reserve fiat currency, it is the preferred medium of exchange for international trade settlement. Everyone wants USD for now, but the Bitcoin “usurping” is looming.

The figure below shows the preference for USD over local crap currencies when goods are traded between nations. Even though every country (including the US) debases their fiat currency by printing more of it whenever it’s politically convenient, the relative stability of the USD has kept it in the pole position for decades.

Since the US federal reserve continues to print fiat like there is no tomorrow ($5T for the current bailout (so far) vs. a measly $800B for the 2008 bailout), the continued stability of the USD is being questioned. Because Bitcoin cannot be debased by minting more than 21M coins, and its usage is a way to efficiently bypass the archaic, US-dominated, SWIFT protocol network, not many nations want the Bitcoin usurping to fail; especially China and Russia and all the countries being financially surveilled and sanctioned by the US.

As a US citizen, it gives me no pleasure to graphically show you the impending, step-by-step, Bitcoin usurping of the USD as the medium-of-exchange for international trade.

I have no idea when, or how fast, the usurping process will unfold, but odds are high that I won’t be around to see it. That’s ok, because I don’t think it’s going to be a violence-free, globally-coordinated, process. The US will not sit idly by and watch their greatest lever of international power dissolve in real time. But hey, don’t fuggedaboud this….

Categories: bitcoin
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