Bulldozer00's Blog

Before reading further, don’t forget that BD00 makes schitt up when he’s too lazy to look up details on the topic he’s writing about.

With that out of the way, the graphic below shows what happens in all fiat-based, nation-states over time. Since politicians are too chicken to raise taxes for projects they believe will help the country prosper, they continuously borrow money with no intention of ever paying it back. Wouldn’t it be nice if citizens could borrow money without ever having to pay it back? The politicians borrow money from the public and, when the public doesn’t want to part with their fiat because of “trust” issues, the central bank waltzes in and prints money out of thin air to soak up the unwanted debt. Wouldn’t it be nice if citizens could print their own money out of thin air whenever they wanted instead of having to work their asses off for it?

As the money printers go “burrrrrrr” and the money supply gets exponentially inflated like that guy in the Monty Python movie, the purchasing power of each fiat unit decreases until the system implodes. I read, in one of the many fine Bitcoin books, that no known fiat-based systems have ever survived 100 years.

So, how does Bitcoin break the mold on the exponential fiat model of destruction? Bitcoin’s 21M hard limit may (and should) convince some fiat-based nation-states to assume fiscal responsibility and bend their curves to the right to avoid a massive loss via capital flight into Bitcoin and other stores of value.

For those nation-states that don’t assume fiscal responsibility and stop their reckless paper printing, Bitcoin will suck up all the purchasing power as the fiat holders jump ship into the safety of the Bitcoin network.