As the overplayed adage goes, “where there’s a will, there’s a way.” Throughout history, governments have identified emerging threats and sought to eliminate them through heavy-handed bans, or regulations so stringent that they are effectively bans themselves.
In the last two months of the year 2020, the price of bitcoin has matched and surpassed its 2017 all-time high. But unlike the previous time, the general feeling is not that we find ourselves in a bubble that is about to pop. On the contrary, it feels like major investors and hedge fund managers are just discovering that Bitcoin can help them protect their savings against the inflationary tendencies or the US dollar.
“I think that Bitcoin (and some other digital currencies) have, over the last ten years, established themselves as interesting gold-like asset alternatives, with similarities and differences to gold and other limited-supply, mobile (unlike real estate) store holds of wealth.”
“Do not assume that your traditional currencies are the only stores of value, or mediums of exchange, that people will ever trust. Tech-savvy people are not likely to stop looking for alternatives, until they find or invent one.”
The American legislature must let the American dream flourish and extend its power to Bitcoin, or it will be compelled to obey the law, and this has started to happen.
One may wonder how long it may take for bitcoin to become the world’s dominant numeraire — the underlying unit of measurement of value that we collectively use to price assets and consumer goods.
Investors who wish to add an exposure to Bitcoin in a traditional investment account, such as a retirement plan or a cash account, may do so indirectly by buying publicly listed stocks of companies involved in Bitcoin.
Future generations that are free to transact globally, instantly and securely with a money that’s always on and incorruptible will look back on this period of fiat history and wonder how some could’ve ever been stupid enough to think that Kelton economics, in which 2 + 2 = 435, would last.
Hopefully I have demonstrated, at least in part, that if we were to take the best aspects of traditional psychotherapy and modern psychological science to design a money that is compassionate, healing, and equitable, which promotes the best opportunity for human well-being and optimal psychological functioning, then Bitcoin is that money.
So, as Bitcoin and its community moves forward, let’s make sure to raise your glass or pour out some Club Mate in honor of a magical place and time: To the freedom of transaction, to blockchain eternity AND BEYOND!