re: Powell: ‘The US is on an unsustainable fiscal path’

quote:

---

You've probably posted it before but I've not seen it - I'm interested in your opinion on Bitcoin as an off-ramp from the dollar to some meaningful degree.

---

I actually haven't, my BTC posts are very few and far between as I understand just enough of it to believe I don't understand enough.

I see Bitcoin as a bit like gold in that there is very finite amount of both in the economy at any given time, at least until more is mined. Theoretically you can fractionalize an ounce of gold down as far as you need to buy a stick of gum, but the reality of it is that getting down to that level would mean carrying around sacks of gold dust and hoping businesses have scales available. That's simply not practical.

BTC, on the other hand, can be fractionalized down to whatever decimal point is needed because it's all based on computers doing the work and warehousing that data. With that, the price of a bitcoin can inflate infinitely while being transacted at greater decimal points.

I don't see governments being too excited about a currency they can't control so there's a definite built-in resistance to it from that standpoint. That resistance could (and likely does) fuel demand to some level. At this point it's looking like governments will be dragged kicking and screaming into this environment but it's going to be a slow process.

I think right now that cryptocurrency as an off-ramp from the dollar is a bit like EVs are to ICE vehicles. It sounds good but there are some very real practical hurdles it has to get over first.