When Bitcoin passes gold’s market cap in 10 or 20 years, everyone will remember that Paul Tudor Jones’ public choice in May 2020 was the tipping point for Bitcoin.
The logical conclusion of this trend is that eventually, nobody will be willing to lend dollars when they can just buy bitcoin with those dollars themselves. And once the world has reached that level of understanding of bitcoin, it’s game over.
Bitcoin achieves the unit of account (UoA) status for everyone globally while simultaneously becoming the most desirable asset to own. Which only encourages more people to continue using it as their store of value (Sov) and medium of exchange (MoE).
Bitcoin-backed US dollar loans may be a good option for those who have held bitcoin long-term, have a relatively low tax basis, and need access to dollars. As bitcoin becomes a larger share of an individual’s overall assets, many holders would like to improve their lives by accessing the liquidity from bitcoin gains.
Free men don’t ask permission to transact with each other and don’t rely on the legacy third-party financial institutions that operate in tandem with State authorities.
Back in 2013 I first read the word ‘Bitcoin’ in a news article about a bank bail-in in Cyprus. The government was in debt and their solution was raiding personal bank accounts. The article mentioned this also led to a boon in Bitcoin — a new digital currency that existed beyond the reach of the government.
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.”
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.