parker lewis bitcoin

In fact, it is an economic oxymoron. The currency’s ability to coordinate economic activity degrades gradually and eventually fails completely; everyone pays that inevitable price. While it may seem like logic, it is an anecdote that lacks any fundamental economic argument in defense of the manipulation of price levels. When the Fed pursues its price stability mandate, it is actively sending false price signals throughout an economy and causing imbalances in supply and demand structures to be sustained. While the creation of the Federal Reserve in 1913 was the beginning and President Roosevelt’s executive order in 1933 banning private ownership of gold set the stage, the complete departure from gold as a monetary anchor in the 1970s removed constraints that otherwise prevented the true centralization of the money supply, and which ultimately enabled the great monetary inflation which Paul Tudor Jones recently wrote about. That is why people demand money, and with a terminal rate of change set at zero, each participant can use bitcoin to best understand the value of his or her own output relative to that of others and relative to the preferences of others, undistorted by any changes in the money supply. Money is the pricing mechanism and the output is a pricing system. Parker … There is no individual with a plan or piece of legislation that will make everything better. The advantages gained from manipulated incentive structures are allowed to continue in a way that would not be possible absent the Fed’s policy decisions. Anyone that produces value and exchanges it for bitcoin is assured that their output will not be devalued in the future merely as a function of someone in a far-off land creating new units of money. The currency’s ability to coordinate economic activity degrades gradually and eventually fails completely; everyone pays that inevitable price. The same line has certainly been used to defend the Fed’s most recent actions in response to the global pandemic (printing $3 trillion with a T). Change in price is actually desired and the central bank works in opposition to that change by manipulating the money supply. Worse yet, the means by which a central bank works to achieve price stability is through the manipulation of the money supply, which distorts the entire pricing mechanism underpinning the economy. hand which allows for balance to be achieved and for imbalance to be identified and eliminated. The price system communicates information; it aggregates individual preferences within an economy and communicates those preferences through local prices, as measured in a common monetary medium. You might be interested in Bitcoin if you like … Even for those not yet circulating, every single bitcoin must be earned by contributing value. For example, when the value of real estate was declining during the 2008 financial crisis, the price mechanism of the economy was communicating that there was an imbalance. It is one currency that works for all, now and in the future. One action triggers another. Bitcoin isn’t just a rich person tool that will become serviceable to poor people once enough rich people have it. Because preferences are ever changing, so too are prices. Giving all benefits of the doubt, the Fed believes it is helping. The Fed’s economic structure produces inequity by preventing imbalances from rebalancing. A fixed supply, equal protection, and true price signals deliver greater balance. False and distorted economic signals, created through the manipulation of the money supply, are counterproductive for all in the long run, but in the short-term, benefit those to whom the imbalance is positively skewed. housing) or operated businesses dealing in the production (or financing) of real estate benefited disproportionately at the expense of those that did not. More recently, Bitcoin is widely considered as gold 2.0 and a must-have asset to protect your wealth against inflation. Every other distortive economic action or policy exists at higher orders than the issues created by the manipulation of the money itself. A currency is the foundation of an economy because it coordinates all economic activity. Receive, hold, spend (h/t @pierrerochard), that simple. Again, consider the 2008 financial crisis. With a fixed money supply, this wrong is permanently righted. How major Bitcoin narratives changed… | by Nic Carter, MicroStrategy Buys $175M More in Bitcoin, Upping BTC Holdings to $425M, Bitcoin CEO: MicroStrategy's Michael Saylor Explains His $425M Bet on BTC, MicroStrategy Just Sent Green Light To Corporate America On Bitcoin, Grayscale Says Bitcoin ETF Only a Matter of Time, Fidelity Launches Inaugural Bitcoin Fund for Wealthy Investors, WBD250B: All Things Bitcoin with Andrew Poelstra, Giacomo Zucco, Jack Mallers, Matt Odell & Nic Carter, WBD238: WTF is Going on in the Markets? That is the relationship between the issues inherent in the monetary system (the foundation) and all other economic issues (higher levels). It is so because it’s the only way for the cycle to be repeatable and symbiotic rather than one-off and zero-sum. If an economy fails to do so, and instead allows imbalance to be sustained, that is evidence of a broken economic structure. The legacy monetary system centralizes and consolidates wealth; that is the output of sustaining and exacerbating economic imbalance. Imagine knowing with absolute certainty that every change in price were dictated by a change in consumer preferences rather than the effects of increases or decreases in the money supply. The benefit skewed to the side of existing imbalance, as it always does when imbalance is being sustained artificially. There were imbalances in both the housing market and financial markets; prices within these markets were at unsustainable levels. Through the price system, individual market participants learn both what others value and what they need to produce to meet their own needs. When imbalances emerge in the credit system (i.e. Recall the role of arsonist hailed as a hero fighting the fire. One does not exist without the other. It devalued the money (by increasing its supply), such that the value of real estate (among other goods) as priced in dollars would change the least. Balance is critical to the functioning of any economy, and when functioning properly, an economy would naturally eliminate imbalance in its normal course. There is no individual with a plan or piece of legislation that will make everything better. The chink in the armor is in the foundation. The Fed chooses the former, trading short-term stability for long-term instability and distortion. Imagine that you were someone just entering the economy, without any savings, or you could not afford to purchase a home and likely did not own stocks or bonds. In order to join the economy, you must deliver value to someone within the network. That cannot and does not exist in the legacy financial system. The Fed’s monetary policy actively prevents the economy from restructuring and from finding balance. In a digital age, Bitcoin is sound money that can be sent over the internet and has the potential to change the nature of money for everyone. By manipulating price levels, the Fed isn’t just preventing smaller intermittent fires from naturally running their course while creating larger fires down the road. The structural flaw inherent to the dollar currency system (or any fiat currency system) is the force most responsible for sustained economic imbalance. The effects of sustaining imbalance can be best understood and observed through the credit system because that is where the Fed directly intervenes and consequently where the greatest distortion and imbalance exists.

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