The Fiat Building is on Fire!

A couple of days ago I bashed Nobel laureate Paul Krugman for his silly view that the blockchain, as yet, wasn't good for anything. Additionally, he thought that cold fusion was likely to happen before a real use case emerged.

The counterpoint is that the bitcoin use case allows us to avoid having to deal with the never ending debasement of fiat currencies. This morning, the head of the Bank of Japan said that he would buy an unlimited amount of ten year bonds at 11 basis points. At 11 basis points the head of the BOJ is so terrified about the state of the Japanese financial system that he is willing to unleash an infinite amount of newly created yen to keep ten year rates at stupidly low levels. This is suicidal. If this doesn't convince you that there is no way out of this mess, then nothing will.

Bitcoin isn't just the most elegant, decentralized and immutable accounting system for value that has ever emerged, it has emerged at precisely that moment in time that the world's central bankers are trapped. They must either incinerate their currencies, or incinerate their financial markets. The building built by fiat money is on fire and they want to trap us all inside. Bitcoin is the way out.

Disclaimer: Nothing here should be construed as investment advice. These are nothing but my rambling thoughts. I do own gold and bitcoin, but do not recommend these assets for others. You have to do your own homework and know what you are getting into. Governments hate these two assets and will try to make sure no one who owns these things wins. You have been warned to stay away!