Trust and bitcoin

Bitcoin is a horrible name. Trustnet would be better.

Andreas Antonopoulos


If we lived in a dystopian world without trust, bitcoin might dominate existing payment methods. But in this world, where people do tend to trust financial institutions to handle payments and central banks to maintain the value of the money it seems unlikely that bitcoin could ever be as convenient as existing payment methods.

New York Fed


Bitcoin is about trusting provable math versus the human frailty of central bankers. 

A bitcoin investor


In the end, the success or failure of bitcoin versus fiat will come down to the issue of trust. Which currency and payment method will allow you to speak the most freely, to have your voice be heard? As I have already said, money and its use is a form of speech. Central bank debasement of fiat drowns out the speech of those who do not sit close to the central bank's free money spigot. Your voice is not heard. Your needs, desires and time preferences are ignored. Free fiat money gives a greater voice to the Buffett's and Munger's, the Dimon's and Singer's. Of course these people want bitcoin to fail.

Bitcoin's rise over the past nine years is a vote of distrust in central banking. As an Austrian, I have always known that artificially dropping interest rates created malinvestment. What the world is figuring out is that those who are cronies of the central banks do not have to worry about living with the failure of their malinvestments. Central banks will bail them out via debasement. This is creating serial investment bubbles, lowered savings, less real growth, and income and asset distribution distortions that would never be seen in a free market. This has led to a collapse in trust in the fiat system.

Bitcoin's price rise over the years is a referendum on the current state of the fraudulent financial system. The New York Fed has it wrong about bitcoin and the trust people have in the system. They are in denial. They are really worried that bitcoin exposes the fact that everything everyone at the Fed has been a part of has been wrong and corrupt. It is a difficult thing to admit. But for those central bankers, politicians and judges who refuse to admit it, the bitcoin world will grow and move on without you. Your attacks and denunciations may wound the community for a time, but bitcoin is, unlike fiat, anti-fragile and it will emerge stronger for its challenges. Fiat's day is already over. It has completely failed. We are only waiting on recognition of this event. The fiat world is not to be trusted and there is no stopping that. Meanwhile, bitcoin is a system without central control where debasement won't exist and your voice can be heard.

Disclaimer: This is not investment advice.