Bloomberg hit upon a very important point here which I posted in my last article and needs to be expanded upon:
The fact that Bitcoin was designed to confound human decision-making is a feature, not a flaw. The core protocol is tasked with enforcing the single rule most crucial to the cryptocurrency’s value: no counterfeit spending. By contrast, the U.S. dollar is burdened with effecting monetary policy, enforcing sanctions, fighting crime and much more. The more functions a currency has, the more things there are to argue over, and the more likely the community will be to fracture. Bitcoin’s uncompromising focus allows it to serve a broader user base.
TAI: It really is quite amazing what the U.S. expects to be able to do with the dollar. Yes, monetary policy, spying on people, fighting (supposed) crime and enforcing sanctions, but also bailing out banks, propping up financial markets, reducing unemployment and funding budget deficits.
Weaponized money has already pushed China and Russia to build an alternative to SWIFT and has fostered a fair amount of gold buying by these two. Asking the dollar to do so much compromises its ability to function as a trusted store of value, a trusted medium of exchange and a trusted unit of account.
Gold and bitcoin have no such obligations and are therefore, far more trustworthy as money.
Disclosure: This does not represent any form of investment advice.
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