Jonathan Gros-Dubois
2 min readFeb 20, 2021

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The problem with this thinking is that it fails to take into account that we are at a critical tipping point in the history of the global monetary system.

- The wealthiest people in society are earning more money than they can possibly spend or invest efficiently.

- Many individuals have figured out reliable ways to game the system to make a profit with no risk involved and they are a drag on the economy.

- The notion of investments which can keep earning compounding returns forever is beginning to sound increasingly unrealistic to many people.

- The current debt-based monetary system relies on the creation of an ever increasing amount of credit (itself backed by increasingly more debt); this means that the money printing must keep going and accelerate; stopping it or slowing it down would immediately cause a crisis which could destroy the financial system and the monetary system along with it.

- On the other hand, if the banks keep printing money too quickly to avoid a crisis, it will cause hyperinflation.

Ensuring that there is grossly unequal distribution of the newly created currency can help to keep consumer price inflation under control (since workers' distorted perception of monetary scarcity puts downward pressure on the price of consumables which they produce), but significant compounding inequality will drive the hyperinflation towards asset prices instead.

This is where Bitcoin benefits.

If reserve banks choose to continue with expansionary monetary policy, we are likely to see asset price hyperinflation.

If this happens, we could expect to see the price of Bitcoin and other cryptocurrencies accelerate (potentially getting to a point of doubling every day) until the banks figure out what's going on and decide to pull the plug and allow the entire global economy to collapse.

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