>> The world always makes sense. But it can be confusing. When it is, your model of the world is wrong.
That was my mistake when I first heard about Bitcoin and cryptocurrencies.
I was assuming that the economy was efficient and relatively fair and that made me see Bitcoin as a bubble. My assumption about economic efficiency was very wrong... Then I took the time to learn everything I could about the Federal Reserve Bank and money printing. I'm not going to make that mistake again.
Something I've noticed:
There's been some things that I initially thought were bubbles. But they seemed to work - I even started doubting myself. Turns out they were just longer lasting bubbles.
This is definitely something that I keep at the back of my mind. That said, my current world view is that the entire fiat monetary system itself is a bubble. In that context, cryptocurrencies are a lesser bubble and by virtue of their limited supply, they will continue going up in value as they are constantly propped up by an infinite supply of newly printed credit from banks. The cryptocurrency community's ability to continuously buy politicians and journalists also helps ensure continued dominance.
Everything that's happening around the world now perfectly aligns with my world view. Guess who is going to benefit from the Fed's massive covid-19 fiat injections?
“This is how to contemplate our conditioned existence in this fleeting world:”
“Like a tiny drop of dew, or a bubble floating in a stream;
Like a flash of lightning in a summer cloud,
Or a flickering lamp, an illusion, a phantom, or a dream.”
That was my mistake when I first heard about Bitcoin and cryptocurrencies.
I was assuming that the economy was efficient and relatively fair and that made me see Bitcoin as a bubble. My assumption about economic efficiency was very wrong... Then I took the time to learn everything I could about the Federal Reserve Bank and money printing. I'm not going to make that mistake again.