My friend, with respect you have shown you do not understand how the federal reserve works. And that is normal most people don't. It comes down to your first assertion that you base the rest of your argument on.
the asset doesn’t go up in value, and in fact it’s considered a failure by the central banks if the asset goes up in value.
You have to understand the history of the federal reserve to really understand what it is today.
Originally the U.S. Dollar was backed by gold. Anyone in the entire world could own U.S Dollars and then convert it to gold with the U.S government. Because of this every country wanted to hold U.S dollars. It became the world currency that all currencies were compared to.
The official excuse for getting rid of it was volatility. That is not true at all. It's a well known lie to protect the bankers who mostly profit off it. They are not even part of the government.
Certain governments and groups started to own large amounts of us dollars and us loans that they could convert to the nations gold at any time. It became a national threat. Lets say China buys up most of the dollars, they could then go exchange it for all the gold and then they become the worlds currency.
So The president of the time said no more gold exchanges. Effectively people could buy us Depts but could not exchange it for gold. The us would print more money to pay back the interest. The gold was rounded up protected and probably given out to terrible people.
That is when inflation started to really ramp up.
So this is how it works now.
The U.S. doesn't want to point blank print money. They instead run it through the reserve. To hide the ponzi scheme but it is one.
The U.S says, we need more money. China or anyone says ok, we will give you money and you pay us back at like 5% interest.
The U.S government prints money to pay them back. Just prints it. Out of no where. This causes inflation. China or whoever then has this extra money. If they keep it in their own currency inflation caused by the U.S dollar that all currencies are compared to will eat the money up. (Remember the U.S is the worlds currency because a long time ago it exchanged for gold. Today that isn't the case its just the worlds standard)
So what do they do? They take the same printed dollars and buy more U.S debt. Causing even more inflation.
So the dollar assets do go up in value. The same dept they bought keeps building up with interest, time ect.
All that dept cannot be repaid without causing inflation. So inflation will continue forever.
Bitcoin has a limited number of mining cycles. infinite Inflation is impossible. The value of a bitcoin should only go up and not down over time as more people want it and there are fewer and fewer bitcoins to mine. That was by design.
Bitcoin is becoming the new gold standard. Just like the value of gold always goes up because it is a limited thing. Bitcoin goes up.
Right now bitcoin is much safer than the dollar. You can exchange in other coins with smaller network fees and then exchange those back to bitcoin.
sj_zero@lotide.fbxl.net 2 years ago
I don't know what makes you think based on my post that I don't know this history of the dollar or the federal reserve.
BTW, even if we assume arguendo that crypto is the future, that doesn't mean that bitcoin is the future. In 1999, google didn't exist, apple was nearly bankrupt, facebook didn't exist, netflix was mailing people DVDs, amazon only sold books. Today, most of the top tech stocks of that time don't even exist anymore.
masterofballs@wolfballs.com 2 years ago
Because you said the U.S dollar is not a ponzi scheme. I don't know anyone who understands the federal reserve that would make that claim.
I agree that bitcoin might not be the future coin but I personally would not use a government issued crypto if I had any other choice.
Bitcoin is terrible for anon transactions. I would prefer anonymous coins more and ones with cheaper network fees.
sj_zero@lotide.fbxl.net 2 years ago
A Ponzi scheme is an investment swindle in which early investors are paid with sums obtained from later ones in order to create the illusion of profitability. Given that, while you can say central bank managed currencies are a scam, they aren't this particular scam.
You will never be profitable investing in the US dollar. It's been a losing bet since the 1970s when Nixon ended the gold standard. That's why I say that by definition it can't be a Ponzi scheme. Things involved with a Ponzi scheme go up until the scheme goes up in flames.
What's going on right now is something far worse than a mere Ponzi scheme, if you ask me. A Ponzi scheme harms its investors, but anyone who isn't gambling is generally OK. the issues with central bank currencies are not just messing with the currencies but causing real distortions in world markets. The value of things in measurements other than dollars is going through the roof in a lot of things solely because all those fake dollars are trying to find a place to go because everyone knows the dollar is a scam and the worst thing you can do is hold them.