Simpsons Right Again?
I can see it now; how Bitcoin could lift to a 'non-economic' or 'infinite' price point given recent events in NYC and DC. OMG folks this tinfoil hat dive is worth it.
You may recall The Simpsons recently hinted that Bitcoin would get its day in the sun, after all.
A television news report on the show featured a news scroll at the bottom, and it showed BITCOIN with an infinity symbol next to it as other assets like the dollar were plummeting.
With it now being the weekend and the deadline just hours away, a failure to fund the ongoing day-to-day government will have an immediate impact on the ability of regulators and government-linked financial organizations to continue operating — which could send an avalanche of new transaction volume and wealth into the major blockchains, although of course not financial advice and your mileage may vary.
Yet at least we have one blueprint now for how an unattainable or ‘infinite’ bitcoin price could come about naturally, however unlikely it is; a scenario where it briefly becomes a kind of Unobtainium in the post-pandemic world.
And so we have a spooked market that sees US government shutdown likely, of unknown duration and scope… Even if things were funded tomorrow and restored, the loss of faith is now there — any sensible world investor is now probably hedging against US default risk and US non-funding risk in ways they probably weren’t before this Congressional budget struggle emerged.
But what if it gets real bad? If money pipes dry up or turn off? What if large American businesses need to rely on the liquidity of crypto soon — a total inversion of prior cycles, where crypto’s rise was pierced (some would argue) by a sudden rug pull of exit liquidity and easy off ramps from the major banks and legacy payment processing firms.
A months’ long government shutdown, and rhetorical civil war between Democrats and Republicans in Congress, would possibly elevate Bitcoin to a status on par with the fictional Unobtainium. It’d be a fun Black Mirror episode to live through anyway. And all these convenient Bitcoin ATMs are all over the east coast and midwest, and with Cashapp, Robinhood, PayPal, and Stripe now all involved in crypto — as well as whole countries like El Salvador allowing it as legal tender to settle debts — in addition to vocal support from BlackRock titan Larry Fink … it’s unlikely that crypto would be pierced by the same exit ramp issues it has faced in prior market cycles.
People might actually park in crypto this time around, which could lead to the long sought after “circular economy” where people are paying for products and services in Bitcoin, then those workers and creators are spending that Bitcoin at businesses which in turn spend their Bitcoin on their expenses and so on … eventually shutting fiat completely out of the economic value chain.
Onward,
D
https://amazon.com/author/davidseaman — load up on the books, the perfect Fall treat for yourself or loved ones getting into the ideas FULCRUM explores.
btc too slow for retail. It will be another coin
Should be right!