Cryptocurrencies

In 10 years, Bitcoin (BTC) has become the sixth largest monetary power in the world – Cryptocurrencies

Bitcoin is currently the sixth largest currency in the world. Satoshi Nakamoto’s cryptocurrency’s monetary base is now heavier than 170 fiat currencies with just the Dollar, Euro, Yuan, Yen and Indian Rupee ahead of it.

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$ 189,000,000,000

Here is the current value of Bitcoin if you multiply its monetary base (approximately 18,500,000 units currently) by the value of a Bitcoin (approximately 10,200 $). This amount is called the capitalization of Bitcoin.

money supply bitcoin

The question now is how to calculate the capitalization of fiat currencies. And those who are used to glancing at the financial markets are already wondering how the hell the roughly 200 billion Bitcoin can compete with the trillions that central banks print on a small weekly basis? There is a problem somewhere.

The explanation lies in the fact that there is two forms of currency in the modern banking system:

The central currency

This consists of coins and banknotes but also “central currency” which you and I do not see never the colour. This central currency Only exists on commercial bank accounts with their Central Bank. It is through this special account filled with “central money” that banks exchange money with each other. That is, when a customer of bank A makes a transfer to the customer of bank B.

Fake cash

This second form of money is the money that commercial banks can create on their own. The same one you get in your bank account when you borrow. BNP Paribas euros or Société Générale euros that banks create with a wave of a magic wand.

Thus, the central “money” constitutes a simple game of writing between central accounts and only the Central Bank can distribute them to commercial banks. Counterfeit money, like BNP euros, can only be used for transfers between customers of the same bank (BNP). It’s as if there is a universal currency (central currency) that can be used by all banks, and a counterfeit money worth absolutely nothing outside of the brand that issued it (in the form of a loan, always). Put another way, counterfeit money is just a shadow of central money. A very stretched shadow …

money is the shadow of debt

Is it still a blur? Wait, wait …

The short history of modern money

It is enough to go back in history a little to realize the perversity of the modern money creation system. There was a time when money was made of precious metal (gold, silver, bronze, etc.). She had a own value and could sometimes to lack (which can be boring). So she had nothing to do with zeros that can be multiplied enviously on bank computers.

However, gold has always been a problem because it is heavy and risky to walk around with. The goldsmiths (the ancestors of the bankers) therefore offered to keep the gold safe in their well-guarded coffers. The depositors received in exchange a bill of exchange, a receipt what. A vulgar piece of paper bearing the calligraphy signature of the goldsmith who promised to return the amount written in gold on request.

Everyone realizing that these pieces of paper were handy, they ended up being used instead of gold for everyday purchases. A parallel currency was born! The banking beast too … The goldsmiths soon realized that people rarely came to collect all their gold so they began to produce more bills of exchange than there was gold in their coffers… The system of fractional reserves was born…

This esoteric and indigestible expression of banker refers to the way the modern banking system works. A system in which gold has been replaced by what is called central money.

Bills of exchange have been replaced by virtual currency or, as it is better to call it, counterfeit money.

“In essence, the money creation ex nihilo practiced by banks is similar, I do not hesitate to say it so that people understand what is at stake here, to the manufacture of money by counterfeiters, if precisely repressed by law. Concretely it leads to the same results. The only difference is that those who benefit from it are different. “

Maurice Allais, Nobel Prize in Economics 1988

So to summarize:

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  • Gold => Central currency
  • Bills of exchange => Counterfeit money (euro BNP Paribas)

So how is it that Bitcoin is the sixth largest currency in the world?

It was important to distinguish between “central money” and “fake money” (few people know this distinction). You will now understand why.

The money has become debt money when the goldsmiths no longer contented themselves with spending a few bills of exchange on the run but decided to print bills of exchange at every time that someone was coming to borrow money. The loan repayment promises were then systematically transformed into paper (counterfeit money). And that’s how almost all of the money turned into debt! Currency = Debt.

If we reverse the logic, it also means that when you deposit 100,000 euros with your bank, this money is transformed into a promise to reimburse you. In short, you lend your money to the bank for an indefinite period … If your neighbor has borrowed 100,000 euros from the same bank as you, and does not repay them, you run the risk of never seeing yours again, and even less under form of banknotes …

Just as the goldsmiths decided to print more bills of exchange than they had gold, banks today lend more money than they actually own. To put it another way, banks don’t have a piggy bank in the cellar for every customer …

When the silversmith’s clients suddenly came to collect their gold all at once, the silversmith obviously did not have enough gold for everyone and the plump guy was hanged in the market place. This is exactly the same for modern banks which absolutely could not cope with a massive cash withdrawal because banknotes – the only tangible form of central money – represent only a tiny part of the total mass of counterfeit money. currency (between 5% and 10%).

You begin to understand why the possibility of being the sole owner of your Bitcoins is fundamental. All this to say that modern money is a smoke screen, a ponzi scheme, and that only paper money really exists.

Tesla ponzi

Dollar, euro, yuan, yen, rupee, how many divisions?

Dollar: 1,800 billion $

Euro: 1,400 billion (i.e. 1680 billion dollars after conversation at EUR / USD rate of 1.20)

Quantity of paper money in circulation
Quantity of Euro banknotes in circulation (in value)
Source: ECB

Yuan: 8,000 billion (i.e. 1150 billions of dollars)
Yen: 10.6 trillion (i.e. 1000 billions of dollars)
Rupee: 31,000 billion (approximately 1000 billions of dollars)

Bonus: GOLD: 10,500 billion $ …

[WhichmakesBitcoininrealitytheseventhlargestcurrencyintheworldbuttrytopaywithgolddustWhichalsomeansthatinacertainfuturewhenBitcoinwillbeworthasmuchasgold(whichisanambitionreasonableinfine)[CequifaitduBitcoinenréalitélaseptièmemonnaiemondialemaisessayezdoncdepayeravecdespoussièresd’or…CequisignifieaussiquedansuncertainfuturlorsqueleBitcoinvaudraautantquel’or(cequiestuneambitionraisonnableinfine) one BTC will be worth around half a million dollars.]

Bitcoin is therefore now the sixth most valuable currency in the world. What a long way to go in a decade … The incredible value achieved is a reflection of technological prowess but above all of its absolutely fixed money supply.

Prehistoric bitcoin

Finally, ” absolutely “… Bitcoin is ultimately nothing more than a piece of code can be changed … Of course, it is extremely difficult to change the cap of 21 million units due to its operation decentralized and its mechanism proof of work. But it remains “possible”, technically.

Conversely, it is not “technically possible” to create gold ex nihilo. We have not yet invented the Philosopher’s Stone … The number of gold atoms on earth is an absolutely finite number. Where I’m going with this is gold is Bitcoin’s best insurance against the greed of miners. The latter will not change the CAP of the 21 million under penalty of seeing all the value of Bitcoin be absorbed immediately by the good old barbaric relic.

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How long will it take for Bitcoin to be number one? When something makes it impossible to pay off the debts on which 100% of the money in circulation is based. Debt is the mirror of money and a physical constraint preventing growth will signal the reset of fiat currencies. While Bitcoin, which is not based on debt, will remain steadfast.

What could possibly be stopping growth? ..

Shale oil production USA

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