- This topic has 0 replies, 1 voice, and was last updated 2 weeks ago by Socialists-Suck.
- Thursday, September 22nd, 2022 at 17:58 #380027Socialists-SuckParticipant
The current news from around the globe including Argentina, Pakistan, Haiti, Sri Lanka, Lebanon and across Africa paints a grim picture of global trade and finances.
The country currencies at the periphery of the dollar global financial system are in retreat. Capital is fleeing to the center (USD) at all levels of society causing the [Dollar’s relative value to increase](https://www.marketwatch.com/investing/index/dxy). Many small countries are effectively dollarizing. Either explicitly like El Salvador or in black market trading such as in VZ and AR.
In dollar terms commodities and goods that have been over produced will deflate as the world economy slows due to stagflation and malinvestment. This process, along with government policies restricting production, will ensure that sufficient investments in new production will not be made. Meanwhile, costs of goods such as food and other essentials will rise due to shortages in production resulting from global government actions including: pandemic response, sanctions, regulation and etc.
Rising debt payments due to rising interest rates and reduced export production of slowing economies is triggering the sale of assets to make loan payments and preserve capital. It is a cause of short to medium term deflation in financial assets and assets sensitive to rising rates. Trade imbalances, rising US interest rates, debt, inflation and slowing production will collide with 13 trillion (BIS) of foreign debt, trillions in derivatives and foreign held US bonds, stocks and real estate.
The US dollar is the world reserve currency. The US central bank (CB), soon faced by a myriad of crises including high unemployment, shrinking GDP, rising energy costs and global food insecurity will abandon its tightening under government pressure. Interest rates will again be forced lower by CB intervention. US government spending and CB easing (at 8% inflation the purchasing power is halved every 9 years) will steadily erode the dollar into the next decade. The value of the dollar for international trade has become uncertain.
As a result, economic conflicts between nations are on the rise. Sanctions impede the flow of capital between trading partners. Regulation by governments further restrict international exchange. The demand by many individuals, groups and governments for an alternative for trade has become a powerful driver for change.
As confidence in the global reserve currency is eroded and the demand for a alternative becomes essential, the transition to BTC as a technology for exchange [will commence](https://cointelegraph.com/news/russian-officials-approve-use-of-crypto-for-cross-border-payments-report) between trading partners that are in search of an apolitical, fair and secure settlement alternative. BTC brings utility with regard to international exchange including speed, final settlement of transactions, apolitical decentralization, no third party risk, nation state level security model and a fixed monetary policy. These factors make BTC an obvious choice for government investment as the equal opportunity and inclusive international settlement technology.
Advances in BTC engineering and Taproot development are making DeFi at scale using BTC rails possible. Energy and commodities trading that leverage BTC based DeFi contracts will emerge. Gold will play its role as a store of value and enhance BTC utility as the record keeper in a secure and trusted trade settlement layer. Use of BTC’s DeFi network as a trading layer will gradually transform the monetary energy of the underlying commodities, currencies and other assets within the BTC trading ecosystem. Once trade volumes and the types of trade between trading partners can be transparently recorded and known then the relative trade weighting of local currency value can be calculated. The design of BTC is fair and transparent. All participants benefit in proportion. No single participant, government or group has more control than another.
The transition will be complete. BTC and its financial layers will have subsumed the international trade system. A new age of fair trade between politically and economically diverse forms of government and people can begin.
- You must be logged in to reply to this topic.
Related Forum Topics:
- → BTC is the new global focal point for value, economic integrity and immutable truth. Network participants are collectively changing global finance through individual action encouraged by proper incentives. Respect to everyone involved. [Image]
- → For those who need to see this. In 2011 btc was worth $30. Btc halved in 2012. In 2013 we saw a $1000 btc. Btc halved in 2016. In 2017 we saw a $15,000 btc. Btc halved again in 2020 and we saw a $60,000 btc. 2024 is the next halving. 2025 is gonna be interesting.
- → Opensea (NFT marketplace) is centralised in every possible manner. They take a 2.5 % cut in every trade, they’ve the power to label your asset, they can take unforgivable actions on negative labels such as freezing your account on the platform for any future trade (on the assets you own as well).
- → Where to trade ? Where can I trade with out the crazy gas ?
- → Mercury Trade – new crypto copy trade platform
- → Currently day traders are buying BCH on dips around $95-$120 and selling these BCH for $130-$160, with up to 70% profit per short term trade, the price is going up and down making this trade repeatable over and over.
- → Why would anyone here want quick global adoption? There is not a single blockchain ready for global adoption right now. It would be a clusterfuck for users.
- → Huobi Global Will List MEV (Meverse) on July 7, 2022-Huobi Global-Official Huobi Website
- → I’m getting scared from the transition to BTC
- → Arcane research publishes excellent report on how BTC mining can transform energy industry by strengthening grids, improving economics of renewable transition, flare mitigation and by repurposing heat from mining
- → I love ETH and laud it’s transition to POS, but I also think we can root for BTC’s POW and seriously consider it as a powerful tool to incentivize renewable energy.
- → In the last few months BTC price has been ‘tied up’ with the Nasdaq Composite index and tech stocks. Hedge funds and big investors treat it and trade it like a very risky tech stock and this reflects on its price! When do you think BTC will become more independent and decouple from all this?
- → BTC (BTC) Spikes Over Resistance to Trade Above $40,000 Again [News]
- → 38 BTC were traded last week in Venezuela measured only using LocalBitcoin, up from 26 BTC last week, this is around 10% of the total world trade there! Monthly minimum wage sits around 25 USD (started at 30 USD months ago).
- → Had to search in “Controversial” to find this comment speaking some common sense and truth to BTC. Looking at the rest of the comments in the thread shows how relatively early anyone in today still is, especially when considering that we still have less than 2% of global population using BTC