Home Bitcoin News When does Inflation mean for the Dollar? Bitcoin Vs Central Bank Digital Currencies

When does Inflation mean for the Dollar? Bitcoin Vs Central Bank Digital Currencies

What does Inflation mean for the Dollar Bitcoin Vs Central Bank Digital Currencies

Simon Dixon, Author Bank to The Future:  When does inflation mean for the dollar? When you deposit money at the bank, the bank becomes the legal owner of your money, when they become the legal owner – they can spend it. And, the supply is a function of debt.  And, so, we have these debt cycles where individuals governments central banks and businesses always will have to create more debts and will have more money. And, if you want to have less debts, then you have to have less money, which causes deflation and the economic cycle.

What we have been in the end of is we have a very large debt cycle with the dollar.  The dollar had become increasingly more important as Central Banks all around the world hold it and say we have entered in to this interesting cycle where technology has created a real deflation recycle where everything is converted to free.

And at the same time, inflation to me is two concepts. It is factoring all the inefficiencies of creating money as debt and there is interest that needs to be repaid.  When you base your money on what I call is the world’s largest regulated Ponzi scheme called the dollar. And, secondly too much money is chasing too few goods, which is economics what I want and we have certainly seen both of those effects and so I believe we enter in to the deleveraging effect because we now have too much money, but then if we traditionally – if we want to control inflation, then you will put interest rates up and you send all the people bankrupt, so that you can have a divert pressure on Debt.

And, so therefore you have less money and you have a cooling down of the economy. And, what I think we are seeing at the moment is a recognition that we have entered this level of interest where you can use that monetary tool and so I forecasted quite some time back that because Bitcoin invented money, you can earn money, you can spend and have a fixed supply.

You will end up with this Bitcoin versus Central Bank Digital Currencies, Central bank digital currencies being the mechanism for central banks waging war on banks in order to deleverage the economy.

So, what I am forecasting from here is you have this systemic risk events in banks.  And, then in order to make sure that deposits are totally used you replace that that money with a Central Bank Digital Currency and that deleverages and somewhat controls the amount of inflation and the interest that gets factored in when money is being created, which then competes with Bitcoin when money gets factored in which is the exact opposite.

And, you have this really interesting monetary renegotiation, where you have the changing moment where the Central Bank Digital Currency is being designed and they are probably going to go beyond just the dollar as their backing.

And, so really this is a turning point in history what I call the most exciting time in financial history where we are seeing inflation now that is starting to really hit people on the ground.  CBDCs in beta in order to wage war on the banks which acts as a deleveraging force, but that rates transitions to the US from a more capitalist ideal to a more socialist ideal to a communist ideal as all money and all governments and all central banks and treasury will merge in to multi-monetary theory. So, the only way to say if the economy is to issue the Central Bank digital currency – deleverage the economy and then radically transform what made America great in the first place.

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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