[BT®] Crypto up or Fiat down?
Serious question, yall.
If crypto up and fiat down, aside from 'good for hodlers, bad for haters', what does that mean in a "broader" sense?
Is crypto going up or is fiat going down? And...how would you know the difference, viewing fiat as "all global fiat currencies"?
There are other assets: neodymium, Real Estate®, luxury watches, etc. Consider that those things are all tainted to one extent or other by fiat. Sometimes the meddling is light and easy, sometimes you have to be "an qualified government-approved money changer" (with a framed piece of paper and everything!)
If you buy or sell or gift or bequeath or stake or donate or even sneeze at any of these traditional assets, even "digitized" ones, you need to interact with some person or people that sell them (Gold, ETFs, Real Estate®) who have special papers of merit from Gov that gives them the exclusive privilege of selling you thingies, thereby being able to charge a premium over the guy in the van in he alley (in blockchain we call this miner-extractable-value). Of course the dead-loss of all this is passed on to you, the buyer of thingie.
In addition to that, you and anyone you interact with has these same completely artificial constraints: you need to fill out paperwork and go to the title company to transfer. You need to pay taxes for some random thing. If someone holds it for you in custody, that introduces another enormous layer of complexity and regulation, one that is neatly transferred to you in the form of a fee or tax of some kind, inevitably.
It is true that if you decided to do any of the above with some traditional special asset and used crypto for all your transactions (in other words omitting fiat from the picture), you would still, if you would like to not go to jail, need to do all the same dumb stuff. So it may not be true that e.g. Real Estate® is tainted by fiat. After all, you can just choose to do all of your Real Estate® transactions in crypto. Or. Wait. Can you?
Crypto is "rising", but how exactly is that different from "everything is and has always been kinda-sorta falling". Some portion of what we are seeing is what happens when an asset is genuinely anchored to reality (maybe somewhat counterintuitively.)
Who knows. I didn't make the mess. I didn't start the fire. It was always burning since the world's been turning.
What do you think? Select one:
- [ ] Crypto is going up!!
- [ ] Fiat is going down!!
- [ ] I actually didn't read the article!!
- [ ] He said 'taint'