Fellow humans,
Bitcoin’s most important feature is the inflexible and transparent monetary policy. No more than 21 million coins will ever exist. As a result, nobody holding bitcoin needs to worry about the debasement of their money. For the past 13 years (Bitcoin’s entire life), the network has defended itself against attacks, and the monetary policy has remained unchanged.
Satoshi Nakamoto knew the only way to have fair and sound money is to remove humans from the monetary policy decision-making process. When humans have the ability to alter monetary policy on demand, abuse and failure are only a matter of time. Unfortunately and fortunately, the time has come.
According to the International Monetary Fund (IMF) website, their mission is to “achieve sustainable growth and prosperity for all of its 190 member countries…to increase productivity, job creation, and economic well-being.” Additionally, their mission is, “discouraging policies that would harm prosperity.” Wow.
Let’s start by acknowledging “190 member countries,” which is nearly the entire global population. According to worldometers.info, “There are 195 countries in the world today.” The IMF’s decisions impact almost every human on the planet. Great power, great responsibility, right?
Next, let’s identify what the IMF is trying to accomplish for almost every person on the planet, “sustainable growth and prosperity…increase productivity, job creation, and economic well-being…discouraging policies that would harm prosperity.” Again, wow. Before I say anything, based on your own personal and professional experiences, do you think the IMF has succeeded?
Now I’ll say something. The key word in the IMF is “monetary,” which is another way of saying money. The IMF is in charge of the money. Our money. For a moment, forget about everything else, and focus on the money itself. Since the U.S. dollar is the global reserve currency, the money must mean the dollar, right? Do you believe the strength and functionality of the dollar has contributed to maximum growth, prosperity, and economic well-being in your life?
I’ll give credit where credit is due — the dollar has worked, and succeeded in many ways. My entire life, I’ve witnessed people come from nothing, and become successful by earning dollars. However, inflation has undoubtedly “harm[ed] prosperity.” Imagine being a senior citizen, working hard your entire life, and saving $100,000 for retirement. Back in the day, $100k was more like $500k, which is arguably enough for an enjoyable retirement. Today, $100k is not a very high goal.
The beautiful thing about today’s letter is that I don’t need to further convince anybody to see our economic situation from my perspective. The director of the IMF has admitted their failures. It’s like going into battle after years of intense training, and as soon as we meet our enemy on the battlefield, they’re like, “nah bro, you win.” Not saying the IMF is necessarily our enemy, but possibly Bitcoin’s enemy, and Kristalina Georgieva’s comments are a huge win for Bitcoin. Much respect to her for publicly claiming responsibility for failing about 8 billion people.
Prediction — those in charge of the dollar today, will become very friendly with Bitcoin in the future. They will slowly and surely realize the strength and potential of Bitcoin. Instead of ending up on the losing side of the greatest wealth transfer in history, they will find a way to utilize Bitcoin for their own benefit. If you can’t beat ‘em, join ‘em, right? Feels like we’re one step closer to Bitcoin becoming the global reserve currency. In the meantime, we should hope for the best, and expect the worst.
Until next time,
Salvatore Norge
P.S. — Trading bitcoin for a profit is not brain surgery.
“Keep falsehood and lies far from me; give me neither poverty nor riches, but give me only my daily bread. Otherwise, I may have too much and disown you and say, ‘Who is the Lord?’ Or I may become poor and steal, and so dishonor the name of my God.” — PROVERBS 30:8-9
I’m not very wise. Never financial advice. Do your research.