Over the past few weeks, I have begun reading everything I can get my hands on regarding the international monetary system. With the increase in the Fed’s balance sheet and the amount of money that will need to be pumped into the system, I find myself wondering what the future monetary system will look like. Will we have a continuation of dollar hegemony? Will the system that began at Bretton Woods survive subsequent rounds of the financialization of the US economy or will the rest of the world, as it did in 2009, call for the establishment of a new global currency.
My final thesis is hardly complete. However, as I delve into this new area of interest, I come across macro investor/strategist/trader* after another screaming about the value today of two assets: Gold and Bitcoin. Some say they are money. Others say store of value. Then others say they are the collateral to start the next global financial order. To be determined …
One thing I can say today is that my interest in Bitcoin has been re-piqued. Unfortunately for many the initial introduction, as it was for me, came during the end of 2017 when Bitcoin was in an extreme bubble that created enormous, albeit brief FOMO. Rather than understand the protocol or ask what the applications were, people opened a Coinbase account and threw money at something they didn’t understand with the hopes of getting rich quickly. I like to think I was more thoughtful than that, but I wasn’t.
This time around I want to build a better understanding of the macro view and the applications that exist today and the potential for the future. So, I’m taking a step back and diving back into Bitcoin.
P.S. If I become a Bitcoin HODL wacko like Pierre Rochard, among others, please punch me in the face.
*Paul Singer, Raoul Pal, Luke Gromen to name a few