The Bitcoin Black Hole Effect

“If the US Dollar really was to reach an uncontrollable level of inflation, a last move by the Fed may be to do this same trade on a Federal level by printing dollars to acquire Bitcoins to stack on their balance sheet. Only time will tell.” – William Clemente III

Today we read an excellent piece from by William Clemente on the various feedback loops that could lead not only to the qualitative loss of trust in the fiat system, but a quantitative pull to earn a near risk-free position in the Bitcoin collateralized lending markets. Edited in part by Preston Pysh who has discussed this idea in greater depth, what happens when multiple feedback loops within the Bitcoin markets converge to make it an increasingly liquid, low risk, high yield asset? It creates a Bitcoin Black Hole.

The Bitcoin Black Hole Effect:

For other great articles and episode mentioned in this show, check out the links below:

Read 489 – The Cantillon Effect 2.0:

Asset DNA – Speculative Attack:

Bitcoin is the Great Definancialization:

The MacroVoices episode on Interest Rates:

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