For most of us, the terms "money" and "currency" are interchangeable. And in day-to-day life, that's perfectly fine. But understanding the difference between the two is becoming increasingly important, especially as Bitcoin gains traction. This isn’t just semantics; it has huge implications for how we think about finance, policy, and the future of money.
The current state of the global economy is a complex and intriguing topic. Here are a few key points to consider:
The US dollar has been the world reserve currency since the end of World War II
The US has been running a persistent trade deficit, importing goods and services from other countries in exchange for dollars
Countries like China have been running large trade surpluses, but have been investing their profits in US assets rather than their own economy
The global monetary system is facing a crisis, with many experts predicting a significant shift in the way money is valued and traded
A summary of the the various factors that contribute to individuals feeling ensnared in what can be aptly described as "The Matrix."
This phenomenon often leads people to conform, submit, and obey societal norms and expectations without fully realizing the implications of their actions.
I am writing to connect with you and discuss a thought-provoking comparison that has recently caught my attention.
The comparison revolves around the gold reserves held in Fort Knox (or any nation state for that matter), with growing concerns over the apparent absence of recent audits, as opposed to the unique transparency offered by Bitcoin.
For most of us, the terms "money" and "currency" are interchangeable. And in day-to-day life, that's perfectly fine. But understanding the difference between the two is becoming increasingly important, especially as Bitcoin gains traction. This isn’t just semantics; it has huge implications for how we think about finance, policy, and the future of money.
Earlier in September we highlighted the importance of liquidity and the impacts it has on the Bitcoin price. If you missed it, you can catch up on the charts and blog Liquidity is everything!
The Federal Reserve has started cutting rates again to help lower borrowing costs. This could impact the stock market - the S&P 500 tends to go down by about 4% in the first six months after the first rate cut if we're in a recession, but can go up by about 14% (on average) if we're not.
