Undoubtedly, fiat millionaires will read the title of this article and laugh. Languishing in mansions with foundations of debt, materialism and the physical world of fiat rich people is deceptively luxurious. Assuredly, the great empires of Rome, Venice and Constantinople also had many rich people enjoying the various splendors of wealth.
Indeed, turkeys live happy lives — until Thanksgiving.
If we can consider the fiat ice cube melting, it would be wise to conceptualize that, until the ice is fully melted, the water feels cold. It isn’t until this ice is melted that the water left behind rapidly warms relative to the temperature of the space the water is in.
This describes the stuffed bank accounts of wealthy Americans across the country. Many believe that they are keeping themselves safe by investing their money into various assets, such as equities and real estate. The problem with these markets is that they fundamentally rely on the currency system that bitcoin works to fix.
The stock market continuously reaches all-time highs because the Federal Reserve maintains low enough interest rates and a liquid enough credit market to keep it afloat. Without this third party injection of funds, the current market conditions would rapidly evaporate.
A stock market crash would eliminate much of the wealth that upper-class Americans enjoy. The difference between poverty and opulence for many is FAANG stocks that carry with them the responsibility of keeping America “rich.”
If You Do Not Buy Bitcoin, You Cannot Be Rich
Rich, as I will define it, is the freedom and ability, as enabled by one’s wealth, to do as one wishes. Perhaps there are people who feel they have enough fiat currency stored to fit in this definition. I wager that if they simply witnessed the shifting sands beneath their castle, they would immediately retract their feeling of freedom and ability.
How can one have freedom with a looming stock market cycle permanently on the horizon? Credit cycles…