BITCOIN

The value of Bitcoin in the credit default swap

I mention my thesis about the underlying value of Bitcoin in this piece, originally published BItcoin Magazine In April 2021. It represents my view on the value of BTC, Fiat Hall Ponzi, and how everyone needs insurance against Ponzi breakage. As Voltaire famously said, “Paper money eventually returns to its underlying value – zero.”

As Charlie Munger famously said, Bitcoin is “a class of rat poison.” Well, Charlie, you have pills, because Fiat is a rat.

The basis of my research paper is BTC is the declining credit quality insurance of fiat-issuing sovereign countries. As such, it is a credit protection on a basket. When you own insurance, you own instability. Similarly, when you have long credit, you are short volatile. Maximum asset / investment order short volatility. Accordingly, the world of investment is short-lived volatility, and it is insurance (or being) Long Instability).



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