How Donald Trump and Bitcoin Cronyism Changes the Market Structure
The Trump Win and 100,000 Bitcoin Is the Advent of A New Bitcoin Era.
Let me begin that I was never a Trump fan until he became president. And I am old enough to remember Harry Truman. While I was only three years old I was born and raised in Kansas City just miles from his home in Independence, Missouri.
I became a fan of President Trump when I saw how he handled the press calling it Fake News. And like most of America, I became a bigger fan when he challenged the 2020 election and how he endured the subsequent political abuse and prosecutions through lawfare. His survival and reaction to the assassination attempt was the coup de grâce.
This is a case where the office made the man. The man did not make the office.
That said, while Donald Trump is a true American hero, he is hardly a panacea for America’s deep problems. While the market structure just changed the problems remain and most likely will deepen.
The problems are systemic and President Trump fully embraces the system of the three greatest swindles of all time. Inflation, Entitlements, and Regulation.
All three lead to cronyism and Bitcoin is no exception.
THE THREE GREATEST SWINDLES OF ALL TIME
Or Bitcoin Fundamentals Apart From Bitcoin
homeytel.medium.com
Inflating the dollar will continue, lobbying for Bitcoin entitlements in the form of a Bitcoin Strategic Reserve and special favors for ETFs have just started, and more regulation will be demanded by these statist hodlers.
This means the next Bitcoin pump will be accelerated setting the stage for the next 90% correction outlined in my last article The CME Mother of All Gaps.
The $100 Bitcoin purchased in 2013 now will have $100 between ticks. And the Bitcoin losses and scandals of the past (like FTX and Celsius) will look like a Sunday School Picnic now that Big Brother is an active player.
The last time I wrote about a market structure change was 4 years ago.
All still applies. But now we will have the advent of inflation, entitlement for special treatment, and regulation of Bitcoin that has until now been pretty much ignored. Yet the 21 million supply Bitcoin is fixed and many lost with each passing day.
The Lindy Effect is in full play.
Bitcoin is what it is. There is no reason to believe it will morph into money. While it can be used as money it is not money and the likelihood of it becoming so is next to nil. Its use value is what Tone Vays termed unconfiscatable and transcends borders so long as you own the keys.
Economists are just now recognizing the flaw in Ludwig von Mises’s Regression Theorem.
Bitcoin and gold can be used as money. But gold was rarely used as money even under the classical gold standard that emerged organically to bring the Gilded Age, just as Bitcoin is rarely used as money today.
One of the rare exceptions where gold was widely used for money is the California Gold Rush because, in this unique time and place, gold was the most tradable good.
As Ááron Sepúlveda-Cué teaches, “Money is the most tradable good, not the most valuable good.”
Gold had little value in California during the California Gold Rush but it was the most tradable good.
Our hope does not lie in Austrian Economics.
The axiom or hypothesis of Christian Economics is Scripture, or “The Bible Alone Is the Word of God,” also known as Scripturalism. In theology, it is known as Sola Scriptura. Scripture teaches that value is imputed, not intrinsic.
Most Christians do not believe this. This includes most mainline Protestant Churches, Eastern Orthodox churches, and most evangelical churches. Roman Catholicism considers it heresy.
The great rationalist atheist Austrian economist Ludwig Von Mises acknowledged in his book Theory and History:
“Those divines who saw that nothing but revelation and could provide man with perfect certainty were right. Human scientific inquiry can not proceed beyond the limits drawn by the insufficiency of man’s senses and the narrowness of his mind. There is no deductive demonstration possible of the principle of causality and of the inference of imperfect deduction.”
While Mises does not agree with this Christian axiom, he recognizes it provides certainty.
I pray this helps.
