<br> A correction followed, but Bitcoin continued to spiral downwards in 2022. By late January 2022, Bitcoin had tumbled to below $35,000. As a central bank or national leader, it makes sense to quietly accumulate bitcoin as a hedge, but without much fanfare. Will governments print too much currency or too little? But the advantages of Bitcoin as savings technology will be clear. It is volatile precisely because the realization of bitcoin’s suitability as savings technology spreads unevenly. By keeping the block size small, it makes it possible for people all over the world to run their own full nodes, which can be used to verify the entire blockchain. Despite irregular successes, these efforts were hopeless in the long run. In Weimar Germany there were hapless efforts to convince or force citizens to surrender hard foreign currency. Calls to patriotism, coercion, and other measures will be made to persuade citizens to surrender bitcoin to the state. As of Oct. 26, users will not be able to access fiat deposit services or spot trading of crypto, buy crypto through fiat channels or “liquid swap,” Binance announced Monday. A nation-state could apply the Michael Saylor strategy, simply printing money to buy bitcoin<br>>
<br>> Switzerland has printed Swiss francs to buy foreign assets like equities. While Binance has frequently sought to promote its role in freezing crypto assets obtained through theft and routed through its platform, it has also faced accusations of facilitating money laundering. If you are a hegemon, you must do so secretly to avoid undermining one’s own hegemonic money. If you are a vassal nation you must acquire them secretly to avoid angering the hegemon. There is some ostensible purpose of self-defense, but in reality each subject nation pays a tax to the leader of the alliance. It should be thought of as a tax on vassals in an unequal alliance, not unlike the Delian League of ancient Athens. The U.S. does the same, except indirectly through the seigniorage tax rather than through explicit tribute. The U.S. is still the world’s largest economy, but its power is augmented through the seigniorage rents extracted from all dollar holders worldwide. The seigniorage profits of the dollar play a large role in funding U.S. Performing large trades via Binance OTC desk reduces the risk of slippage when the price in the regular order books is suddenly moved due to large transactions. 3’s featured news but also allow non-interactive signature aggregation which can allow for greater scalability by reducing the amount of signature data in the block chain (possibly by a very large percentage) and potentially enhancing privacy by implementing techniques for non-interactive coinjoins such as those described in the Mimblewimble paper. This is an enormous amount of value. In other words, the value proposition for bitcoin is that it will displace fiat money – the dollar, euro, renminbi and all the others – either fully or partially. I do not believe this will actually work, as citizens can’t be prevented from accessing bitcoin as they were with 20th century money. Yet the majority of bitcoin wealth will likely be held by citizens in those countries.
Similarly, British citizens were urged to turn in their gold for fiat notes during World War I and onwards. And similarly, reneging on the dollar, or de-dollarization, is viewed by the U.S. U.S. global influence could suffer a fate similar to that of Britain’s empire if it loses hegemony in money. Instead money printing will reverberate domestically with low latency. But there will be a second and a third and a fourth, spaced out perhaps by years. A gradual awareness grows around the world over the course of years. Unlike gold, bitcoin is ascending to world reserve currency status in full view. So the U.S. and eurozone states will view Bitcoin as a serious threat. The U.S. and the eurozone have the most to lose new post from Bitcoinxxo the adoption of Bitcoin by other countries. British colonies held pounds as reserves even when other countries preferred hard gold or safer dollars. As Britain lost its hegemony status, it had to bear the full brunt of maintaining overseas colonies alone, and could not. Probably a full bitcoin cycle, bubble and collapse will someday be entirely driven by nation-state buying. Their inflation will not be so easily exported a<br>d.