The Inflection Point

Soon, fiat money dies.

The bitcoin price continues to soar and its steady exponential ascent upwards will soon approach a critical point of no return. This is the inflection point.

Let’s explore with an arbitrary scenario.

A WallStreetBets pleb, recently rekt by his $GME gamble, is seen here conjuring the Room of Requirement.

How will we recognize the inflection point?

In the early days of bitcoin’s price discovery the bull / bear price cycles were quite frequent. New all-time highs were followed by large >50% corrections, occurring within a matter of weeks and months. These cycles have since appeared to have lengthened into the years, though it is quite early yet to tell for sure if this is a actual trend or just variability.

The inflection point is characterized by one particularly long bull cycle.
The Central Banker clown car collides with a brick wall called ‘Bitcoin’

What happens after the inflection point?

Personally I believe that fiat hyperinflation is inevitable and that the State will soon be forced to issue a more competitive currency and transition today’s unreserved fiat back to a fractional or even fully reserved money.

Listen, Pete deserves a small win, he’s one of the good guys.

The post-fiat utopia.

A world on sound, deflationary money is a beautiful place.

Conclusion

To clue this up, when fiat money finally dies bitcoin will have to be priced in something else entirely. Goods and services will be priced in bitcoin, but bitcoin itself will be measured by something new altogether. We can predict it will be priced in hashes and / or in kilowatt-hours — the energy consumed in mining, both of which are easily measured. The kWh’s required to produce a bitcoin can be compared to the kWh’s required to produce any good, including a typical man-hour.

Hashprice — The amount of hashes required to produce one bitcoin.

I hope you enjoyed this take, let’s keep an eye out for the inflection point!

❤ Steve

Bitcoin mining enthusiast / owner of @UpstreamDataInc / oilfield tech innovator / internal gears will change the world