One of the toughest parts about the Bitcoin thesis is what it means for the US dollar and what it means for the US role in the world.

I’ve long said, “I’d rather be wrong about Bitcoin than right, but I don’t think I’m wrong.”

The reason why is outlined quite well in this article from National Affairs: Bitcoin and the U.S. Fiscal Reckoning

It basically points to a world where we are at the beginning points of a fiscal “death spiral” that requires the Fed to print ever more and more money in order to buy more and more Treasury bills to finance US obligations because those obligations are “supposed” to be the safest and “risk-free.”

However, as the article points out, increasingly, the market doesn’t necessarily WANT those bonds as much as they used to and, as such, the Fed becomes the backstop.

It’s in intertwining of Money and State that Hayek warned about at a massive, trillion dollar scale.

I hate it. I wish it weren’t the case, but years of fiscal mismanagement by short-sighted politicians (and our constant re-election of those same short-sighted politicians) have put us in into this gravitational force field.

There is a way out, but cutting entitlements (the biggest part of the budget) is unpopular.

Honestly, it kinda sucks if I’m right about this.