Destroying the public’s trust in the fiat banks

People who use fiat banks, do this, because they somehow trust them with their money. If we manage to substantially damage or destroy this trust, these people will flee from the fiat banks into alternatives, one of which is bitcoin.

There are pretty much a fixed number of bitcoins. If more people want bitcoins, the only way to accommodate such influx is by increasing the exchange rate for bitcoins. This increases the value of existing bitcoin holdings. Therefore, everybody who has bitcoin holdings, has a vested interest that an influx into bitcoin takes place.

Let’s say that the destruction of the trust in a fiat bank or fiat currency causes an amount A to flee. Therefore, b*A will be parked in bitcoins, with 0 <= b < 1. Say that the total outstanding volume of bitcoin is B at a price p1. In that case, the new volume will be B + b*A at a price p2, with p2 = p1*(B+b*A)/B = p1 * (1+ b*A/B).

If your current bitcoin holdings amount to C, you stand to make C*b*A/B in profits from a calamity in the fiat world; the size of the fiat calamity being A, the bitcoin propensity to profit from fiat calamities being b, and the total volume of bitcoin being B.

The next question is of course: How can we personally assist in causing catastrophes in the fiat banking world? In other words, how can we destroy the public’s trust in the fiat banks and currencies, since we have a vested financial interest that they go flat on their faces?

This is an important task for every holder of a substantial amount of bitcoins. The fiat banks have to burn, and we should help them doing so. Live and let die!

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Published by

eriksank

I mostly work on an alternative bitcoin marketplace -and exchange applications. I am sometimes available for new commercial projects but rather unlikely right now.

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