This may seem like a paradoxical outcome so let me explain how the Bitcoin Game Theory is playing out and could continue to play out towards this outcome.
Throughout monetary history, all currencies fail and the $ will be no different. The question is, what currency will be the next World Reserve currency? Will it be the Chinese Yuan, Russian Ruble or a new currency backed by Gold and used by the BRICS nations? I believe it will be the latter due to the current rumblings in that direction (Source: Forbes )
It is for this reason that the US is incentivized to adopt Bitcoin, unbeknownst to itself.
Herein lies the problem, the U.S. will not adopt Bitcoin on its own accord. Instead it will adopt Bitcoin when the $ is on its last breath BUT this may not be too late because other countries with weaker currencies will have adopted Bitcoin first and the BRICS nations will have fully transitioned into a gold backed currency. This would be the perfect time for the U.S. to rug pull the BRICS nations and adopt Bitcoin as a reserve asset, instead of following their suit and adopting a Gold Standard.
In 1873 when countries were leaving the Silver Standard, over a 35 year period, and switching to a Gold Standard, guess who stayed on a Silver Standard? China! This turned out to be a mistake because amongst other things, it led to their own great depression in 1935 (Source: Livemint.com).
China made a similar mistake when they banned Bitcoin mining in 2022 and most of the Bitcoin miners went to the United States.
Ironically, China and the BRICS nations could be repeating history by going on a Gold Standard while the US is implicitly going on a Bitcoin Standard:
1) The U.S. has more than 37.8% of the global Bitcoin mining hash rate (Source: VisualCapitalist.com)
2) The U.S. “owns” more Bitcoin than any other country by means of confiscation, approximately 200,000.
3) Laws and Regulations in the U.S. are the most Bitcoin friendly of any other superpower.
4) Arkansas and Montana signed Bills into law for their right to mine and many more states are being educated on the benefits of doing this by Dennis Porter and his team, through the Satoshi Action Fund (Source: satoshiactionfund.io).
5) The Securities Exchange Commission (SEC) allowed Bitcoin to be traded in the world largest market, the United States of America!
6) The U.S. ETFs now own more than 456,000 Bitcoin. (Source: Invest Answers)
7) The Commodity Futures Trading Commission (CFTC) categorizes Bitcoin as a commodity.
8) The United State’s Internal Revenue Service (IRS) taxes Bitcoin as Property.
Since the United States has the most Bitcoin adoption of any other superpower in the world, the departure from a $ that is not backed by anything will not be a shock when the $ is backed by Bitcoin. Since the $ is the most widely circulated currency in the world, the transition to a Bitcoin backed $ will help get $’s out of its impending, inevitable hyperinflation. Remember, the U.S. already pegged their currency to a commodity in the past, Gold, so history is on our side for the U.S. to peg to another commodity, Bitcoin.
This would be a uniquely historic event in monetary history because no superpower has ever been able to keep their World Reserve status after their currency has failed. Bitcoin could change the tides of history! Since the United States is still a country where the PEOPLE believe in LIFE, LIBERTY AND THE PURSUIT OF HAPPINESS it is the most likely superpower to adopt a Bitcoin Standard.
This is where things get really interesting. When the US adopts Bitcoin out of necessity, the Bitcoin Trojan horse will have fully penetrated the fiat monetary system. Once this happens there is no going back because the people will begin to experience:
- Savings that don’t lose purchasing power and instead increase in purchasing power.
- Working one job instead of multiple jobs
- Spending more time with their family
- Prosperity
- Freedom
At first these new experiences will feel foreign and “too good to be true” but once they realize that what they are experiencing is indeed true, they will not want to want to go back to the old fiat monetary system where they experienced the exact opposite of a Bitcoin Standard.
Bitcoin’s Game Theory is a beautiful thing to watch unfold. So what can you do to be part of this game theoretic scenario? Simple! Save in Bitcoin and Educate as many people as possible about Bitcoin.
