Bitcoin Cash and the current markets

in LeoFinance4 years ago

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We all know and it is not a secret that governments are printing money like there is no tomorrow, many of those fresh printed on a screen computer don't make it to the real economy but actually stays on the stock market and other assets, and even on banks internal balance sheets, because of that you haven't seen run away hyperinflation just yet. But eventually all of the money printing and stimulus will hit the real markets and prices for your daily needs will increase to very high levels, first as inflation and later as hyperinflation.

Buying gold may help you in the first years on a hyperinflation scenario but eventually if governments see that metals like gold, silver start to go up they will use bullion banks to crash it, and if that doesn't work eventually they will just make it ilegal to hold metals just like they did before. And that's the reason why you don't buy metals, full stop. Because everyone with a brain knows that if metals start to really be a threat to the money printing machine the governments will just make it illegal to buy, sell or hold any metal, and since it is real (exist in the real world) they can get it from wherever you may be hiding it, and if prison is the sentence for not giving it up believe they will rather put citizen behind bars than give up on their money printing privilege.

In the case of land or real state, they will just increase your taxes all the way up so that you will have to literally just give your property away, this will only happen on a hyperinflation scenario like in the case of Venezuela, not a minute before that, inflation like Argentina today will increase your taxes but it will be still be possible to pay it up. But in hyperinflation the government will make your real state taxes unbearable, and also your capital gains taxes on any other asset that you may hold, and even unrealized gains, together with metals confiscation.

In the case of Bitcoin or Bitcoin Cash, BTC won't work because LN nodes will be your choke points where the government will hunt down large liquidity operators and force them to pay up and give your information away, otherwise they will have to give up their balances, and companies like WoS, Coinbase, Gemini and others will give whatever the government asks just to operate. BTC on-chain tx are so or will be so expansive that it will be impossible to use it here is where Bitcoin Cash will shine.

People will only understand until it is literally too late, it is unfortunately but people will only understand why low fees are a must on the first cryptocurrency until they actually need it for day to day transactions, as it is right now people are just interested on speculation and not actual use, but the moment shit hits the fan, that's when you will realize that buying BCH under 1% of BTC price is actually a blessing on disguise for those that are smart enough to understand the reason why Satoshi named it, Bitcoin a peer to peer currency.

In conclusion, a hyperinflation scenario of the US dollar will finally make it visible for even the most uneducated person why you need a money that the governments can't print and will also show why you need low fees in such currency. Remember the crypto spaces has always been a space for those who think outside the box, and right now the market is supporting BTC, but once the dollar is worthless and you need actual currency instead of a speculative asset, at the point the weakness of btc will show up. And LN will just be seen as actual vaporware, because you will know LN nodes are weak against governments, just like centralized exchanges are today. Running LN nodes on Tor network doesn't help either because if everyone needs to open channels so tx on-chain will go to the sky as well and all at the same time.

In a hyperinflation world you only don't have to worry about high taxation, but also confiscation by the governments, because governments take from those who produce to whose who don't produce, and once their money machine doesn't work they go after those to have the value, don't believe me just go to YouTube and put what happens to countries with hyperinflation, they first get to companies that produce services and goods and nationalize them, later private citizens and their private property. Bitcoin Cash at some point will need an increase of the blocks from 32MB in a hyperinflation world to at least 128MB but at that point we all will have to deal with it.

I hope a hyperinflation world never comes true because many will suffer and I am only one mind so it could be possible that BCH may not even work but at least it has 32 times more chances than BTC. I may be missing some things out after all like I said before I am only a single mind writing my ideas, I hope I can encourage you to also write your ideas as well because many minds working at same time and at the problem may solve issues better than one mind.

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This is why I keep saying that if BTC hits $1M (too soon) it will be more likely because the dollar is worthless than because BTC is that valuable.