Sunday long read: an overview of the currency crisis and what role bitcoin plays

Sometimes you come across a thread on Twitter that you just want to share. This is one of them. Raoul Pal has put a lot of work into this and shares his views on the risks of the current currency crisis. Below is a full analysis followed by an interpretation.

Good job from Raoul. Bitcoin can be an alternative without having to immediately replace all global currencies. Analyst Anthony Pompliano thinks that the chance of an alternative system that exists alongside the old banking system is much higher than a brand new system based on bitcoin that replaces the entire existing system.

He thinks that the following events are likely to occur:

1. Many people from unstable countries may choose to use bitcoin because it is more stable and reliable than the system in which they currently live.
2. The old banking system sees an outflow of value, depending on how large the two systems are by that time.
3. Fiat money remains important as a result of legal and legal red tape. Think of KYC, AML, pay taxes, trade agreements, etc.
4. Most of the biggest opponents in the US (Russia, China, Iran, North Korea, etc.) would try to leave the legacy system. The question is whether a new system is based on bitcoin, or whether all central banks build their own digital, sovereign currencies.
5. The market value of bitcoin would grow dramatically as a result of the large increase in demand while the supply remains the same.
6. The focus will be on building a stronger second and third layer. This is needed for better user experiences.
7. Some countries may feel threatened by the new system starting the attack. Either by prohibiting participation in the system or by cutting off the dependence on the new system from the old system.

After reading the tweet storm from Raoul Pal, you may wonder if people are looking for a way to arm themselves against failing currencies. It seems that this is already the case. The price of gold and bitcoin continues to rise.