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BR #1 Spending β‚Ώ, $ or Turkish Lira?

May 06, 2023

(1 minute read)

Bitcoin comes up in at least 50% of the conversations I have.

Often I will confidently state:

"I am 95% sure that it will be the next global reserve currency. And I even think it is possible that bitcoin will be the only currency on the planet."

People start laughing.
They think I am crazy.
And the very common responses is:

"But nobody pays for anything with bitcoin. People just speculate with its price. And even hard core bitcoiners simply hoard bitcoin. How can it be money if you cannot spend it anywhere?"

To which I reply:

"Imagine you go to live in Turkey for one year. You know that the local TRY currency (Turkish Lira) has a very high annual inflation of 15-50%. You have US dollars and Turkish Lira. Which one would you spend first?"

People revert:

"Turkish Lira of course. It is a shitty currency. I will convert USD to TRY only when I need to."

Here comes my celebration time:

"This is the exact reason why bitcoin holders do not spend bitcoin.
The annual inflation rate of all fiat currencies is at least 5% and fiat is designed to inflate every year.
Bitcoin's annual inflation rate is 1.78% and it is designed to deflate every day."

And I finish it off with my punch line:

"TRY is shit compared to USD. USD is shit compared to BTC."

Obviously, bitcoin is still young. It is still a relatively small asset, which is why bitcoin's price is more volatile than the price of large fiat currencies.

But as more people #StudyBitcoin they learn how it is a fundamentally better money than any fiat currency.

And so they buy it. They hold it. They spend their shitty fiat.

That is all from me this week.

Talk to you next Saturday!

P.S. USD's inflation rate is actually very similar to TRY's:


πŸ‡ΊπŸ‡Έ USD, πŸ‡ΉπŸ‡· TRY, πŸ‡ͺπŸ‡Ί EUR are all shitcoins πŸ’© with the same inflation 🀯
Here is the proof:

2021 % increase of the #money supply (M2)
(this is what mathematicians define as inflation)

πŸ‡ΉπŸ‡· TRY: 15.7%
πŸ‡ΊπŸ‡Έ USD: 14.5%
πŸ‡ͺπŸ‡Ί EUR: 11.4%
β‚ΏTC: 1.78%

2021 % increase of Consumer Price Index (CPI)
(this is what central bankers purposefully misdefine as inflation)

πŸ‡ΉπŸ‡· TRY: 19.25%
πŸ‡ΊπŸ‡Έ USD: 5.4%
πŸ‡ͺπŸ‡Ί EUR 4.9%
β‚ΏTC: 1.78%

You might wonder:

"But why do prices grow faster in Turkey than in US & EU?"

A big reason prices rise faster in Turkey is because πŸ‡ΉπŸ‡· TRY is only used in Turkey:

  1. No one outside of Turkey holds πŸ‡ΉπŸ‡· TRY as a reserve currency :)
  2. When the total supply of πŸ‡ΉπŸ‡· TRY grows, ALL OF IT remains in Turkey.
  3. That is why when TRY supply increases, the CPI increases at a similar % rate.

On the other hand:

  1. πŸ‡ͺπŸ‡Ί EUR and πŸ‡ΊπŸ‡Έ USD are used globally as reserve currencies and as trade currencies.
  2. When the total supply of πŸ‡ͺπŸ‡Ί EUR and πŸ‡ΊπŸ‡Έ USD grows, a significant part is used as trade or reserve currencies by other countries.
  3. That is why when EUR & USD supply increase, the CPI increases at a smaller % rate.

Guess what will happen to EUR & USD when other countries decrease using these shitcoins πŸ’©...?

That is right...more inflation baby πŸš€

Oh and by the way, β‚Ώitcoin's inflation will decrease from 1.78% to 0.8% in April 2024.

Money is changing forever.

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