The Intrinsic Value Of Bitcoin, Calculated Using Sovereign Credit Default Swaps

I reference my thesis at the intrinsic worth of bitcoin on this piece, initially printed in Bitcoin Mag in April 2021. It represents my view at the worth of BTC because the anti fiat, fiat is the Ponzi, and the way everybody wishes insurance coverage in opposition to the Ponzi collapsing. As Voltaire famously stated, “Paper cash ultimately returns to its intrinsic worth — 0.”

As Charlie Munger famously stated, bitcoin “is rat poison squared.” Smartly, Charlie, have your tablet, as a result of fiat is the rat.

The foundation of my paper is that BTC is insurance coverage at the decaying credit score high quality of fiat-issuing sovereign countries. As such, it’s credit score coverage on a basket of fiats. While you personal insurance coverage, you personal volatility. In a similar way, if you find yourself lengthy credit score, you’re quick volatility. Maximum property/funding mandates are quick volatility. Accordingly, the making an investment international is brief volatility, and it desperately must offset that chance with insurance coverage (or being lengthy volatility).

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