Bitcoin a 'Decentralized Store of Value Immune to State Control'- Pozsar
Bitcoin's Appeal: Decentralization, Immune to State Control, and Limited Supply
Introduction
In a discussion between financial experts, Zoltan Pozsar shares his thoughts on Bitcoin, highlighting its relationship with the changing monetary landscape. Some of the concepts elaborated in this part were also discussed in last month’s Pozsar's Interview Translated.
Previously:
- Part 1:Unveiling the Monetary Shift: IGWT’s Zoltan Pozsar Interview- ZeroHedge
- Part 2: Podcast: Zoltan Lays Out the State's Endgame For Bitcoin
Contents:
- Bitcoin and the Shifting Monetary Order
- State-Sponsored Assets vs. Private Initiative
- Bitcoin's Appeal: Decentralization and Limited Supply
- The Tail Risk of Bitcoin: Security Key Vulnerability
- Bitcoin: Commodity or New Element?
- Bitcoin's Evolution: From Risk-On to Risk-Off Asset
- Broad Reading to Understand Bitcoin Scenarios
- Conclusion
- Transcript of Bitcoin section
1- Bitcoin and the Shifting Monetary Order
Zoltan explains that his writings on the evolving monetary order, commodities, energy, money, and gold are closely aligned with the Bitcoin thesis. He views Bitcoin as an open question and is in the process of formulating his perspective on it.
2- State-Sponsored Assets vs. Private Initiative
Highlighting the distinction, Zoltan points out that gold and tokenized gold instruments are state-sponsored projects, whereas Bitcoin is a private initiative. He finds the concept of purely private money intriguing but seeks a link to the state in relation to Bitcoin.
3- Bitcoin's Appeal: Decentralization and Limited Supply
Zoltan finds it comical that Western central banks are attempting to develop Central Bank Digital Currencies (CBDCs) to counter Bitcoin's influence. He emphasizes that Bitcoin's popularity does not stem from its digital nature but rather from its decentralization and immunity to state control. Its limited supply makes it a better store of value.
4- The Tail Risk of Bitcoin: Security Key Vulnerability
Zoltan raises a concern about the potential tail risk of Bitcoin, suggesting that a state actor could pose a threat by breaking the security key. He questions the security of encryption but acknowledges his lack of expertise in the field.
5- Bitcoin: Commodity or New Element?
6- Bitcoin's Evolution: From Risk-On to Risk-Off Asset
Ronnie Stöferle, Incrementum fund manager, shares his perspective on Bitcoin's evolution. He notes that Bitcoin has been a risk-on asset, strongly correlated with tech stocks. However, with the resurgence of banking crises, it is transitioning into a risk-off asset, offering a sense of security.
