Mike Green, CFA, known for his insights on market structure, critiques Bitcoin's inherent flaws. He discusses how Bitcoin's fixed supply creates economic barriers, concentrating wealth while hampering mobility for younger generations. Unlike gold, Bitcoin's scarcity leads to systemic deflation and wealth inequality. The correlation between Bitcoin ETFs and its price raises concerns about intrinsic value. Green highlights the risks of financial engineering by companies like MicroStrategy, questioning Bitcoin's viability as a sustainable investment.
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insights INSIGHT
Gold Is A Physical Commodity, Not Magic
Gold is a physical element whose monetary role arose from physical properties like consistent weight and anti-counterfeiting utility.
Understanding gold's material basis clarifies why Bitcoin's claimed similarity to gold is superficial.
insights INSIGHT
Programmed Scarcity Changes Incentives
Bitcoin's defining feature is a hard-coded supply cap of 21 million coins, creating permanent scarcity by design.
That engineered scarcity produces qualitatively different economic incentives than flexible monetary systems.
insights INSIGHT
Deflation Harms New Entrants
A fixed money supply becomes increasingly deflationary as population and participants grow, making debt harder to sustain.
That dynamic disproportionately harms new entrants and young people who rely on borrowing for housing and capital goods.
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Mike Green offers a compelling critique of Bitcoin, revealing how its artificial scarcity creates a system that fundamentally concentrates wealth and power while undermining economic mobility for future generations.
• Bitcoin's fixed supply of 21 million coins creates a permanently deflationary environment that makes debt-based economic activity impossible • Unlike gold, Bitcoin has no mechanism to increase supply when it becomes too scarce, leading to ever-increasing concentration of wealth • The price of Bitcoin is directly correlated to money flowing into Bitcoin ETFs, not any intrinsic value creation • Companies like MicroStrategy are effectively creating synthetic Bitcoin exposure through financial engineering that resembles Ponzi schemes • Bitcoin's inelasticity means that as more money flows in, the price rises dramatically, benefiting early holders disproportionately • Young people in a Bitcoin-dominated future would face insurmountable barriers to economic participation
Find Du Charme Wealth Management here:
https://ducharmewealth.com/
[00:00:00] Bitcoin's Fundamental Problems [00:09:46] Gold vs. Bitcoin: Understanding the Difference [00:21:18] The Deflationary Danger of Bitcoin [00:34:00] Bitcoin's Inelasticity and Price Mechanics [00:48:12] MicroStrategy and Financial Engineering [01:01:20] Long-Term Societal Consequences
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