Empire Hivemind: Bitcoin Decoupling, US Trade Deficits & Worldcoin
Apr 17, 2025
The discussion centers on Bitcoin's decoupling from traditional markets and its role as a neutral asset amid shifting global dynamics. There's a deep dive into the impact of U.S. trade policies on Bitcoin's appeal and the ethical dilemmas of Worldcoin’s identity verification. The rise of stablecoins and their adoption in everyday transactions are also explored, along with the implications of geopolitical tensions for cryptocurrency and precious metals like gold.
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Bitcoin Decoupling Evident
- Bitcoin is showing signs of decoupling from traditional markets like NASDAQ.
- It still needs to prove consistent uncorrelation but fundamentals suggest a shift is underway.
Reserve Currency Trade-Offs
- Holding reserve currency status causes trade-offs like currency overvaluation and hollowed manufacturing.
- It becomes risky when adversaries manufacture critical goods and trade deficits persist.
Trade Deficit Impact on US Assets
- Reducing trade deficits lowers foreign currency inflows to buy U.S. assets.
- This could structurally reduce the global bid for U.S. treasuries and equities over time.