In this week’s episode of Bitcoin Bottom Line, hosts C.J. Wilson and Josh Olszewicz discuss the current worldwide events. Wilson discusses how Bitcoin has recently been a safety net. Olszewicz states that “currencies appear to be collapsing on the government’s management. Japan and England have been a complete mess.” The pound is currently at an all-time low, along with many other currencies. Bond markets are doing historically worse than they ever have. Olszewicz says “it does not make sense to me why the pound is up if England has been printing money and buying their own bonds.”
Wilson explains that all of the national banks lean into each other for stabilization. As trends change, we typically see a five or ten-percent wick over a long period of time. Now we are seeing twenty to thirty-percent riffs, where the dollar is up thirty percent against these other currencies in a very short period of time. People are generally unaware of how interlinked all of the central banks are.
Wilson goes on to talk about risk as an investor. “When you are an investor, you want to put your money in a diversified portfolio of risk so you are not all risk, all the time. Bitcoin does not have a yield or natural interest rate so you have to manage your cash flow in order to operate. The problem is that during inflation, your cash flow is being burned much faster than you want.” Wilson believes that inflation is here to stay for quite a while.
Wilson and Olszewicz discuss using bitcoin as a transaction method. “If you want to do a transaction, you can buy bitcoin, send it to someone and they can sell it for cash right away. There is very little volatility between transaction periods. You can decide to exchange it all for cash or you could take a fraction in bitcoin and the rest in cash.” Olszewicz says that bitcoin is “an off-ramp for all of the central banking mismanagement.”
Listen to the full episode for more!