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The wake-up call of central banks hedging against bitcoin in a PhD Thesis of a Candidate from Harvard highlights why Central Banks should buy Bitcoin which is keen on the long-run fundamental value of Bitcoin because bitcoin values override US sanctions over foreign reserves when they hedge against inflation. Since the US Dollar is the world's reserve currency, it is true you may want to be paid in US Dollars and the US President or a legislative body will halt your payment. This is how sanctions are placed on other nations. A neutral monetary network like bitcoin challenges hedging sanctions.
But Bitcoin was invented to outmanoeuvre central banks. So the idea of central bankers buying bitcoin could be farfetched. But non the less, banks are interconnected and cutting off one central unit from the monetary network could lead to the freezing of funds under abnormal circumstances. For example, during the Russian-Ukrainian Invasion, the British government imposed assets freeze on major Russian banks. Bitcoin neutrality trade-off the "I Owe You" fiat system.
Whatever, the thesis is based on argumentative views when the westerners froze Russia's Foreign Reserve this year. This is a high-note translation for Bitcoiners to champion "Self-Custody" on Twitter when events like losing funds custody by a third party arise. Like the case with the bankrupt Celsius blocking user funds and it's not different when the Foreign Reserves of a country are frozen. Bitcoiners oppose the ideas of US foreign policies and this thesis is highly welcomed by Bitcoiners.
The wake-up call also indicates an increase in gold reserves by central banks around the world citing hedging against inflation as a major concern. The values gold possesses as an asset class undoubtedly qualify Bitcoin as "digital gold" and sheds more light on why the thesis considered Bitcoin a hedge for central banks. With all the criticisms the technology has faced, the "thesis may sound bizarre and far-fetched" to many central banks. But left in the hands of profit-making institutions, bitcoin is a fair bet, and sooner than later, the faith of bitcoin will be defined in economies of the world.
What is fascinating about the thesis is the fact we live in a digital world which is fast advancing, and the thesis as such may come to fruition as a twitter user compares the thesis to Einstein's theory of relativity.
It's fair for a thesis' bullishness on Bitcoin to central banks, because the traditional fiat system is not neutral in its form. With top-notch publications dissecting the "ethics of money production" and the high-note script below high lighting "Bitcoin neutrality" by Andreas M. Antonopoulos. It can only take a curroptable individual to opposed Bitcoin neutrality and shed more light on fiat neutrality. Here, the teachings of Bitcoin neutrality reads as follows by Andreas:
"The topic I want to talk about today is bitcoin neutrality. Bitcoin neutrality... What does bitcoin neutrality mean? Neutrality in bitcoin means being able to adopt bitcoin in any culture, any language, any religion, any geography but also any political or economic system. So bitcoin neutrality is about making bitcoin a standard that is independent of your desires and expectations. This isn't a libertarian currency any more than it's a communist currency. It's a currency and it can be applied to any political system whether it is the political system you like or not. It's a neutral currency. So what does neutrality means? Neutrality easily means no principles. neutrality is a principle in itself and in fact what am about to talk to you today is that neutrality is the most principle in bitcoin and most of the other great things are derived from that. If you want to really understand how neutrality will affect bitcoin in the future. We need to look at what has happened with the internet and the TCP/IP in terms of neutrality. On the internet, anyone can publish with the same voice that time Warner and CBS and ABC and CNN have. So neutrality is about being able to balance things so that it doesn't have to matter who the sender is or the recipient is, how big the transaction is, what type the transaction it is. Whether it's buying gold, caramel or drugs. Neutrality means that, the network will process your transaction and will charge you based on how big that transaction is into the blockchain".
Grab the full episode of Andreas' teachings about Bitcoin neutrality on and you will be morethan happy to assimilate a complex topic broken in simple understandable language nomatter your career. Teachings like this are more helpful to neutral humans unless you are none.
As the thesis linking the adoption of bitcoin to central banks, data from chainalysis indicates increase adoption of cryptocurrency in 2022 with china who banned the mining of bitcoin ranked among the first ten in the hands of individuals and private institutions. Bitcoin adoption is evolving as many people learn about Bitcoin which will inevitably lead to the free fall of the fiat system no matter the likes of the central banks. The production of money is at our peril from the the elites. They know where the monies come from and the ethics of money production will act like a binding tool to protect yourself from the free fall.
The thesis is on track as America's largest investment banks are increasingly getting deeper into the cryptocurrency market. On 15 November, the announcement of registration of a new
trademark "JP Morgan Wallet". Which with the registration, it gives them the ability to
provide services related to cryptocurrency transfers on the blockchain, cryptocurrency
exchanges, processing of credit or cash card payments and the creation and
management of checking accounts that operate virtually.
Nonetheless, the evolution of money has been through human transformation finding secure networks for money since the modern world measure value interms of money. Bitcoin as a form of money proposed by Satoshi Nakamoto which holds a network principle of neutrality is a ticking time bomb for the monetary evolution.
DISCLAIMER: This article is meant to create awareness and it should not be considered a piece of investment advice. As greedy as crypto is, I will never advise you to invest in crypto, always DYOR.
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