To bootstrap a new money, create a religion around it. The core teaching is to hodl at all costs, no matter the temptation, until all unbelievers capitulate.
1) People who believe that bitcoin has a limited supply don’t understand how the financial system creates money.
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2) Most money in the world is not created by governments, central banks or even banking cartels. There is no magic button or printing press.
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3) Most money is created by private banks. Even “shadow banks” – non-depositary financial institutions – can create money and tradable assets.
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4) Private banks can create money by writing IOUs. In the past, this mechanism was restricted by capital requirements.
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5) Today, capital requirements are mostly an inside joke and money creation is practically unrestricted.
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6) Unrestricted fiat creation is a big reason why the coin cult has so many avid followers and evangelists.
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7) The CME, CBOE and other global exchanges are planning to launch futures contracts on bitcoin. Other derivatives will follow.
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8) People and financial institutions globally will be able to gamble on the price of bitcoin on a grand scale whether they own it or not.
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9) This will unleash the speculative demand for bitcoin which has been hindered by the high transaction costs and latency of crypto exchanges.
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10) On the other hand, traders will be able to sell bitcoin to taking customers without ever owning it, as long as they can post margin.
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11) The real showdown between the global financial sector and coin fiends is coming sooner than you think.
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12) There is no telling what the outcome is going to be, but the World v. Crypto matchup will be nothing short of spectacular.
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