LINGUA CONTRA IMPERIUM
The Language of Bitcoin: 6
Every company on Earth is sitting on a balance sheet that is normally cash and credit. With a few exceptions, everyone is holding some form of local fiat currency. If they want an alternative to that, they’re holding low risk debt or sovereign debt. Cash and credit.
Cash and credit are crumbling. They’ve always been crumbling. But now they’re crumbling at a faster rate. In good times they’re crumbling at 7% a year and in bad times they’re crumbling at 10 or 15 or 20% a year. In horrific times, if you’re in Venezuela, Argentina, or Lebanon, they’re crumbling at 60-80% a year. That’s hyperinflation.
One year ago we were staring at a balance sheet with $500 million dollars in cash and credit and it looked like it was almost certainly going to crumble at a rate of 15% a year for four years. That drove us to discover Bitcoin. A lightbulb went off and I realized we could swap out that $500 million dollars for…