famous investor Simon Dixon He recently said that El Salvador’s Bitcoin policy was “very responsible”, Said If successful, it could be the first domino to collapse the International Monetary Fund’s (IMF) “fiat-based Ponzi scheme” debt mechanism.
Dixon summarized the world’s financial history, emphasizing that every financial crisis has plunged countries into debt and turned all economies into overleveraged systems.
Bitcoin, on the other hand, acts as an independent stock that can offer great returns. On a macro scale, investing in Bitcoin could offer countries a way out of the IMF’s leveraged debt cycle.
“I believe that gambling part of a country’s future is not an irresponsible strategy, but a wholly responsible one.The IMF wants countries to follow the irresponsible strategy of fiat-based Ponzi scheme debt.” I’m here.”
He went on to say that El Salvador could get out of the Ponzi scheme if it can succeed in its bitcoin investment plans.
Bitcoin as stock
Dixon explained that investing in Bitcoin is a deleveraging move from debt to equities. He said:
“[By] Equity, I mean, I was very involved trying to make a bank, and Bitcoin has treated me well. Bitcoin made me rich. ”
According to Dixon, investing in bitcoin will increase your wealth as the value of bitcoin will inevitably rise. Increased wealth leads to more spending, which ultimately underpins Bitcoin’s sovereign economy. On the other hand, investing in a fiat currency system results in diminishing assets over time. Financial losses force fiat investors to leverage their assets and liabilities.
By that logic, Dixon also argued that Central Bank Digital Currencies (CBDCs) would only carry the IMF’s debt-based Ponzi scheme to digital platforms, as they would eventually be tied to IMF rules. He described the CBDC as a “debt-free currency issued by a central bank” and a “speculative attack on fractional reserve banks.”
El Salvador Follows Out of IMF ‘Ponzi Scheme’
Looking at historical milestones and the current state of the financial system, Dixon said countries could borrow from the US, the IMF or China to raise their own money. Moreover, whether the government chooses to borrow from the US or China, ultimately he is borrowing fiat currency that is tied to the control of the IMF.
Dixon said the IMF didn’t like it when El Salvador made bitcoin legal tender because the possibility of building an economy around bitcoin could pose a serious threat to the IMF’s current system. claimed that
“If [El Salvador] This is a big problem for the IMF business model. They are not a rescue company, they are not a mechanism for developing the world. ”
“They can maintain control of the mechanism as it is the mechanism for dollarizing the world and implementing global central bank digital currencies in addition to special withdrawal rights.”
El Salvador is currently undergoing restructuring. They seek to build a sovereign economy that delivers value growth and is free from the IMF’s debt cycle, unlike fiat-based investment options.
El Salvador Bitcoin Policy
El Salvador will become the first country to accept Bitcoin as legal tender in December 2021 and has since accumulated more than 2,300 Bitcoins. Based on price movements, the country saw short-term losses and gains.
The IMF opposes El Salvador’s decision to adopt Bitcoin as legal tender. Additionally, the country’s current bitcoin reserves are worth just over $50 million based on the current bitcoin price, and the IMF is using this to urge El Salvador to roll back its bitcoin policy.
Regardless, El Salvador is keen on a Bitcoin-centric financial system and is confident the price will rise to higher levels than before. adopted Bitcoin.