Why Hyperinflation is Already Occurring; and the replacement of all global fiat currency by cryptocurrency is underway.

 

We are already at the leading edge of Global Hyperinflation, a mechanism through which ALL the fiat currencies will collapse.  But it is hidden, because people are looking in the wrong direction.  Traditionally, people think of Hyperinflation as  a situation in which the local currency of an individual country experiences very high and accelerating rates of inflation in the cost of goods, food and energy ... rapidly eroding the real value of the local currency, and causing the population to minimize their holdings of local money. But here is the problem.... technology is increasing our ability to produce goods cheaper and cheaper, increases our ability to grow and manufacture cheap food, and to tap into cheaper and cheaper energy. 

In traditional Hyperinflation, as debt increases, individual governments fire up the printing presses, printing more fiat currency to offset the debt.  But here, on a GLOBAL Scale, we find ourselves in a once in human history scenario in which technology has allowed the goods, food and energy producers to keep up with the speed of the money printers through speeding up their "printing" of consumer goods, food and energy.  So those traditionally watched indicators don't show up.

What is the single place we see clear evidence of hyperinflation?   Cryptocurrency!  The "Replacement Currency".  It is clearly at the leading edge of hyperinflation.   People think this is a bubble, but this is just the very teeny tiny beginning of the curve.  ALL Global Fiat Currency is already in the beginning throes of hyperinflation.  It is ALL hyperinflating vs Cryptocurrency. It’s not that you are getting ready to see Crypto "go to the moon", as much as you are getting ready to see Fiat Currency "go to the bottom of the deepest trench in the sea".  In reality both will occur.

NOTE: Historically the best way to leverage this.... is take out loans on fixed percentage rates, and reinvest the money into the new currency or tangible good that is appreciating.   Your investment skyrockets in value comparatively to the fiat interest rate you borrowed at.  Or move Fiat at early phases of the transitional curve.

We are at the beginning curve of fiat -> crypto hyperinflation, the end of which is all global fiat currency is replaced by cryptocurrency.  This hyperinflation event began for in the Spring of 2017.  Hyperinflationary events tend to only take 12 - 24 months on average.  The most extreme, and most quoted, was the German Weimar Republic.  It was over in less than 2 months.  The remaining pieces in the Fiat -> Crypto Hyperinflationary currency replacement event are “Scaling” and “Adoption”. Scaling is the technological process of allowing more transactions to occur per second.  That technological scaling upgrade is underway and will likely be completed by end of 2017.  Adoption is when people start adopting and using the currency.  With software technology and everyone already having a smart phone or computer, this could happen in the blink of an eye. The underlying technology behind “Apple Pay” and “Google Pay” where you just swipe your phone at the checkout counter is already in place, or being rolled out….. and it is the same technology that will allow people to use Cryptocurrency instead of traditional Fiat Currencies (USD, Euro, Yen, Yuan, Ruble etc)

NOTE: For more information on hyperinflation, see wikipedia.  It’s a real event that routinely occurs in countries.  The difference this time is that it will happen globally, in ALL countries almost simultaneously.  It makes sense... global world, global economy, global technology tying us all together.... global money.  And hyperinflation is the fiat->crypto mechanism that will get us there...... and that is why we already see 2, 3, 4, and even 5 digit percentage increases in Cryptocurrency valuations.  Because it has already started  https://en.wikipedia.org/wiki/Hyperinflation


BEFORE I CONCLUDE, I WANT TO ADDRESS A FEW MORE CLARIFYING ASPECTS:


I recently had a discussion in the Ethereum Classic Slack Channel where I shared the general above thought process.  One fellow responded with a sort of “dismissive” comment that he’d bought into the whole Hyperinflation thing back in 2009/2010, but that it didn’t happen then.  Here is how I responded to that conversation….


Let me address your earlier statement about why this is different from 2009/2010.  First of all, hyperinflation could have occurred at that time, and indeed it almost did.  The trigger asset back then was Gold/Silver.
  Silver was the key.  It all started on a tear, and it almost got out of control.  But silver is an easily manipulated market if you control enough.  And JP Morgan did.  And in combination with the financial queen of evil, Blythe Masters, JP Morgan’s go-to-manipulator, and a primary driving force behind global derivatives, they crushed the Silver market and instigated fear.  It worked.  We had deflationary goods pricing, but with no trigger asset to hyperinflate vs the currency, hyperinflation was kept at bay.  So why is it different now?  Well, Blythe Masters is now ON the hyperinflationary asset team.... as head of Hyperledger and a huge driving force behind the Global Crypto Chamber of Commerce.   But that is really a side note.  The main difference this time is that Cryptocurrency, unlike physical silver and gold markets, cannot so easily be manipulated.  And you can SEE WITH YOUR OWN EYES that they are trying to stomp down on Cryptocurrency.  Do you not see the enormous Hands of Downward Pressure that they occasionally put on the price scales?  The Regulatory pressures they interject at key periods (PBOC in the Spring, the SEC now, etc etc).  But it is NOT working.  It’s out of their (central governments) control and spinning more so quickly.  Also, you have greater deflationary pressure offsetting the hyperinflationary pressure of money printing.  Robotics, Artificial Intelligence, Technology increases are all keeping the production of goods at a rate that offsets the rate of fiat money printing.  It is making it impossible for them to handle this in the traditional "slowly inflate your way out of your way out of debt" model.  So... yes, hyperinflation ALMOST actually happened in 2009/2010, and the people yelling about it were correct.... except all the correct pieces were not in place yet.  Now they are..... AND YOU CAN LITERALLY SEE IT HAPPENING RIGHT BEFORE YOUR EYES..... IF you are looking in the right places.

ANOTHER PERSON IN THAT SLACK CONVERSATION SUGGESTED THAT AFTER THE RECENT SEC “ICO” FINDINGS, THE NEXT MOVE MIGHT BE BY THE IRS.  HERE IS HOW I RESPONDED TO THAT…..


I want to address your comment that the IRS is most likely to get involved next.  I don't know.  Again, the problem is that this is spinning out of control for them very fast.  When Australia and Japan make Crypto a non-taxable currency in this gloabl world of finance, then it is going to be a magnet for crypto.  In this world you follow or die.  The U.S., China and other countries are in very tough spots.  If they tighten screws, all the tech money and startups can just move cross border, effectively killing jobs, losing more of already existing tax based, entrepreneurship, investments, etc.  They CANNOT stop it.  Unless they unplug the internet, then this continues on and on.  Crypto is getting ready to replace fiat in a very messy and rapid hyperinflationary event.  People just won't recognize it as hyperinflationary because they are looking at the wrong metrics.  They are looking for hyperinflation in the cost of goods, food, energy costs…. But that isn’t where the Hyperinflation is showing up….. it is in the rapid and accelerating devaluation of Fiat to Cryptocurrency.


Just felt like sharing this... because I think a lot of people are missing the big picture.