Bitcoin (BTC) can bring the world’s population out of debt thanks to its ability to allow consumers to save without permission.
That was according to Misir Mahmudov, the author and operations associate at cryptocurrency hedge fund Adaptive Capital, in his latest advocacy of Bitcoin on Nov. 27. Mahmudov is the brother of Murad Mahmudov, the well-known Bitcoin proponent.
Bitcoin will remove debt for “millions”
Writing on social media, Mahmudov argued saving in BTC permitted anyone to bypass the barriers to traditional methods of saving such as stocks and real estate.
“Bitcoin is the democratization of savings,” he summarized.
As a result, Mahmudov continued, large numbers of prospective savers would benefit:
“Today, you can stack sats & store your wealth in the scarcest asset. The ability to save wealth in bitcoin will bring millions of people out of debt.”
According to the latest statistics, the United States’ national debt alone equals around $70,000 per capita. Global debt is now so large that for every Bitcoin that will ever exist, there is currently $12.1 million of debt.
BTC savers escape the fiat inflation trap
Bitcoin’s status as sound money has long seen support from academics such as Mahmudov, with others highlighting its specific benefits over phenomena such as fiat currency.
In particular, Saifedean Ammous, author of the popular book “The Bitcoin Standard” and formerly a professor at the Lebanese American University, continues to point out that fiat represents the antithesis of saving mentality.
Through issuing money which they can inflate at will, governments and central banks foster a culture of spending and borrowing while demonizing saving.
In what is known as a “high-time-preference” mentality, consumers who use fiat are taught to spend it, not save it, as its inflationary nature means it will buy less in the future. For Ammous, it is John Maynard Keynes, one of the architects of modern economic policy, who is directly to blame for the damage.
“The Bitcoin Standard” quotes Keynes’ infamous soundbite about the long-term impact of his advice: “In the long run, we are all dead.”
With Bitcoin, a provably scarce form of money with a fixed supply which is impossible to manipulate, the opposite is true for savers.
As Cointelegraph noted, analysts even predict that Bitcoin price models will become less useful in time due to fiat losing its value. Since the U.S. Federal Reserve was established in 1913, the dollar has lost over 96% of its value in real terms.