The co-founder of the online investment platform BnkToTheFuture.com, Simon Dixon, told Bitcoin podcaster Lark Davis, also known as The Crypto Lark, how he presented his thesis about the coming economic collapse in 2020, when Bitcoin rises.
Back in 2009, former investment banker and early Bitcoin entrepreneur presented their ideas on monetary policy and the strengthening of debt cycles during the lecture, which was eventually filmed and uploaded to YouTube. In the video, Dixon predicts how quantitative easing and high levels of debt will increase until a ‘black swan’ event causes the system to crash.
Although Dixon did not foresee the deadly and destructive coronavirus that engulfed the entire globe, taking lives, collapsing industries and causing mass unemployment, he says the global financial system itself thrives in a Ponzi-style environment that is poised to be solved. because people never repay the debt.
According to Dixon, the downward spiral is ultimately forcing governments and central bankers to adopt a losing strategy in an attempt to divert their path from the catastrophic economic downturn by printing money. But quantitative easing, he said, is becoming useless because taxes can no longer cover interest on debt.
This leads to the last hope.
“You have an instrument that does not use the central bank to create money as debt, but simply uses the government to create money that is not based on debt.”
The problem with this is that money is inflationary. What we need is to find a way to insert a new money supply – which is not backed by debt – into an economy that is also non-inflationary. ”
What lies ahead, he predicts, is a new digital currency.
“I believe that they will let the bank fall apart and give you an application that will have the same amount. But this money will be the central bank’s digital currency. In addition, it will be possible to take out universal loans as the economy deteriorates by downloading an application. And in this application there will be a loan that will stimulate you to commit to the digital currency of the central bank … The
digital currency of the central bank, although this is the only option left to the government, and I think this is the option that they will have to take, it scares me a lot in terms of the impact on freedom and privacy. “