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Bitcoin Is Not A Hedge, It’s The Solution

Jan 9, 2024

Bitcoin Is Not A Hedge, It’s The Solution

Bitcoin Is Not A Hedge, It’s The Solution

Key Takeaways

Bitcoin's Role in Inflation and Currency:
Bitcoin is not merely a hedge against inflation; it is a solution to it. Unlike real estate or equities, which can hedge inflation, Bitcoin operates independently of the dollar and is designed to replace it. Bitcoin's unique value proposition lies in its finite supply of 21 million coins, which cannot be altered by any government or entity, making it a fundamentally American concept that aligns with the principles of individual rights and freedom from government-endowed money.

Understanding the Federal Reserve System:
The Federal Reserve's creation of base money is the root of monetary expansion and inflation. Bank reserves are lent out, and the credit system grows or contracts based on the Fed's actions. When the Fed injects more base money, it prevents the natural contraction of credit that would occur when debts are unsustainable. This continuous expansion of base money is unsustainable and leads to the failure of money as a medium of exchange, resulting in a decline in the quality of life as goods become scarce.

Bitcoin Adoption and Government Response:
As more individuals and businesses adopt Bitcoin, it becomes an existential threat to government-controlled fiat currencies. The logical progression suggests that governments will only attempt to ban Bitcoin when it becomes so successful that it challenges their monetary monopoly. However, by that time, Bitcoin's widespread adoption and decentralized nature will likely make it resistant to such bans.

The Importance of Bitcoin Payments:
Bitcoin's value as a store of wealth is only as strong as its ability to be exchanged freely in the future. Therefore, building redundant payment rails that do not rely on fragile fiat systems is crucial. Zaprite, a platform for enabling Bitcoin payments, aims to facilitate this by providing tools for businesses to accept Bitcoin payments directly, without the need for intermediaries.

Best Quotes

  • "There's nothing less American than the US dollar."
  • "You can't solve a broken form of money with a new car or a new house or a new roof. The only thing that can solve a broken form of money is a better form of money."
  • "Money doesn't grow on trees and ain't no such thing as a free lunch. Well, they're printing free lunches faster than ever before, and it's unsustainable."
  • "Humans are adaptive. When you think about in the context of history of bubonic plague, and we're all here because some resilient people kind of powered through that."
  • "The thing that matters most, the actual printing of money, is the base money."


Bitcoin represents a paradigm shift in the concept of money, offering a solution to the inflationary practices of traditional fiat currencies. Its design as a decentralized, finite currency aligns with the fundamental American values of individual rights and freedom from government control. As Bitcoin continues to gain traction, it poses a significant challenge to the existing financial system, prompting a need for redundant payment systems like Zaprite that empower direct Bitcoin transactions. The transition to Bitcoin is not merely a financial decision but a cultural and philosophical one that echoes the resilience and adaptability of humanity.


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