Bitcoin, The Critical Money Layer with Nik Bhatia - WBD567

Nik Bhatia is Author of Layered Money and founder of
TheBitcoinLayer.com. In this interview, we discuss Jeff Snider’s
Eurodollar ideas: how all money is credit money; why Bitcoin will
be a check, but will not replace, fractional reserve banking; and
how Bitcoin will complement the dollar as a generational store of
value.


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Three months ago we interviewed Jeff Snider who discussed the
Eurodollar system, how Central Banks aren’t in control of the
levers of money, and why we could be entering a deflationary
depression. The show generated a huge amount of interest,
particularly because despite the Eurodollar system being opaque
and poorly understood, it is arguably a central cog in the global
economy.


Nik Bhatia, amongst other esteemed commentators, was compelled to
respond to Jeff’s show. This is because Jeff’s ideas and the way
he presents them are enlightening and engaging. There is broad
agreement regarding the unacknowledged criticality of this part
of the global economic system, and the resultant challenge it
presents for being able to define money.


There is also consensus that inflation won’t be the runaway
phenomenon some are warning of, because the impact of QE was
offset by tightening in the Eurodollar market. As such,
deflationary pressures could soon become apparent meaning banks
should be taking more risk to stimulate growth. It is fair to
state Nic is an admirer of Jeff: Nic attributes Jeff’s seminal
work to helping him develop Layered Money.


However, Nic does also have some important divergent opinions
from Jeff. Nik believes that the banking system isn’t out of
control. Whilst it doesn’t necessarily have the power it seeks to
portray it does, neither is it an impotent bystander. The recent
moves to quell inflation have only just begun in earnest. Could
the Fed show that it has teeth in this regard?


What is most illuminating however is their convergent ideas
around Bitcoin. Whilst presented in different ways, they both see
Bitcoin’s role as an important store of value. They also agree
that fiat’s elasticity will continue to be a desired utility.
What Nik leads on in this regard is that Bitcoin can act as a
vital check on fiat and Central Banks: it makes money pluralist.