Explained: Nik Bhatia’s Thoughts On The Governments’ Ability To Shut Down Bitcoin
On today’s show, Preston interviews USC finance professor and the author of Layered Money, Nik Bhatia. Nik provides his thoughts on the governments’ ability to shut down Bitcoin. Preston Pysh So let’s play out a scenario where I think the pressure for the government to intervene is going to get more dramatic. So let’s say the price runs the 200,000 and it does it in a pretty aggressive way and let’s say it does it by the end of this year that we’re in right now, 2021. Now you start to have people in the fixed income space, which I know you’re extremely well-versed on, they’re looking at this and saying, “Oh God, if this thing becomes the new money, and this thing is a reflection of where interest rates are going to be based, this thing that I’m holding in Fiat currency becomes totally impaired, worthless.” And they start selling off in the debt market or the debt market starts to sell off. Central banks have to step in and aggressively provide a backstop by yield curve control. Preston Pysh They’re already doing it. They’re already talking about it, but they can see the amount of orders that are coming in in a drastically aggressive way and they’re providing a backstop and a buy for all of that. They can see the flows of all these cash that they’re basically inserting into the system and where it’s flowing it’s flowing into Bitcoin exchanges. At this point, if I’m a central banker and I’m seeing this, I’m saying the whole system’s about to collapse and it’s about to change. Do they come together as a collective entity and try to step in and regulate it at that point? Preston Pysh Because everything that you said, Nik, I completely agree with 100% but all the laws and regulations that they’re putting forth tells you that they’re actually being accommodative with it. But when I think about where things start to get a little concerning and a little bit more on edge is pretty much the scenario that I just described. So how do you think through that? Is that something that they could even do? Do you think global or the main nation states could come together and implement something collectively? What are your thoughts around some of that? Nik Bhatia I don’t think that nations will come together and hammer this thing down to the ground from a regulatory perspective, but you do bring up a very interesting scenario. And the game theory is fascinating what that type of situation will look like. And it probably will maybe here maybe in another country and it actually makes me excited to see what happens because I do feel that Bitcoin will find a way, it always does. And watching Bitcoin find a way when the governments get most aggressive is going to be breathtaking to watch just like how the decentralized network gets around the governments. Subscribe to We Study Billionaires podcast show: https://open.spotify.com/show/28RHOkX... To access our show notes, courses or forums, go to theinvestorspodcast.com. ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ADDITIONAL INVESTING RESOURCES: Ask the Investors: • Playlist Asset Allocation Course: • Asset Allocation Course Real Estate Investing: • 💸 Millennial Investing 🎯 Millennial Investing: • Millennial Investing Explained ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ Download Stig & Preston's 1-page checklist for finding great stock picks: https://www.theinvestorspodcast.com/f... Have a question? Get your voice heard on the show: https://www.theinvestorspodcast.com/y... ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ DISCLAIMER: This show is for entertainment purposes only. Before making any decisions consult a professional. This show is copyrighted by The Investor’s Podcast Network. Written permission must be granted before syndication or rebroadcasting.
