- “If they will go the debt to future voters, then they will win the votes of present voters. So the inducement of the federal government is to create inflation as a result of it lowers the price of borrowing.”
- “It’s important to defend your self on this inflationary setting. However for those who’re already tremendous wealthy and also you already personal all these belongings, then you definately win by default”.
- “In 2020, Forbes reported that the rise in wealth for the Forbes (richest) 400 went up the best in 2020 than in any 12 months since they began recording. The rationale it went up the best fee is as a result of they printed cash”
- “What’s the incentive for a politician? The motivation for a politician is to realize energy and keep in energy….how are they going to try to get votes? By spending an entire bunch of cash with out taking cash from the taxpayer…they go the e-book down the highway”.
This was a enjoyable one.
There are larger issues on this planet than cryptocurrency; extra essential points. Michael Kong, CEO of Fantom, understands that. It’s additionally what cryptocurrency is making an attempt to resolve, though we aren’t there but – one thing he acknowledged and we mentioned at size, assessing whether or not it’s affordable to check to the Web development or different benchmarks you typically come throughout.
Personally, I’m pessimistic concerning the state of the economic system proper now. The price of dwelling disaster has hit common folks onerous. Homes have gotten more and more unaffordable – a part of the explanation I left my native Eire and moved to Colombia. Politicians have gone from calling inflation “transient” to blaming it on Putin’s warfare, earlier than final month shifting to “it’s an issue but it surely has peaked and shall be beneath management by the tip of the 2022”.
Michael is CEO of Fantom, which is likely one of the largest cryptocurrencies round. The episode happened solely a few hours after the CPI studying for June revealed inflation had upped once more to 9.1%. Michael is a deep thinker and has a lot of fascinating views on the place he sees the costs of monetary belongings going ahead, why the economic system is in bother, the political setting, and the inequality hole.
We additionally mentioned Fantom (clearly!). We delved into what separates it from rival cryptocurrencies when it comes to the validation mechanism, and he was refreshingly candid concerning the trade-offs that have been made in prioritising enticing options equivalent to low charges and excessive transaction speeds. In fact, the podcast was in two sections: Fantom / Blockchain technicals, and Macro / Immediately’s society and economic system, which I’ve timestamped within the description under.
I imagine cryptocurrency typically suffers from tribalism, an argumentative and aggressive panorama the place buyers typically bounce on one another for liking sure cash and never liking others. I actually loved Michael declaring that Fantom was “standing on the shoulders of Ethereum giants”, sufficiently big to provide credit score to a rival coin for laying numerous the groundwork within the trade.
In fact, he believes Fantom has improved sure features of their know-how, which we mentioned in depth, but it surely was good to listen to an goal and well-balanced opinion from him.
My favorite half was when Michael confirmed how in contact he was with the financial actuality that so many are going through. He bemoaned the truth that the cash printer took cash from the poor and put it into the fingers of the wealthy so starkly throughout COVID, and the very fact the paycheck-to-paycheck staff are paying the value.
“This leads to an enormous wealth switch from the poor to the wealthy. This is likely one of the the explanation why I began stepping into crypto…I can’t change the political system; I’m a single voter out of 20 million in Australia. However what I can do is have affect over my very own life, and management what I can management” – Michael Kong
We talked about what one can do to guard themselves as the worth of fiat forex continues to erode, the costs of products rise and it usually turns into more difficult to dwell. And why, sadly, it’s all stacked in favour of the wealthy.
“It’s important to defend your self on this inflationary setting. However for those who’re already tremendous wealthy and also you already personal all these belongings, then you definately win by default. That’s why in 2020, Forbes reported that the rise in wealth for the Forbes (richest) 400 went up the best in 2020 than in any 12 months since they began recording. The rationale it went up the best fee is as a result of they printed cash”.
To me, it’s the inequality hole widening that’s the harrowing a part of all this. We noticed this occur throughout COVID when these fortunate sufficient to have the ability to work at home (together with myself, for the document) have been comparatively immunised (pardon the pun) from the financial carnage that lockdowns precipitated.
Alternatively, these working in-person jobs equivalent to bar employees, retail, performers and so many extra bought hit mercilessly. These dwelling paycheque-to-paycheque immediately didn’t have a paycheque, whereas these at residence merely needed to pull on a pair of sweatpants and ensure their mattress wasn’t too untidy within the background of their Zoom name.
The federal government’s response primarily transferred wealth from the poor to the wealthy. Monumental stimulus packages have served to now set off this full-blown inflation disaster, additional exacerbating the difficulties these exact same paycheque-to-paycheque staff had through the pandemic itself.
Michael Kong will get all this. He’s a CEO and clearly extremely smart, however he understands how the world works. He is also making an attempt to make a distinction. For those who pay attention to 1 CoinJournal podcast, I believe it needs to be this one – masking essential points with an clever and candid visitor was actually satisfying, educations and thought-provoking. Timestamps are supplied within the Spotify description for those who choose to take heed to sure sectors on Fantom / crypto / inflation / politics / the longer term and so forth.
Completely satisfied Friday.
Hyperlink to podcast right here on Spotify. YouTube to comply with shortly.