Adaptive Capital’s Misir Mahmudov: Bitcoin Can Take the World Out of Debt, Helps Millions Save
Misir Mahmudov is the author and operations associate for a crypto hedge fund called Adaptive Capital. As the US dollar loses its real-world value, Bitcoin price models may become useless.
Bitcoin arose as a result of a massive financial crisis, and it has become a growing industry since then. Analysts and experts have continually made predictions about how the market will be used and how it will grow. Misir Mahmudov, the author and operations associate for the Adaptive Capital crypto hedge fund, recently remarked that he believes that Bitcoin’s structure is exactly what the world needs to pull itself out of debt, due to the permission-less nature of it.
On social media, Mahmudov stated that anyone who saved their BTC would have the means to bypass traditional methods of savings. He noted, “Bitcoin is the democratization of savings,” adding that there are many savers that could benefit from this action. “Today, you can stack sats & store your wealth in the scarcest asset. The ability to save wealth in bitcoin will bring millions of people out of debt.”
The latest statistics in the US show that the national debt averages about $70,000 per capita. The debt across the globe is so massive that there is about $12.1 million in debt for every Bitcoin that will ever come into existence.
Academics like Mahmudov have consistently supported Bitcoin as sound money, and many others have even discussed the benefits that it has over fiat currency and other assets. Saifedean Ammous, for example, wrote a book called “The Bitcoin Standard,” as he continually states that fiat currency is no more than representative of the opposite of the saving mentality.
Governments and central banks have the power to both issue money and inflate it at will, which Ammous believes fosters a culture that is based on spending and borrowing, rather than promoting savings. This mentality is referred to as “high-time-preference” mentality, in which consumers with fiat currency are taught that spending, rather than saving, is in their best interest, as it could end up purchasing less in the future.
Ammous blames John Maynard Keynes, one of the architects responsible for modern economic policy, for this damaging mentality. In his book, Ammous references a quote made by Keynes about his own advice and its long-term impact on consumers, “In the long run, we are all dead.”
The opposite is true for savers of Bitcoin, which has been created with a limited supply that cannot be manipulated. Analysts believe that the price models associated with Bitcoin will end up being less useful over time, considering their predictions that fiat currency will lose more of its own value. Since the creation of the Federal Reserve in 1913, the US dollar has drastically decreased in value in by 96%, as far as its real-world use.
Bitcoin has been praised as digital gold and has been admired by many consumers around the world as a way to protect their own funds from inflation. According to one crypto hedge fund associate, Bitcoin may be exactly what the world needs to get out of their growing debt.