According to Simon Dixon, “El Salvador’s Bitcoin policy could lead the shift in world monetary system”
A well-known investor by the name of Simon Dixon recently referred to El Salvador’s Bitcoin policy as “very responsible” and suggested that, should it be successful, it could be the first domino to topple in the process of bringing down the “fiat-based Ponzi scheme” debt mechanism employed by the International Monetary Fund (IMF).
Dixon provided a concise history of the world’s economy, focusing on the fact that every financial crisis has resulted in countries incurring more debt, which has transformed all of those countries’ economies into overly leveraged systems.
On the other hand, Bitcoin operates similarly to independent equity and has the potential to generate very high profits. Investing in Bitcoin can offer countries a way out of the leveraged debt cycle that is perpetuated by the International Monetary Fund (IMF).
“I believe that betting a percentage of a country’s future is a fully acceptable strategy that is in no way irresponsible, but the IMF wants countries to adopt reckless methods of fiat-based Ponzi scheme loans.”
He went on to add that El Salvador would be able to extricate itself from the purported Ponzi scheme if it was able to carry out its Bitcoin investment strategy in a successful manner.
Bitcoin in the form of equity
Investing in Bitcoin, according to Dixon, is a form of deleveraging that involves shifting away from debt and toward equity. He said:
“[By] equity, I mean that I was deep in debt attempting to start a bank, and then Bitcoin treated me well. It allowed me to get out of that situation. Because of Bitcoin, I was able to improve my financial situation.
According to Dixon, one should expect to see an increase in wealth as a result of investing in Bitcoin due to the unavoidable increase in the value of Bitcoin. The rise in wealth inevitably increases spending, which, in turn, helps to maintain Bitcoin’s decentralized economy. Investing one’s money in a system that is based on fiat currency, on the other hand, leads to a gradual loss of wealth. Because of the financial loss, fiat investors are forced to leverage their assets and take on debt.
By the same line of reasoning, Dixon also stated that the Central Bank Digital Currencies (CBDC), which would ultimately be subject to the rules of the IMF, will just take the IMF’s debt-based Ponzi schemes into the digital platform. He used phrases like “debt-free money issued by a central bank” and “speculative attack on fractional reserve banking” to refer to the CBDCs.
El Salvador should be followed to escape the “Ponzi scheme” of the IMF
Dixon stated that countries might borrow money to fund their nations from the United States, the International Monetary Fund (IMF), or China, taking into consideration the historical landmarks and the current state of the global financial system. In addition, regardless of whether a country borrows from the United States or China, it will still be borrowing fiat money, which is ultimately subject to the authority of the International Monetary Fund (IMF).
Dixon contended that the International Monetary Fund (IMF) did not like it when El Salvador made Bitcoin their legal tender because the possibility of them successfully building an economy around Bitcoin posed a severe threat to the IMF’s current system. This argument was based on the fact that El Salvador made Bitcoin their legal tender.
In the event that [El Salvador] is successful, this presents a significant challenge for the IMF’s business model. They are not a vehicle for developing the world, nor are they a firm that provides financial assistance. They’re a system for dollarizing the globe and adopting a global central bank digital currency on top of their special drawing rights so that they can preserve control of their mechanisms,” said one analyst. “They’re a mechanism for dollarizing the world.”
The Central American nation of El Salvador is now undergoing reforms. They are attempting to construct a sovereign economy that, in contrast to the investment possibilities based on fiat currency, results in a growth in value and is independent of the debt cycle maintained by the IMF.
El Salvador’s Bitcoin policy
El Salvador was the first government in the world to recognize bitcoin as a valid form of currency in December 2021. Since then, the country has amassed more than 2,300 bitcoins. As a result of the fluctuations in prices, the nation experienced both short-term losses and gains.
The International Monetary Fund (IMF) has voiced opposition to El Salvador’s intention to recognize bitcoin as a form of legal money. In addition, the country’s present Bitcoin holdings are worth little more than $50 million based on the current prices of Bitcoin. The IMF uses this fact as leverage to persuade El Salvador to abandon its current policy toward Bitcoin.
Regardless of this, El Salvador is enthusiastic about its financial system that is centered on Bitcoin and is certain that prices will rise to higher levels than they were before. Additionally, the country was instrumental in the adoption of Bitcoin as a form of legal tender in the Central African Republic (CAR).