NgU and GMI Are the Two Driving Forces Making Bitcoin Inevitable
The movement will continue to accelerate in the years to come.
Written by Sylvain Saurel - In Bitcoin We Trust
I've been writing about Bitcoin daily for a little over five years now, and I have to admit that my articles with acronyms in their titles have never been very successful until now. Maybe seeing NgU and GMI written in a title just doesn't catch the eye.
This is a pity in my opinion because these two acronyms are essential to understand why Bitcoin is becoming more and more inevitable since its creation.
For those who were curious enough to click on the title of this article to get here, I will quickly define these two acronyms:
NgU stands for “Number go Up”. The acronym has become popular in the Bitcoin world to signify that since the price of Bitcoin keeps increasing over time, Bitcoin can be referred to as NgU technology. This feature of Bitcoin is for me the best marketing asset of Bitcoin to bring its revolution to the general public.
GMI stands for “Great Monetary Inflation”. If you had never been confronted with the flaws in the current monetary and financial system, the last eighteen months must have allowed you to see them, as they have been exposed in full view more than ever before.
GMI is the primary force making Bitcoin inevitable
NgU and GMI are for me the two driving forces that make Bitcoin inevitable. If you have ever bought Bitcoin, before becoming a HODLer no matter what, you have probably already been made aware of these two phenomena. If not, don't worry, I'll explain everything.
On the one hand, you have a monetary and financial system that allows central bankers to print as much fiat money out of thin air as they deem necessary. This has allowed the Fed to print trillions of dollars since the beginning of the COVID-19 pandemic to save the current system at all costs. More than 35% of all U.S. dollars currently in circulation have been printed in this period.
This would not be a problem if the consequences of this easy money did not induce a Cantillon Effect that everyone has been able to expose in full light for several months. Printing money en masse by putting the general public in front of great monetary inflation is not neutral.
As Richard Cantillon proved in the 18th century, this printing of unlimited amounts of money will benefit the ultra-rich, while the majority of the people will suffer. Thus, the world's billionaires have seen their wealth explode by more than $4T since the beginning of the COVID-19 pandemic, while the poorest live in ever more difficult conditions.
GMI is perfectly complemented by the NgU feature of Bitcoin
This great monetary inflation has finally triggered what was expected: price inflation that harms the poorest citizens, i.e. those who cannot invest in assets that would allow them to beat the effects of inflation.
This is where the NgU side of Bitcoin comes into play. Bitcoin is different from the U.S. dollar system in that its supply is limited to 21 million units in any event, and its monetary policy is programmatic. As a Bitcoin user, you will be able to protect yourself from the arbitrariness of humans and their penchant for corruption.
No leader will be able to say tomorrow that he is increasing the supply of Bitcoin by 3 million units because he thinks it is necessary. We will have to find real solutions to economic problems rather than the headlong rush to print more and more money regardless of the problems the world faces.
As the world becomes more and more digital, more and more people are looking for solutions to protect themselves from this great monetary inflation. This is where Bitcoin is becoming the solution of choice, little by little, because of its adaptation to the world of the future where everything will be digital, but also because of its exceptional divisibility. Bitcoin is divisible up to eight digits after the decimal point. So you can buy as little as $5 worth of Bitcoin. All you need is an Internet connection and a smartphone. More than 60% of the world's inhabitants meet these two requirements.
As a centuries-old reserve currency, gold cannot offer the same facilities to all inhabitants of the Earth.
Don't be surprised to see more and more of the big players in traditional finance opt for Bitcoin. The movement will accelerate further in the future
The demand for Bitcoin will therefore explode in the future. All this while its supply will remain frozen at 21 million units. Applying the principles of supply and demand, you know what this means: the price of Bitcoin will rise dramatically.
This phenomenal increase in the price of Bitcoin in the coming years should allow it to surpass gold's current market cap of $11.3T. Once this market cap is reached, the price of Bitcoin will be around $425K, and everything will become possible for its future. Seeing Bitcoin become an alternative system to the current one used on a large scale in their daily lives by hundreds of millions of people will then no longer be a utopia, but a reality that is getting closer and closer.
It is precisely this prospect that is driving all the former opponents of Bitcoin to finally come and buy some. From Ray Dalio to the American banks, everyone is now thinking that Satoshi Nakamoto's advice from 2009 that it would be smart to buy some Bitcoin just in case wasn't so dumb after all.
So you are even starting to see the financial world on Wall Street getting into the Bitcoin world with the appearance of ETFs. This logical movement from the traditional finance world into Bitcoin should not, however, cause you to lose sight of the precedence of Bitcoin's inevitability. If Bitcoin ETFs are approved, it is because Bitcoin is becoming inevitable. It is not these ETFs that will make Bitcoin inevitable.
And if Bitcoin is becoming inevitable, it is because of the NgU and GMI forces.
In Bitcoin We Trust
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I would like to add a couple new acronyms, too, for Mr. Laurel.
NgUUID – Number Go Up Until It Doesn’t
IIADV – Inflation Is A Dependent Variable
The first one is just a “whatever”. Economies and stocks go up until they don’t, as well. And the value of silver, for instance. And, of course, BTC and crypto of all sorts bounce around wildly, which make them just a speculation game if you actually occasionally need to use the value. For almost all people, that is a big problem.
As for Mr. Laurel’s remarks about inflation: anyone with even a remote and minimal knowledge of the economics know that: the greater the demand for something that is limited, the higher the price. That is for Mr. Saurel his first lesson in basic economics. The second lesson is IIADV: the USA has experienced over 1,000% inflation since the 1920s. In that time, the standards of living and advances in technology and medicine have been unrivaled through the whole history of the world… that use to rely on gold and silver. And, since the end of WW2, Europe and other liberal democracies have had an identical experience.
But, heck, these are just tedious facts. And not belief systems based on just a few years. You know, just like such things in the past like shells, silver, gold, train stocks, tulips, etc.
Bitcoin is a great unit. I would like to add that besides what has been described. Orphanage. Bitcoin is an orphan. Which makes everyone own it.
That is why it is currently not possible for another unit to pass bitcoin. For example, Ethereum. Yes, it's a very nice project. But the whole world cannot accept it as a currency. If he agrees, Vitalik Buterin will become the ruler of the world:)
This explains why bitcoin is the leader. Why he could become the head of the entire world economy. I hope I've been able to explain.
Thanks for the nice article.