Bitcoin, a Vessel That Can Hold the Entire World 

December 24, 2024

Have you heard of the "World Turtle"? In Hindu mythology, the Earth is depicted as being supported by four or more elephants standing on the back of a giant turtle that swims through the cosmic ocean. How do you feel about this ancient worldview? Most people living in the modern era would likely call it "ridiculous".

Now, let’s consider democracy. In a democracy, institutions such as constitutions, laws, courts, and public opinion serve as the "pillars" supporting the societal "world." Just as the elephants rely on the stability of the turtle, these institutions depend on the people. But can we truly depend on the “people” as a solid foundation? What is considered "right" or "wrong" in a democracy shifts over time. For example, traditional values opposing same-sex marriage in California were overturned by "majority" support for so-called LGBTQ+ rights. People living in California have totally lost their ability to tell male from female. Protagoras' statement that "man is the measure of all things" is reflected in "majority rule", and this concept bears a resemblance to the "stack of turtles," where the foundation itself is subject to question.

What about our financial system? The global economy is built upon the dollar system, which is supported by U.S. Treasury bonds — essentially the debt owed by Washington. Sound familiar? This, too, can be seen as another version of the World Turtle. 

During the Bretton Woods Conference in 1944, John Maynard Keynes proposed the Bancor, a hypothetical global currency designed to serve as a unit of account and medium of exchange for international trade. However, the United States opposed this idea, preferring a system where the U.S. dollar would serve as the central reserve currency. Backed by gold at the time, the dollar became the linchpin of the Bretton Woods system. Ironically, Washington has since reversed its stance, proposing a new version of the Bancor under the name “Special Drawing Rights (SDRs).” Faced with the realities of *the Triffin dilemma, the U.S. now appears willing to constrain itself within the framework of SDRs.

But what underpins the SDRs? Their value is determined by a basket of major currencies: 41% U.S. Dollar (USD), 31% Euro (EUR), 11% Chinese Yuan (CNY), 8% Japanese Yen (JPY), and 8% British Pound (GBP). Wait, the Dollar is backed by SDRs, which are backed by the Dollar? That’s right — it’s just another iteration of the World Turtle.

In the movie Enemy of the State, a character asks, "Who's gonna monitor the monitors of the monitors?" in reference to an Orwellian government. Similarly, the U.S. protects the world economy — but who protects the world economy from the U.S.? SDRs merely serve as a façade to obscure the fragility of the failing dollar-based financial system.

Unlike the Bancor or SDRs, Bitcoin isn’t backed by anything. For 15 years, no government or bank has supported it, yet people have consistently recognized its value. Today, Bitcoin trades for over $100,000. Since it is an asset independent of any other system, it could serve as the foundation for everything else — including the U.S. dollar. Bitcoin is the first currency that doesn’t resemble the ridiculousness of the World Turtle. It is the one and only thing the world can rely on in this financial chaos.

*The Triffin Dilemma arises when a country's currency serves as the global reserve currency, forcing it to run trade deficits to supply global liquidity, which eventually undermines its own economic stability.

#Bitcoin #WorldTurtle #SDR #Bancor