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In this episode of Bitcoin Magazine’s “Fed Watch” podcast, hosts Christian Keroles and Ansel Lindner welcomed on to the show Parker Lewis, head of business development at Unchained Capital. The main topic of this episode was supply chains, the importance of a pricing mechanism within supply chains, and of course, bitcoin’s superior ability to act as that pricing mechanism.
Parker told the story of how central banks distort price signals, which is very important because price signals are the root of all economic activity. It is the breakdown in a valid pricing mechanism that forms a competitive environment in which a new money can emerge.
Next, they got into the important topic of how a new money incentivizes convergence away from the existing money toward a new money. The show will have to have Lewis back on soon because they didn’t have time to fully explore these ideas. New money is volatile and will initially not act as a good pricing mechanism. So, if it is competing on that ground, it is not clear how the new money breaks into its role without a total collapse in the previous medium of exchange.
Also in this episode, Lewis commented quite a bit on the incompetence of the Federal Reserve. He eloquently pointed out how central bankers are wrong every step of the way and how the market will route around the damage with bitcoin. Lindner brought up the thought experiment that perhaps the Fed is always wrong because it has already been routed around and is not in control of anything. The only control it has is illusory and contained in mantras like, “don’t fight the Fed.” That idea didn’t get far with Lewis, but they had a nice conversation about it.
They ended the episode with getting Lewis’ thoughts on the bitcoin business climate. The fundamentals are extremely strong and they are all excited about coming price increases and growth in the bitcoin ecosystem. All that was well covered, so the hosts wanted to ask Lewis about any weaknesses he sees out there in bitcoin and where he thinks the bitcoin industry will improve the most in the coming 12 to 24 months. You’ll have to listen to get his insider’s take.