The Bit Short: Inside Crypto’s Doomsday Machine
It seems that this guy decided to go heavily into Bitcoin because of a mistaken belief that seems all too common: "At the time, I saw a market dislocation and the likelihood of significant dollar inflation due to the US Government’s likely response to the unfolding pandemic."<p>He thought that government responses to severe crises that inject lots of money into the economy will cause "significant dollar inflation".  In the real world, over the full year of 2020 inflation was 1.4% in the US (food costs went up a bit more, energy costs went down).  Failure to inject money into a failing economy results in massive <i>deflation</i>.  That's because money was rapidly disappearing from the economy.  Money isn't created primarily because governments print it; whenever a bank creates a loan money is created, and when they call in loans money disappears.  Central banks control the money supply by regulating banks, and their goal is to keep things stable.<p>Source: <a href="https://www.bls.gov/news.release/cpi.nr0.htm" rel="nofollow">https://www.bls.gov/news.release/cpi.nr0.htm</a>