May 26, 2021
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In this episode of Bitcoin Magazine’s “Fed Watch” podcast, hosts Christian Keroles and Ansel Lindner welcome on to the show Parker Lewis, Head of Business Development at Unchained Capital. The main topic of this episode is 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 tells 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, we get into the important topic of how a new money incentivizes convergence away from the existing money toward a new money. We will have to have Parker back on soon because we 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, Parker comments quite a bit on the incompetence of the Fed. He eloquently points out how central bankers are wrong every step of the way and how the market will route around the damage with bitcoin. I bring the thought experiment that, perhaps the Fed is always wrong because they have already been routed around and are not in control of anything. The only control they have is illusory and contained in mantras like, “don’t fight the Fed.” That idea didn’t get far with Parker but we had a nice conversation about it.
We end the episode with getting Parker’s thoughts on the bitcoin business climate. Fundamentals are extremely strong and we are all excited about coming price increases and growth in the bitcoin ecosystem. All that is well covered, so we wanted to ask Parker about any weaknesses he sees out there in bitcoin and where he thinks the bitcoin industry will improve the most in the coming 12-24 months. You’ll have to listen to get his insider’s take.
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Written by Ansel Lindner