The Little Book of Bitcoin by Anthony Scaramucci

Author:Anthony Scaramucci [Scaramucci, Anthony]
Language: eng
Format: epub
ISBN: 9781394286669
Publisher: Wiley
Published: 2024-12-05T00:00:00+00:00

“FOR A LONG TIME, you were very skeptical of Bitcoin,” said CNBC’s Andrew Ross Sorkin. “But now that appears to have changed. What happened?”

It was May 11, 2020, and the great Paul Tudor Jones was on Squawk Box. The stock market had just hit a two-month high and had rallied 34% off the March lows when everyone was convinced the world was going to end. The world didn’t end, but it was anything but normal. Schools and offices were closed. Many folks were still stuck at home. Sorkin, like many anchors at that time, was interviewing Tudor Jones from his home studio. After two of the most tumultuous months in American history, life was trying to get back to some semblance of normalcy. And one of the world’s greatest investors was about to announce to the world that he was buying Bitcoin.

“Well, COVID happened, and the great monetary inflation happened,” replied Tudor Jones. “And it made me begin to think about how you want to be positioned going forward.”

He was of course referring to the trillions of dollars in COVID stimulus programs that the Fed and Congress approved to save the economy from another Great Depression. The Fed cut rates to near zero and rapidly expanded its balance sheet by injecting trillions of dollars into the crashing economy. Every type of program was announced to keep the credit markets from freezing. The Fed purchased more than $4 trillion in government securities to keep the bond markets from collapsing. But to keep the consumer alive, Congress and the Trump administration additionally passed more than $5 trillion in stimulus programs designed to keep the economy humming, including the Coronavirus Aid, Relief, and Economic Security Act, known as the CARES Act. This established the Paycheck Protection Program, or PPP loans, which help shuttered small businesses keep workers on their payrolls. It also provided for direct stimulus checks to be mailed out across the nation. The result was the biggest fiscal stimulus in US history. In fact, in the six months following COVID, the US government printed more money than in the previous 244 years.

The pandemic was a brutal and tragic event for the world, causing death and untold sorrow. But because of the massive stimulus programs, it was also, for many people, a financial boon. Many were working remotely and were saving on commuting costs. Restaurants and sporting events were closed, so people were saving more. Zooms and other work technologies not only allowed many companies to survive the pandemic, but it also helped them thrive. And as a result, consumers’ fiscal health improved. According to Bank of America, customers who had between $1000 and $2000 before the pandemic had on average $4000 after it. Balances between $2000 and $5000 before the pandemic grew on average to $13 000.

Now you might be asking, where did all this money come from? Well, it’s simple. The government did what it always does in times of trouble. It simply created more money by turning on the printing

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