An economy’s productivity increases over the years. This progress is measured in the growth of the Gross Domestic Product (GDP). Due to the use of debt the growth regularly overshoots the sustainable path of productivity growth. This inevitably leads to phases where we have a contraction in GDP growth and fall below the sustainable productivity growth path.Read more about cycles
The debt of the biggest nations (G7) is at historical record highs. On average their debt is higher than their annual GDP. That's unprecendeted.Read more about cycles
Debt doesn't go away overnight - it's a tedious process. Debt can be reduced by higher taxes, a haircut or inflation.Read more about cycles
The printing of money has also led to an unprecendented asset bubble. Stock markets around the world are trading at record highs. The broadest US stock market (S&P500) has risen 5 fold over the last 30 years.
As opposed to the discretionary monetary policy of central banks, Bitcoin has an algorithmic monetary policy.
The supply of Bitcoin is limited at 21 Million. Through the process of mining all Bitcoins will be distributed until the year 2040.
Each one of these startups is disrupting a specific part of the value chain in the finance sector. Together some of them will constitute the future of finance.
The economy, driven by debt levels and monetary policies around the world, moves in cycles. Historically elevated debt levels, asset prices and central bank balance sheets indicate the end of a major debt cycle. Leading up to this end phase a new asset class has emerged: Digital Assets. Investors have for the first time in human history a valid alternative to the current, indebted monetary system.