Part 5/11:
The Imminent Exodus from Deteriorating Collateral
A core argument is that as the credibility of fiat-backed collateral deteriorates—evident in plunging bond valuations, rising junk ratings, and collapsing real estate values—capital will migrate toward assets like Bitcoin that offer genuine security. Livingston estimates that even a modest 5% reallocation of the $251 trillion debt pool into Bitcoin would require over $600,000 per coin at current supply levels, illustrating the potential explosive valuation.
He emphasizes that the systemic fragility of current collateral assets, coupled with widespread distrust in institutions, paves the way for Bitcoin's ascent. The asset's impassable boundary—its finite supply and cryptographic auditability—sets it apart from any traditional reserve.