Exter's Pyramid

John Exter was an American economist and central banker who believed in sound money.

He had a theory that in a period of debt deflation, capital would flow from the riskiest of asset classes down to that which, by its very nature, is sound money. Take a look at Exter's Pyramid, below. As the global debt crisis continues to spiral out of control, the credit instruments at the top of the pyramid will begin to collapse until the bottom of the pyramid is reached. Where do you think Bitcoin would fit into this pyramid?

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