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title: A Bitcoin Quantum Walk Down The Inflation Valley

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# A Bitcoin Quantum Walk Down the Inflation Valley:

**Pivotal moments**

Bitcoin's journey, tracing back to the onset of quantitative easing in 2008, rolling down the inflation valley starting in 2009 - propelled by QE -and found its ***inflection point*** with Quantitative Tightening (QT) in 2022. Presently, it is exhibiting fluctuations.



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In quantum mechanical terms, envision *Bitcoin as a particle* navigating a complex *energy landscape shaped by inflation*. This landscape is defined by peaks and valleys corresponding to different inflation rates and economic conditions. In this analogy, Bitcoin's state is not fixed or easily predictable; instead, it exists in a *probabilistic state of various possible values*, akin to a *quantum particle's probability wave.*

From the perspective of *thermodynamic entropy*, as Bitcoin moves through the inflation landscape, its *path can be seen as a journey through states of varying entropy levels*. In an environment of high inflation, the system (Bitcoin's market) may experience higher entropy, representing increased unpredictability and disorder in Bitcoin's value and responses to market forces.

*Central banks*, by altering monetary policy, effectively reshape the inflation landscape that Bitcoin traverses. When central banks intervene, they modify the energy levels across this landscape, akin to how an external force might change a quantum system's potential energy wells. These actions can lead to shifts in *Bitcoin's behavior*, mirroring how a quantum system might change states in response to external stimuli.

Hence, the financial fabric influenced by central banks can be seen as the ever-changing backdrop against which Bitcoin's quantum state evolves, with the central banks' monetary policies *stirring the landscape*, inducing transitions between different states of Bitcoin's market behavior within this quantum-thermodynamic analogy.










