Long criticized for being a get-rich-quick scheme, Bitcoin is more than just a way for people to fulfill their lambo dreams. Bitcoin stands out as a challenger to the current fiat system under which inflation has ravaged the purchasing power of the currencies. It poses a new way of thinking that has simply eluded us for decades.
Born on October 31 of 2008, Bitcoin’s time of birth was no coincidence. It was when the panic of the financial crisis spread far and wide around the globe. The credit-based system simply ran out “credits” and it caused a downward spiral of an unprecedented scale. The creator of Bitcoin (“Satoshi Nakamoto”) had been working on the project for about a decade and he or she knew that the financial crisis would be the perfect storm for Bitcoin. Thus, Satoshi emailed the whitepaper of Bitcoin to well-known cypherpunks at the time and Bitcoin was thereby conceived.
Bitcoin adopted a deflationary supply schedule and there was designed to be only 21 million Bitcoins in the world. Instead of creating money out of thin air using the fractional reserve banking system, Bitcoin is scarce in nature and studies suggest that even millionaires can own no more than 0.1 Bitcoin in the century to come. This whole scheme represents a redistribution of global wealth and Bitcoin is not being created to trickle down to the masses while the majority of wealth creation is captured by the elites. And instead, Bitcoin as a currency is created for the masses.
The power of inflation exacerbated by the current monetary system has detrimental effects on the purchasing power of the people. Here is an inflation calculator available on an official government website. It is a constant reminder of the burden being imposed on the majority of human beings. It is absolutely ludicrous that people are building well-rounded financial portfolios just to preserve their money’s worth.
Furthermore, the human rights issue in Venezuela caused by hyperinflation is grabbing the headlines of late. People are fleeing the country after realizing their currency is better off used as toilet paper. When human beings are in charge of excessive powers, they are more than likely to abuse them. And in this case, the elites have the power to control money. Luckily, more and more advocates already started educating the people in Venezuela about the merits of crytocurrencies and ways they can get them.
Even though the US dollars have good store of value and are not plagued by 30% inflation every month, is it really acceptable for us to trust a group of “experts” to control money and its related powers?