Have you ever asked yourself why people in today’s day and age are so desperate to, “invest” their savings? The simple answer is inflation. Capitalism has installed in us that “inflation is healthy” as it, “helps the economy grow”. However, what people do not realise about inflation is it really just makes the rich get richer, and gives those with power, more power.
Here is why the current level of inflation is unhealthy
Low income earners tend to live pay-check-to-pay-check, and what little money they save they leave in the bank. At the same time you’ve got those in power (Reserve Bank’s) printing money to stimulate the economy. The more money that is printed, the less the low income earner’s tiny savings becomes worth.
In answer to my original question, this is the reason people are desperate to,“invest” their savings. If you can earn a higher return on investment than the rate of inflation, then you’re staying ahead. But what if there was a solution where you could save your money and invest at the same time?
The solution is Bitcoin
I hear some of you say, “here He goes on about another rant about Bitcoin” but hear me out. There are only 21 million Bitcoin’s that are ever going to be created, which means that unlike fiat currency, Bitcoin is deflationary. When you have a deflationary currency, there becomes an incentive to save your money rather than invest it. The reason for this is, the more people adopt Bitcoin, the more valuable it becomes, and seeming as there is a fixed amount of it, time will only make it worth more.
Why else is Bitcoin a better solution than Fiat Currency?
Bitcoin is not only deflationary, Bitcoin is also universal.Capitalism has not only damaged society due to inflation, it has also created a casino of derivatives with no backed assets. Perhaps this started because international businesses had to hedge their risk every time they conduct business outside their borders, but now it is nothing but a casino. Bitcoin eliminates the need to hedge your base currency because it is universal, you do not need to exchange funds if everyone is using it.
The bigger picture
I am not saying that Bitcoin should rule the financial world, although it might. I am not saying that Bitcoin solves all economic issues.What I am saying is there are undeniable benefits to Bitcoin and cryptocurrency, and we are much closer to global adoption than some may think.If I did not explain these points well, then do yourself a favor and listen to the podcast in the link below. It will open your eyes to the future of currency and economic interaction. My strongest advice would be to educate yourself to the benefits of blockchain technology and cryptocurrency, because if you don’t you may be left behind.
Podcast: The Ultimate Bitcoin Argument
The below interview of Murad Mahmudov on Anthony Pompliano’s Off The Chain podcast, is titled “The Ultimate Bitcoin Argument” and interestingly was delisted by iTunes as it was racing up the charts going viral, now that the dust has settled Apple have recently relisted the episode on iTunes. In this conversation, Murad and Anthony Pompliano discuss what Bitcoin is, how it works, the importance of its deflationary monetary system, why all Fiat Currencies are doomed to fail, and how central banks and institutions should be thinking about Bitcoin.
This article was written by MiningStore co-founder William Wright