Every day, millions of people wake up, go to work, and work from morning to night, trying to get out of debt. For them, bitcoin seems like something unnecessary, far away. Why? Because to understand bitcoin, you first need to understand what's wrong with the fiat system, and most people don't even think about the problems of their money.
Let's start with the simplest. Many people still believe that their money is backed by something, for example, gold. But this is not the case.
In 1971, U.S. President Richard Nixon abolished the dollar's peg to gold, ending the gold standard. Since then, money has become “fiat” — backed by nothing but trust in governments and central banks.
And what came of it? Now states can print money in any quantity without providing it with real value. This leads to inflation, a hidden tax that eats away at your savings.
Every dollar/euro you earn and set aside loses its purchasing power over time.
This means that prices are rising every day, and you can buy fewer goods and services with the same amount of money.
But the problem goes deeper.
The financial system is designed to work against you. For decades, banks have been using a fractional reserve system, meaning they issued more loans than they had real money in reserve.
In 2020, the US Federal Reserve System abolished the reserve requirement altogether. Now banks can issue loans without any reserves. This increases the instability of the system and creates risks for your money.
At the same time, Governments continue to irresponsibly manage their debts. They print money to finance programs, save companies, and cover their mistakes. And you pay for it — through rising prices for everything around you and the loss of the real value of your money.
And that's why Bitcoin is important.
Bitcoin is money beyond the control of states and banks. Its supply is limited to 21 million coins, so it cannot be “diluted” by inflation. It runs on a decentralized network where anyone can verify transactions.
You don't have to blindly trust someone. It is a system that gives people back control of their money and protects their capital.
But to see this value in bitcoin, you first need to understand how the fiat system works and what its failures are.
Most people don't even know that their money is not backed by anything. They don't understand how inflation is destroying their savings, and they don't see how the government and banks are manipulating the system to their advantage.
Therefore, the question is “Why Bitcoin?“it starts with another question: 'What's wrong with fiat?” Once you realize this, you will see in bitcoin not just an alternative, but a real solution.
