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Sirwin

Bitcoin Empowers Individuals to Take Power in the Face of Irresponsible and Reckless Governments

By ssaurel | In Bitcoin We Trust | 9 Jun 2021


It all began in August 1971. The President of the United States Richard Nixon decided to put an end to the convertibility of the U.S. dollar into gold. This temporary decision was intended to deal with rising inflation, but also with a potential threat of a gold rush.

In the wake of this decision, Richard Nixon also instituted wage and price controls. With this decision, Richard Nixon unofficially put an end to the Bretton Woods system that had come into effect at the end of the Second World War.

The current system formally came into force in January 1976

The end of this gold standard system completely changed the rules at the world level. The new system is formalized by the Accords of Jamaica in January 1976. They officially confirmed the abandonment of the international legal role of gold.

Abandoning the system of fixed exchange rates, these agreements legalize the new exchange rate system. The U.S. dollar remains the world’s reserve currency, and its influence will only increase following the establishment of this new monetary and financial system.

De facto, the central banks now have the power to print as much fiat money as they wish.

This was an immense power entrusted in the hands of a minority of people who were not representative of the people. Remember what Uncle Peter Parker said to Spider-man when he discovered his immense powers:

“With great power there must also come great responsibility.”

Central bankers have not responsibly used the great power placed in their hands

The central bankers did not really realize the great responsibilities they had with the power to create as much fiat money out of thin air as they wanted. From then on, the central bankers responded to all the evils of the economy with the same policy: an ever-increasing impression of fiat money.

This allowed the States to increase their public debt more and moreover the years as well. In fact, central banks are big buyers of the public debts issued by their countries.

The unlimited printing of fiat money represents the original sin of today’s monetary and financial system. A sin that is one of the seven original sins that will sooner or later cause the present system to fail.

The problem with this irrational printing of fiat money is that it has perverse effects on the majority of the inhabitants of the Earth. Indeed, as the economist Richard Cantillon had already demonstrated in the 18th century, money is not neutral.

More precisely, the way central banks are going to use money is not neutral.

Central banks create great monetary inflation that harms the majority of the Earth’s inhabitants

By constantly increasing the money supply in circulation, central banks create great monetary inflation that constantly devalues the value of fiat money. Those who have a wealth composed mostly of cash, that is, the majority of people, see what they own being constantly devalued over time.

A good example is given by looking at the evolution of the value of a $1,000 purchasing power since 1971. In 2021, this purchasing power represents only $148, a decrease of -85.2%.

All printed money benefits the ultra-rich, who represent a minority.

Those who are at the head of the current system are the ones who benefit the most. Since the beginning of 2020, the Cantillon effect is running at full speed. The Fed and the other central banks have printed more than 12,000 billion dollars of fiat money out of thin air.

The living conditions of the poorest are increasingly difficult while the wealth of the ultra-rich has increased by more than $500 billion since March 2020. Jeff Bezos became the first man to have a personal fortune of more than $200 billion.

The people are suffering martyrdom for the irresponsible and reckless decisions their governments have been making for decades. The worst thing is that the people have no choice but to suffer from all these bad decisions.

The current monetary and financial system excludes hundreds of millions of people

Worse still, this monetary and financial system excludes a whole part of the inhabitants of the Earth. Those who live in Africa or in emerging countries do not have access to the banking system for example. This is a profound injustice that prevents them from hoping to live a better life in the future.

The social elevator is broken down all over the world. Those who are born poor will remain poor. Those who are born rich will remain rich. Something is wrong, and it is time for a change.

This change cannot come from the top. All those who are at the head of the current system take too much advantage of the consequences of its injustice to want to change the rules of the game. In fact, only a popular revolution can bring about a fairer system.

This popular revolution is embodied in the Bitcoin that Satoshi Nakamoto created in 2008 as a response to the economic crisis of 2008. Facing the great monetary inflation, we can consider ourselves lucky to have Bitcoin at our disposal. It is the only credible alternative to the current system.

Bitcoin is the money of the people that aims to build a better system for all

Bitcoin belongs to all the inhabitants of the Earth. It is a true democracy that empowers individuals to regain control over money from governments that have been behaving irresponsibly and recklessly for decades.

All Bitcoin users have the same chances with this new system, and it is something truly revolutionary.

Bitcoin has monetary attributes that protect its users. The maximum supply of BTC is limited to 21 million units. The inflation of the supply of new Bitcoins is also controlled by the laws of mathematics and does not depend on any human decision.

Everything is written in the Bitcoin source code. The schedule of new BTC issuance is automatic and predictable. Nothing can prevent the slowing down of the issuance of new Bitcoins until all Bitcoins are mined by 2140. The monetary policy of Bitcoin highlights the virtues of quantitative hardening. It is protective because reducing the issuance of new units makes it possible to give more value to the existing ones.

Thus, those who own Bitcoin see the value of their wealth increase over time. With Bitcoin, you can make the choice to opt for the long term by deciding to save.

Bitcoin is a censorship-resistant savings technology.

As long as you have the private keys to your Bitcoins, no one can confiscate them from you. Likewise, no one can use them as you wish. Bitcoin, therefore, helps you to protect yourself from authoritarian regimes that seek to violate your basic human rights.

With Bitcoin, individuals take power. In reality, they are simply reclaiming a power that they should never have been deprived of.

Final Thoughts

Bitcoin is the first step in the separation of money from the State. The people regain their power and will no longer have to obey the absurd decisions of irresponsible governments. It is a total paradigm shift that will make it possible to build a more equitable world for all in the future.

This incredible dream represented by Bitcoin is growing every day as Bitcoin continues to work non-stop. Bitcoin has been working for just over 12 years, and the road traveled so far is already fabulous.

What’s most extraordinary is that in ten years’ time, everyone will realize that we were only at the very beginning of the Bitcoin revolution in 2021. So the best is yet to come for Bitcoin, and it is clearly worth the risk of trying everything to make its revolution succeed.


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ssaurel
ssaurel Verified Member

Entrepreneur / Developer / Blogger / Author.


In Bitcoin We Trust
In Bitcoin We Trust

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