In the current monetary and financial system, central banks play a predominant role. They have been at the center of the game since the current system was established in August 1971 by Richard Nixon. The fact that they can create as much fiat money out of thin air as they deem necessary explains why their role is crucial.
As the central bank of the world's largest economy, the Fed has an even more important role. It is the one that prints out of thin air the US dollar, which is the world's reserve currency.
Thus, each meeting of the Fed's Federal Open Market Committee (FOMC) is feverishly awaited by all financial markets. Investors know that it is what the Fed decides that will determine the strategy they will have to adopt in the weeks and months to come.
The adage “Don't Fight the Fed” is not an empty word.
Everyone waits feverishly for each FOMC meeting to find out what the Fed has decided
When the Fed decides to raise interest rates, investors know that it will soon be time to leave the stock market and return to U.S. Treasury bonds. When the Fed lowers rates to zero as it did in March 2020 to combat the effects of the COVID-19 pandemic, investors know that a big stock market party is coming.
This has given us the current big bubble in the stock market.
When inflation reaches record levels not seen in almost 40 years in America, investors expect the Fed to shift monetary policy away from injecting liquidity into the system while preparing for several rate hikes in the coming months.
This is what happened on December 15, 2021, at the end of the last Fed FOMC meeting. Jerome Powell announced that the Fed would accelerate its tapering. Investors now have more certainty about the strategy they will have to apply in the coming months.
Trying to fight the Fed would be a waste of time. And what is happening with the Fed is also happening with all the other major central banks in the world. The Fed is the one that sets the pace for all the others.
The Fed decides, then you must adapt. Fighting the Fed would be a waste of time and money
This change of rules decided by a minority of people who are not representative of the people is what poses a huge problem. As an individual, you work hard, but you are at the mercy of decisions made by a minority of people. Their decisions are going to hurt the majority of the people on Earth.
You can do nothing but sit back and wait feverishly for the decisions made at the FOMC meetings. You are a spectator in a system of generalized impoverishment. Something is wrong, but don't count on the powerful people at the head of the current monetary and financial system to change the system.
The injustice of this system benefits them so much that they have no interest in changing it.
Bitcoin is the opposite of the current system
On the other hand, you have the Bitcoin system, which has been growing in popularity since its launch on January 3, 2009.
Bitcoin is the opposite of everything you know in the current system. The Bitcoin supply is hard-capped at 21 million units. The Bitcoin system has no leader. Bitcoin belongs to all its users equally. Thus, no one can decide to increase the supply of Bitcoin arbitrarily. This is something essential.
You are therefore guaranteed that 1 BTC today will still be equal to 1 BTC in 21 million in 10, 20, or 50 years. The fruits of your labor placed within the Bitcoin network are protected from the ravages of monetary inflation.
Best of all, in a world that is more uncertain than ever, the Bitcoin protocol gives you unique guarantees. The protocol has been stable since Bitcoin's inception, which is no small feat. And it will continue to be stable. No one has any interest in changing that.
Bitcoin's programmatic monetary policy is known to everyone in advance. No changes to the rules of the game during the game
In addition to its decentralized network, Bitcoin has a programmatic monetary policy. With Bitcoin, you don't have to wait for the outcome of a pseudo-monetary policy committee meeting to tell you where you stand. Bitcoin's rules are written into its source code. They are known in advance and will not be changed by the arbitrary will of a minority of unrepresentative people.
So you can have a very clear picture of the future issuance of new BTC units from now until 2140 when inflation in newly issued Bitcoin will be zero. You read that right. Everyone knows in advance the expected rate of issuance of new BTC units in the future.
So if you buy Bitcoin today, there are no surprises. No changes are expected if the geopolitical environment changes or if the Fed hawks get the better of the doves. Bitcoin's programmatic monetary policy protects you from the arbitrariness of humans.
With Bitcoin, the laws of mathematics take over. Laws that don't have a penchant for corruption like humans. In a world where everything will become digital, Bitcoin's monetary policy is superior, because it gives the rules of the game in advance to everyone without distinction.
No more insider trading by having information about what the Fed is going to do.
The transparency of the Bitcoin system is a revolution against the opacity of the current system. More and more people will discover this in the future. They will have to choose between the transparency of a system that protects everyone and the opacity of a system that unfairly favors a minority of people. The choice between a system that cannot be manipulated because everything is already programmed in its source code and a system that is constantly manipulated by a powerful few.
What do you think these people will choose?
In my opinion, the choice of Bitcoin will be obvious. It's only a matter of time and of realizing what Bitcoin offers them. It's up to you to tell me how you feel about it.
In Bitcoin We Trust Newsletter: Everything around Bitcoin, Blockchain, and the cryptocurrency market