If you have been paying attention, you will already know that the world is currently a mess. Inflation is out of control and people are having a difficult time just making ends meet. The world is transforming into a place where those who can afford the necessities will be considered to be living in luxury. The bad news is that this will likely only continue to become an even worse problem in the future
But how did this problem even begin, and what’s the solution?
To answer that question simply, the root of all problems is money. Not all forms of money are bad; but only the current fiat money. Fiat is money that’s value isn’t based on or backed by anything. It’s only valuable because governments tell you it is. But because it isn’t backed by any asset such as gold or silver, that means governments can print as much as they want and inflate the value away.
And that is the whole problem right there. There was a time when people didn’t need to worry about investing to be able to retire or gain financial independence. There was a time when all you needed to do was go to work, and save your cash, and that was enough. Back then it wasn’t uncommon to see banks offering interest rates of 8%-12%, just for keeping your money in the bank. That is a better return than most stock investors see in a year.
But as the US went off of the gold standard and into a fiat-based monetary system. That is when prices of goods began to soar, interest rates at banks dropped, and wages increased at a much slower rate than the cost of living increasing. People were forced to work much harder and become investors just to have a chance at being able to retire. Just working hard and saving your cash was no longer enough. The world quickly changed into a world of haves, and have-nots. The haves were the people who invest, and the have-nots were those who don’t.
There are several crimes in the US and around the world. Crimes, violence, divorce rates increasing, wars, expensive health care, drugs, debt, homelessness, rising cost of living and the list goes on and on. There is a theory that all of these problems are caused by the world having a monetary system where people’s savings are being inflated away, that they’re no longer able to get ahead. The game is rigged against them, and they don’t have any other choice.
However, many people believe that there is a solution. “If you fix the money, you can fix the world.” If people are living comfortably with spare income to afford their lifestyle. Then they would be much less likely to commit crimes. The problem is that humans cannot be trusted when it comes to money. There have been great forms of money in the past. Gold coins were used. And then some currencies were backed by gold and silver as well. But, people use to shave off portions of these gold coins until they were no longer worth anything. Governments that had currencies backed by gold or silver succumbed to greed and would later move to a fiat-based currency. The USA is more than 30 trillion dollars in debt. All of this is a result of having a fiat-based currency. If the dollar was still backed by gold, this debt number would likely be much smaller.
Bitcoin Fixes This
All of these problems could be solved by Bitcoin. There will only be 21 million Bitcoin that is ever created, and millions of them are already gone forever. This along with the chain becoming more deflationary over time due to the Bitcoin halving means that this is the hardest form of money there is. It is also the cryptocurrency that is the most decentralized and has the best security.
The theory among Bitcoin enthusiasts is that all a person needs to do to be successful with Bitcoin is by working hard and putting their spare cash into BTC. Overtime fiat inflation will continue to rapidly increase while Bitcoin’s inflationary schedule is set in stone, and decrease as time goes on. What this all means is that if Bitcoin becomes successful, it will be the best way to save your money and the price will likely go up for quite a long time.
It will be a throwback to when all people needed to do was go to work and save their cash. Except for this time, doing it with Bitcoin. However, this time it is even better than cash. Your cash can be stolen, seized by governments, or have its value inflated away. That is not the case with Bitcoin. As long as you keep your password keys safe when taking self-custody, no one can steal or seize your Bitcoin.
Because Bitcoin isn’t controlled by any one party or country, it is also thought it could help prevent wars in the future. Sanctions won’t be able to be put on other countries. The supply will be limited resulting in countries being very careful about wasting it on wars. Also, it cannot be seized during war either. Along with wars decreasing and crimes hopefully decreasing there are several other benefits that Bitcoin could bring.
Finally banking those who haven’t had access to the current digital finance world and all of the benefits that it can bring. Putting everyone in the world no matter which country they’re from on equal footing. It will also make the world a more connected place. Sending money to whoever you want, whenever you want. Never needing to change to different currencies no matter which country you’re in.
While there are several problems that Bitcoin could fix, there are some that it won’t be able to. The first is the initial discrepancy between the rich and the poor. If Bitcoin does take off, then those who have already accumulated their positions will be rewarded greatly. Those who haven’t could face hardship. Similar to the world today with haves and have-nots. As time goes on Bitcoin will be better distributed and those who save will be rewarded.
A world that has heavily adopted Bitcoin is a fun idea to think about. It’s nice to dream of a world where people don’t need to worry about finances or investing. Just working hard, saving their extra money in Bitcoin, and continuing on enjoying their lives.
How about you? Do you think Bitcoin can fix the world?
Read my articles first on
As always, thank you for reading!
