We are moving away from cash. Cash is becoming obsolete and will be fazed out in coming years. Money is all going digital. I don’t mean it’s all becoming cryptocurrency like Bitcoin, but rather it is all becoming numbers on a computer, in a bank, like it is already to a degree. So money is already digital but cash fiat paper notes still exist. Well, the paper notes are on their way out. This looks like progress but it will also be taking from us the one thing that we really need more than money – our freedom.
The last recession of 2008 was thanks to the central banks and their fraudulent practice. Since then we have done very little to change the situation. We appear to have been rescued from the recession, but that was thanks to more money printing, which is purely inflationary, pushing prices up and making your money weaker. All that has grown is the debt.
The Federal Reserve Bank, a private bank that runs independently the government of America, and dictates the wealthiest nation’s monetary policy, has tried to patch up the house of straw with QE or Quantitative Easing, printing money to stimulate the economy. If banks lend out money, lenders can go out and spend it on goods or manufacture more goods, and thereby help the economy to grow. This is an illusion to make it look as if the books are in the black and in positive territory. The problem is that you may have more money, but it is now worth less.
Besides that, where is the interest to pay off the loan going to come from? The Fed doesn’t print that. So it is a flawed system from the start. With this system, the way it is, the world as a whole will never be able to repay the debt. Similarly the individual will always be in debt. Back around the 2008 global financial crisis, it took the Fed just 95 days to print the same amount of money that they printed in 95 years before that, since 1913! In the next 10 years, that will spiral still further.
Bitcoin could be a hedge, as fiat collapses. It will be like gold – a store of value, particularly when the upcoming “halving” comes in May 2020. It has been 48 years since Nixon took us off the gold standard. Gold took a while, but it eventually rose to its current impressive although suppressed value. Bitcoin will do the same, and its price will simply grow, though it may be slow. It won’t happen overnight. We need to look at it long term, 5-10 years still for Bitcoin.
The recession is imminent, in the natural cycle of finance. As the dollar is being abandoned slowly but surely as the global reserve currency, nations are using other fiat currencies to buy oil and commodities. As the dollar loses power, and cash is removed from our everyday use, the biggest economic shift in the modern financial history will occur. The shift of wealth from the poor to the rich is usually what happens when global recessions arrive. This is what happened in 2008/9. We need to be prepared for it and hedge our investments this time around.
Bitcoin wasn’t around in 2008 at the last recession, but it is here now and it will be the forerunner of the digital economy. The good thing is that it is not controlled by any nation. All other new digital money will be centralized and run by the nation state. Such centralized currencies are not the same as Bitcoin, which is the only fully decentralized cryptocurrency not controlled by anyone. It is a potential safe haven. Stocks, even bonds, and especially fiat money cannot be considered safe havens any more.
And when the removal of cash arrives, national governments will be able to block your bank account at the press of a button, and you will have no paper money as a backup, like we currently have. In the name of regulating the black market, nations are talking about bringing in digital money and removing fiat. India already removed its 200 rupee notes from circulation, causing some problems for smaller rural areas where people use paper money or cash more than most. In the name of controlling tax dodgers and the black market, we will all lose our freedom to use our money in private, as we choose. That will be gone. Your payments will all be monitored and your bank account can be controlled.
Altcoins can’t be relied on it seems. Look at how badly the altcoins are performing today. Bitcoin is the safest investment presently in my opinion. Ethereum is a valuable and productive company, with huge use case, but price has not shown the strength we all hoped. Litecoin has dropped out of the sky after its “halving” last month, down 50% since its peak recently. Bitcoin is your best focus for now.
As cash disappears – as in Australia at present – we will see one of the biggest economic revolutions in modern history. And Bitcoin is here with us, so we have options. Gold, silver and Bitcoin are the safe havens. Invest in all three of them. You will be able to weather the coming global recession and shift away from cash. If you are old school and conservative then go for gold. If you are visionary and part of the new digital world, then go for Bitcoin too. I certainly do, though these are just my opinions since I’m not an investment advisor at all.
