For the last century, a single word has been used by economists, central bankers, and news anchors to strike terror into the hearts of the public : Deflation.
We are told that if prices start to fall, the world will grind to a halt. We are warned of “death spirals,” “economic stagnation,” and “the Japanese malaise.” We are conditioned to believe that for a society to be “healthy,” the cost of living must perpetually increase—usually by a “target” of 2%, a number pulled entirely from thin air by bureaucrats in the 1990s.
But here is the truth they don’t want us to internalize : The only reason we’re scared of deflation is because we’ve been trained to be.
We have been taught to fear the very mechanism that should be rewarding our hard work. We have been gaslit into believing that our money losing value is a prerequisite for a functioning civilization. In reality, deflation is the natural state of a free market, and the current inflationary system is a debt-fueled Ponzi scheme that is rapidly reaching its logical conclusion.
The emergence of Cryptocurrency isn’t just a new investment class ; it is the first time in human history we have the tools to escape this trap and embrace the abundance that a deflationary market provides.
To understand why the “experts” hate deflation, we have to look at who they represent. The current global financial system is built on a foundation of debt. In a debt-based system, inflation is a feature, not a bug.
If you are a government with $20 billion in debt, or a bank with billions in leveraged loans, deflation is a literal death sentence. Why ? Because deflation increases the real value of debt. If the value of the currency goes up, the “real” cost of paying back that debt becomes impossible to manage.
A cryptocurrency is a digital or virtual currency that uses cryptography for security.
A defining feature of a cryptocurrency is his Decentralization
It means that there is no central control authority in the network, the network is distributed to all participants, each computer mining Cryptocurrency is a member of this system. This means that the central authority has no power to dictate rules for owners of Cryptocurrency. And even if some part of the network goes offline, the payment system will continue to operate stable.
Most of the economists define money as something that serves as a medium of exchange, a unit of accounting, and a store of value. Money is a medium of exchange in the sense that we all agree to accept it in making transactions. Merchants agree to accept money in exchange for their goods ; employees agree to accept money in exchange for their labor. As a unit of accounting, money provides a simple device for identifying and communicating value.
Money serves as a store of value in that it allows us to store the rewards of our labor or business in a convenient tool. In other words, money lets us store the value of a long, hard week of work in a tidy little stack of cash.
Any state which store the money of his global production in Cryptocurrency actually own that money. And since the Cryptocurrency is the solution agains the problem of deflation, then the states will no longer fear deflation.
In conclusion, with the Cryptocurrency, the global decentralization is effective and any state is really free. And a freedom of every state means that the global collaboration will be more sincere, more respectful and more equilibrate.
