In this article, I will make a case as to why Bitcoin is now your last chance to opt-out of the broken crony capitalism system that you are stuck in since birth. Prior to reading my article and my analysis of the upcoming new world order, I would like you to read these;
(They will pave the way into understanding where I will be heading with this article, why it is direly urgent for you to understand this.)
Modern monetary theory: en.wikipedia.org/wiki/Modern_Monetary_Theory
Dan Held hyperinflation visualization: twitter.com/danheld/status/1265991334604800000?s=20
Argentina 2001, Coralito effect: en.wikipedia.org/wiki/Corralito
What is Central Bank Digital Currency; en.wikipedia.org/wiki/Central_bank_digital_currency
TL;DR: Canadian central bank intake on CBDC and why they will be coming into your life very quickly;
"The Bank will consider launching a CBDC if certain scenarios materialize or appear as if they are likely to. A CBDC could become beneficial or even necessary, if:
- the use of banknotes were to continue to decline to a point where Canadians no longer had the option of using them for a wide range of transactions; or
- one or more alternative digital currencies—likely issued by private sector entities—were to become widely used as an alternative to the Canadian dollar as a method of payment, store of value and unit of account."
(Well we have it here; First, cash is no longer being accepted at a lot of businesses due to fear of cross-contamination of COVID-19. Second, the rise of cryptocurrencies but also of other global power CBDC like China; coindesk.com/coindesk-50-how-peoples-bank-china-became-cbdc-leader)
Let's be honest,
Fiduciary notes or simply said, Money with a big M rule and dictate an enormous amount of aspects of our lives, from birth till death. Yet, as we are creating wealth through our daily lives and jobs, we have absolutely Z-E-R-O control over it. Find that normal?
This is the very reason why your emancipation from the broken system we live in starts with educating YOURSELF on how to attain financial sovereignty, not freedom, sovereignty, HUGE difference here.
The basic of basics
Maybe, and probably you did not know but... Your money is not yours.
Alright, that might sound demented, sadly it's not. The amount of money that is reflected in your bank accounts is only an IOU from your bank. In practice, you rely on trusting the bank to be able to process your transaction.
Meaning? The crucial word here is; Fractional reserve banking.
This may sound like a pseudo-scientific financial word, it's not, it means exactly that; The Bank of Canada and all other operating banks in Canada actually only have a very small portion of all of Canadians savings in liquid assets.
By definition; Fractional reserve banking system authorizes commercial banks the ability to create profit by loaning % of their end users deposits, whereas only a small portion of its customer assets are physically stored as real paper cash and is accessible for withdrawal.
Crazy, right? That's where it gets crazier. In 1990, they changed this law, and; "Canada no longer requires banks to maintain fractional reserves with the Bank of Canada. Instead, banks are required to hold highly liquid assets such as treasury bills equal to 30 days of normal withdrawals" -en.wikipedia.org/wiki/Bank_of_Canada
That applies to all commercial Canadian banks; RBC, BMO, Scotia Bank, TD, etc.
What of the Bank of Canada itself then you might cry out loud! Nope, no hopes here, it currently has ZERO gold in its store, and around 87 billion US dollars... Everything else is debt and $CAD infinity printing. Source; bankofcanada.ca/rates/related/international-reserves/
Now that you have digested these sordid facts, it literally means, a bank run could occur at any moment triggered by X, Y or Z.
Bank run, by definition: "A bank run occurs when a large number of customers of a bank or other financial institution withdraw their deposits simultaneously over concerns of the bank's solvency." - Bank Run. By Will Kenton.
Let's dive deeper into the rabbit hole and analyze one of the famous bank run of history.
This catastrophic event took place in Argentina in 2001, the country was heavily indebted and had a previous three years of economic stagnation. The foreign and domestic companies, fearing a devaluation in the Argentinian peso, started converting massive amounts of their pesos to US dollars and sending it outside of Argentina's reach. To stop all this capital from leaving the country and burning the banking system to the ground, on December 1st, the government ordered the freezing of all bank accounts for 90 days. Only 250 Argentinian pesos were allowed the be withdrew on a weekly basis.
You can obviously now deduct the chaos that such an event has on society.
The last 500 years cycle - Analysis/Short
Here's a few KEY paragraphs thorough History until today that is important in you comprehending how central banks from their very birth started to befoul the hard earning population;
The Dutch empire, the East India Company and Amsterdam Central Bank - Birth of Capitalism (1600-1780)
"As deposit holders at the Bank of Amsterdam realized the bank was “lending” freshly printed guilders to save the Dutch East India Company, there was a run on the Bank of Amsterdam. As investors pulled back and borrowing needs increased, gold was preferred to paper money, those with paper money exchanged it for gold at the Bank of Amsterdam, and it became clear that there wouldn’t be enough gold."
The dutch empire was the strongest in its time because of their trading power but eventually fell in the trap of every over expanding empires. Upon reaching peak military, they became financially unsustainable over decades of war then this once great warmongering became over-indebted. This heavy financial burden was funneled to the population through the first ever IPO in history, one of the Dutch East India Company and the creation of the central bank of Amsterdam. The Dutch empire and coincidentally the Dutch East India Company accounted for over a third of the world global trade during its time using the Dutch guilder who then became the world reserve currency. As the Dutch empire were losing wars, it financially crippled them because of over-borrowing against its own currency (They renamed "overprinting" to "Quantitative Easing") who then became decoupled from its reserve of gold and physical asset. The bank run happened when everyone feared that the central bank did not have enough gold to cover all the people's money. Reminds you of an actual country? Or your country's central bank?
The British Empire and the Pound, world reserve currency from 1780 until it's devaluation in 1949
"As you know, despite winning both World War I and World War II the British were left with large debts, a huge empire that was more costly than profitable, numerous rivals that were more competitive, and a population that had big wealth gaps which led to big political gaps."
"As a result, the first effort to restore convertibility in 1947 failed completely, and it was soon followed by a large devaluation (of 30%) in 1949, to restore some competitiveness. In September 1949, the pound was devalued by 30% versus the dollar."
Same scenario, it was once was called the empire where the sun never sets, but as the world has witnessed history does repeat itself. Like a jerk circle, empires warmonger their way to power by over crippling it's country and incidentally it's population. Creating generations of over-indebted individuals through taxes that are then left dumbfounded when their world reserve currency gets devalued. In 1949, with crippling internal problems, a poor economy and major debts because of the sustained war effort and a costlier than profitable empire, the pound was devalued overnight versus the dollar by 30%. Whose the most affected during these types of one in a century event of shift in power? The hardworking people paying taxes, living their lives and abiding by the system, not wealthy enough to seek financial refuge into gold (at that time in history).
Power shifts: American dollar era and the end of gold-backed currency
"Then in 1971, when it was apparent that the US didn’t have enough gold in the bank to meet the claims on gold that it had put out, the US defaulted on its promise to deliver gold for paper dollars which ended the Type 2 gold-backed monetary system, and the world moved to a fiat monetary system."
After World War 2, the United States, through various means, controlled about 66% of the world gold reserve. Europe needed to be rebuilt so the war economy shifted into a productive rebuilding machine that propelled decades of growth and cemented the US dollar as the world reserve currency. A new world order was set in stone, the financial hub of the world moved from London to New York, and a subsequent debt cycle started. Look up the "Guns and butter" theory, exactly what happened, after 20 years of growth, the US started to feel the financial weight of all its wars and internal needs. Then 1971 happened and the gold-back currency system of the world was finally gone for good and entirely shifted to the FIAT system of infinite printing. In the following years, the inflation bubble of 1982, the speculative dot com tech bubble of the 2000, the real estate bubble of 2008, then "Quantitative easing" happened, afterward (should be criminally liable) overprinting of money until 2019 artificially growing investment stocks which led to the actual crash and stalemate of the worldwide economy due to, partly, as the catalyzer, COVID-19.
"Each of these cycles raised debt and non-debt obligations (e.g., for pensions and healthcare) to progressively higher levels and led the reserve currency central banks of the post-war allies to push interest rates to unprecedented low levels and to print unprecedented amounts of money. Also classically, the wealth, values, and political gaps widened within countries, which increases internal conflicts during economic downturns. That is where we now are."
This system is inherently broken, it has been demonstrated to you thorough history, 400 years of central banks taking advantages of the masses controlling the monetary supply, which WE CREATE as a population. It is complete nonsense that we are kept into financial servitude like the donkey chasing a carrot which is in the end what this DEBT system makes us.
We're born, our parents get indebted to have us, they also had indebted themselves to buy a house with the university degree they indebted themselves preemptively to get too. Following that, you will most likely follow that circle process to have a family and it starts again. See how magnificent it is for an entity controlling you to have created such a system. How destitute of meaning that is, not to LIVE, but to live shackled to TRADING YOUR INVALUABLE TIME FOR IOU INFINITELY PRINTED MONEY displayed on a graphical user interface on your banking account, which is controlled by other people, and let's face it the human race has become a greedy one, always pushing the boundaries of superficial needs.
The dream keeps on... Until you educate yourself, which I'm proud you're doing by giving you my prospect what's gonna happen. Which obviously includes, BITCOIN, why? Simply said, because of it's decentralized nature, NO ONE CONTROLS IT.
Modern monetary theory and hyperinflation
Also called MMT in the academics and bankers jargon, it withstands everything you should be against. Simply explained;
"MMT theorists believe that government spending will not necessarily lead to increased inflation, which can be addressed by raising taxes."
By definition; en.wikipedia.org/wiki/Modern_Monetary_Theory
Yes, you have read that right, this is what followed the 2008 Great Recession combined with over-leveraging the world with debt led us to where we are now.
My theories and views of what will happen in the next few years are the following;
As of now, we've entered a deflation period due to the astronomical amount of money printed by central banks worldwide. Despite the fact that unemployment is at its highest level across the globe in modern times and 50% of the world was in lockdown as of recently, stalemating the economy in terms of demand for so many goods and services, THE STOCK MARKET IS STILL PERFORMING. It makes absolutely no sense that the stock market hasn't fallen 90% of its current value, clearinghouses across the world were short of liquidity due to all protagonists being over-leveraged on positions in early March already, before the pandemic. It seems that the entities ruling our lives, the central banks, have decided to extend that leveraging to all entities that are in financial deficit at our expenses, with repercussions for XX years to come.
To what extent? This printed money that is in fact, OURS (Every active citizen in the economy that pays any form of taxes whether it be income or goods, etc.) and is currently given at a ridiculous amount to the population and the SMB. It is the workforce, you, me, every individual, DRIVING OUR ECONOMY with ENTREPRENEURS across the world. Solemnly, abiding by the unnerving rules of this broken system to the point of bankruptcy whilst the huge corporations whom have practiced corporate buy-back cannibalizing culture and creating subsidies in all possible tax havens get 80% of the TRILLIONS PRINTED, WHILE THEY APPLY FOR WAGE SUBSIDY PROGRAMS, and/or taxes reductions of all sorts. We all live in a giant fun, full of tik tok and dopamine BANANA REPUBLIC.
When is this unrestricted amount of, let's call it what it is, candy wrapper paper money backed by air, printed gonna IMPLODE the system? Cause trust me, it's an implosion, it is a corrupted force from within drive all our commonwealth into a pitfall of HYPERINFLATION.
You can witness in data what hyperinflation visually looks like;
Individuals purchasing power becomes a joke slowly but surely, and that is until the bank run happens. Cause it eventually does.
Central Banks Digital Currency: The end of our freedom
As demonstrated in the "prior to read" section, the two key factors for CBDC worldwide to roll down have been met;
- The death of paper money due to the rise of potentially pandemic wise infectious diseases transmitted through physical contact.
- The rise in alternative means of exchange, Bitcoin, and the cryptocurrency ecosystem enabling especially stable coins emitted on the blockchain as cryptographic tokens that are pegged 1:1 to FIAT currency, transmittable worldwide, within seconds, at often a 1/100 the operational cost of financial institutions and central banks.
Once CBDC is rolled down worldwide, it is the total and sadistic end of all our privacy. Let me be more precise, the ruling entities controlling your lives from A to Z will have total digital memory of your every transaction. The implications of such knowledge are limitless and you should not take lightly to whom you hand such data. Ultimately, what you are realizing by now is that you are in zero sense financially sovereign and that everything that you have worked for and/or for generations have FOUGHT for can be taken from you. Here's a testimony of a victim of the Coralito;
What you need to retain as information is that you need to protect yourself from this broken system and the option to #optOUT is still available.
Bitcoin, decentralized finance and the way OUT
Bitcoin is the first functioning fungible cryptographic digital currency ever created. It fully decentralized, peer-to-peer, trustless, censorship-resistant, and based on a deflationary model.
- Decentralized because anyone in the world can run a full node, have a full copy of the ledger and run it on a computer, a smartphone, or even a raspberry pi.
- A trustless means of exchange: Anyone having an electronic wallet can use it, send an agreed-upon value by both parties, and conduct a transaction without any trusted third party involved.
- Censorship resistant - Anyone can input a certain set of data into the blockchain and it will forever be recorded in the said block hence immutable.
- The economic model of Bitcoin is deflationary meaning there will only ever be 21 million Bitcoins, the emission of new Bitcoin in circulation over time is slowed down by 50% every four years and the difficulty to mine Bitcoin is slowly going up all the time.
In 2009, the first genesis block of the bitcoin blockchain was mined, now in 2020 it is a market of 175 billion USD worth but honestly, I prefer to see it as 18,376,162.5 bitcoins in existence minus an estimated 4,000,000 lost essentially unretrievable. For the same reason why it is attractive, your financial sovereignty also means that you are responsible and custodial for your assets.
How is it unseizable? Simply put it this way, if you can learn and remember your private key, which is essentially your ONE KEY TO YOUR KINGDOM, you can uninstall and reinstall your wallet on any smart devices at any given time and have access to your financial assets. On top of that, once CBDC is rolled worldwide, you will be enabled to transact outside the governmental financial fencing system and retain transactional freedom through privacy. (Even though the concept of permissionless blockchain technologies is pure transparency, there are ways to obfuscate your usage of such tech.)
Now onto, what enabled decentralized finance to flourish.
Ethereum, which has revolutionized the space with its unique proposition of smart contracts, has been born out of a very determined gamer whom just had been scammed online by a central authority. Here's the full story: wired.com/2016/06/the-uncanny-mind-that-built-ethereum/
Hat off to him, the cryptocurrency ecosystem has grown exponentially since then.
Why? As a result of his tremendous work, smart contracts enabled the construction of decentralized applications on a permissionless blockchain. Meaning you can interact with an app on web 3.0 in a completely trustless fashion. This might sound like a utopical concept, well it isn't, that is just the natural evolution of software applications. I will not dive too deep into the subject as it is highly technical and does not fit in the concept of this article.
Yet what key information needs to be retained from Ethereum is the potential for anyone to build trustless applications on its smart contract framework. The applications of such a concept are limitless, enabling all sorts of decentralized financial services, also called DeFi.
The internet is the modern Library of Alexandria
There are not a million of ways to acquire knowledge. In the past, before the age of the internet, attaining proper sources of information on a related topic required a lot of physical research in multiple instances, which was seriously time-consuming. We live in the digital age, it is our utmost duty to get informed on topics that spark our curiosity because knowledge is power. The power to absorb, retain, and transmit such information IS UP TO YOU!
Here's a collection of resources (paid and free) to get familiar on the topic of Bitcoin, distributed ledger technologies, and the cryptocurrency ecosystem;
Blockchain resources (FREE)
Satoshi Nakamoto Whitepaper: bitcoin.org/bitcoin.pdf
Andreas Antonopoulos: aantonop.com
Jameson Lopp: lopp.net/bitcoin-information.html
Up and coming promising project: bittopia.org
Best way to learn from your peers and network worldwide for free: meetup.com
Bitcoin resources (PAID)
Ivan on Tech: academy.ivanontech.com
University of Nicosia: unic.ac.cy/blockchain
P2P Educational marketplace: bitdegree.org
Blockchain industry worldwide recognized certification: cryptoconsortium.org
Ethereum resources (FREE/PAID)
Ethereum foundation: ethereum.org
P2P Educational marketplace: udemy.com/topic/ethereum
Consensys paid coursera class: consensys.net/academy/ethereum-101-training
Consensys free intel: consensys.net/knowledge-base/about-ethereum-eth
Ethereum 101 by: coindesk.com/learn/ethereum-101/what-is-ethereum
---------------------------It's time for plan B---------------------------
Let’s BUIDL together!
Follow me, I’ll follow you.
If you haven’t already created an account on this awesome platform; publish0x.com
BTC donation address; bc1qy5z8pja64naylc207khjeefp35zrdc7qj37r7e
ETH donation address; 0xfAdf181cA6ebCe58032bb76E339022ea8926637B
We are pioneers.
We are fact checkers.
We are curious, we build.
We do not trust, we verify.
We are the new standard.
Vires in Numeris. #Bitcoin