Bitcoin, you’ve heard about it, but why should you care? With the news full of stories of price crashes and hacks on exchanges, why would you want to trade your dollars for bitcoin?
The Global Financial System is in Trouble
Since the establishment of the Federal Reserve in 1913, the U.S Dollar lost over 95% of its purchasing power. The crashes in 1929, 1987, 1997, 2000, and 2008 show that the world financial system is not immune to crashing. Some analysts believe that the next crisis, whether it comes in the form of a debt, liquidity, or currency crisis, could sink the global economy.
Never before have countries relied on debt so heavily. I this modern neo-classical world of economics, debt is what makes the world go around. Governments and central bank balance sheets look leveraged to the hilt, and it seems like the conflagration that sparks the inferno of collapse is just around the corner.
Your Fiat Savings are at Risk
If the global financial system does blow itself up, what will you do when the U.S dollar starts to experience hyperinflation like the Weimer Republic and Zimbabwe? Bitcoin offers an alternative financial system that you can use in the advent of an economic crash that wipes out the U.S dollar.
That might sound like a tall order, and you’re right to think so. However, with over $22-trillion in U.S national debt and trillions more in unfunded liabilities across the U.S financial system, it might not be such a wild idea after all.
In the event of a collapse, your money could hyper-inflate away into nothing. The government and the banks could also collaborate to confiscate your savings. Think it can’t happen, just ask the Cypriots how they thought about that in 2010. After the crisis, the government and banks issued a “haircut” on all savings accounts with a balance of over 100,000-Euros.
Governments Keep Raising Taxes on the Middle Class
Governments keep raising taxes on the middle class while giving corporations and the elite tax breaks. Avoid government tyranny, and keep more of your money by investing in bitcoin and other alt-coins.
The government is struggling to track American’s use of cryptocurrency, and it’s a viable way to store your wealth away from the prying eyes of governments and tax authorities. We aren’t suggesting that you commit tax fraud, but there are ways and means to take advantage of capital gains laws to minimize your tax obligations to the federal government.
The People Control Cryptocurrency
It’s easy to find out how to buy bitcoin using a Google search. Bitcoin ATMs are popping up all over the world, and more exchanges and retailers accept bitcoin that even before. The government does not control this decentralized cryptocurrency, and the market sets the price.
Therefore, bitcoin is one of the last bastions of true price discovery in the world’s markets. Commodity and equity markets all experience manipulation, and bitcoin is one of the only free markets left in existence.
A Change of the Monetary Guard
No-one knows what the future holds for bitcoin. However, it’s an alternative financial instrument that’s gaining traction in countries all around the globe. Where people suffer at the hands of the central banks and governments monetary policy, people will find a way to keep trade alive. Bitcoin offers one such avenue, but only time will tell if it’s the future of money.