By taking away government capacity to print money, Bitcoin could very well change the world forever. You can run into a lot of problems by using government-printed money. Let’s look at the potential risks you face and how you can protect yourself from them.
Banks print money all the time
The central bank prints money as it wishes. The printing presses are not imaginary, they do exist. The government decides that it wants to spend 10 billion on a project, no problem. They get approval from Congress and create a debt of 10 billion, sell it to private banks and the bank electronically transfers 10 billion to the government. They don’t even need to fire up the printing press. This is how $10 billion is created out of thin air on promises. The government only needs to promise that they will pay it back from tax dollars sometime in the future.
This is how the U.S. government racked up $19.3 trillions of debt over the past few years. If you divide that by 350 million people living in the US, that’s over $50,000 per person that will need to be taxed one way or another. Be ready, the taxman is coming. So the government is effectively spending your money before you earn it.
The central bank mission is to devalue your money
This is not over. On top of spending your future money by borrowing money like there is no tomorrow, the FED’s number 1 goal is to create inflation at a rate of 2% per year. I’m not making this up, this comes from the FED itself https://www.federalreserve.gov/faqs/economy_14400.htm
This mean that the FED will do everything it can, like playing with interest rates and promoting quantitative easing so that the loaf of bread you purchase next year will cost you 2% more than it cost you today. How crazy is that?
So putting your hard earned money under your mattress will only impoverish you over time. The FED will guarantee you that.
This is the main reason a lot of people oppose the FED policy. David Stockman, who served as the Director of the office and budget under President Ronald Reagan can clearly see that inflating the economy at all cost only leads to bubble-and-busts like we experienced in 2000, 2008 and the next one… very soon.
Investing in gold is risky
In 1933, the government made it illegal to own gold coins or gold bullion in denominations over $100. People were forced into selling their gold at a value of $20 per ounce. The U.S. government raised the value of gold the very next year to $35/ounce, inflating their money supply by more than 60%, and taking away the most effective tool for citizens to save money until then.
In Greece, banks defaulted and went on “holiday” for 2 weeks. You couldn’t get into a bank to withdraw your money and when they finally re-opened, you were left with 40% of your savings. The remainder was used to bail out the banks.
In China, it is against the law to send money out of the country in quantities of over $10,000/year. You go to jail if you want to move out of the country with your money. I don’t know about you, but I don’t like anyone with guns telling me what I can do with my money.
Same thing here, the U.S. government can seize your bank account and freeze all your assets even though they are yours and you are not guilty of anything. There is nothing you can do to stop it. Actually, the police can confiscate all the money you carry on you without charging you of anything, as described in this Washington Post article.
Government always tells people to spend more to “stimulate the economy”
66% of citizens don’t have $500 in their bank account. The government keeps telling you to spend more money. You even hear TV economists telling you that savers are a problem for the economy because they don’t consume enough. Responsible citizens who save money for their children’s future are now seen as the problem.
Government borrows money to go to war
The number 1 reason governments have accumulated huge debt is to go to war. The U.S. government has spent $4.4 trillion on the wars in Afghanistan, Pakistan and Iraq. (Watson institute) Those loans are now a burden on the next generation and inflate the money supply, which leads to inflation.
The biggest scam ever is that the USA cannot default on this debt.
If the government needs to pay for its debt, it can simply print more money. There is no limit to which the government can sell debt to private banks or ask the FED to print more money. The only limit is the imagination of the 12 people that control the FED. Citizens become victims of these decisions.
So how can Bitcoin lead to peace on earth?
Bitcoin can take away the money printing power from government
There is no way to create more bitcoins. If the government wants to spend more money, they would need to raise taxes first. They couldn’t ask the central bank to print more bitcoins. It is a condition of Bitcoin, that there are 21 million bitcoins in existence and not 1 bitcoin more.
The government would have to control their spending. No more spending as much as they want and pass the bill to the next generation, they can only spend what they have.
Bitcoins cannot be printed. No government or organization can take over Bitcoin.
We have seen that the number 1 reason government prints money is to go to war. No printing money, no ways for government to go to war. You want peace on earth? Just take away the power of government to print money and you will have peace on earth.
Bitcoin has a limited supply, which makes bitcoins more and more valuable
Limiting bitcoins to 21 million makes them scarce. As more people use bitcoins, their value will rise over time. As more people use, save and trade bitcoins, your purchasing power will increase over time. No need to invest your money in risky stock markets if you don’t want to. Just hold onto your bitcoins and their value will rise over time, ensuring you enjoy a comfy retirement and safe future for your children.
Bitcoins cannot be seized by any government.
Bitcoins cannot be seized, controlled or censured. Because of encryption, no one can move bitcoins you own unless you give them your private key. The key is an electronic signature so it is not physical and cannot be taken by strength. No one can go into your house and take your bitcoins without your explicit consent.
Bitcoin can be freely traded across borders between people with no restrictions whatsoever.
No one can stop a transaction from happening. You don’t need a 3rd party authorization to do a transaction, all you need is the wallet address of the person you want to send the money to. No one can reverse the transaction once it is done, no one can stop it. You can get into a plane, with $1 million in bitcoins and no one can stop you from moving them. Just memorize your private key and walk into the plane. You can access your bitcoins from any computer in the world.
A better future with Bitcoin
Bitcoin is currently the number one cryptocurrency. Going from a state-printed money to a decentralized, provably fair money system is the next step for humanity. There have been many versions, like e-gold in the past, but because of centralization, the U.S. government was able to shut it down. Bitcoin is much different in the sense that it is decentralized and cannot be shut down. It is the path to freedom and peace on earth.
Once the world awakens to the power of Bitcoin and decides to let go of the old money system, government will be forced to behave properly. With the internet, everybody in this world can be made aware of the inequality that comes from using government printed money. Every citizen should be free to choose an alternative. Once the entire world decides to use it, there will be peace on earth.
Whoever controls the flow of money holds power. When citizens control money, they will have the power. The era of Bitcoin is the first time in history in which we can take back this power. I believe that it is only a matter of time before the world awakens to the power of Bitcoin.