October 2, 2023

Bitcoin as the new gold standard for millennials

The degree of distrust of citizens in the current monetary system was born from the ashes of the gold standard, death, which became result of manipulation by the governmentand quantitative currency easing. And this distrust is most pronounced among the younger generation - the generation of millennials. A Facebook IQ study found that 92% of millennials don't trust traditional financial institutions.

They already witnessed at a conscious agethe economic instability faced by our generation of parents. This has created distrust not only in the monetary system, but also in the stock market, in which today only a third of people born in the late 80s and 90s are investing. Our generation is looking for viable alternatives to these traditional financial institutions that would give us stability, financial freedom and prevent excessive financial control by centralized authorities.

Previous generations were born and grew withthe initial belief that money can be created exclusively by the central authority. Borders and geography determined the value of money and the restrictions imposed on them.

However, money is not necessarilyinvention of the state. Due to distrust of the shaky economy, our generation is dangerous about the myth of the government’s unconditional power over money, and is increasingly opening up to new financial technologies.

So welcome Bitcoin, a phenomenon that can rightfully become the new gold standard for the generation of millennials.

The new form of the classic gold standard

In the current monetary system, money withdevalue over time due to high inflation. The gold standard is a monetary system where gold is the collateral unit for the issuance of each banknote, and the central bank does not particularly interfere with the mechanisms for the production of new money. The main argument in favor of the classic gold standard is that since the central bank does not control the amount of dollars in the system, this can prevent inflation, thereby provoking the growth of the purchasing power of the currency, rather than devaluing it.

Such a monetary system will help reduceminimize the scale of business cycles, create conditions for international trade and use a scarce resource as a foundation for the national currency. The modern fiat alternative has failed in all of the above characteristics. This is partly due to the fact that it does not have its inherent value.

Gold and silver get their cash valuedue to market shortages. This forms the concept of money, which depends on an element already on the market. Government currencies do not follow this natural market mechanism.

Instead, central banks are printing new"Money" and assign them arbitrary value. Unstable markets appear that falsify the informational basis of pricing and, in turn, deceive investors and harm entrepreneurs. Such instability is an excellent catalyst for tyranny in everything.

Bitcoin Market Value

Contrary to what mankind has believed for centuries, in fact several products can compete for the status of money in the market at once. This is where Bitcoin comes into play.

Images: Unsplash

Bitcoin follows the rules of the market by which they playgold and silver. It has limited emissions, making it a scarce resource in the market. The value of Bitcoin depends solely on the market and is regulated by it. Bitcoin, other cryptocurrencies, and commodities such as gold and silver compete for monetary status. It is this competition that state fiat currencies avoid, which provokes great market chaos.

Bitcoin uses a distributed network, a registry that is updated with every transaction, peer-to-peer (peer-to-peer or direct, without intermediaries) value transfer system and cryptography fornetwork and transaction protection. The digital freedom that Bitcoin provides can make it a better alternative to the existing system. Even the gold standard relies on a third-party banking sector, which since ancient times has been in the hands of central authorities.

Although private banks have a market incentive to pleasefor private clients, they also need to worry about pressure from centralized regulators. Bitcoin also allows individuals to completely avoid the intervention of third parties. Every cryptocurrency owner is a banker to himself. Thanks to the peer-to-peer payment network, people can voluntarily interact with other people without transferring their personal money to third parties, as is happening now (we will not point fingers at banks, SWIFT, as well as Visa and Mastercard).

While the digital character of bitcoinallows him to work around the banking sector, he still has to deal with government intervention. The government has been involved in foreign exchange markets for centuries.

Because of this, the freedom of the cryptocurrency world is unlikely to remain untouched. However, the liquidation of third parties from transactions and their replacement with direct state supervision (as one of the possible solutions) can help avoid an oversupply of regulation, a proportion of which is often stimulated by self-interest

Millennials optimistic about technology

Images: Unsplash

It is the millennials who will become the generation thatthe first to force the introduction of alternative types of currencies. They crave to use new technologies, rather than avoid them. In part, Bitcoin has a chance to replace the gold standard thanks to its new, technological and digital form factor, which our generation is already used to.

At the same time, cryptoeconomics is also able to please all sides of the political spectrum, where one side is afraid of “evil bankers”, and the other is afraid of government interference.

The optimism of young people regarding the economy supported by cryptocurrencies is so strong that Bitcoin even managed to gradually approach the mark of $ 15 thousand on a relatively flat market.

Now the outdated gold standard shouldpray for deregulation by financial intermediaries in order to regain confidence as an auxiliary monetary status. However, Bitcoin and cryptocurrencies quickly achieved monetary status by building the system from scratch. A system that avoids central controllers and works completely decentralized.

In the fight against the centralized banking forces of the old world, the main thing is not to forget the principle on which the cryptocurrency market was originally born, - freedom principle. People should be able to independently and voluntarily conduct transactions with other people. Without oppression by central banks and without pressure from governments.

It is worth noting the growing awareness ofcryptocurrencies in society, the widespread mistrust of centralized banking systems among millennials, as well as their craving for innovative money systems, can potentially open Bitcoin and technology the path to literally endless possibilities.