Regardless of education, at the end of their education, any person is unlikely to deeply understand the nature of money. Evenspecialized universities do not provide knowledge about the real state of affairs.
</p>We receive the knowledge that the current educational system wants to give. Unfortunately, it mostly only instills that you need to blindly follow the crowd.
Society forces people to accept the currentmonetary and financial system for granted. Politicians, bankers, and economists want everyone to behave like an exemplary citizen that lives up to their expectations.
The requirements are simple:
- Go to work with good wages from 9 am to 5 pm.
- It is advisable to buy a house on credit.
- Buy a car on credit.
- Keep money in accounts and blindly follow the advice of bank employees who want to get the most out of customer funds.
I think the idea is clear.
Unfortunately, when the economic crisis begins, as it is now, people have to independently look for the best way out of a difficult situation.
It's simple: only he himself can take care of a person. And if you do not do this, then you need to be prepared for all the risks.
To make good decisions regarding money,you need to study the financial field, and not blindly follow the crowd.First, it’s worth understanding what money really is, and more importantly, understanding how the monetary system works.
Having dealt with the nature of money, a person understands that it is time to make a choice. In the future, people will be able to choose from three types of currencies with different properties.
In this article, I propose to review these currencies and explain why Bitcoin is a unique opportunity to take back control of your money.
State currencies - US dollar
We all use state currencies from childhood, which are also called fiat currencies. The strongest currency is the US dollar as it is the world's reserve currency.
The US dollar forms the backbone of the current monetary and financial system.
After the creation of the Bretton Woods system in 1944Over the past year, the already influential US dollar has only grown stronger. In August 1971, Richard Nixon temporarily banned the conversion of the dollar into gold, which further strengthened the American currency.
Richard Nixon created the current fiat system, which was legalized in Jamaica in January 1976.
The US dollar and any other fiat currency hastheir flaws. If the Federal Reserve decides to implement an unlimited quantitative easing program, as happened this year, then people will have to deal with its consequences on their own.
Current monetary inflation will lead to a drop in purchasing power that has not occurred in decades.
Imagine this: $ 1,000 in 1971 equals $ 150 in 2020. Inflation can be demonstrated not only with text, but also with pictures. Here are the prices at McDonald's in 1971:
Prices at McDonald's in 1971
The purchasing power is decreasing, so keeping your savings in fiat currency is pointless.
Why keep funds in US dollars if they lose their value over time?
This makes no sense. That's why many people say thatThe fiat system constantly pushes people to spend money on unnecessary things.
Another big problem with money isthe fact that the fiat money in the bank account does not actually belong to its owner. Banks can confiscate funds at any time for any reason.
Banks prohibit transactions for improper reasons. The US dollar does not give its owner control.All control—from the fiat system.
The Federal Reserve has not only begun to conductunlimited quantitative easing program, but also reduced the reserve requirements for US banks to zero. This statement went unnoticed, but it is of great significance.
Now, if an American has funds in his account, this does not mean that the bank has them and is available for withdrawal.
To avoid the collapse of the banking system, some governments may limit the limit for cash withdrawals - this has already happened in some countries over the past few years.
You can choose a fiat system, but only after carefully examining the implications of the 2020 economic crisis.
The world is inevitably moving into the digital sphere, so many government currencies will become digital.China was the first to use this opportunity.
China's digital government currency is one of the most advanced in the world. It is already being tested in several cities in China.
In a few months, the digital currency will be integrated into the popular Chinese Weibo app.
The government's digital currency is the final piece of the massive surveillance puzzle in China.
The digital currency harmoniously complements the Chinese social credit system, which allows you to constantly monitor all Chinese citizens and give them positive or negative points.The amount of points accumulated determines the benefits that Chinese citizens receive.
This picture of the future is terrifying, but many Western democracies are striving for it.
Government digital currencies put citizens' freedom at incredible risk.
Corporate currencies. Libra by Facebook
In June 2019, Facebook solemnly announced the creation of the Libra currency, but all G20 members greeted this news with hostility.
The most industrialized countries in the world believe that Libra will pose a great danger to them.
The original goal of the Libra project was to developcorporate currency controlled by Facebook. But in this form, the project would put countries at serious risk, because 2 billion people use Mark Zuckerberg's social network.
No matter how much Zuckerberg claims that Libra will exist completely separate from Facebook, no one believes him.
In his defense, Zuckerberg said that along with Facebook, the Association of Companies would manage the Libra currency on an equal footing.
In the past few years, Facebook has suffered numerous privacy scandals and also reneged on its purchase of WhatsApp.Mark Zuckerberg now has little or no influence over the politicians who make decisions.
Under pressure from the US government and Congress, many of the Libra Association companies withdrew from the project even before the network was officially launched.
Visa, Mastercard, PayPal, Stripe and Ebay have chosen to leave the project to avoid falling under the sanctions that the US government could impose on their core businesses.
Libra was originally conceived as a stablecoin based on several major fiat currencies: the US dollar, euro, yuan and yen. Facebook was about to release a wallet called Calibra.
Integrating the Calibra wallet into Facebook, WhatsApp or Instagram would open up incredible opportunities for Libra, with more than 2 billion people using these social networks.
Many have said that for Facebook, being able to track all of Calibra's transactions is a great way to improve systems for analyzing user habits.
By choosing Libra, you are selling the soul of a company that already has a dubious reputation for user privacy.
Libra's official launch has been postponed. On May 6, 2020, the Libra Association appointed Stuart Levy as CEO of the project. According to the latest news, Libra has had to scale back its ambitions.
The project now offers the equivalent of a global payment system with low costs andlooks like a competitor to the service company PayPal, which left the project at the end of 2019. The idea to create a cryptocurrency from Facebook is far behind.
It is likely that in the near future, other giants of the web sphere will want to create similar projects - this would be a logical continuation of Google and Apple's investment in banking payment systems.
For users of corporate currencies, this digital money option poses too much of a privacy threat.
Bitcoin is the people's currency
The third option for storing money appeared quite recently - at the end of 2008, Satoshi Nakamoto created Bitcoin.
Bitcoin is a truly popular currency.
Satoshi realized the significance of his unique invention in the history of mankind.He gave a magnificent gift to the entire population of the earth.Bitcoin's success now depends on how people handle it.
Millions of users are already using Bitcoin. Bitcoin achieved success after just 11 years of existence and is still growing. Bitcoin capitalization has already exceeded $ 170 billion.
Bitcoin is the world's most secure decentralized network. So far, no hacker has managed to crack it.
The king of cryptocurrencies gives users complete control over their money. Bitcoin gives you freedom of choice.Bitcoins can be stored without fear that their value will drop over time.
Bitcoin is an excellent store of value and a way to hedge against monetary inflation.
There is excellent evidence for this claim: a $1 investment in Bitcoin in 2010 turned into $90,000 by the end of 2019.The price has risen by more than 9,000,000% - this is a good reason to consider Bitcoin as a long-term store of value.
What's more, Bitcoin developers are working every day to improve privacy on its anonymous network. Proof of this is the development of Taproot and the upcoming implementation of the Lightning Network.
Bitcoin has no leader, so no one can confiscate your funds. You are the sole owner of your money if you keep it safe. Any transactions can be made with bitcoins.
Bitcoin is not just a cryptocurrency. This is the money protocol on the internet.
No other cryptocurrency will replace Bitcoin in the future. Bitcoin is an opportunity to choose alternative money for the entire population of the planet.
Anyone can use bitcoins to secure a better future for themselves.
Bitcoin has become a trusted defense for millions of people in hyperinflationary countries like Iran, Argentina, Venezuela and Zimbabwe.
As a Westerner, you are free to choose Bitcoin today. This may become a commitment in the future.
Think carefully before making a choice.
Output
In the future, the question of money will become very acute. More and more people are beginning to understand the real essence of money and how it works. Bitcoin has awakened people and offered a reliable alternative to the current monetary and financial system.
Once you know enough about money, thenyou can choose your future: stay in the omnipotent system with the US dollar, sell your soul to the corporate cryptocurrency of such a large company as Facebook, or maintain independence with Bitcoin
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