A few posts back we wrote about how this global emergency has been able to create one of the most dramatic economic slowdowns in history.
In the midst of a widespread blockade, families, businesses and municipalities find themselves in a situation of financial stress, with unemployment reaching unprecedented levels and industrial production below zero: a great depression.
In response, governments can only accept billions of currency and fiscal stimuli, as in wartime, and entrust themselves and the fate of the world to the top six (banks) of the class, Fed, ECB, BoE (England), PBOC (China), BoJ (Japan), SNB (Switzerland) who are injecting an incredible money supply.
In this sense, it is enough to know that the top four central banks alone have printed a total of $4.1 trillion in the last three months.
Society and money are an interoperable pair, no one could exist without the other, without money there would be no services and the ability to meet the demands and needs of millions of people, thanks to it it is possible to pay for goods and works and maintain a high degree of welfare and civilization.
A VALUE EQUAL TO ZERO
But while this mountain of money floods the streets and ends up in everyone’s pockets, the doubt whether it is really worth it is assailing us, because what else could represent something that is given to you and that is not generated by any work?
Why not always print money then ?
Why go to work, wouldn’t it be nice to live simply by spending free money and maybe produce and buy food from someone who lives somewhere in the world less fortunate than us ? Have you ever thought about that ?
Money is a tool invented by man to satisfy a very specific need: to facilitate exchanges, but the creation of money from nothing is a dangerous game, which irreparably pushes people to give money less and less value and once they reach people, to devalue themselves quickly towards the ZERO.
Something doesn’t add up
If banks print money from nothing, why don’t they buy one million BITCOIN a day? If they take possession of a precious asset, they could print something of value and finally have a real underlying as collateral.
Probably at the second round, however, they would start to have the first difficulties, simply because the market would value the dollar at its intrinsic value, that is ZERO… while the bitcoin measured towards an intrinsically worthless dollar would go to infinity!
STORE OF VALUE
Recently bitcoin has suffered its third halving, the premium for miners has risen to 6.25 BTC, significantly reducing its annual issue rate and, according to many analysts and finance experts, seriously becoming a reserve of non-sovereign value.
But how is it possible to apply for a reserve of value, if the history of bitcoin is only 11 years old, while the history of gold, for example, has thousands more? A bit like putting a child in charge of the government…
The demand for bitcoin is driven solely and exclusively by its credibility and its convergent nature, in this direction the increase in demand reinforces the scarcity of supply which we know is fixed at 21 million bitcoins.
Bitcoin è sovrano perché disintermediato, basato su un algoritmo crittografico e matematico, politicamente indipendente, risiede su una piattaforma totalmente decentralizzata e viene estratto a fronte di un duro lavoro sia per costi di corrente che per calcolo computazionale.
A real revolution given the times.
The bitcoin is the only monetary asset in the world, with absolute scarcity; whoever knows the bitcoin community knows that the maximum limit of 21 million btc is not negotiable and clones permitting, only btc seems to be a candidate, and in a credible way, to a real reserve of cryptographic value.
Today, bitcoin is one of more than a thousand digital currencies competing with each other, all of which seem to be equal on the surface.
Its purchasing power is equal to $ 170 billion, which is nothing compared to the global financial system that supports $ 250 trillion of debt and always nothing compared to the GOLD, which exists for thousands of years and that alone has a purchasing power of $ 8 trillion (50 times at least the size of the bitcoin).
This is the path to consider when trying to understand why the bitcoin constantly exceeds all other currencies and why it will most likely continue to do so:
But then what is its real strength and why is bitcoin gaining the interest and trust of millions of people?
Apparently simple: bitcoin takes advantage of time, computing and digitization.
It can be sent for any value and quantity and stored without intrusion, stored on a mobile phone and sent in a few minutes to any part of the world where there is an internet connection, an incredible advantage over precious metals such as GOLD and SILVER.
If we mean by time, the advance of digitization and a new class of digital users, certainly BITCOIN together with the imminent launch of money transmission products, such as Libra for example, will allow a greater cryptographic awareness as well as a greater propensity to manage and store digital money.
Bitcoin, therefore, should not be seen as a speculative investment, but as the only form of reserve value, which will probably survive together with the GOLD, presumably keeping its purchasing power intact.
Bitcoin is a modern form of insurance, and a necessary protection of assets against a financial system which, given the premises, will not survive in its current form.
Do you own bitcoin and know how to preserve it?
The wave is coming, what you decide to do now is up to you!
The future is all to be written
If you are interested, HERE you can download a simple but not trivial guide to what it is and how it works bitcoin and some other cypto.
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Independent researcher and consultant, crypto activist.