Bitcoin — Your Orange Liferaft
Cryptocurrency and centralised absurdity
Let me outright confess I long rejected anything ‘crypto’ related and could not have imagined being converted. Yet without the value of 2020 hindsight, the events of the preceding 12 months would rightly be labelled as outright inconceivable.
In that time main street has been forced to reconcile the ‘new normal’, whilst a simultaneous paradigm shift has occurred on wall street. The clock is now ticking for you to guard against the biggest wealth transfer in human history.
Im sure to some extent you have heard of the global economy being structured and driven by endless debt. Notwithstanding the pervasiveness of governments sharing this approach over preceding decades, 2020 accelerated the rate of debt accumulation drastically.
When in March global stock markets declined up to 40%, marking the shortest/steepest decline in recorded history, central banks and government responded promptly and decisively to protect the financial systems implosion. Their effectiveness is unquestionable, preventing amongst other things, the obliteration of Baby Boomer’s pension funds (i.e. the savings of the largest demographic on this planet).
However, as we will become aware in the coming years it is not without its consequences. Levels of debt are now beyond the pale of management, and the harshest tax central to furthering inequality is now being welcomed; INFLATION.
Why is Inflation Bad?
Inflation erodes the purchasing power of consumers, making our cost of living more expensive. Things essential to our lifestyles cost us more be it milk, rent, a car etc…. Combine this with high unemployment and below average global GDP growth, and it becomes very unlikely our wages increase in pace with the increasing costs of living. HOWEVER, scarce assets such as realestate, shares, commodities etc WILL increase in value.
We are ALREADY seeing this! You don’t need to be the Wolf of Wall Street to notice that markets keep hitting all time highs while the world implodes. This further increases the wealth of those with assets, whilst pushing people working pay check to pay check further behind.
Why is Inflation Welcomed?
Put simply, it devalues the debt owed to creditors in real terms. Essentially, low interest rates (i.e. smaller interest repayments) and inflation (same amount of currency being worth less) makes it cheaper for borrowers to repay money they owe! So to get out of this unsustainable levels of debt inflation is our most conceivable pathway.
So What Do I Do?
It is now officially within the powers that be’s interests to devalue your currency! Furthermore, banks are offering measly 1.5% interest rates on high interest savings account. If inflation gets above 1.5% (which I contend it already has by reference scarce assets) you are LOOSING purchasing power by keeping it in a bank. The answer is bitcoin. If the bitcoin price goes up more the answer is still bitcoin. If the price goes down the answer is MORE bitcoin.