The international monetary system is facing one of the worst crises ever seen in the age of legal tender, for the So this could be a good time to invest in Bitcoin., but why?.
The world's fiat currencies are in crisis, crushed by the enormous weight of public debt and the billions printed as a recovery fund.
Price inflation is an increasingly important issue and is placing small and medium investors around the world at a crossroads: continue to fuel a fraudulent system ready to exploit or protect itself by investing in innovation and decentralization?
More and more we read the statement "Invest in Bitcoin to protect yourself against inflation" on various blogs or news portals about cryptocurrencies and blockchain.
If at first it could have been a simple thought of a mad libertarian, now more than ever it is becoming a topic for debate and sharing.
The arrival of the Coronavirus has opened the doors and paved the way for further intervention by central banks and institutions, dramatically accelerating into unprecedented organized chaos.
Pandemic management and the river of money dumped in the United States and other countries only distort prices in many markets, creating a false recovery that, as always, helps those who are closest to printers. As China, the United States, and other states blame each other for a scapegoat, the world economy is preparing to increase its money supply far beyond subprime mortgage bailout.
Bitcoin and halving
At a time when the increase in the money supply is making all the news headlines, adored as the only action required to save us from this situation, the Bitcoin protocol halves BTC issuance for the third time since birth, completing the long awaited halving.
Born in 2009 along with the economic crisis, Satoshi Nakamoto's protocol appears to be more of an oracle than ever, seamlessly executing the instructions written in the code. Block 630,000 was credited to the creator of bitcoin, with the message: "NYTimes 09 / Apr / 2020 with an injection of $ 2.3T, the Fed plan far exceeds the 2008 bailout."
The title, taken from the New York Times, is a reference to the first mined block of protocol and the Fed's reaction to the economic crisis that awaits us in the coming years. Putting the fun facts aside, after approximately 12 years since the birth of Bitcoin, there is now the question of if this protocol is really mature and ready for the general public.
Bitcoin and individual freedom
With the recent halving, Bitcoin's money supply growth changes and it does so significantly. In fact, with the third halving, monetary inflation goes from 3.6% per year to 1.8%, which makes virtual currency an increasingly scarce asset.
Therefore, Bitcoin keeps its promise, continues to exist and proves to be the first true example of a scarce digital asset, not duplicable and finite in the history of humanity. The world's number one cryptocurrency is indirectly demonstrating what the characteristics of solid money are and how we can use it to create a stronger economy focused on human action.
Bitcoin is portable, durable, divisible, fungible – all the features that the cryptocurrency has in common with fiat currencies. The real difference that distinguishes the solid from the corrupt digital currency is that it is a store of value, which is essential for the prosperity of populations. The reserve of value in a currency is the quality that makes it valuable over time, allowing savings, investments and individual freedom to decide what is the best thing to do with money.
This freedom translates into less time preference, curbs human impulses and creates a future-oriented perspective. What we are experiencing with fiat currencies is but a organized exhaustion of purchasing power, pushing us to look for a momentary gratification instead of the accumulation of capital that in 10 years will be worth half the nominal power.
And if you think Bitcoin is just that, well, you're wrong. In recent years, insurgent demand has emerged from troubled countries like Venezuela, Iran, Nigeria, Ghana and South Africa. These countries are exploiting some of the features of Bitcoin to survive censorship by governments and global financial institutions. The possibility of not having to ask anyone for permission to exchange money and be able to do it quickly and easily is creating communities that are increasingly large and convinced of the revolutionary power of this protocol.
Many of the people who join this revolution are the so-called unbanked, that is, those who do not have the possibility of having a bank account and participate in the world economy. Therefore, Bitcoin is not just a speculative asset, it is not its price, and it is not just an experiment.
It is a liberating toolIt is a protocol that has initiated a change of epoch: from the individual who works for the economy to the economy that works for the individual, from centralization to decentralization, from the sale of our data to its possession.
Bitcoin places us at the center of the system, makes us responsible for owning our assets, indirectly revealing to us mistakes made and never exposed. It is time for us to open our eyes, get away from our prejudices and understand why this protocol is the natural choice for a more prosperous future.
In conclusion, as says the philosopher Nassim Nicholas Taleb:
"Bitcoin gives the crowd an insurance policy against an Orwellian future."