Last updated on August 30, 2020
Why cryptocurrency is the future
America’s public schools are a travesty.
Graduates walk away from the system knowing how to take a standardized test and obey authority.
The ignorance comes in handy when the Federal Reserve prints trillions of dollars and the public doesn’t care because they don’t know what the Fed is or why monetary policy matters.
Let’s say I buy a burrito today for $8, but next year that burrito will cost $10. It doesn’t matter what the burrito costs, what matters is the price ratio to income.
For example, if I make $20 an hour, then an $8 burrito costs me 40% of what I earn each hour. If the burrito costs $10, but I still only make $20 an hour, then it costs me 50% of what I earn each hour.
Now let’s look at bigger purchases.
In 1950, the average annual income was $3,300. The average car cost $1,510, the average home cost $7,354, and the annual tuition for college was average $600. In percentages:
- Car to income: 45%
- House to income: 222%
- Tuition to income: 18%
In 2014, the average annual income was $51,017, the average car was $31,252, the average house was $188,900 and annual tuition was $25,000.
- Car to income: 61%
- House to income: 370%
- Tuition to income: 49%
Monetary policy is what impacts these percentages and is precisely why the public should care.
The more money the Federal Reserve prints, the more expensive life will cost. Wages don’t keep up because globalization allows corporations to hire cheap labor — in even cheaper currencies — from countries around the world.
The solution to centralized monetary policy is decentralized cryptocurrencies.
Cryptocurrency is Decentralized
Another problem with public schools is they teach kids to trust elected officials. Has no one noticed that politicians aren’t required to have morals? Accepting bribes, campaign “donations” and lucrative jobs at top Wall Street firms in exchange for policy favors is all part of the gig.
But corruption in politics is nothing new.
In Venezuela, the government destroyed the value of its national currency and then prohibited its citizens from exchanging it for another currency. In order to survive, Venezuelans were forced to adopt cryptocurrency. Millions of Venezuelans are alive today thanks to cryptocurrency.
There is no question the Federal Reserve has eroded the value of the dollar. In time, this will destroy the individual’s wealth and people will beg the government for help, which is ironic.
Venezuela today, Germany in the 1920’s and the future problems of America are because a group of ~15 people make monetary decisions that impact the world over.
When was the last time you voted whether or not the Federal Reserve should print trillions more dollars?There was a time when people traded sticks for corn and somehow humanity survived. The power of money should lie in the hands of the people, not a small group of elites.
Related Reading:What is Anarcho Capitalism?
Cryptocurrency is Progressive
Speaking of sticks and corn, currency is just a reflection of perceived value.
Humans have used stones, silk, cigarettes, gold and even bushels of wheat to transact with other humans. The only requirement for a currency to work is that it be scarce.
For centuries, precious metals such as gold and silver were the perfect scarce resource to serve as currency. That said, transacting in gold was hassle. They created paper currencies such as the dollar, pound and peso to “represent” gold. Back then you could take your paper money to the bank and exchange it for gold!
So what happened?
Long story short, central planners abandoned the gold standard during World War I. When the war was over, they created a new system called Bretton Woods that didn’t work out and then in 1971, President Nixon announced that paper money could no longer be exchanged for gold.
Nixon’s decision meant that fiat money (i.e., American dollar) would be worth whatever central planners decide it is worth. This is how a group of ~15 men decide the price of your burrito (socialism), but corporations decide your wages (capitalism).
It’s not hard to see this isn’t working.
The original gold standard, as experts will tell you, worked because the value of gold was priced by the free market. Cryptocurrencies work the same way; they are worth what the free market deems them to be worth.
In addition, cryptocurrency is safer and more secure than fiat money because it is built on blockchain technology.
We went from sticks, to corn, to gold, to paper money. Some form of digital currency is in our future but are we going to own it for ourselves or let central planners control it?
Related Reading: What is Blockchain and Why is it Important?
Cryptocurrency Transaction Time
A couple months ago I loaned $2,000 to a friend of mine in London. Would you believe it took seven days to go from my bank in New York to hers in London?
Seven days? Not only that but I had to pay $45 in wire fees!
The banking ecosystem is massive and sending just a few thousand bucks is a major ordeal. There is security software, processing agents, international regulations, currency exchanges, remittance guidelines, the list goes on and on.
Cryptocurrency transactions cut out the middlemen. As mentioned, the technology was designed to give the power of money back to the people, where it belongs. We’ve had the ability to send money instantaneously for decades — but that small group of men decided we weren’t ready.
If you’ve ever read Satoshi Nakamoto’s whitepaper, the creator of Bitcoin, he said,”a purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.”Next time I’ll be wiring my friend in cryptocurrency!
I shouldn’t have to ask permission and pay fees and wade through paperwork to send my own money whenever and wherever I please.
Related Reading: The Pros and Cons of Index Funds
Cryptocurrency for the Unbankable
How is it possible that 55 million Americans are so poor they don’t even have a bank account?
The global elite are pushing hard for control over the people because there’s no doubt that a broke nation is an enslaved nation. That said, in countries worse off than America, cryptocurrency has liberated the people.
For example, women in Afghanistan are not allowed to open a bank account so Afghan women fought back and work for a company called Digital Citizen Fund that employs and pays them in Bitcoin.
In Sub-Saharan Africa, sending and converting money is beyond expensive. The local governments didn’t care so companies like Bitpesa and Paxful liberated the people using cryptocurrency to give the power of money back to the workers.
In 2016, the Indian government withdrew 86% of the nation’s currency from circulation. However, 40% of the population, 233 million Indians, do not have a bank account. It’s no wonder how popular Bitcoin is in India.
Whether you like it or not, money buys you freedom. When government strips us of our freedom, cryptocurrency, a decentralized power, is the only solution.
Related Reading: Why Occupy Wall Street Failed
Cryptocurrency is great but there’s no doubt its advanced technology can be used for evil.
For example, the Chinese government is prepared to digitize its currency. Given the country’s communist history, will the new digital currency be used to control or liberate the people?
It could happen here, too. If our government wanted to, they could leverage blockchain technology to automate filing taxes and absolutely no one would get away without paying taxes.
That said, the benefits of cryptocurrency 100% outweigh the risks:
- Transaction time
- Transaction costs
- Solution for the unbankables
- No middleman “safeguarding” your assets
- Safe and secure
- Globalized money for a global world
This last one, decentralization, is by far the most important. The Federal Reserve is out of control and until we the people take back the power, by adapting cryptocurrency, the quality of life in this country is going to continue its decline before anyone can remember how it happened.