Bitcoin is not a speculative bubble fueled by degenerate players. It’s the capital flight from collapsing fiat currencies
“Why doesn’t Bitcoin die?” is a common question I’ve heard over the years by people sitting on the sidelines, watching the price of Bitcoin frantically rise and fall, over and over again.
The mainstream media will say that bitcoin is a speculative bubble, your financial advisor will say that you are wasting your time investing in it, your friends and family will say that it is a fraud and economists will say that it doesn’t work. So why is Bitcoin constantly increasing in price and proving that they are all wrong? If Bitcoin really is everything these people say it is, why doesn’t it just die?
Many people in developed countries see Bitcoin as an investment opportunity, thinking “I’m going to buy low here and sell high here” in the hope of buying a good or service they wish to purchase. We also intend to increase our net worth and improve our quality of life, gain a higher social status, add value, etc. But many people in the first world have not yet had to learn about the scary reasons why Bitcoin is needed in the first place, but that is changing.
People in developing countries see Bitcoin in a totally different light. They are not buying Bitcoin in the hope of buying a 10 bedroom mansion in Los Angeles, they are not buying Bitcoin in the hope of owning a Lamborghini, they are buying Bitcoin because they need it to survive. In third world countries, where the national currency is being printed until oblivion, the citizens of these countries are seeing their life savings disappear before their very eyes.
I remember giving a speech at my college during my first year (I went to school in the United States) about what is best: fiat currency or Bitcoin. One argument I made is that fiat hyperinflation trends lead to a 100% guaranteed result of wealth evaporation.
I showed the video below, presenting a graph with several national fiat currencies and showing how the Venezuelan bolivar was completely destroyed in a small window of time. It is very ironic to hear Bitcoin critics when they say that “Bitcoin can go to $ 0” when your own national currency is the one that goes to zero in terms of purchasing power.
Thanks to Twitter, I was able to see first hand what was happening in the country, listening to stories of people who would be paid in the bolivar and would literally have to rush to the local market to buy food before it lost its purchasing power. Many did not have the money to eat, keep their jobs or even survive. This is the inevitable result of all fiat currencies, as history has proved.
Bitcoin is not a speculative bubble fueled by degenerate players hoping to make a quick buck, it is the flight of capital from collapsing fiat currencies.
When people say Bitcoin is a lifeboat, they are not exaggerating. Bitcoin is providing immense value to those who are being affected by hyperinflation, allowing people to store their monetary energy in something that will not evaporate into the air.
Individuals who store their wealth in this strong money, with a limited supply of 21 million, guarantee that they will be able to eat this week. That they will be able to really pay for everything they need to survive. And Venezuela is just one of many countries that are going through this situation.
Many First World countries, especially the United States, where we have the global reserve currency, have not had to deal with this. Yet.
– Spencer Schiff (@SpencerKSchiff) January 24, 2021
“The US M2 money supply expanded by $ 369 billion last week, the largest since March. The annual growth rate is now 26.54%, which is unprecedented. ”
The money supply is growing more and more every day. Inflation is rising and you can see it for yourself. I noticed that the prices of all my purchases on the market go up, and I’m not alone. Many other people on Twitter also expressed their concerns.
Fed chairman Jerome Powell says inflation is not a threat. He hasn’t been to my grocery store lately 😕
– Bob Trask (@rwtrask) February 23, 2021
“Fed chairman Jerome Powell says inflation is not a threat. He hasn’t been to my supermarket lately ”
Keeping money whose purchasing power is decreasing while the cost of goods and services increases is a path to serfdom. Oh, and let’s not forget that the Biden government hasn’t even started printing the funds for the $ 1.9 trillion aid package.
So why doesn’t Bitcoin die? Because people need it to protect their savings from hyperinflation, now more than ever.
Source: Bitcoin Magazine