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Often referred to as a logic diagram, a Venn diagram is a diagram used to show all possible logical relationships in a finite collection of different sets. Venn diagrams were invented in 1880 by John Venn, who was a renowned British mathematician and logician.
Recently, I saw a Venn diagram appear on Twitter to show what was driving more and more people to buy Bitcoin. Here is the famous tweet:
First of all, I must say that I find Joumanna Bercetche’s idea very interesting. Using a Venn diagram to show that the purchase of Bitcoin is made by people at the junction of three large sets was well thought out.
In her diagram, Joumanna Bercetche represents the following three sets:
- All those who hate the U.S. dollar, and de facto all fiat currencies.
- All those who hate central banks.
- All those who hate their government.
If you are part of each of these three sets, you fall into the subset of those who buy Bitcoin. It’s a simplification of things, but I like the idea as I just told you.
Nevertheless, I find that talking about hate is far too violent a thing here.
I buy Bitcoin, but I don’t hate the U.S. dollar, the government, or the central banks. Rather, I would say that I no longer have any trust in the humans who are at the head of the current monetary and financial system. History has shown us that these humans always end up yielding to corruption or making decisions that benefit only a minority of people.
Bitcoin responds to a major trust issue for the people
Bitcoin is a matter of trust. When you buy Bitcoin, you choose to trust the laws of mathematics rather than the human beings at the head of the current system.
Expressed in the form of a Venn diagram, my representation of things looks more like this:
Bitcoin clearly represents the subset of those that meet these three conditions.
The rise of populism that we have been witnessing since the middle of 2010 clearly shows us that more and more people no longer believe in their government. A real mistrust has arisen in many Western countries. The people are tired of seeing leaders making decisions that benefit only a tiny minority.
The monetary policies conducted by central banks since the early 2000s are still the same:
- Lower interest rates to zero.
- Endless printing of fiat currencies out of thin air.
This endless monetary inflation benefits the ultra-rich whose fortunes literally explode. In 2020, the fortunes of American billionaires increased by more than $1 trillion in just a few months. The fact that the Fed printed more than $3.5 trillion out of thin air is obviously the main reason for this phenomenal increase.
At the opposite end of the wealth spectrum, the poorest Americans have lived in worse conditions than ever before. The vast majority of the American people are suffering from the economic crisis to an extent that the powerful at the head of the current system do not seem to realize. Or they prefer to turn their heads and simply preserve their privileges.
Governments and central banks consistently apply the same recipes that don’t work
Governments take advantage of these accommodating monetary policies to try to solve the problems of the economy by borrowing more and more money. Governments think they can solve the economic crisis by applying the recipes that have led us to this dramatic situation. To help you understand, I will give you a striking example.
Imagine an alcoholic person who comes to his doctor for help. The doctor then prescribes the following to his patient: you are going to drink even more alcohol. Treating evil with evil will help you to heal …
This clearly makes no sense. Well, governments and central banks have been doing this for decades. As you can well imagine, things can only get worse. That’s what’s happening, and with every crisis, the magnitude of the problems grows.
Some tens of billions of dollars were enough to put off solving the real problems in the 2008 crisis. By 2020, we were talking in trillions of dollars.
Some people make the right diagnosis but are mistaken about the remedy to apply
On my Venn diagram, you could see subsets appearing in light red, blue, and green. These subsets correspond to people who are no longer trustworthy either, but who have not yet switched to buying Bitcoin. Peter Schiff is a great defender of gold. This type of person is called a gold bug.
Peter Schiff has a totally relevant vision about the U.S. government and the Fed as this tweet demonstrates:
Yet Peter Schiff refuses to open his eyes to Bitcoin. He believes that the solution lies in gold. He frequently calls for a return to a gold standard system. If Peter Schiff is right about the diagnosis, he is also wrong about the remedy.
On the other subsets, we can include libertarians who also have no confidence in government or central banks. They don’t choose to buy Bitcoin and still believe in the U.S. dollar.
Fans of the Austrian School of Economics are also people who do not trust the government or central banks to handle money matters. Representing this school, Friedrich Hayek has always advocated that money should not be a prerogative of governments. According to him, this prevents us to have good money available to the people.
Monetary power must return to the people. This corresponds to Bitcoin in my opinion, since Bitcoin is the money of the people supported by the people. Nevertheless, some supporters of the Austrian School of Economics are not unconditional Bitcoin fans. This may seem surprising, but it is the case. They still hope to be able to solve the problems of the fiat system.
Final Thoughts
More and more voices are calling for a Great Reset of the current system. If the diagnosis is right, here again, these voices do not understand that the Great Reset of the current system has already started since January 3, 2009. This Great Reset is embodied by Bitcoin, which aims to restore people’s trust in money.
For the people to regain confidence in the monetary and financial system, it is of absolute necessity that this system is backed by the laws of mathematics and code, and not by humans in whom it is impossible to trust. Bitcoin is the solution, and it is only a matter of time before a majority of people finally become aware of it.
Time is clearly in Bitcoin’s favor.
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