The longer that you are in the cryptocurrency market, there is one phrase that you begin to hear time after time. “Bitcoin Fixes This.” But what does it mean? Why do people say it? And what is it fixing? As a Bitcoiner these are the most important questions that you need to find the answers to. Once you have fully gone down the Bitcoin rabbit hole and learned what it is really going up against. That is the moment when it becomes impossible for you to go back to your old life before getting into Bitcoin.
Simply put, Bitcoin is attempting to fix the biggest crime of our lifetimes. The crime of governments moving to fiat currencies and inflating our savings away.
Years ago currencies used to be backed by real assets. As recently as last century currencies were still backed by gold, silver, and other wealth-preserving assets. But everything began to change after World War II. The world found itself in extreme days, and they needed excess money to help rebuild the world. This is what eventually led to the US dollar becoming the world reserve currency, which was backed by gold at the time.
But the US could not keep up with demand, and in 1971 President Nixon took the US off the gold reserve, and made it a fiat currency. Fiat means the money isn’t backed by any asset. It only has value because the government says it has value. Some would argue that the US dollar has been backed by their military, and there is some truth to that.
Since the dollar no longer needed to have a percentage of gold reserves for each dollar it created, it now was free to print as much money as it wanted. Admittedly, there were some positives that came as a result of this unprecedented monetary printing. The US and many economies around the world experienced growth, unlike anything in recent history. But it came at a cost.
All throughout this period, the value of our money continued to drop at a scary rate. Imagine beginning your work career, and you were told that you needed to save $100,000 to be able to retire. But due to the currency being inflated when you were able to finally retire. The amount needed has risen to $1,000,000 to retire. Today people are entering the workforce with the hope of saving $1 million to retire, but the truth is that they will need much, much more.
Imagine working hard your entire life, just to see your savings stolen from you by the government due to their constant printing, and irresponsible spending. This is the world we live in today. A century ago, people didn’t need to be investors to be able to retire. All they needed to do was go to their job, work hard, concentrate on family, and save as much cash as they could. Since dollars were strong, that was more than enough.
However, that is no longer possible. Instead, people have to learn how to maximize their capital as much as possible. Earning a yield, passive income, dividends, owning real estate, investing in the stock market, and even crypto. Ordinary people have been forced to become investors to have any chance of being able to retire.
Bitcoin fixes all of this.
Bitcoin has a max supply of 21 million coins, with millions of them being lost forever. No coins above this number can ever be created, and our wealth cannot be stolen by printing like governments are doing today. We also know the exact inflation rate, which is cut in half during each Bitcoin halving until it becomes almost nothing. Bitcoin is a currency that would actually reward you for saving in it. Returning us to a time when all you needed to do was work, and save your cash; but this time we’d be saving it in Bitcoin.
There is also an idea that Bitcoin will help solve other problems around the world. If Bitcoin were to become the world reserve asset, it could help prevent irresponsible spending by governments. There is a limited amount, that cannot be printed upon demand. This might also help to limit wars down the line. As you guessed, money wouldn’t be able to be created out of thin air to pay for them.
Bitcoin fixes many problems. Being able to preserve our wealth from being inflated away. Maintaining freedom and no one having control of our assets. It also could make the world a better place by limiting corrupt government spending and wars. While these all seem like great things, there could be growing pains as well. If Bitcoin does take over, the world could quickly transform into a world of people who have Bitcoin, and those who don’t. Which could cause chaos in the short, but improvements in the long term. Short pain, for the better good.
How about you? What feature of Bitcoin is the most important to you?
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