How Bitcoin Can Obliterate Debt

How Bitcoin Can Obliterate Debt | Ecency

Hey JessHodlers

As the world tries so desperately to hold on to what we've built through debt, we are seeing money printing going through the roof and the idea of trillions being created in a month is pretty normal. In a debt-based financial system, everything can be solved with more money printing and driving ourselves deeper into the hole.

What governments and economists don't seem to notice is or instead seem to ignore to retain power is the fact that the money printing has caused this inequality we have today. They have caused the problem and then trying to "fix" it with the same tool they used to create it.

The lockdown and economic slow down has shown that debt and money printing has its limits and as we can see and will see is that you can throw as much money as you like at the problem some of them cannot be solved with stimulus.

The debt trap

Consumers, corporations and governments are loaded up with debt at record highs, and it seems as if we're going to ignore the elephant in the room. If the debt doesn't matter, can't we just cancel it all? Not, then so debt does matter.

So how are we dealing with it? Going deeper into debt, hoping future production will pay it off. Instead of more debt, we should be actively trying to get out of debt, but how? It seems impossible at this point.

Inflation and debasement is part of the system

In our world of the debt-based Ponzi scheme, the idea of debasing the currency is based on the idea that you can borrow money now, use it so create new productivity which you pay back over time with cheaper dollars as the currency reduces in value. Since you're paying back a nominal value, having the currency lose value works in your favour.

The problem is every bet you make on debt isn't exactly going to cause productivity and productive assets especially in the current consumerist based economy we have today where the money is spent on products that offer no value to society.

We can see this by the amount of debt it now takes to create the same amount of GDP and its only getting worse.

Using deflation to fight debt

I was thinking about BTC's deflationary nature, and I thought could this be a solution to the debt hole we find ourselves in today. Let's say today I have am in debt for a $100 000, my job could then instead of paying me in something that loses value, pay me in BTC. That means the company would have to go into the market and secure BTC to pay my salary.

This puts enormous pressure on BTC as you can imagine with so many salaries that need to be paid, pushing the price up as the scarcity increases as the fiat liquidity floods the market.

Once I get my salary I can, then I can decide to take a portion of that and sell it at the new fiat rate and pay back my debt. It's a bit of creative accounting and using the collectivism and deflationary properties of BTC to eat into my debt faster than I would should I have tried to pay it off only in fiat.

You could thus save in time and interest payments and use that to be more productive going forward. You'll be amazed at how productive an economy can be if more people are not stuck with a debt noose around their necks.