Indeed, this is just the start.
Today I want to talk about a common reason to buy Bitcoin. The 21 million coin limit. Supporters of Bitcoin say this limit is one of the main reasons that Bitcoin is going “to the moon”. Certainly the hard limit has contributed to FOMO, or the fear of missing out.
While the numbers of Bitcoin are still increasing and will be for at least 10 more years, the amount of fresh Bitcoins will decrease as the years go on until 21 million have been mined. This limit is the opposite of government money, which seems to only be printed faster and faster as the years go on. For sure in countries such as Venezuela and Zimbabwe, where you need stacks upon stacks of cash to buy something simple, like a banana.
You can make a case for Bitcoin to be deflationary monetary policy, while government money is inflationary.
But I have always heard that deflation is bad and a small amount of inflation is good. The media told me so.
I have never believed this, but it is what the masses were told to believe. So it was life. To combat this, I purchased some precious metals once in awhile – gold, silver. I liked to hold it in my hand, it felt heavy and real. But precious metals are neither deflationary nor inflationary, they are basically neutral.
But now with Bitcoin( and the rest of the useful cryptocurrencies) we can see what a deflationary monetary policy does.
Deflation is nor scary, as the media told the masses. Deflation is how we can all be free to live our lives. Instead of chasing an ever decreasing in value piece of government money.
If you had one bitcoin and one dollar in 2010 which one would free you to do what you wanted most out of life right now? In one hand you have $17,000+ and in the other you would have maybe 88 cents?
Under the rules the government has created you are like someone running just to stay in the same spot. You need to keep turning that hamster wheel so you can get a piece of cheese, a raise. Well, what does that raise get you? It allows you to just keep up with inflation, mostly.
All those hours busting your ass to please your workplace boss, and because of the ever decreasing in value dollar, you are just about breaking even – if you are lucky. Large paychecks, but the same damn purchasing power. More taxes, but less to show for it.
In fact, research shows that real wages have barely budged in the last 40 or so years.
Of course, the government loves inflation. It makes their debts lighter (we all know they are horrible with money) and they get to spend it first so as to get the most purchasing power before the inflation hits the populace.
The government says who would buy a car if it was going to cost less next year? The whole economy would grind to a halt! That's what they argue. But inflation pushes consumerism and debt.
So here is how I see it.
I know which sounds nicer to me.
So the government gets to control the money supply through their monopoly of force, and Bitcoin is free and open to all with a hard limit. On one side is centralized control and the other is decentralized independence.
Freedom always wins folks. Bitcoin has shown us that.
The whole “Inflation is good” is just another lie spread to keep the masses in their place.
