November 22, 2020
Image from Google
Here I am back for another section of the book “The Bitcoin Standard” This section covers Savings & Capitol Accumulation. So its a summary of savings of money & the accumulation of capitol. Just like the title says.
Sound money like gold & Bitcoin increases over time. Bitcoin not so much because its so volatile but I still consider it to be under the sound money definition. On the contrary unsound money like the US dollar, which is 100% controlled by central banks, who increases its supply thru interest, which increases the supply & devalues its overall value. The people that know this would rather spend the unsound money sooner rather than later because they know its going to be devalued over time. Like recently with the 6 trillion stimulus bill passed by Donald Trump in 2020 during the Coronavirus pandemic, I’ve seen prices increase in the grocery store significantly. Right after this bill passed I seen goods like toilet paper & paper towels increase as much as 100%. But this was price gouging from the retail stores because demand was so high that production just couldn’t keep up.
Savings rates from savings accounts continues to decrease significantly, incentivizing people to not want to even own a savings account. I remember when I had one a long time ago & was gaining less that 1% interest for holding $1,000. I think in the few years I had it, I made like $9.
I am not the type of person who likes to be in debt at all. Debt is the opposite of savings. The only debt I’m in is a car loan. Once that is paid off, I’m going to keep that can until it’s no longer worth fixing, unfixable, or it completely gets totaled. For many, being in debt decreases living standards. Like all those kids who went to college & had no idea what for; probably they were told by their parents that they needed to go to college to get a good job & make a substantial amount of money for living a good life. Not only that, people of this generation & future generations are expected to pay off the national debt, & higher taxes on top of their own debt. This to me makes it sound like no money the person gets to keep for themselves. Trying to live a good life in debt like this sounds nearly impossible.
This has impacted the society we live in dramatically because as today, millennials are paying off these student debts, high taxes, living expenses, it just gives them less incentive to want to have children. In the generation before my own, people knew that they would need their children in the future to take care of them because there wasn't as much assisted living as there is now. People then knew that they had to have a family & be invested in that family to live happy lives so their children would in fact like them enough to take care of them. This has changed though because with the stress on our generation financially, & millennials being less incentivized for children they are less invested in relationships with others. It seems that many of them are more into relationships with themselves than with others. Cough... The stereotypical Karen of the day. This I think is something that needs to change, & we can start with the financial aspect.
