Bitcoin revolution: From Euro to Bitcoin

Bitcoin revolution

CRYPTO BLOG

What is the Bitcoin revolution?

The Bitcoin revolution is picking up momentum as the FIAT currencies crumble. According to investorplace: “There were 295 million crypto users globally as of Dec. 29, 2021. This is leading to a rate of adoption to over 1 billion users holding cryptocurrency by the end of 2022.” With this growth the demand for bitcoin is increasing buy the day.

Kauri shell as currency

In the 1600’s the Kauri shell was used as a means of payment (currency) in Africa. Initially the shells had a high value and they were a stable means of exchange for the Africans to trade with. This all changed however when the Dutch figured out how to acquire many of the shells. They arrived with ships full them and started buying everything they could. The influx of so many extra Kauri shells made them lose their value. This value reduction made everything more expensive when denominated in the shells. This is what we call inflation.  

However, there are also some differences. The first difference between a regular wallet and a Bitcoin wallet is that the Bitcoins aren’t actually stored inside the wallet. Bitcoins always remain in the blockchain and can never be removed from it. The wallet however holds your private key. The key gives you access to your Bitcoins in the blockchain and the right to send them to other addresses. The key itself is accessed through twelve seemingly random words called a “seed”. The Kauri shells in our current story are euros or dollars. These fiat currencies do not derive their value from underlying scarce assets but solely from the trust we put in them.

What is CPI?

We currently have a CPI of 5.2% in the Netherlands. Using the CPI the government calculates the inhalation. But the CPI represents just a basket of consumer goods and services. If we look at gasoline, we see that the price went up 26%, for housing 18% and the AEX rose by 26%. From these data you can draw the conclusion that the official CPI does not reflect the real inflation.  

When the income of citizens gets indexed using the official CPI numbers but the cost of goods and services rise faster, the citizens lose purchasing power and therefore get poorer. We now experience that everything becomes more expensive. The cause of this is the creation of ever more money by our governments. This in combination with the low official price indexing leads to a reduction in purchasing power and the impoverishment of citizens.  

Those empowered to create money have a major influence on our prosperity. Impoverishment not through raising taxes but through the creation of new money. The question is: what do they do with the newly created money. They finance wars, unobtainable climate goals, artificially pump up the stock market, pay interest on debt and acquire more debt. This creates an ever-growing pile of debt. This debt can never be paid back because there is not enough money in circulation. If the productivity doesn’t grow faster than the debt the whole scheme is very similar to a pyramid scheme and as we know, every pyramid scheme comes to an end.  

Studying history, it becomes apparent that fiat currencies have a 100% failure rate. The question is not if they will fail, but when.  

Printing money and Bitcoin

The inflation percentage shows that there is a lot of money printing going on. This could be the first signs of the end of our current fiat money system. The central planners are already working on a solution: the Central Bank Digital Currency or CBDC for short. During a conference in October 2020 the director of the bank of international settlement said that central banks will have absolute control over the rules on how to use this money. So, the current problems will get much worse. The central bankers already have a lot of power, but this new means of payment will increase it tenfold. What rules will they make for using their CBDC? Maybe people with a low social credit score can’t transact or spend their money anymore? 

Their solution for the end of our current fiat money system (the CBDC) will lead to even more power for the central bankers. If we don’t want this to happen, we will need to come up with good solutions. Luckily for us there is one. A payment system in which the money creation cannot be manipulated, there is no inflation once all 21 million units are in circulation and we have complete freedom to decide how we spend our money. Let’s switch to this new payment system before our old fiat system crashes and the CBDC will be promoted as the solution. Pay with Bitcoin!  

Bitcoin revolution is now!

The bitcoin revolution is happening and more and more countries are embracing it. Payments with apps that use the lighting network are free, fast and easy. Within two minutes the switch is made and you can start using this new incorruptible payment system. The only disadvantage of this payment system is the near future is that the price of the bitcoin can fluctuate. But historically speaking Bitcoin fluctuates 130% upwards every year on average.  

Finally, a word about other crypto currencies. With Bitcoin, the money creation is regulated with a predetermined protocol. Manipulation is impossible. This is very different for most other crypto currencies. Money creation can take place there at the developer’s leisure. Thus, these currencies are similar to our current fiat payment system with the added problems of inflation, influence and even less security. Though some of these alternative crypto currencies may have solid use cases, for the protection and transactions of wealth bitcoin is the way to go. If you want to start earning bitcoin. Mining bitcoin could be for you. Find more about our mining hosting services here.

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