Aug 27, 2020
My Bitcoin vision of the future (6)
Original Post (Spanish) = https://criptoblog.tutellus.com/mi-vision-bitcoin-del-futuro-6/
After 5 intense posts where we have gone from the more technical aspects (part 1, part 2, part 3) of Bitcoin, to its more monetary and liberal vision (part 4, part 5), we are reaching the end of this journey with our last post.
I retrieve the definition of my dear friend and mentor Miguel Caballero, “Bitcoin as a symbol of freedom”. Bitcoin allows anyone in the world with internet access, to be able to store value in a sovereign currency, without any central body, in which you can trust and above all, completely censorship resistant. Imagine how revolutionary it is to have your wealth in Bitcoin in places where people are forced to move and leave their homes or countries. Only by memorizing a sequence of words they could recover all their wealth in any other part of the world. This is disruption.
Bitcoin is to money what the Internet was to information.
And with this article I am not assuming that Bitcoin is going to be the currency of the future. In fact, there are still many challenges that we must face. Not counting the fact that other cryptocurrencies could surpass it (unlikely in my opinion), or it could simply end up becoming another currency competing against the Euro, Dollar and other FIAT currencies in the free market. What is clear is that if something from this article has resonated with you, and I have helped you trust the idea of Bitcoin, I find it monetarily irresponsible not to have any value stored in Bitcoin. As Anthony Pompliano would say, “get off zero %”. Not only because at the theoretical level of investment it is smart (because it is by far the most profitable asset of the decade, because the ratio between risks and benefits is very good and because it is an asset that is completely outside the global financial and political system, which makes it an uncorrelated asset, and in times of such uncertainty it is smart to have a second option in case of crisis such as 2008), also because in the near future, there will no longer be competition between digital or non-digital currencies: all of them will be digital, the Euro, the Dollar, the Franc Swiss are all going to be tokenized, and at that time there will be a struggle choosing between monetary policies and the ability of currencies to retain value in the long term. Therefore, Bitcoin is clearly superior. I am not saying that you need to have 50% of your capital in Bitcoin, nor 10%, nor 1%. I simply say that 0% is definitely the wrong number.
For a long time, I have wanted to convey MY OPINION (not the truth) on this subject, because I want to be able to share the wonderful world that Bitcoin is opening to anyone who wants to see how disruptive it is. We are in front of the adoption of something exciting. Even some of the biggest Bitcoin believers themselves probably underestimate the potential it may have in the years to come. Bill Gates has a quote that says we tend to overestimate what technology can change in 2 years, and to underestimate its potential in 10 years. With Bitcoin we could perhaps be talking about one of the most important technologies in the world. Because the type of money that predominates in a society is one of the most important aspects, and what most influences its development.
As human beings we naturally search for the most saleable item to use as a form of money. FIAT currencies are weak currencies that make us impatient, short-term focused, consumerist, and with thoughts opposed to saving. A solid currency, since it has to preserve value and even increase it, allows us to adopt longer-term values, more focused on future projects and that really add value, less consumerist and more focused on savings and not on debt.
Without going any further, today we are at historical records in terms of the level of public and private debt in the world. In fact, this same year the United States reached the incredible figure of 21 trillion dollars. Not counting the fact that with the Coronavirus situation, the Central Banks have lowered interest rates again to figures close of 0% or even negative, and with injections of up to 700,000 million dollars in the United States, what makes the need for an asset like Bitcoin more apparent. You don’t have to be an economist to detect that this economic model based on unpayable debt and with interest rates so low, where it is better to borrow than to save, has everything but common sense.
We are facing a world where manipulating the economy through “experimental” monetary policies is normal and accepted, and where using inflation as a means of escape from all problems, impoverishing all citizens and increasing the difference between rich and poor, is considered fair and convenient. Some people call Bitcoin an experiment, and I can’t deny it, but without a doubt, the current economic and monetary system isn’t further from being it as well.
Currently, the power over money is in the hands of Governments and Central Banks, and that’s precisely the greatest power they could ever have. The money should be of the people and for the people. If Bitcoin opens us the doors to such a world, there is no doubt that Bitcoin is a symbol of freedom.
And to conclude this set of posts I want to personally thank you, reader, I really hope it has enriched your knowledge and opinion about Bitcoin, and that, this time, without procrastinating, you get off 0%. There is no correct number of the capital one should have invested in Bitcoin, but there’s one that is incorrect: 0%. I bid farewell with a quote from “Friederich Hayek”, one of the most renowned Austrian economists, who in 1984 left us a message that today seems more like a prophecy on the verge to be fulfilled:
“I don’t think we’ll ever have a good coin again before we bring the issue out of the hands of the government, that is, we can’t wrest it from them with violence, the only thing we can do is introduce something in some sly and indirect way that [the government] can’t stop.”
Friederich Hayek, 1984
Thank you, and I hope to see you soon in other blogs about Bitcoin, blockchain and cryptocurrencies.
