Your brain breathes Bitcoin, you just don't realize it
It is in our nature to save, the institution responsible for maintaining social order are doing the opposite.
Bitcoin Block 776,672
000000000000000000025cd1c3e38d554671a6be28b29e14fffa6b52e908603f
Doesn’t it feel like your finances are constantly being controlled by the strings laid out with precision by all the institutions above you? Like, everyone has their eyes glued to the television when the next CPI is announced or the job report is given primarily in these recessionary times. One word can crash all the markets and one small policy change by the FED alters global monetary order and has ripple effects. And then there’s the user side of this financial system where he is constantly crushed by soaring inflation and depleting savings. Does our monetary network have to be this way? Do we have to think to save our hard-earned capital constantly? Does money always have to be something that should be invested to preserve its value rather than funding significant operations?
You ask anyone what inflation is and a direct answer is always “an increase in prices”. However, if you remember the economics lesson you were given in 6th grade… wait a minute! There was no finance lesson and economics was out of the picture. the ability to analyze your finances, well who cares. When we work and get money, we’ll figure it out. This type of ignorance leads to us being controlled like puppets. So who defined inflation? You can blame that on big banks, institutions, and the government. Let’s get some logical dose now. Inflation is the “increase in the money supply”. Now the increase in money supply results in an increase in prices which is based on the principle that if money isn’t scarce then everything that money can buy becomes scarce—simple supply and demand. So when the FED raises interest rates, it increases the amount of savings by giving savers a more lucrative reason. A higher amount of savings this way lowers the demand for goods and thus you have an artificial solution to the problem, low inflation, and prices down.
Now considering the logical case, why do we have to decrease the demand? Why not reduce the supply of money by burning all the extra dollar bills out there? Or stop printing them for mass spending. But when we have free money, who can resist spending? Ultimately, it all comes down to a single ideology: the power of saving. I don’t mean here to stack all your money in your safe, well that would erode if you kept it as dollars, but spend prudently and devote most of it to adequate savings.
So, a savings mentality would be the ultimatum. But there is a significant flaw in the savings medium when someone else controls all of its suppliers and is biased when determining policies. The FED has a mandate of three things: inflation cap, unemployment control, and the less discussed political agenda. It has to keep the party in power happy and describe its rosy side only.
When it comes to employment, logic dictates that each individual should be able to work on his interest and produce work where his skills are valued. The recent jobs report in the US describes a healthy picture but what it fails to do is describe the actual view of the people. We interact in a financial system where a lower employment rate is considered good for the market as the FED turns on the money printer and people start to spend on useless stuff which boosts the economy. The number of jobs that Biden boasts about is just the jobs that were regained by people who were on temporary leave because of COVID. Most people are also working two jobs to make up their expenses in these conditions where it has become difficult. The people aren’t happy, that is clear. But then again, we have illusions constructed to mislead. If the metric becomes the target, it eventually becomes useless.
Bitcoin is what corresponds to your logical mind. It is the antidote to people’s foolish thinking and unnecessary spending. When the disciplinary action of bitcoin comes into effect, people have confidence in the medium of exchange and tend to work for it earnestly knowing that some rich organization wouldn’t be there to mislead its supply or some inflationary policy to throw away their hard-earned money. 2% inflation means that in 10 years, half of your money will be worthless. Isn’t that enough to frighten you and make you go on a spending frenzy? When an excellent saving vehicle like Bitcoin is present then people are cautious about where to spend and productivity increases.
How would taxes be possible on such hard money?
Who needs taxes? The government. It is the central body for making people happy. It has two duties which are often blurred in the modern age and its hand is often over-entended. These two include: giving opportunities to people to prosper based on their abilities and freedom to express themselves. That is it, no more no less. But the governments we know today are responsible for getting into every business. This is because they are hungry for authority. From the money we use to the infrastructure we build, the government just has to step in to make matters worse. The public sector is known for helping each individual but when it comes to the capitalist side, profits reign supreme and better individuals get bounties. Doesn’t that depict a much stronger society with more resilience?
The presence of a hard monetary base like Bitcoin would allow for prudent spending. people would only pay taxes to the central controlling body if they think they are being provided with the necessary facilities. True merit and quality-check would be seen. The government can’t change the code behind bitcoin so it can’t loosen the monetary policies to its liking. this brings in better-functioning bureaucrats and a more healthy economy.
Bitcoin saves the environment, really?
When you have an economy primarily based on savers, the amount of expenditure falls and more resources are available. In addition, with confidence in the store of value, you can spend on things that matter and be equitable for the whole society. Resources are spent on new ideas and innovations that better serve humanity. Anything disastrous is condemned automatically. In addition, when a monetary system like Bitcoin can hold purchasing power and appreciate each year, the money and time wasted on the financial managers trying to make a juicy 7-8% yearly goes to things that matter. All of the get-rich-quick schemes that serve to misallocate precious resources are devoid of capital and find no investment. Financial advisors and jobs related to financial planning are not needed anymore. The money spent on safeguarding the large institutions handling all the money and because of which confidence exists in it is dismantled and the elegantly made ledger of the Bitcoin blockchain remains.
Bitcoin uses a blip of the total energy consumed and it surely marks an effective use of the Earth’s resources, a clear exchange for them. Hence, bitcoin creates a new generation full of innovative, civilized, and prudent people who can discern themselves and make effective progress. Your brain, as old as it is is engineered to have a low-time preference to think for the next generation and bitcoin fits into the equation perfectly. After all, it is the product of an evolutionary thought process.
Hope you were enlightened by the thought.
Till next time.
Azeem, signing off.