Bitcoin, on the other hand, is anti-inflationary, and has a set amount of bitcoins in circulation (25 new coins are added into circulation every 10 minutes), and a capped maximum amount (21 million in total). This forces the Bitcoin value to increase based on standard supply and demand economic ideology, or “sound money” principles. As more people enter the Bitcoin ecosystem, Bitcoin value per unit increases over time, a very foreign concept to anyone brought up to use a fiat (Paper) currency as they NEVER rise in value.
Would you like your money to grow in value over time? This time last year, one Bitcoin was worth $125. Today, it is worth almost 4X that much. And this has been a relatively slow year for Bitcoin, as far as Bitcoin appreciation is concerned.
Not only would the process be arduous, and so would your interrogation by multiple layers of bank personnel, you’ll probably be tailed, and mugged. Never mind trying to take $1 million on a plane, or through any TSA Checkpoint/Customs Area. You will make plenty of enemies along your journey. It’s just a pretty bad idea, overall.
In contrast, $150,000,000 in Bitcoin was moved last year, during Bitcoin’s “China Bubble”, from one Bitcoin wallet to another, in real time seconds, for fractions of a percent of a Bitcoin. This is not possible in dollars without a major identity shakedown from multiple fronts. No pseudonymous protections for you.
Let’s say you wanted to be smart and just wire the money. Go down to your bank, and see a teller or banker, which has it’s own cost in time and travel fees. Fill out the form, and pay a bank fee, which will be a flat fee of $15-$30, for a relatively small amount, up to a percentage of the amount, if you are moving serious money around. Assuming your bank didn’t go JP Morgan Chase on you, and tell you you can’t move your money because they said so, you move the money, which also comes standard with the bank knowing who you are, what you’re doing, and how much you’re doing it with. Privacy is a cute concept, but it’s not for the real world.
With Bitcoin, you can send any amount to someone’s QR code, pay a “centibitcoin” (0.001 BTC), or something similar, and have the transaction reconciled within 10 minutes, usually less.
Forget using something like Western Union, where fees can go to 15-20% of the amount transferred! That’s why the remittances market is so fertile for Bitcoin. The Third World is waiting, pleading, to reach out and grab a better option than Western Union transfers. Anything is better than that!
How many times have you lost $20 here and $20 there? Or lost your wallet, in you lifetime? Five times? Ten times? How many times have you lost your computer? Or digital wallet? Stupid people can do a lot of things, but let’s agree it is much harder to do, and will happen less often over time. Some things are a lot less likely than others.
Losing paper money is relatively easy to do, forget actual theft of it. And identity theft is now somewhat commonplace. Plus counterfeit bills.
Bitcoins are digital in nature, so they can be backed up and saved to other servers, computers, protected by multi-sig, passcodes, paper wallets, offline vaults, cold storage, brain wallets, etc. The security options are only limited to your imagination.
You may have been brought up on the concept of “The Almighty Dollar”, but this ain’t your Daddy’s Dollar. Today’s U.S. Dollar has liver spots, a severe limp, and a leaky bladder.
Russia, China, Brazil, India, and South Africa have created a world bank called the BRICS Development Bank for the sole purpose of hating the U.S. and the Dollar they rode in on. These countries represent 40% of the world population and 40% of the global currency reserves, so it’s a HUGE deal when they all form a large hate group against the Ole Buck.
Given the fact that interest rates are already at near zero, dozens of countries have been performing bilateral trade agreements to avoid the dollar for the past few years. “QE3” is just waiting for another sequel, and the US is already approaching $18,000,000,000,000 in national debt, I have the dollar pegged for full collapse in 3-4 years.
And the U.S. Government seems to know something you don’t know since they can’t wait to sell their multi-million dollar U.S. Military MRAPs to small town police forces nationwide for pennies on the dollar. It’s not because Podunk; USA needs an armored vehicle that can stop an IED for their annual parade.
When, not if, the U.S. Dollar collapses under its weight of debt, over-production, and disinterest abroad, the stuff is going to hit the fan at a local level. The 100 million-plus Americans totally dependent on the government assistance for food and income will not react well to this monetary collapse. People who are common working stiffs won’t exactly be in a great mood either, with mass lay-offs afoot, with the national fiat currency now unable to support most work forces. Police and The National Guard all over America will need plenty of armor, weapons, and intimidating machines to use against their citizens under these circumstances.
The business of controlling you, your money, and your freedoms. Don’t just take my word for it, and don’t say you haven’t been warned. Ask any financial expert worth their salt, from Robert Kiyosaki, to Jeff Berwick, to Peter Schiff, what the dollar’s future looks like going forward. They will tell you the dollar’s darkest days are on the immediate horizon.
That’s the bad news. The good news is the result of this economic certainty is interest/value/prices for Bitcoin and other digital currencies will skyrocket in response. Those that have invested wisely in “The Future of Money” will prosper. Those who hold onto what I call “The Ghost of Money’s Past,” not so much.
Just like the typewriter, the buggy whip, and the rotary phone, every technology has a lifespan. And fiat currency is a technology, just like the “Tally sticks” of yore, used in Europe to account for interpersonal monetary transactions for centuries. We have been trained, conditioned, and even coerced to believe that Fiat currency is invincible, if not immortal. But the world of fiat currency will show it’s inherent mortality within the U.S. Dollar as well. As if the economic collapses of Cyprus, Greece, Zimbabwe, and Argentina haven’t taught you that already, the U.S. Dollar is on currency’s Death Row, whether you like it or not. It’s not a guess or a matter of opinion. It is, in fact, a mathematic and economic certainty. It’s not a matter of if this will happen, but when it must.
Perhaps Earnest Hemingway said it best in his book of the same name. “And, therefore, never send to know for whom the bell tolls. It tolls for thee.”
Images from id.wikipedia.org, commons.wikimedia.org, en.wikimedia.org and Shutterstock.
Last modified: September 19, 2014 17:54 UTC