The Hope of Bitcoin

The world is a screwed up place and things for many do not seem to be getting better. The U.S. Federal government is dysfunctional beyond repair, with 85% of Americans disapprove of Congress, and the total integrity of the United States being called into questing from the President’s repeated lies and support for the NSA spying. Food Stamp usage is at an all-time high with nearly 48 million people on food stamps, which even that the federal government is slashing that program back, Mean while, it is becoming more and more clear that the Federal Reserve may not be able to service their $4 Trillion dollar deficit, and may also need a tax payer bail out. All in all, the United States is has monumental problems in front of it, and there is no one to lead us out of this mess. We are Screwed.

The Global Stage

The Global stage looks even more bleak. Europe is clearly entering into another major depression, with deflationary pressure forcing down the value of the Euro. Considering that some countries already have +20% unemployment, Europe is entering into a more major and sever economic crisis than the one it is in today. China is bloated with foreign currency loans, which could easily spin out of control and drag the west down with it. The Indian economy is the weakest it has been in 10 years, and does not look like it shall be recovering soon. Argentina is also looking at getting back on the currency crisis merry-go-round, with their foreign currency reserves dwindling and confidence plummeting. All in all, the global economy looks like it is heading for another Great Depression.

Thank God for Bitcoin

Despite all of these horrors going on in the world, I’ve seen my savings increase by more than 200% in the last year–and it looks poised to go up another 200% over the next year. Bitcoin as a storage of wealth I believe to be a relatively safe investment because of its liquidity–I can cash out all of my savings in less than an hour–though I never world. Bitcoin is just too good of a savings instrument in a world where governments can legally allow for banks to steal from you. It is clear that the majority of the governments in the world are nepotistic, corrupt, oligarchic alliances among corporations, bankers, and crooked politicians, who have no interest in you, your friends, family, community, or economic prosperity.

That is why bitcoin is so powerful–it takes back the power of having independent money that cannot be controlled or manipulated. This is money that has value because of its utility of being able to send money anywhere in the world in under one hour, but also from its built-in scarcity. You have the assurance of knowing that there will only ever be 21 million bitcoins created, and you can also know what the monetary supply will be at any point in time. This means that bitcoins are pretty much impossible to counterfeit.

All of the powerful features of bitcoin that got it to the success that we are seeing today is part of what makes it such a powerful savings vehicle. For the first time in one hundred years, people have a commodity money that is not controlled by the state, or their corrupt allies. There is a huge and powerful opportunity for those of us that are involved in the globalized society that is the internet, to create our own economic prosperity together. It is clear that we are doing that with the epic rise in the price of each bitcoin, along with the multitude of products, services, and number of business that are starting to accept bitcoins.

What indicates to me that this is not a bubble is that there is very, very real cost savings that bitcoin is offering. So much so that bitcoin has an almost-zero transaction cost, and when compared to fiat currencies, it has a negative transaction cost! It is obvious for anyone who looks at the macroeconomic statistics of what the cost of governance is compared to bitcoin, which has no cost of governance. Thus we find ourselves using a currency that is simply more efficient in all ways over fiat currency.

Final thoughts

Everyone, even those heavily involved in bitcoin generally say, “Only invest that which you can afford to lose.” I agree to an extent. Where I disagree is the idea that your 401K, savings account, or cash in hand is any safer. It’s not, and frankly over the next 10 years, I would call those investments dangerous. Simply look at what has happened over the last 5 years, and look at the direction we are heading for the next 5 years. Things are NOT looking up, and investing with the vast majority of the world means that you will stuck in their luxury liner as it is going down. The global economy is slowing down faster than it has any time in modern history. The days of 4% unemployment will never return–we have reached the end of growth, and when the house of cards falls, it will be spectacular. For your own safety, I advise everyone to invest just $100 and see what it does for you over the next 6 months. Just watch it and see what you think at the end of the 6 months, I guarantee you will be happy with yourself.