We have all heard of Bitcoin by now. The technology has been gradually gaining adaption since 2009 when Bitcoin first published their white paper. Over the past 11 years, Bitcoin has been called a scam, a tool for seedy dark web transactions, or interesting tech but with no intrinsic value. Yet, Bitcoin continues to push forward, as more and more people around the world recognize its important characteristics. In this article we will explore the monumental shifts occurring in the world which are bringing on the internet of value, digital currencies and a cashless society. And more importantly, how you can profit from the biggest wealth transfer in history.
What you will learn:
The difference between money vs currency
A look into the current economic outlook — unsustainable debt and the subsequent loss of purchasing power over time
Bitcoin’s Value Proposition — from the view point of Fidelity, Macro Investor Paul Tudor Jones, CEO of Real Vision -Raul Pal, and the CEO of MicroStrategy (who turned his entire cash reserves, $450million, into Bitcoin)
Pivotal Regulatory Shifts — banks can now custody crypto, a crypto exchange Kraken is now a federally regulated bank. Congress is working on crypto guidelines and discussing the digital dollar.
Central Bank Digital Currencies — How many countries around the world are exploring or implementing CBDCs. China has already gone live with their digital yuan in Shenzhen. What does this mean for you?
IMF/World Economic Forum “Great Reset” — The major banking players around the world are intent on creating new digital financial system catalyzed by the pandemic. This is the 4th Industrial Revaluation, AI, Blockchain, Central Bank Digital Currency.
All of these will lead more people towards owning Bitcoin, in a world where Central Banks print away your savings, where they plan on issuing digital dollars which track, trace and tax whatever you do; people will want an alternative. Bitcoin is the alternative financial asset.
What Makes Money, Money?
So what exactly makes money, money? After all, if a beaver skin could be considered a currency, isn’t it really a form of money?
Not quite. Money differs from currency in a few subtle, but important ways.
Money is a little more abstract than currency. While currency is a tool used for trade, money is something which contains intrinsic value and does not need value to be assigned to it by any authority.
More often, the expression “hard money” is used to evoke the idea of an item such as gold or silver, that holds intrinsic value because it is difficult to acquire; whereas currency is often a paper or other sort of promissory item that is used to represent value and is comparatively easy to produce.
For money to be considered real, it must meet a sort of checklist of attributes:
- Money must be a medium of exchange. In other words, it must be able to be used to trade for goods or services instead of exchanging another good or service, as in the barter system.
- Money must be a unit of account, being interchangeable with goods or services at a set price.
- Money must be portable. It has to be able to be transported from one user to another to complete a transaction.
- Money must be durable so that it can be used over a relatively long period of time without breaking down and becoming worthless.
- Money must be divisible in order to make purchases of various prices.
- Money must be fungible, meaning each unit is the same as the next. A particular dollar has the same value as another dollar.
A Store of Value
Importantly, real money is distinct from currency as it is also a store of value over a long period of time. Currency does not have intrinsic value, but is a tool that can be used to transact value. Because governments can print currencies continuously, the real value shifts to the governing powers while our “currency” is devalued over time.
Bitcoin, Ultimate Real Money
Time and time again, we have seen throughout the world, a return to real money. Real money must be….
- A medium of exchange, used to trade for goods or services.
- A unit of account that is interchangeable and able to establish a set price for goods or services.
- Portable. More portable than any other form of currency, Bitcoin can even be stored in your mind via a 12 or 24-word mnemonic phrase.
- Durable. Being an immutable blockchain secured by massive hashrates, Bitcoin can not be destroyed without an enormous expenditure of energy and money.
- Divisible. Bitcoin can be divided to the 100 millionth, representing a single satoshi in value. It could be further modified by adjusting the protocol in the future, if necessary.
- Fungible, where each unit is the same as the next.
And, like gold and silver, Bitcoin is scarce, with only 21 million BTC that will ever exist, making it a store of value as hard money.
Bitcoin’s finite supply of 21 million is inherently deflationary over time vs the US dollar which is inflationary. We can know with mathematical certainty, all aspects of the bitcoin supply, and we can plan accordingly by knowing the exact inflation schedule. These qualities make bitcoin the hardest deflationary money with the highest wealth preserving capacity.
As of July 2020, there are roughly 3 million Bitcoin which have yet to be mined.
There are at least 4 million Bitcoin lost forever due to negligence (throwing away old computers, losing private keys/passwords)
1 million Bitcoin is locked away in a wallet that has never been touched by the pseudo anonymous creator.
So, that leaves 16 million (13 million in current circulation + 3 million yet to be mined). Globally, there are 46.8 million millionaires, which means there is not enough Bitcoin for every millionaire to have even half a Bitcoin. As more individuals seek to preserve their wealth from the inevitable monetary inflation, demand will increase and price will appreciate to match demand.
Fun fact: There are only 0.0027BTC for the current 7 billion population.
This chart is a yearly chart showing the whole year of price movement in one candle. You can see more details on the technical charts here.
Current Economic Outlook
The governmental response to the pandemic has lead to serious economic ramifications. As many as 285 stimulus measures have been announced in a matter of eight months including zero or near zero interest rates, increasing money supply through unprecedented levels of quantitative easing and a range of lending facilities.
The Federal Reserve’s balance sheet is exploding, growing by about $3 trillion since mid-March and now totaling more than $7 trillion. It could conceivably exceed $10 trillion by year end which would be 50% of GDP. This would be more than double the peak that the Fed’s balance sheet reached after the 2008–09 Great Financial Crisis.
The United States printed more money in June than in the first two centuries after its founding…
Jerome Powell, head of the FED, announced a policy shift to allow for inflation to overshoot the previous 2% annual target. This means the FED is now prepared to accept a level of inflation that in the past it would not have tolerated with interest rates near record lows (0%-.25%)
The Congressional Budget Office “federal debt held by the public surpasses its historical high of 106 percent of GDP in 2023 and continues to climb in most years thereafter. In 2050, debt as a percentage of GDP is nearly 2.5 times what it was at the end of last year.
“Deficits grow from an average of 4.8 percent of GDP from 2010 to 2019 to an average of 10.9 percent from 2041 to 2050, driving up debt. Net spending for interest rises rapidly and accounts for much of the growth in total deficits in the last two decades of the projection period.”
The biggest source of government spending: interest on Federal debt, which surpasses mandatory spending in total terms around 2030
Just paying the interest on the debt will suck productivity out of the economy and force even more money printing.
Bitcoin is not a safe haven from the Coronavirus, it’s a safe haven against banks and governments printing your savings away to cover up the flaws of the current financial system.
Born out of the 2008 financial crisis, Bitcoin can offer an alternative to the current inflationary money system.
Fidelity — Bitcoin Investment Thesis
“Investors believe that the next wave of awareness and adoption could be driven by external factors such as unprecedented levels of intervention by central banks and governments, record low interest rates, increasing fiat money supply, deglobalization and the potential for ensuing inflation, all of which have been accelerated by the pandemic and economic shutdown. Longer-term tailwinds that could fuel adoption include the use of bitcoin to preserve wealth amidst “slow and steady” inflation and the looming generational wealth transfer to millennials, who view bitcoin more favorably than other demographics.”
Fidelity: 36% Of Institutional Investors Own Bitcoin and Other Cryptocurrencies
According to the report from Bloomberg citing the survey from Fidelity, 36% of all 774 participants said that they own digital assets or derivatives.
When broken down into smaller categories, the poll indicated that 27% of institutions based in the US had purchased cryptocurrencies. Those included pension funds, investment advisers, digital and traditional hedge funds, and family offices.
Paul Tudor Jones
Famous billionaire macro trader — Paul Tudor Jones (net worth $5 billion) announced a 2% allocation to BTC as a hedge against inflation. Jones has recognized that around 6.6% of the global GDP has been created out of thin air since the beginning of February.
“I am not a hard-money nor a crypto nut — But the most compelling argument for owning Bitcoin is the coming digitization of currency everywhere, accelerated by COVID-19.”
“If I am forced to forecast, my bet is it will be Bitcoin.”
Raoul Pal
Raoul Pal, former Goldman Sachs manager and current CEO of Real Vision.
“My guess is that Bitcoin will trade at rates higher than bonds, not because of credit risk or inflation — bitcoin suffers from neither — but because the value of that collateral is worth more due to its ‘pristineness,’”
“Bitcoin is pristine collateral. The greatest form of collateral. Its blockchain ownership structure reduces the huge black swan risk of who owns what. It is all recorded and more importantly, provable.
“In my opinion, Bitcoin is the best reserve asset and best collateral asset ever seen.”
Raoul’s portfolio was broken up into 25% bitcoin, 25% gold, 25% cash, and 25% trading opportunities. He recently increased his bet on BTC and it is currently 50% of his portfolio!
“I think bitcoin in 2022 or the beginning of 2023 will hit $250,000 and that’s a big move from where it is here,” Draper said, standing by a prediction he made previously. “I think the reason there is that bitcoin will be the currency of choice.”
Grayscale Continues to Grow
The biggest crypto hedge fund with over $5.9 billion assets under management as of October, 2020.
Institutional interest has increased by $4 billion since May 2019.
MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
MicroStrategy is the largest independent publicly-traded business intelligence company, with the leading enterprise analytics platform. The CEO, Michael Saylor, has decided to allocated $425 million of their cash reserves into Bitcoin.
“MicroStrategy spent months deliberating to determine our capital allocation strategy. Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ― risks that should be addressed proactively. Those macro factors include, among other things, the economic and public health crisis precipitated by COVID-19, unprecedented government financial stimulus measures including quantitative easing adopted around the world, and global political and economic uncertainty. We believe that, together, these and other factors may well have a significant depreciating effect on the long-term real value of fiat currencies and many other conventional asset types, including many of the assets traditionally held as part of corporate treasury operations.”
“We just had the awful realization that we were sitting on top of a $500 million ice cube that’s melting”
-Michael Saylor
This was a deliberate corporate strategy to adopt a bitcoin standard.
They are the first but not the last company to do so…
Theglobalecomomy.com puts the global average of publicly listed companies in stock exchanges across 70 developed countries at 597, meaning there are a total of 41,790 companies included in their numbers for analysis.
Now, should only 0.8% of those companies try and match Mircostrategy’s move, there would not be enough bitcoin to do it. Bitcoin is scarce, as in really scarce.
Square Buys $50 Million Worth Of Bitcoin
CEO Jack Dorsey, bought more than 4,700 BTC, enough to account for roughly 1% of the organization’s assets as of the end of this year’s second quarter.
JPMorgan Calls Square’s $50M Bitcoin Investment ‘Strong Vote of Confidence’ for the Cryptocurrency
While Square’s $50 million investment pales next to MicroStrategy’s recent $425 million loading up of the cryptocurrency, JPMorgan’s global market strategists wrote that Square is likely to make more purchases.
Stone Ridge Calls Its $115M in Bitcoin ‘Primary Treasury Reserve Asset’
Stone Ridge Holdings Group is stashing 10,000 BTC with the institutional asset manager’s crypto subsidiary NYDIG, which on 10/13/20 announced it raised an additional $50 million in funding.
As Stone Ridge cofounder Robert Gutmann put it, that thesis is a belief in, “the long-term growth of an open-source monetary system — in assets like bitcoin.”
“We’ve seen a pretty dramatic acceleration in the count of institutional investors who want to participate in the market since March of this year,” he says. “The macro backdrop against the public health backdrop has caused a lot of people to rethink their portfolio composition.”
The dominoes are starting to fall, first one company, then another….
These 13 publicly traded companies currently own $6.8 billion in BTC.
Major Regulatory Shifts
For Shelton, the U.S. needs a “reset” away from the “distortions” of the Fed over the past half-century.
According to Shelton, a “futuristic” vision of the gold standard may involve a digital currency component. She said that central banks are “not serving the private sector in providing that reliable unit of account […] under the gold standard, you did have that stability, and I think that’s what’s missing […] it could be used in a very cryptocurrency way.”
Blockchain Receives 32 New Bills from Congress
The 2020 meeting of the 116th Congress is a historical moment for digital assets and blockchain legislation. They are definitely aware of the effects cryptocurrencies have had on the economy over the past decade.
Digital Commodity Exchange Act of 2020: US Lawmakers Propose Single National Crypto Framework
Lawmakers in the U.S. have introduced the Digital Commodity Exchange Act of 2020 to create a single, national regulatory framework for cryptocurrency trading platforms, including those that trade Bitcoin, Ether, their forks, and other cryptocurrencies. On the same day, the Securities Clarity Act was also introduced.
Federally Regulated Banks can now Custody Crypto
Brain Brooks, former Chief Legal Officer for the dominant US crypto exchange Coinbase, took over as Comptroller of the US Currency.
The Forbes article goes on to explain, Brooks has explicitly permitted banks to both custody crypto assets for customers and provide banking services for crypto-oriented businesses.
This is a big deal, for three reasons:
Reason 1: A Regulatory Stamp Of Approval
Reason 2: It Will Bring New Investors Into Crypto
Reason 3: It Will Allow Big Banks To Service Crypto Companies, Reducing Fraud
By normalizing crypto banking, this letter will foster a new level of maturity for the fast-growing industry building up around the crypto-asset space, reducing risks, speeding growth and pushing the industry forward.
The Office of the Comptroller of the Currency (OCC) and the Securities and Exchange Commission (SEC) published stablecoin guidance on 9/21, providing the first detailed national guidance on how cryptocurrencies backed by fiat currencies should be treated under law. Prior to this notice, there was no federal clarity around stablecoins. Brooks, who formally worked with Coinbase, which had it’s own stablecoin USDC, is now paving the way for banks to hold stablecoins.
The total value of stablecoins has now surpassed $20 billion, reflecting the growing demand of investors looking to hedge their risks in both crypto and traditional markets amid the coronavirus pandemic.
“The best path forward is one that harnesses our country’s remarkable capacity for innovation and also reflects government’s historical practice of setting broad guide rails for private innovation within the financial system. That means letting innovators invent, and letting government regulate. In short: the private sector should build the technology, and the public sector should set monetary policy.”
-Brian Brooks
Related side note, Brooks worked with Treasury Secretary Steve Mnuchin at OneWest Bank. They are connected and are facilitating the evolution towards digitalization in the US.
Banking for All Act
This bill offers a definition for digital dollars as well as for a digital dollar wallet, and provides the provision for a pass-through digital dollar wallet with the mandate for all member banks to open and maintain digital dollar wallets for all persons, including those eligible to receive the stimulus no later than Jan 2021.
Simon Potter, who led the Federal Reserve Bank of New York’s markets group (i.e., he was the head of the Fed’s Plunge Protection Team for years), proposes creating a monetary tool that they call recession insurance bonds, which draw on some of the advances in digital payments, which will be wired instantly to Americans.
As Potter added, “it took Congress too long to get money to people, and it’s too clunky. We need a separate infrastructure. The Fed could buy the bonds quickly without going to the private market. On March 15 they could have said interest rates are now at zero, we’re activating X amount of the bonds, and we’ll be tracking the unemployment rate — if it increases above this level, we’ll buy more. The bonds will be on the asset side of the Fed’s balance sheet; the digital dollars in people’s accounts will be on the liability side.”
To summarize, the wheels are already turning on a plan that sees the Fed depositing “digital dollars” to “each American”, a stunning development that essentially sees the Fed bypass Congress, endowing the Central Bank with targeted “fiscal stimulus” capabilities, and which could lead to a dramatic reflationary spike with money actually circulating into the hands of everyday people. The one thing that was missing from a decade of monetary tinkering by the Fed, the spark of inflation, will finally arrive as the Fed gives money to those most likely to spend it: the lower and middle classes of society.
And that, in a nutshell, is how the Fed will stimulate the economy in the next crisis in hopes of circumventing the reserve creation process: it will use digital money apps to transfer money directly to US consumers.
“The Digital Dollar Project (DPP) is a partnership of the Digital Dollar Foundation, a not-for-profit, and Accenture. The DPP team consists of the former chairman of the CFTC, Chris Giancarlo, his brother, entrepreneur Charles Giancarlo, David Treat, who is a senior managing director at Accenture, and Daniel Gorfine, former head of the CFTC Innovation Lab. They are also backed by an advisory board that reads like a who’s who of the innovation experts from many private and public institutions.
The DPP calls for a public-private collaboration, including the preservation of the current two tier system for the dissemination of a retail digital dollar.”
“Many major economies around the world are racing to digitize their currency because it could simplify the distribution of government cash aid as well as help central banks become more effective in carrying out monetary policies. Having a national digital currency is something that some observers believe the U.S. has been falling behind on, compared to rivals like China, which has already begun pilot testing an e-RMB in four cities.
Recently, Brian Brooks — the Acting Comptroller of the Currency for the U.S. Treasury — gave Accenture’s outsized role in the Digital Dollar Project an implicit thumbs up when he said in an interview that he believed the more tech-savvy private sector would be better suited to build a digital currency, while the government’s role should be to regulate it.”
Kraken Becomes the First Cryptocurrency Exchange in the U.S. to Become a Bank
Kraken’s vision is to become the world’s trusted bridge between the crypto economy of the future and today’s existing financial ecosystem.
The Wyoming SPDI bank charter permits Kraken to build this bridge in-house. With the charter in place, we can operate a fully independent bank that will reduce our reliance on third-party financial institutions and even help launch a new wave of innovative products for our users.
Kraken Financial, as a bank, is required by Wyoming law to maintain 100% reserves of its deposits of fiat currency at all times. If every client were to demand withdrawals of their fiat at the same moment, Kraken Financial would be able to fulfill each withdrawal immediately without regard to how many loans we had outstanding.
This opens the doors for people to be paid in crypto and seamlessly change from crypto to dollars and use crypto debit cards. This also reduces the friction between banks and crypto related companies.
Avanti Becomes Second Crypto Bank in US
Avanti has received a bank charter from the Wyoming State Banking Board, one month after exchange Kraken became the first crypto company to receive a bank charter in Wyoming — or the US for that matter.
Avanti Financial Group, founded by former Morgan Stanley managing director Caitlin Long, applied for a bank charter to become a special-purpose depository institution this summer.
Federal Reserve and 6 Other Central Banks Set Out Core Digital Currency Principles
A group of seven central banks along with the “central bank for central banks” have released a report setting out initial principles for how national digital currencies can help implement monetary policies.
- Firstly, a CBDC should work alongside cash and other current payment types “in a flexible and innovative payment system.”
- Secondly, it should support “wider policy objectives” and “do no harm” to monetary and financial stability.
- Thirdly, it should “promote” innovation and efficiency.
In a January 2020 published study by the Bank for International Settlements (BIS) shows that 70% of all global central banks are currently analyzing the issuance of their own digital central bank currency. 10% of the participating central banks said that they are likely to introduce such digital currency in the short-run (up to three years) and 20% in the medium-term (up to six years).
*China Currently Testing CBDC in 4 Cities
Central bank digital currencies (CBDC) are becoming reality. On 16 April 2020, the Chinese central bank has started the test phase of its CBDC, called Digital Currency / Electronic Payment (DC/EP). It is currently tested in four Chinese cities: Shenzhen, Suzhou, Chengdu, and Xiong’an. China might be the first industrial economy worldwide to introduce a CBDC.
*Shenzhen to Hand out 10 million Digital Yuan in Currency Giveaway
China is promoting its central bank digital currency with a public $1.5 million giveaway.
*Digital Yuan Rolls Out for Use in Shenzhen Gas Stations
Citizens can make fuel and retail payments using a state-backed mobile application that operates without the use of the internet and does not charge transaction fees.
*Cambodia Officially Launches Digital Currency Backed by Central Bank
Cambodia officially launched on Oct 28th, a central bank-backed digital currency that draws on blockchain technology designed by a Japanese company.
The e-money “Bakong”, an initiative of the National Bank of Cambodia, joins a very small group of digital currencies backed by central banks that have gone fully operational.
Eurosystem will Decide on Digital Euro Project by mid-2021
European Central Bank (ECB) published its paper on the digital euro, but was keen to emphasize that it has not yet decided to issue a central bank digital currency (CBDC). By mid-2021, the Euro-system will decide whether to pursue a formal CBDC project.
A deeper dive into the Digital Euro, Distributed Ledger Technology and CBDC
E-Krona or Bust, Sweden’s top central banker Stefan Ingves has gone all-in on sovereign digital currency.
Ingves said, “the e-krona is necessary for future-proofing Riksbank’s operations. Sweden’s populace is abandoning cash for digital payments at a world-leading rate.”
Bank of Spain to Weigh Digital Currency Design Proposals, ‘Implications’ Through 2021
Spain’s central bank is fast-tracking research on digital currency ‘s design and the economic implications of central bank digital currency (CBDC) introduction as per a four-year strategic plan released Friday.
Bank of Japan to Begin Digital Currency Proof-of-Concept in 2021
According to the BoJ report, it will begin the first of several testing phases for its own CBDC sometime in 2021. This will include the development of a test environment for the currency and experiments on its basement functions as a payment instrument.
Project Ubin: Central Bank Digital Money using Distributed Ledger Technology
The Monetary Authority of Singapore’s Central Digital Currency project code-named “Ubin” has completed its final phase. Ubin is a collaborative project with industry to explore the use of Blockchain and Distributed Ledger Technology for the clearing and settlement of payments and securities, using a digital version of the Singapore dollar.
Korea to Trial Blockchain for its Central Bank Digital Currency
Earlier this year, BOK outlined a three-step process for digital won trials, with the first technology review stage completed in July. The second step was to involve business process analysis with a consulting firm, which is the current phase. And the final stage is to build out a test solution that is targeted for next year.
Canada exploring consumer CBDC to replace cash
It reached its third phase in partnership with Accenture and R3 last year. More recently, the Bank of Canada successfully used a CBDC in a test payment with the Singapore central bank.
Digital Ruble: Russia Unveils Plans to Test Central Bank Digital Currency
Five Russian banks have already expressed interest in participating in the central bank digital currency (CBDC) pilot: Credit Bank of Moscow, Promsvyazbank, Bank Zenit, Dom.RF, and Russian National Commercial Bank. The State Duma, the lower house of the Federal Assembly of Russia, expects the digital ruble experiment to start in the first half of 2021.
Bahamas confirm Launch Date for the world’s first Retail Central Bank Digital Currency
According to a tweet on Friday from the Central Bank of the Bahamas, Sand dollars are set to go live on October 20 with a “gradual national release”, making it the first retail CBDC in the world.
Eastern Caribbean Central Bank’s CBDC Could Beat China to the Punch in 2020
Almost exactly one year ago, the Eastern Caribbean Central Bank and Bitt Inc. — a financial-technology company based in Barbados — signed a contract to conduct a blockchain-powered CBDC pilot within the Eastern Caribbean Currency Union, an organization composed of Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines.
Later this year, the project will enter its second phase and transition to a six-month rollout across the Eastern Caribbean region.
IMF, World Bank, G20 Countries to Create Central Bank Digital Currency Rules
According to the report, by the end of 2022, the G20 members, the IMF, the World Bank and the BIS will have completed regulatory stablecoin frameworks and research and selection of CBDC designs, technologies and experiments.
CBDCs could improve cross-border payments, counter Facebook Libra-like corporate digital currencies and transfer emergency fund payments to consumers during the coronavirus pandemic, the report said. But CBDCs would not be anonymous and self-running, the report said, diverging from the virtual currencies whose distributed ledger technology they would borrow.
The IMF “Great Transformation”
“By the end of 2020, 170 countries — almost 90 percent of the world — will be worse off with lower per capita income.
We also saw massive fiscal measures — totaling nine trillion dollars, globally.
Let me turn to the opportunities we see, starting with the digital transformation — a big winner from this crisis.
And we will also see a tremendous expansion of e-commerce, e-learning, e-transfers, e-payments, and e-governance.”
Transform into a digital business across seven dimensions:
New value creation (Digital dollars / CBDC/ Cryptocurrency)
Digital-at-the-core business models (Leveraging Blockchain)
Intelligent and agile operating models (Leveraging Blockchain and AI)
Localized and resilient supply chains (Leveraging Blockchain and AI)
Real-time decisions at the edge (Leveraging Blockchain and AI)
Data-driven investment decisions (Leveraging Blockchain and AI)
Augmented talent (AI)
The IMF and World Economic Forum both are discussing a digital transformation and a global reset. Our current global financial system is being smothered by unsustainable debt and central banks around the world are clearly embracing digital currencies as a tool to reset the system.
Why?
Blockchain allows every single discrete currency unit, whether it is the digital dollar, digital euro, digital yen or digital yuan, to be tracked from its digital inception, through every single transaction, and to which wallet it can be found in at any given moment.
In short, blockchain-based digital currencies will allow central banks to have a real-time map of absolutely every monetary unit in circulation, and every single economic transaction, something they can’t do with trillions in anonymous paper money still sloshing around.
Ultimate control of programable money.
The ability to set expiration dates on stimulus deposits to your digital wallet, which would force people to spend. Controls on what you can actually spend your money on. The end of financial privacy. And if they can put money into your account, then they can probably delete it out of your account or potentially freeze your wallet for whatever reason they see fit.
Is this good for Bitcoin?
Yes, because people will realize, “hey wait a minute, I do not like this conditional money. I want to keep my savings in something scarce that holds value, that I can send to anyone without permission, something where I hold my private key and no bank can delete my account or control my transactions.”
Soon the world will come understand the difference between a Centralized Digital Dollar and truly Decentralized Bitcoin.
A few billionaires already get it. CEO’s are starting to move their cash reserves into Bitcoin. Soon institutional FOMO will trigger as more and more big players seek a hedge. People in countries that are currently experiencing hyper-inflation (Argentina, Venezuela, Turkey) get it. People in Greece get it, when banks stole their money in their bank accounts for bail ins. People living in countries with strict capital controls, which limit how you spend or send your money, get it. With all the certain devaluation ahead and the shift towards a cashless society, the question is…
Do you get it?
We are still so early, Bitcoin still has a very small market cap vs other assets. You have an asymmetric risk to reward. You have the potential to acquire hard money, digital gold and you have the option of voting with your dollars for an alternative system to the insidious totalitarian control of your financial life through Central Bank Digital Currency.
Want to learn more about Bitcoin? click here: Beginners Guide
Time to set up a Coinbase account and acquire your first Bitcoin!
