Protect Wealth: Rise With Bitcoin as the Dollar Depreciates
We stand on the brink of one of the most significant wealth redistributions ever witnessed.
Bitcoin is establishing itself as a digital fortress for safeguarding wealth, distinguished by its finite supply limit of 21 million coins. This feature distinctly contrasts with the harmful consequences of limitless government money printing, which depletes wealth and reduces the purchasing power of conventional currencies such as the dollar.
The introduction of nine Bitcoin ETFs in January 2024 not only enhanced Bitcoin’s credibility but also dramatically increased the demand for new Bitcoin, reaching a rate ten times higher than its daily production. This dynamic is set to intensify with the halving event in April 2024, which will cut the creation of new Bitcoin by half. Should demand remain steady, this could see the rate of Bitcoin’s absorption potentially soar to twenty times its daily production. The upcoming halving event is set to illustrate a fundamental economic principle: when demand substantially exceeds supply, it inevitably leads to a significant increase in value.
The relentless growth of government debt impacts you by depreciating the worth of your dollars. As the ratio of debt to national income spirals out of control, the urgency of this situation is magnified, potentially rendering currencies valueless.
The traditional method to counteract ballooning debt — currency inflation — only exacerbates the devaluation. To safeguard personal wealth against such inflationary pressures, one might consider the strategy of the wealthy: investing in stable assets like real estate, gold, and now, Bitcoin.
The current fiscal situation of the United States, illustrated by a budget chart, highlights the imbalance between spending and revenue, with spending significantly exceeding income.
This imbalance contributes to a swelling national debt, graphically depicted in red in the graph below. As evidenced in the following graph, this issue is nonpartisan; it has escalated irrespective of the political party in power.
To address government deficits, authorities increase the money supply by printing more money. However, this approach leads to higher inflation rates due to the devaluation of the currency. Consequently, this inflation exacerbates budget deficits by increasing the portion of the budget dedicated to interest payments on debt, thereby necessitating the issuance of additional currency. This cycle continuously devalues the currency, ultimately triggering a relentless debt spiral.
The current proposed US budget for next year is $7.3 trillion (20% higher than this year) — this comes at a time when the deficit expands by a staggering trillion dollars ($1,000,000,000,000) every 100 days. This unsustainable trajectory underscores the need for solutions to curb the national debt and stimulate economic stability.
Unlike fiat currencies, Bitcoin has a fixed limit of 21 million coins, meaning that as fiat value diminishes, the worth of Bitcoin and similar tangible assets tends to increase correspondingly.
This is why Bitcoin offers a compelling alternative to the dollar in this climate of financial uncertainty, holding the potential to act as a bulwark against fiscal irresponsibility.
My hope is that this information will enlighten my current and future friends about Bitcoin as a store of wealth, with the aspiration that they may reap the benefits and consider investing a portion of their depreciating dollars into this vital and growing asset class.
About The Author
John Romanowich is a visionary entrepreneur and CEO with over three decades of success in the tech industry. He co-founded SightLogix, a leader in video security, and Pyramid Vision Technologies, a trailblazer in intelligent video, which was later acquired by L3 Communications. As a frequent conference presenter, Romanowich holds several patents and specializes in ventures within the realms of video, AI, and blockchain technologies.
I’ve read numerous books and listened to a variety of podcasts that have shaped my thinking. Some of these resources might also be beneficial to you if you’re interested in expanding your knowledge.
Recommended Resources
Broken Money by Lyn Alden — lynalden
The Changing World Order by Ray Dalio — principles
The Informationist Newsletter by James Lavish — jameslavish
What Bitcoin Did Podcast with Peter McCormick — He talks to experts in the world of Bitcoin, economics and politics. whatbitcoindid
Bitcoin Fundamentals by Preston Pysch — He talks about the fundamentals of bitcoin, investing in bitcoin, news, and deep dives. theinvestorspodcast
