Bitcoin Is Our Only Chance to End the Current System That Is Flawed and Not Fixable

Bitcoin is the only credible alternative to the current system that is flawed.

Sylvain Saurel
Feb 12 · 8 min read

It All Started at Bretton Woods in 1944

It all started with the Bretton Woods Agreement in 1944. The world monetary system was then organized around the U.S. dollar with a nominal peg to gold.

The Bretton Woods system created a Gold-Exchange Standard based on a single currency, the U.S. dollar.

This system assumed that there would be no uncontrolled slippage on the part of the United States and that it would seek to maintain the real value of its currency.

This Bretton Woods system provided the framework for the Glorious Thirty which saw the economic take-off and opulence of the Western world from 1945 to 1974.

Richard Nixon Ended the Bretton Woods System

Unilaterally, President Richard Nixon decided on 15 August 1971 to completely change the international monetary system set up at Bretton Woods.

Richard Nixon then announced the end of the convertibility of the U.S. dollar into gold.

The monetary system of fixed but adjustable parities was definitively buried by the Jamaica Agreement signed on 7 and 8 January 1976. They officially confirm the abandonment of the international legal role of gold.

From that moment on, it was the beginning of a vertiginous accumulation of U.S. dollar all over the world.

While $102 billion had left the United States by December 31, 1970, more than $20 trillion had left by December 31, 2010.

This gives an increase in the amount of U.S. dollar leaving the country of 14% per year.

Nothing in the global economy is progressing so fast and for so long.

The world lives on credit and the U.S. dollar gives the United States a real weapon of oppression over other countries in the world.

The Current Monetary and Financial System Does Not Protect People

The current monetary system is not working as it should. Instead of protecting people all over the world, the system is only increasing the inequalities between rich and poor every day.

The very rich are getting richer every day and the poor do not see their situation improving fast enough.

Since the rulers of countries under authoritarian regime do not yield to pressure from the United States, it is always the people of these countries who pay the price.

The people of Venezuela are the first to be affected by the United States’ economic sanctions on their country.

Nevertheless, it is indeed the Venezuelans who are the first to be affected. The result is catastrophic with a galloping inflation of the Bolivar.

The price of a cup of coffee in Venezuela rose from 0.2 Bolivars in 2017 to 30,000 Bolivars in 2019, an increase of 149.999% in just two years.

Quite the opposite, if I may say so.

The Global Banking System Is Greedy and Corrupt

Under the current system, the banks have been given far too much power. The banks can do whatever they want with virtually no consequences.

The banking world was at the origin of the banking and financial crisis of 2008.

The result was disastrous, but in the end it was not the banks that had to foot the bill.

The populations of the countries affected by this crisis have had to foot the bill for this global financial crisis.

In reality, the banking world still behaves in the same way and has clearly not learned the lessons of the past.

Worse still, many banks are totally corrupt.

Under the pretext of making more and more money, these banks do not hesitate to launder money from drug cartels or from the sale of arms.

Investigations are still under way, but it has already been shown that this subsidiary of Danske Bank has allegedly laundered more than 200 billion dollars between 2007 and 2015.

The Danske Bank scandal shows how corrupt the banking world can be.

Many other banks also do not hesitate to allow sanctioned governments to transfer large sums of money around the world.

According to the United Nations Office on Drugs and Crime, suspicious transactions in the current system amount to at least $2 trillion a year.

The Current System Does Not Protect What You Own

The constant increase in the amount of money in circulation that the current system allows costs you a lot.

If you live in a rich country, you probably don’t realize the disastrous effects of inflation that has been virtually halted for 40 years.

For these people, it is no coincidence that Bitcoin has become Plan A and their only hope for a better future.

Let us return to the example of the United States, which is the world’s leading economic power.

According to the U.S. Bureau of Labor Statistics, current prices are 212% higher than average prices in 1980. Thus, the U.S. dollar has experienced an average inflation of 2.96% per year over the past 40 years.

The real value of the U.S. dollar has declined steadily since 1980.

In other words, the U.S. dollar of 2019 lets you buy less things than the U.S. dollar of 1980.

To fully understand the loss of buying power that you are experiencing, this second graph shows the evolution of a $100 buying power over time since 1980:

U.S. dollar’s value evolution over the last forty years clearly shows that you have no guarantee that 1 USD = 1 USD for the future.

The U.S. dollar is devalued year after year by central bankers’ decisions to further increase the money supply in circulation.

In 2020, a person who would believe that 1 USD = 1 USD is a guarantee for the future would be either a fool or a person with blind faith in the commercial banks, the Federal Reserve, the Department of the Treasury, the President of the United States or the Congress.

In view of past events, this person would probably be a madman!

Many Countries Want to Set Up a Surveillance Society

China has shown the way that many Western countries are likely to follow in the future with its social credit system.

China’s social credit system aims to create a surveillance society where citizens would be constantly spied on.

The most deserving citizens then have more advantages than those who do not respect the will of the country’s leaders.

By insisting on a cashless society, a country like Sweden is now able to track every transaction of its inhabitants.

This surveillance society is on the move and you don’t have many possibilities to stop it and keep control of your privacy.

Bitcoin Is Our Only Chance to Put an End to the Failures of This System

There are many problems with the current monetary and financial system, as I have just explained.

This system has reinforced inequalities in the world and it also allows countries to gradually set up a surveillance society that will encroach on your privacy.

People in countries under authoritarian regimes also have a vital need to regain their economic freedom in the first instance.

People living in Venezuela, Zimbabwe or Afghanistan need a solution to protect what they have.

I’m not saying that Bitcoin is a silver bullet.

I’m just saying that Bitcoin is our best chance to end the current system that is flawed and not fixable.

The management of money being put in the hands of the people and conducted in a truly democratic manner.

Bitcoin protects what you own by guaranteeing that a 2020 Bitcoin will still be worth the same in 10, 25 or 100 years.

On the other hand, Bitcoin gives you back your freedom by building and improving day after day, block after block, a payment system that preserves your privacy.

For that reason alone, Bitcoin deserves we give it a chance.

In Bitcoin We Trust

In Bitcoin We Trust is a place where Bitcoin believers share their ideas about the upcoming revolution. Blockchain and cryptocurrencies are also covered in this publication.

Sylvain Saurel

Written by

Entrepreneur / Developer / Blogger / Author. In Bitcoin We Trust:

In Bitcoin We Trust

In Bitcoin We Trust is a place where Bitcoin believers share their ideas about the upcoming revolution. Blockchain and cryptocurrencies are also covered in this publication.

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