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.
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.
All currencies were then defined in U.S. dollar and only the dollar was defined in gold.
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.
Two successive devaluations of the U.S. dollar were decided, which then led directly to the first oil shock in 1973.
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.
From a few billion dollars that were accumulated annually, it went from a few tens of billions of dollars during the 1970, a few hundred from 1984, $1,000 billion in 2000, more than double in 2006 and 2007.
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.
Such a rhythm, so sustained for 40 years, is simply extravagant.
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.
The U.S. dollar is used by the United States as a weapon of oppression against other countries in the world.
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.
With their sanctions, the United States is targeting Nicolas Maduro, who rules Venezuela with an iron fist.
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.
I am not even talking about the people of Africa, whose economic development is in no way helped by the current system.
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 laxity and greed of the banking world has led some people to do reprehensible things in order to make more and more money.
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.
On the facade, controls have been reinforced with stricter rules.
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.
In this respect, the case of the Estonian subsidiary of Danske Bank speaks for itself.
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.
Danske Bank is certainly not the only bank that does this.
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.
In poorer countries, this reality is the daily lot of millions of people.
For these people, it is no coincidence that Bitcoin has become Plan A and their only hope for a better future.
Bitcoin Is Already a Plan A for Millions of People
Bitcoin is already making a huge difference for millions of people.
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.
An American must therefore have $312 in his possession in order for his buying power in 2019 to be equivalent to his buying power of $100 in 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.
Unfortunately, the people have no say in these arbitrary decisions that devalue what they own.
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.
Worse still, every action of Chinese citizens is rated positively or negatively.
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 trend will undoubtedly continue in other countries.
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.
You have nothing to blame yourself for, but you want to keep your freedom and not have to undergo censorship based on your political choices, for example.
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.
Bitcoin is currently the only existing solution that can solve these problems.
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.
Bitcoin proposes to separate the management of money from the state.
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.
Bitcoin is not perfect, but it is our best chance right now to build a better and fairer system for all the world’s people.
For that reason alone, Bitcoin deserves we give it a chance.