Bitcoin Protects People Better Than The U.S. Dollar Ever Did
A simple equality explains perfectly why.
Bitcoin is the first successful implementation of a Peer-to-Peer cryptocurrency based on Blockchain technology. Bitcoin is a revolution based on a permissionless and trustless system but above all without any leader.
Bitcoin was given to the world by Satoshi Nakamoto its mysterious creator. Bitcoin users are in charge of its future and as such, they are the ones who will decide what Bitcoin will be in the future: a simple store of value or a real medium of exchange.
You have probably already heard and read all this about Bitcoin.
However, I am not sure that you really have in mind why Bitcoin is a more protective system for people than the U.S. dollar ever was.
So I’ll try to explain that to you as best I can.
U.S. dollar Inflation Hurts Your Buying 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:
You Have No Guarantee That 1 USD = 1 USD For The Future
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!
Two Options Exist To Combat This Inflation
The constant increase in the U.S. dollar money supply in circulation is profoundly affecting your buying power. Simply saving your money makes you lose money.
To counter the constant inflation of the U.S. dollar, you have only two options:
- Making investments with returns above inflation.
- Attempt to free yourself from the current monetary and financial system which is flawed and not fixable.
Some people choose the first option and do very well. Nevertheless, these people are still at the mercy of the institutions mentioned above.
By choosing Bitcoin, you will choose the option of freedom. Bitcoin is a peaceful protest against this failing monetary and financial system.
Bitcoin’s Money Supply Is Finite And Known To All
In order to address this problem of the constant, and often irrational, increase of the U.S. dollar money supply in circulation, Satoshi Nakamoto has chosen to define a maximum quantity of Bitcoins that can be put into circulation.
Everyone knows that only 21 million Bitcoins will be in circulation by 2140.
By making this bold choice when designing Bitcoin, Satoshi Nakamoto has set clear rules for the game that cannot change.
This limit on the number of Bitcoins that can be released makes Bitcoin scarce. Like everything else that is scarce, Bitcoin is therefore far more valuable than the U.S. dollar. This is obvious.
The Guarantee That 1 BTC = 1 BTC Is Your Best Protection For The Future
The source code of Bitcoin belongs to everyone. Therefore, the limit on the number of Bitcoins that can be created can only be changed if the whole community decides to do so.
No member of the Bitcoin community has an interest in increasing the number of Bitcoins that can be mined.
Indeed, such a decision would discredit Bitcoin and put it on a par with the U.S. dollar. No Bitcoiner will ever allow this to happen.
So you have the guarantee that 1 BTC of 2019 will still represent 1 Bitcoin out of 21 million Bitcoins in 2030, 2050 or even 2100.
This simple equality is the best protection for what you have. As such, Bitcoin protects people better than the U.S. dollar ever did.
It is no coincidence that oppressed people in totalitarian countries like Venezuela are rushing to buy Bitcoin. For them, Bitcoin is the only guarantee of justice in a world where inequalities are ever more glaring.
Once people in the developed countries become aware of this protective side of Bitcoin, it is a good bet that we will finally see the beginning of the mass adoption of Bitcoin.