TL;DR – Central banks deprive individuals of just money by printing currency and stealing via inflation. Bitcoin offers a censorship-resistant digital asset that re-empowers self-sovereignty. Adoption occurs first through pain, fixing broken systems, until Bitcoin as money reaches full monetization.
Monopolized Money: Built to Be Corruptible
The federal government’s growth in scope and power has made it insatiable. Like any monopoly outfit, it wants to expand, acquire resources, hire more people, and stage grander projects. Funded by citizens’ confiscated taxes and legally counterfeited dollars, strengthening its position matters more than efficient solutions.
This system inevitably concentrates wealth around political hubs: through government contracting, campaign contributions, or simply spending that mainly benefits government jurisdictions. Unsurprisingly, those living around seats of federal power have become America’s richest county dwellers.
Inflationary currency and taxation extract wealth from productive individuals towards politically favored groups. A house of cards built on confidence and government force, this unsteady structure can only persist by perpetuating the con. Resistance remains risky since money printing prevents saving losses while encouraging reckless speculation and indebtedness instead.
The Counterfeiters Printing Prosperity
Severed from any tangible basis, fiat currencies today back nothing concretely – only confidence in the state. Governments falsely blame “supply chain issues” or “corporate greed” for rampant inflation while ignoring oceans of freshly minted cash. This constitutes an implicit tax on citizens’ purchasing power by shrinking the worth of their saved dollars.
In economics, the Cantillon Effect captures how new money creation hits various recipients differently. Early receivers of freshly printed funds can buy assets before inflation pushes up prices they’ll later sell to end-recipients at a higher nominal level. The poor thus subsidize the already rich as money trickles downward. This process transfers wealth by stealth.
A Radical Solution to an Age-Old Scam
Throughout humanity’s economic history, political rulers have repeatedly monopolized currency issuance and then plundered the money supply through clipping coins or cranking printing presses. Bitcoin at last offers a workable countermeasure to this age-old tactic of power.
By design, Bitcoin prevents arbitrary inflation or centralized corruption. Based on impartial rules supremely difficult to alter, new coins enter circulation on a set schedule. Hard-coded scarcity gives Bitcoin far more stock-to-flow integrity than gold. And requiring no custodian thanks to a digitized but non-duplicable nature means decentralized individual Bitcoin self-custody now offers a practical reality at scale.
The Path from Fiat to Bitcoin
Bitcoin adoption occurs through pain. In hyperinflationary Argentina, citizens flee crashing pesos to preserve buying power. Elites evade rising taxation via more censorship-proof money alternatives. Individual incentives drive more citizens worldwide to exit failing systems and store wealth in uncensorable cryptocurrency instead.
An estimated 72 million people already store at least 0.5% of global wealth in Bitcoin. But compared to gold’s status comprising 50%+ of the world’s savings when last utilized as currency directly, much room for Bitcoin growth remains simply to match its physical predecessor in significance.
Through daily grassroots usage and savings, Bitcoin can reach total monetization. Individual actions shape the future, not arcane technical metrics. Sovereign individuals now control an inflation-resistant, easily auditable, uncensorable, digitally transferable asset to store their hard-earned wealth outside the predators of the banking system. That is Bitcoin’s gift to humanity which opens unimaginable opportunities. Seize them with sound ethics; the rest writes itself.
Thank you for reading “The Engineered Surrender of Sound Money: Central Banks as Currency Counterfeiters“.
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Source:
- Robert Breedlove: Decentralized Food and Money with Robert Breedlove (WiM400)
Federal Reserve: Purposes & Functions – This source provides insight into the role and functions of the Federal Reserve, the central bank of the United States, highlighting its impact on the economy and monetary policy.
The Cantillon Effect: How New Money Enters the Economy – Investopedia explains the Cantillon Effect, which describes the uneven effect of monetary inflation and how it benefits certain groups more than others.
Bitcoin: A Peer-to-Peer Electronic Cash System – The original whitepaper by Satoshi Nakamoto introducing Bitcoin, offering an understanding of its foundational principles and design as a decentralized digital currency.
The Stock-to-Flow Model – An analysis and visualization of Bitcoin’s stock-to-flow model, comparing its scarcity and value over time, especially in relation to traditional assets like gold.
World Bank Data on Global Wealth Distribution – The World Bank provides data on global wealth distribution, useful for understanding the context of Bitcoin’s growing role in the global economy.
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