Bitcoin Must Survive

The world’s financial system is now in its death throes. The COVID-19 pandemic – accidental or perhaps not – has been systematically exaggerated to provide central banks with the excuse they needed to print further vast quantities of currencies to maintain an illusion of economic health (Figure 134.1).

Figure 134.1: American satirist P. J. O’Rourke observed: ‘When the government runs out of lenders, it can do something that households are forbidden to do: print money.’

Copyright © 2020 Sopa Images/Lightrocket

In response to lockdown inactivity, the US dollar, Japanese yen, British pound and the Euro are all being created out of thin air more frantically than ever. This unprecedented strategy will, ultimately, fail, but the corrupt central bank counterfeiters will fight to maintain their power to the bitterest end. Collateral damage, in the form of currency wars, trade wars or world wars, means nothing to them. So-called democratic governments are merely the central bankers’ paid puppets.

This imminent crunch point has been inevitable for years. As the supply of fiat (unbacked, State-enforced) currencies increases, the value of each unit becomes worth less, until it is worthless. (Think of Weimar Germany in 1923.)

For the past decade, however, we have had an alternative, and its use and popularity grow by the day. Bitcoin (BTC) is the world’s first cryptocurrency. It is ingenious and has several inherent advantages over central bank-issued fiat. First, by immutable mathematical protocol (Figure 134.2), its supply is limited. There can never be more than 21 million BTC. Hence, the value of each BTC unit cannot be reduced by expansion of supply. Increased demand necessarily increases its unit value. It is the ‘hardest’ currency ever, even more inflation-proof than gold.

Figure 134.2: BTC is independent of any kind of authority and thus free from the control of financial and political tyrants. Interestingly, the identity of its creator, ‘Satoshi Nakamoto’, remains unknown. His beautiful creation stands to wipe out the power of the moneychangers. Retaining his anonymity would appear to be extremely wise.

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Better still, BTC is decentralized. No entity – bank, corporation or State – controls it. No conscious governance or permission is required for it to function perfectly. It is, therefore, a libertarian’s dream. Furthermore, it is cryptographically secure and fully verifiable. Put simply: BTC is kryptonite to central banks and their political lackeys.

As an investment, BTC is the best-performing asset in history. More profitable than stocks, bonds, property or commodities, its unit price has gone from zero to US$9,500 since 2009. Owing to the perpetual creation of fiat currencies worldwide, its medium-term price could quite easily exceed US$250,000.

Purchasing and holding – known as ‘hodling’ – BTC is straightforward. There are several secure digital asset exchanges online. I use Coinbase Pro (Figure 134.3) and Kraken. Transferring dollars, pounds or euros to BTC, and vice versa, is both simple and quick. BTC can also be removed from exchanges and stored in an offline ‘ledger’, if preferred.

Figure 134.3: Once you have learned the ropes of the Coinbase Pro system, investing and trading are easy.  http://www.pro.coinbase.com

Copyright © 2020 Coinbase

Given that the war on cash seems relentless, digital currencies appear to be the future. A monumental battle is underway. In one corner stand the world’s corrupt central banks, who have empowered themselves by debasing and devaluing the hard-earned savings of ordinary people, without scruple, for decades. In the other stands an incorruptible newcomer, controlled by no one and forever bound (mathematically) by its 21-million-letter word.

We have reached a fork in the economic road. For humanity’s sake, BTC, or something similar, must prevail.

Copyright © 2020 Paul Spradbery