Status Quo woes: US Has $18 Trillion In Debt
What’s wrong with the status quo? Oh, nothing much. The US is only $18 trillion in debt — that is not a big deal. It doesn’t matter that the Fed has set the interest rate at 0% for an extended period of time. It is not a big issue that this basically means that the Fed has been printing free money and giving it to the banks. Of course, it’s not an issue that the banks have lent out this money and put the population in unsustainable debt. Oh, and it definitely doesn’t matter that if the Fed raises the interest rates, the whole thing just might collapse. Everything is fine and dandy; move along, nothing to see here.
If the Fed raises interest rates, this causes the amount of interest that people have to pay on their credit cards to go up. It tightens the money supply, which causes stocks to go down. If the money supply is tighter, then how can people pay their debts? People already struggle to make the minimum and when that is increased, they will simply not pay. I am not the only person claiming that the current system is unsustainable. A quick Google search will show you plenty of evidence supporting this case. However, one thing is certain: technology is continually developing and the brightest minds are working on Bitcoin. Did I mention that bitcoin is immune to the free money policy of the government?
Bitcoin’s Intrinsic Value
What gives Bitcoin its value? In fact what gives the dollar value? The dollar is backed by the United States government. If some guy wanted to borrow ten dollars and I know that he is already $10,000 in debt, it’s logical to assume that his backing is not worth very much. So, we are supposed to give intrinsic value to a piece of paper backed up by an entity that is already $18 trillion in debt? Completely logical!
So, the question remains, what is bitcoin backed by? It is backed up by the largest and strongest computer network in the world: the blockchain. This is the first time in human history that we have an immutable ledger. If you cannot see the intrinsic value in transacting on a system that completely eliminates negative human qualities when it comes to trade, then you can just sit on the side lines while the rest of us get rich. (Note: while there are still bad actors, many of them in this ecosystem, they act badly in ways that are not related to the blockchains infrastructure) The blockchain can be trusted. The only way to effectively cheat the blockchain is to obtain 51% of the network’s hash rate which, is virtually impossible. The sheer amount of ASICs and electricity that the attack would cost makes it so far out of the range of possibilities that it can be reasonably discounted.
Children are Growing up Immersed in Tech, Bitcoin Will be Part of Life for Them
So young people, tech savvy people, and the educated are all flocking to bitcoin. That is the future. I didn’t even get into the advantages of using bitcoin yet. I can send something that has an agreed upon value at the time of transaction to a person that I don’t even know who lives in Iceland, China, India, Africa, or anywhere else in the world. Nothing else can accomplish this feat. Just this ability alone is enough to give Bitcoin “intrinsic value.” Bitcoin is a GLOBAL currency. Oh and did I mention that there can only be 21 million of them? Let’s factor in Satoshis coins and lost coins, there will probably be in the ball park of 19 million coins total. This number can never be increased. There are 14 million bitcoins today. That is enough for each person in the world to own .002 bitcoins. That is it. (http://bitcoinsperperson.com/) If bitcoin becomes the accepted form of global transaction then the value of a single coin would be enormous.Image Source: investwithalex.com
The opinions expressed in this article are not necessarily those of Bitcoinist.net.