Bitcoin Stops the Bleeding: A sound money system is the only cure for what is wrong with our economy

This opinion editorial is by Conor Chepenik. He is a Bitcoin pleb. If the bleeding isn’t under control, it’s futile to operate. Otherwise, the patient will die. Money is the lifeblood of the economy. It facilitates mutual exchange and helps market players coordinate price discovery. Fiat currencies are slowly losing value and incentivize less people to save. You will need to find another way to store your wealth if you want to stop financial bleeding. There are many options, but there is only one that will stop all bleeding by 2140. It’s not that blood is leaking out in a grotesque way, but rather it’s being siphoned from tiny cuts. Most people don’t even know this is happening. This is a difficult truth to swallow. The majority of Western societies tell people not to question authority. If you have questions, raise your hand and trust the experts. It is hard to break out of this mindset. This clip shows the White House press secretary. It will give you an idea of how the top will treat anyone who challenges the narrative. When trying to persuade the masses to accept a “Great Reset”, narrative is everything. (If you don’t know what the Great Reset is, read this article). This article will not cover the Davos elite’s plans to impose their will on the rest of world. Instead, it will focus on why Bitcoin prevents money from escaping. It is impossible to calculate all the variables that lead to the complex, emergent behavior of society. Quantitative easing was used by governments to steal trillions of dollars and blame COVID-19 for their theft. It shouldn’t surprise that there was chaos following the quantitative easing and blamed COVID-19 for their theft. In an effort to control inflation, the Federal Reserve is intensifying its quantitative easing by tightening monetary policy at record speeds. This demand destruction is causing havoc in the economy, but it is necessary to eliminate unprofitable businesses. Pain is the best teacher, for better or worse. Hard Money reported recently that Trezor saw a 30% increase in sales revenue following the FTX disaster. Bitcoin is all about trusting others, but verifying for yourself. Many people ignored this fact because FTX was approved by many celebrities, politicians, and mainstream news outlets. FTX’s blow created a lot of new Bitcoin maximalists. They now know why not verifying Bitcoin with the node you own is a sign that you trust corrupt third parties. With puff pieces like this, the mainstream media is not doing any favors. Articles like these only increase the pain of those who have been robbed and convince even more people that the mainstream narrative has become corrupt.SourceBut Self Education also helps. A better education is the solution to most of these problems. Udemy, Saylor.org and many other tools have greatly reduced the barrier. You just need to be curious. I found that desire through the Bitcoin rabbit hole. Ironically, answering just one question would lead to more questions, and the number of questions grew exponentially. It made me wonder about how many people aren’t taught in a structured way during traditional schooling. Teachers have limited time and must prioritize their curriculums. I don’t get why basic financial literacy, taxes, and voting are not at the top of most public school’s curriculums. The reader is free to draw their own conclusions. It is important to find a teacher who speaks your language, and a subject that sparks your curiosity. Learning is one of the most enjoyable and euphoric experiences in the world when these two needs are met. Oscar Wilde said, “Experience is simply the name men gave their mistakes.” People become so focused on learning from experts that they forget that the people who have changed the world have not asked permission. They did it. People want a hero who will solve all their problems, but the truth is that no one can save them. I don’t think it is wrong to seek out mentors who are experts in their fields. It’s extremely valuable to be able to learn from them. I am not saying that one should worship people who aren’t capable of making mistakes. Look at Sam Bankman-Friend. Many thought he was a hero. Source Despite all the educational content, most people will eventually understand the difference between paper and real bitcoin. This is due to an expensive lesson. Bitcoin’s price action will explode if the majority of Bitcoiners take control of their coins and stop blindly believing their heroes. Each person is unique and has different risk tolerance. Don’t let recent events discourage you. Sometimes, the only way to teach someone a lesson is to make the same mistake. FTX and Central Planners are Not So Different. What’s interesting is that FTX’s rapid failure shows that the same thing could happen to our traditional financial system if there weren’t central banks acting as lenders last resort. FTX used customer funds to make bets against its terms of service. However, 99.9% of the world turns a blind eye to this because banks’ terms of service allow fractional reserve banking. Ludwig von Mises wrote in his book “Human Action” that the rich, who own the plants already in operation, have no special class interest to maintain free competition. While they are opposed to the confiscation and expropriation their fortunes, their vested interests favor measures that prevent newcomers from challenging them. Free enterprise and free competition are not the interests of today’s rich. They want the freedom to be left to the unknown men who will become the entrepreneurs of tomorrow and whose ingenuity can make the lives of the next generations easier. They want economic advancements to continue. They are the spokespersons for progress. “Technology should improve, which should lead to massive inflation from productivity gains. This is prevented by regulatory moats and monopolies. Fractional reserve banking creates a situation where capital is misallocated and causes inflation. Most commercial banks would go bankrupt in a free market. FTX attempted to create its own fractional reserve monopoly through lobbying Congress and creating a regulatory barrier around its business that would have made it impossible for other competitors to compete within the crypto ecosystem. It is a blessing that FTX’s system failed to succeed with D.C. Mises. Bitcoin is battling with over 10,000 other companies every day. Many of these tokens are Ponzi schemes, but the idea D.C could do better than the free market is absurd. It is not easy to regulate technology changing at such a rapid pace. We can use the little bit of glass in our pockets to order food, hail a ride, or listen to some amazing minds whenever we want. To someone who lived before smartphones, all of these things would seem amazing. As humanity attempts to get to grips these new tools, there will be hiccups. I use this quote by Hal Finney as my Twitter header. SourceFor all the amazing things technology can do for humanity it can also allow us to take control of our lives in a new way. Optimal price discovery is possible when there are no central planners. Too much central planning can cause markets to fail. A free market is like a hash-function for price discovery. It takes inputs and produces an output that is only one way. The algorithm works with a normal hash so it is impossible to reverse-calculate data. While you can verify a hash by ensuring the same output is obtained based on the input data, it is impossible to take the output and determine the input. The same applies to the price of a good. However, you cannot determine how labor, travel, and other variables contributed to the price. This function is only one-way. When the coercion variable gets too high and price increases occur, market actors get upset. Usually, the producers are blamed rather than the central planners for causing these problems. Do you sound familiar? It’s like the U.S. government calling out greedy fossil fuel companies while advocating for the end to fossil fuel use. Price controls can cause price discovery to stop completely, leading to shortages. These issues will continue to be relevant until the creation of money is not heavily intertwined with politics. Bitcoin allows individuals to travel on a hero’s path where they can keep the true value of their labor in their heads. CBDCs and digital IDs give governments the ability to make monetary policy at an individual level, control every transaction, and take money out of the hands of others as they wish. Bitcoin is a better system that can be trusted and shared with all the network members. Preston Pysh put it best: “Bitcoin’s like the infinity stones.” It takes great faith to hold onto an asset that has suffered multiple drawdowns of 70% to 90% before recovering to new all time highs. While not everyone can hold onto their bitcoin, those who do so for long periods of time are highly rewarded. Bitcoin’s network effects are incredible. A Bitcoin website pays 21,000 satoshis for people to post stickers that they ship to their cities. Think about it. By spreading awareness, you can earn sats as well as increase their value. These are win-win situations are what Bitcoin offers. These win-win scenarios are what make Bitcoin so exciting. Bitcoin empowers individuals to fight back like never previously. There will be growing pains and more turmoil for those who are obsessed with measuring things using fiat. It is important to get oriented around the new system in order to fix this. There are many possibilities that this Bitcoin Renaissance will bring. It is difficult to grasp the implications of this new money form, as the world is full with so many paradoxes. Learning makes you smarter and you end up asking more questions. Monopolies have made human civilizations some of the most technologically advanced and prosperous. They also make George Orwell’s “1984” seem plausible. The internet connects people like never before, while increasing loneliness. While number go up technology is often associated with greed, many people stay because they realize that Bitcoin is the true altruism movement. These paradoxes can be a bit confusing, but I believe there is value in chewing on them. Bitcoin is the band-aid to fix it. It gives me a lot more confidence knowing that my money is protected by open-source software, math, and not 12 individuals who decide when it’s okay to steal or when it’s time for fiscal austerity. Although I am glad that the Fed finally decided to do the right things for the economy, it has been manipulating the cost of capital for so many years that it now has the potential to destroy the entire system. The problem is that the Fed has no other option but to lower rates again, which leads to more inflation. Bitcoin is a solution to this paradox. Central planners are trying to stop bleeding by siphoning more blood from patients. It becomes clearer that market participants are playing a rigged sport every time central planners manipulate capital costs. Bitcoin is the most fair game mankind has ever created. It also offers the best chance to separate money and state. This is Conor Chepenik’s guest post. These opinions are not necessarily those of Bitcoin Magazine or BTC Inc.

 

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