If you don't understand how our monetary system works, here's one of the main rules.
The bank never goes bankrupt! Did you read that? We have seen this rule in practice in 2008 when banks were saved with 'new' money, because they were 'too big to fail'. Has anything changed since 2008? The only thing that is different now is that banks have been capitalized by the central banks with enormous amounts of 'new' fiat money. Exactly as rule #11 from the board game Monopoly describes.
We all know that the thing about Monopoly is that if you play it according to the rules only one player is having fun, right? Let that sink in for a moment...
Fiat money is inherently worthless, yet it is worth something because we all believe it is worth something. Our faith in our fiat money is the only value it has.
But it wasn’t always this way and it is not certain it will always be this way in the future. Even a strategist from Deutsche Bank stated this week "We may be looking at ‘the start of the end of fiat money’". He also said:
“it’s possible that inflation becomes more and more uncontrollable and the era of fiat currencies looks vulnerable as people lose faith in paper money.” ~ Deutsche Bank’s Jim Reid
Just remember, a dollar from 100 years ago is worth about $0.02 in today's money...
Image source
In 1913, the US government gave birth to the Federal Reserve System (AKA the Fed) and placed them in charge of protecting the value of the US dollar. Since then, the purchasing power of the US dollar has declined by approximately 98%.
As the founder of Ford, Henry Ford, once said:
“It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” ~ Henry Ford, Founder, Ford Motor Co.
Blockchain based money with a limited or fixed supply such as Bitcoin could be that revolution in my opinion. There was no alternative in 2008 when banks were too big to fail. Without banks there was no easy way to pay each other. This made Satoshi Nakamoto think and Bitcoin was born. Nowadays, we don't need the banks to make fast worldwide payments anymore. When the next financial crisis hits Bitcoin could be the revolution Henry Ford was talking about.
If you're still 100% invested in fiat currencies, think about an exit plan.
New day new high! Don't miss opportunity!
Best way to trade long #bitcoin with high leverage on BitMEX
You may be interested in reading my Pocket Change Theory... As per Article 1, Section 8 of the U.S. Constitution, Congress has the Power to Coin Money and Regulate the Value thereof... I think we're due for a RESET of our U.S. Coinage...
... ...$7.77 ... ...1 vote ... ... .... Reset
@pocketechange
Banks do not run out of money they create more fiat money. But I guess not even 1 country can back all its paper money with real assets. I believe the system will keep working unless people wake up and start doing some sort of trading, barter and swaps that are out of the financial system. @originalworks
The @OriginalWorks BETA V2 bot has upvoted(0.5%) and checked this post!
Some similarity seems to be present here:
https://www.brainyquote.com/authors/henry_ford
This is an early BETA version. If you cited this source, then ignore this message! Reply if you feel this is an error.
But, Steem is fiat, since it will always produce more Steem.
I enjoyed reading your post. There is a lot of good stuff.
Congratulations @penguinpablo! You have received a vote as part of @raserrano donation to this project.
I will be able to help more #minnows
@OriginalWorks @steem-untalented
Hello @penguinpablo
We have given you our still tinnie-winnie upvote!
You have been spotted by @tuanis to possess rare gem!
So what can we do than to seal the deal, give you our tiny upvote and celebrate you, for everyone has something to offer.
We welcome you to the #untalented family. Feel free to come around for its a home with us. Flaws allowed, so relegate reservations and play with that beautiful mind of yours, let's tap into more hidden aspects of you. No average, no bum, just awesome you and the best version of YOU is a gift to humanity everytime. Stay awesome!
Join the steemgigs community on discord
https://discord.gg/CGuPyyT
#untalented is a branch of @steemgigs. If you would like to offer your service in building the dreams of other steemians, you can do so under #steemgigs.
However, if you want to experience full blown freedom and grow in confidence about your gifts and talents, share under #untalented.
We aim to create historical moments in the genre of touching lives and you can support us if you desire, by voting on steemgigs for witness. Simply click here
https://steemit.com/~witnesses
and type steemgigs in the first search box.
Just incase you find any level or form of gifts, talents, attempts at out-of-the-boxness, or any steemian low in confidence about their abilities, worth, etc; please don't let it slip emptily by.
Kindly call on me! Simply reply to any such post and add @steem-untalented or #untalented to your reply and i will be there to upvote, acknowledge, strengthen and encourage them.
Money are just a simple convention and an agrement between different parts. For example one beer costs lets say one dollar because i agree to pay that amount, if nobody will buy that beer then the true value of it is 0...
You know what will be great... if Steem will replace the fiat money around the world.
Imagine that!😉
Banksters and Politicians are partners in crime, and both are scared of cryptocurrencies, because it would bring doom to them!
What is "money"? is the bigger question.
The fact that bankers can 'print' (on a computer) as much as they want, should give an idea of it's true "value". (like entering numbers in excel!!)
So what happens when we don't want or need it?
how much will FIAT be worth then?
Which raises the 2nd question "What can you do with 'money' " ?
Answer these 2 questions, get an "APP" to convert BTC (or similar) into old-school fiat as & when required, pay your barista & landlord in BTC and.... FIAT has zero value!
Once USA petro$ swaps to BTC-petro the USA debt will hurt! IMHO
Thinking about the banking system makes me sick. Can't wait until Bitcoin and the blockchain becomes mainstream. I think governments are just trying to slow it down right now until they can get a horse in the race. Its no longer whether or not blockchain is going to take over, its more a question of when.
Accurate depiction of fiat; however, also missing another analogy-- to that of confiscation of gold in the 1930s before devaluation. You see, the powerful governments with all the guns don't take kindly to competitive currency forms that steal their ability to print money effectively. There's never been a case in history where the people successfully stopped a government from printing money, by using an alternative currency-- LEGALLY. Not saying one can't hold bitcoins or gold to get around the problem, just saying that you'll also have to eventually embrace being an outlaw WHEN they make it illegal to hold tokens/crypto-currencies.
incredible, we were already trained from our childhood to save the bank. And many times I played like that innocently. I had not seen it !!
People are starting to become aware of this and so it's just a matter of time now before a critical mass of non-conformists is reached. Bitcoin et al for the win!