You know we’re in trouble when the media tries to convince us inflation is actually a good thing.
Inflation is at a 13-year high of 5.4%. Gas prices hit a seven year high, and Americans are being warned about rising energy costs this winter. Our supply chain is in chaos, contributing to rising inflation and falling stocks and bonds as more people worry about rising costs. .
The dollar has lost over 96% of its value since the Fed was established in 1913. Yes, you read that right. One dollar in 2021 is worth less than .04 cents in 1913.
People have been crying “End the Fed” for years, but most people live blissfully unaware of how dire the situation has become. The Fed has printed almost a fifth of all US dollars that ever existed in the past year alone.
The Fed has been bailing out banks and propping up irresponsible government spending since its inception. Now we are reaching a point of no return, and we could see the complete collapse of the dollar sooner than we’d like to think.
It is ignorant to assume that it can’t happen to us. Countries like Zimbabwe and Venezuela went on printing sprees that hyperinflated their money into obsolescence. Since the removal of the gold standard in 1971, our money hasn’t really been backed by anything other than faith in the US government . Which is ironic, considering the Fed is buying government debt. Bad debt and pure irresponsibility of our financial institutions can only end in devastating consequences for the average American.
In a recent episode of Cryptonized, Co-Founder / CEO of Gemini and US Olympic Rower Tyler Winklevoss weighed in on the conversation around inflation:
“I agree people should be worried about inflation, especially given all the money printing. I am certainly worried about it. I think anyone who's not paying attention to that should look at the Fed's balance sheet and how much it's been expanding, not just during and after the pandemic, but also the decade leading up to it. So it seems to be a systemic issue that is bipartisan, both parties have done a poor job in this respect. Ultimately, I think the best answer to it is opting out of the dollar in the form of Bitcoin, because the supply of Bitcoin is actually fixed.”
Unlike the dollar, there is a fixed number of Bitcoin in existence that will never increase. Furthermore, Bitcoin can be fractionalized, meaning you can own as little as 0.00000001 Bitcoin. You can always purchase Bitcoin in pieces according to your own budget needs. Many have historically used gold as a hedge against inflation, but we are living in different times now. To quote Tyler:
“Bitcoin is the ultimate hedge to inflation. Gold is scarce, but its supply actually is slowly increasing, whereas Bitcoin supply is stuck at 21 million, and there's no technological breakthrough that will expand it. Bitcoin is decentralized gold; in a way, it's like gold 2.0.”
The importance of Bitcoin’s fixed supply cannot be stressed enough. While the government continues to print an infinite supply of money, Bitcoin miners race to harvest the last of the unminted Bitcoin, which as of August 2021 is approximately 2.3 million. Once the 21 million coins are minted, there is no possibility of new ones being created, giving Bitcoin the same scarcity appeal as precious metals like gold and silver that initially backed fiat currencies.
It’s time to wake up and realize that no one is coming to save us. The problems we’re seeing with inflation have been building since we abandoned the gold standard in 1971, and we cannot rely on the government to save us from a problem it not only created, but perpetuates. Bitcoin solves this problem by providing investors with the ability to opt out of fiat and traditional inflation hedges and buy into the future of digital currency.