The economic crisis that began before our eyes will test the current monetary and financial system. In order to maintain the current system, the Fed made several special decisions in March 2020.
The heaviest measures taken by the Fed include historic interest rate cuts to zero, unlimited quantitative easing, and lowering the bank ’s deposit reserve ratio to zero. Central banks in other countries have no choice but to follow these Fed actions by injecting liquidity into the system.
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All these measures will cause the fiat currency to depreciate significantly, which will affect the value of your fiat currency balance. In order to avoid being hit hard by currency depreciation, many people explained that a good solution is to switch to Bitcoin.
As inflation in the supply of fiat money in circulation accelerates, the Bitcoin plan becomes increasingly inevitable. The upcoming corporate bailout will further increase the demand for alternative plans to opt out of this completely outdated fiat currency system.
Although many people began to realize the limitations of the current monetary and financial system due to the beginning of the economic crisis, they still found it difficult to take measures to buy Bitcoin.
In my opinion, this comes from 5 modes of thinking that hinder you from buying Bitcoin. Here is detailed information about these patterns, and more importantly, you need to learn how to change your perception of things to control your future.
# 1: Do you think the US dollar is a reliable currency
The US dollar is unanimously regarded as the world's reserve currency. The dollars you own will give you a sense of wealth.
For you, the dollar represents something strong. You are even convinced that the US dollar is a reliable currency.
But my answer will disappoint you, because this is not the case.
The dollar you adore is not based on anything tangible. In any case, since Richard Nixon unilaterally terminated the dollar-to-gold exchange policy in August 1971, the dollar is no longer based on anything.
Since then, the United States has not stopped increasing the money supply in circulation, which has actually greatly reduced the purchasing power of American citizens, but has reduced the purchasing power of people around the world more widely.
Therefore, in terms of the M2 currency stock dollar index, the dollar money supply has been increasing. When the Fed decides to inject $ 6 trillion in liquidity into the banking system within a few weeks, the growth of the money supply will accelerate.
The Fed ’s completely arbitrary decision devalued some of your assets and proved once again that the US dollar is not a reliable currency.
The only advantage of the US dollar is that most people have or have had confidence in the value of the US dollar. This confidence is gradually disappearing. Eventually, the alternative will likely replace the US dollar.
On the contrary, Bitcoin is a robust currency.
The maximum supply of Bitcoin is set at 21 million and can never be changed. By buying Bitcoin, you can ensure that you will not dilute your assets by increasing the maximum supply of Bitcoin. Therefore, 1 BTC in 2020 will always equal 1 BTC of 2100, which is 1 BTC of 21 million bitcoins.
Only Bitcoin can provide you with this certainty in the uncertain world we live in. In terms of the intrinsic value of Bitcoin, you should know that as the number of its network users increases, so does its value. In my opinion, it is only a matter of time before it reaches the level equivalent to the US dollar.
# 2: You think currency and economics must be complicated
The person in charge of the current monetary and financial system, even economists, is doing everything possible to ensure that most people know nothing about the principles of economics and the operation of money.
There is a simple reason, Henry Ford (Henry Ford) has mentioned several decades ago:
"The people of this country do not understand our banking and monetary system, which would be good, because if they do, I believe there will be a revolution tomorrow morning.-Henry Ford"
If all citizens around the world understand the principles of the current monetary and financial system, then a real revolution will happen immediately.
The authorities at the top of the system try to avoid this at all costs by keeping people in the dark.
In the current situation, there is a good example before our eyes. The Fed depreciated the US dollar by injecting 6 trillion yuan into the banking system. At the same time, the US government decided to send a check of $ 1,200 to all Americans.
The $ 1200 cheque alone represents $ 350 billion. This is a lot of money, but very little compared to the money in banks and financial systems. This check was obviously sent to citizens, the purpose is to calm them down in this difficult situation.
This check will calm American citizens, but their poverty will not change with only $ 1,200.
For example, a real measure is to eliminate the student debt of millions of Americans. This is just one of many examples, but it shows you that the power at the top of the system is trying to keep the crowd in control.
As far as the current monetary and financial system is concerned, the financial system is deliberately complicated to eliminate the idea that people should try to understand its mechanism.
On the other hand, we found that Bitcoin is very simple, because a 9-page white paper is enough to fully describe its working principle.
The simplicity and transparency of Bitcoin allows you to now answer the following three questions immediately:
- How many bitcoins are currently in circulation?
- How to create new bitcoin?
- Can Bitcoin's circulation grow indefinitely?
For fiat currency, it takes a lot of courage when trying to answer these questions. Even the world ’s leading economists disagree on the answers to these questions. This shows the unnecessary complexity of the fiat currency system.
Choosing Bitcoin, you will understand that the payment system didn't have to be complicated. Everyone needs to be able to understand how it works so that they can control what actually happens in the system.
# 3: You think you cannot replace the current currency and financial system
The current monetary and financial system was actually created by former US President Richard Nixon in August 1971 and was legalized under the Jamaica Agreement of January 1976. The system now clearly shows its limitations. The wealth inequality between the rich and the poor has never been greater.
Most people know that the current system is dysfunctional, but most people also think there is no alternative.
This is a completely wrong mode of thinking that locks you in this legal system. In fact, this 49-year-old system is just one of many experiments. Currently showing its limitations.
Just like what has been done in human history, another option will emerge.
Bitcoin was created at the end of 2008 after the last global banking and financial crisis. Obviously, it is a reliable alternative to the current monetary and financial system. This is our best option to prevent the current system from malfunctioning.
Whether you believe in Bitcoin or not, I think that even buying $ 100 is a good way to manage risk in the best way.
Sooner or later you will join Bitcoin because you realize that the current system cannot continue like this. However, this is a personal consciousness that makes everyone turn to Bitcoin.
For some people, it takes a long time to break this mindset. Others soon learned that Bitcoin is a reliable alternative to the fiat currency system.
# 4: Do you think the currency system must be centered on a leader
The generation you belong to will greatly influence your perception of Bitcoin. Most leaders of the world ’s major economic powers are members of the Baby Boomers or Generation X who have the baby boomers ’ideas.
The baby boomers attach great importance to the hierarchy. The vision of a great leader reassures them that he makes decisions for everyone else.
In fact, the current monetary and financial system sees that a small number of people are not democratically elected, but make decisions to meet the wishes of the majority.
However, this is not inevitable. The payment system does not necessarily need a trusted third party to function properly.
Bitcoin is a living example. For more than a decade, Bitcoin has been operating flawlessly in a decentralized manner, without any leader. In the sense that all evolutionary decisions are to reach consensus within the community, Bitcoin is a truly democratic country.
Satoshi Nakamoto gave Bitcoin as a gift to humans, so no one can claim that Bitcoin is his own.
Bitcoin belongs to all its users. If Bitcoin users can succeed, Bitcoin will also succeed. The last point must be understood. Bitcoin is an experiment that has been carried out for eleven years. As new users trust their networks, Bitcoin is becoming stronger and stronger.
Once Bitcoin has existed for more than 20 years, there is nothing to stop it, because more and more people will realize that decentralization, a system without leaders can work well.
Each new block added to the Bitcoin blockchain in a secure manner is another step in breaking the mindset of people who believe that centralization is necessary. Time is clearly on the Bitcoin side.
# 5: You think that others must be responsible for the safety of the goods they own
This fifth mode of thinking is a logical continuation of the fourth mode of thinking I just outlined to you. Those who believe that the payment system must be connected to a trusted third party that guarantees network security also believe that others guarantee what they own.
Bitcoin is a complete transformation from the current monetary and financial system.
Bitcoin enhances your ability by giving you the ability to live on your own terms. No one can review your transaction or confiscate what you have in Bitcoin. However, the freedom that Bitcoin gives you comes at a price.
The price of freely regaining control of your wealth is the need to ensure the safety of the property you own.
With Bitcoin, the safety of your money depends on you, and you are alone. If you lose the 24-word mnemonic and cannot recover the hardware wallet, you can only blame yourself. If you are caught in a scam while dealing with a suspicious person, it will be your fault.
Remember, Bitcoin teaches you to develop critical thinking skills.
This means that you will use Bitcoin to become your own bank. There is no guarantee other than yourself. You are responsible for making the right choices and protecting your property.
I think that regaining full control and ensuring a better future comes at a small price. In this case, you will no longer be subject to the arbitrariness of certain capable people of outdated system leaders Decide.
Since the first introduction of the Internet, Bitcoin has been the biggest technological revolution. Everyone agrees. This almost made some people forget that this bitcoin revolution is far beyond the scope of technology. Bitcoin is a complete paradigm shift, with strong ideological and social impact.
In order to get the most benefit from the bitcoin revolution, you need to be able to transcend certain thinking patterns that are locking you in the current monetary and financial system.
If you can truly understand the goals of Bitcoin, then you will be able to go beyond these thinking patterns. You will then be able to use bitcoin as a way to exit the fiat currency system that has reached its limits after 49 years of experimentation.