The Downfall of Centralized Currency

 

One of the most often heard comments is how fiat currency can be printed on-demand.  While most people think this statement is overrated, every governing body around the world can create additional fiat currency “out of thin air.”  It goes without saying that, by increasing the total supply of fiat backed by the previous value, all money in circulation becomes less valuable.The Fed’s longstanding position has been to encourage all innovations in payments, as long as they meet the criteria of safety and efficiency,

 

Speaking of fiat currency being “backed” by assets to create the illusion of value, the US Dollar has not been tied to a  tangible asset for quite some time.  In fact, every US Dollar in circulation is backed only by “the full faith and credit of the United States”, and has no inherent or intrinsic value whatsoever.

 

Furthermore, once “new money” has been generated out of thin air, with no value to it whatsoever, the US Treasury distributes all of the additional funds to one of twelve Federal Reserve Banks.  It is important to note there are two privately-owned Federal Reserve Banks, creating a non-transparent ecosystem in which a handful of people determines the wealth of an entire nation.

 

By saying these twelve Federal Reserve Banks are privately owned, the term “privately” may not be an accurate description.  All of these financial institutions can do as they please, as there is no direct overseer from any government branch.  This is not a positive trend, as there have been multiple financial crises over the years.

Last but not least, the Federal Reserve can inject this new money – created out of thin air with no value – by purchasing Treasury Bonds.  But there is another option, as this money can also be used to purchase loans with the sole purpose of financing the debt of the entire United States.

 

How Decentralized Currency Is Different

 

Bitcoin, the most popular decentralized currency in the world right now, has a fixed supply of 21 million coins.  No more coins can ever be issued beyond that point, giving all bitcoins in circulation some form of value at any time, with the potential to increase in value over time.  It will take until 2140 until all 21 million bitcoins are mined.

Speaking of generating new Bitcoins, there are no institutions “printing” additional funds.  The only way to bring additional coins in circulation is through a complex process called “mining.”  As a reward for bringing new coins in circulation, Bitcoin “miners” receive the privilege of being able to spend these coins first.

 

Until the 21st million Bitcoin is mined, anyone in the world can participate in the “mining” process.  There is no approval process to go through, as Bitcoin is an open ecosystem welcoming people from all over the world to participate.  All funds are controlled by the people active in the ecosystem, creating a decentralized system.

Additionally, Bitcoin has no single point of failure, making the network far more secure and completely tamper-proof.  Unlike fiat currency, where one institution is responsible for controlling the money supply, Bitcoin is consumer driven.  On top of that, Bitcoin has multiple points of distribution, as the “mining” process takes place all over the world.

Last but not least, spent bitcoins are injected directly into Bitcoin’s growing economy once again.  Spent fiat currency is kept out of the ecosystem until it is brought back to the bank, a process that can take anywhere from hours to years.  Bitcoin’s economy is self-sustainable, open to anyone, and simply better.

 

If the above isn't enough information for you to conclude fiat currency isn't the best option. Please Read more and consider the following Reasons Why Your Nation Will Kill Cash For A Digital Currency.....

 

I’m talking about your country, whether it is Russia, China, or the United States. The more modern and advanced your economy, the faster it is coming your way. The discussions have been going on for a couple of years now on how to do it. The only question is when to spring it on the masses. If you are in a less than a state-of-the-art economy, like Pakistan or Guam, you probably have a lot more time left with the paper. Most of us aren’t so lucky.

 

Cash has been on the clock in the most advanced nations for years, with central banks limiting how much cash you can get, even from your own account. Limits have been dropping to as low as 5000 units of paper in some nations, and even then you will have to surrender your ID or go through some level of interrogation. The future of money does not include paper, and here are four reasons why digital currencies will become your official national currency.

 

Reason #1 - The best way to control a nation is to control its money supply

 

Governments are all about control. Whether it is doling out welfare programs and entitlement programs or demanding taxes and regulating your ability to trade or live freely, controlling the populace is the goal. The modern banks work together with the governments to control monetary policy, and between the two, if one control grid doesn’t get you, the other one will.

 

What you spend and where you spend it isn’t actively monitored, yet, but it could be with a phone call, an email, or an SAR (Suspicious Activity Report) at your bank. All of your online, ATM and debit/credit card transactions are on a server, and banks are already abusing this access to your financial life. That’s just what we know, much less is  what we haven’t discovered, yet.

 

Let’s turn this around, and imagine an economy without a digital paper trail. Essentially, let’s go back in time to around World War II before all these computers and plastic transactions ruled the world. Imagine, for a moment, that your country just ran on cash. No debit cards, no checks and no digital currency of any kind. This would create a few problems for your government.

 

How would your government know how many dollars there are in the country, or have left the country? Wouldn’t counterfeit paper currency become a huge underground industry, much larger today than it ever was previously? How would you know how many units of paper currency you needed overall? Do you need more, or less, right now? And plenty of business would be done “off the books” to avoid regulation and taxation.

 

This actually works out pretty well for the citizens, as they have a good level of freedom to use the money as they wish, and to be able to use it privately. This is something most of us have taken for granted as a huge advantage of the old Greenback. It is the most private, and direct way to transmit value. If you use a debit card, Bitcoin, or a wire transfer, you are creating a massive paper trail that can compromise your identity or security, both now and in the future. Some are just now realizing how important these benefits are today.

 

If you are a government, in bed with the banking industry, wouldn’t it serve your control grid much better to phase out cash? More people have smartphones than toothbrushes worldwide. People have become spoiled, and love the easy convenience of doing everything digitally, so take advantage of that reality.

 

A national digital currency can’t be taken out of the country, as China is dealing with the issues of capital outflows undermining their national economy right now. Between the government, and the banks, every transaction, every deposit, and every balance can be tracked, accessed, taxed, or terminated from your own centralized computer mouse in your digital bunker. How sweet is that? Reason #1 this is coming to a nation near you is because it is simply a better mousetrap. Guess who’s the mouse?

 

Reason #2 - Take advantage of Bitcoin’s technology before it goes viral

 

People who have taken the time to become learned in the world of decentralized digital currencies, like Bitcoin, know full well that it is a far superior system than the funny money ways of the central banks. Bitcoin is not designed to become the global reserve currency or even a national currency. It is designed to be a better alternative that you should have in your portfolio.

 

A problem for Bitcoin is it will take a considerable period of time before the mainstream discovers this truth. The mainstream media, the scammers, and the cyber criminals undermining Bitcoin accounts and exchanges around the world are not going to make mainstream adoption quick and easy. As long as Bitcoin is synonymous with crime and technology that the average person doesn’t understand, there is only so far it will go into the public consciousness.

 

This gives the governments and banks a sweet bit of leverage. What they can do, and are doing, is beginning to use their immense resources to learn how the technology works, knock off the systems and rebuild them under their own business models. In this gray area of time between the era of early adopters to mass adoption, the economic establishment can come up with their own “future of money” system to transfer people over to, before they figure out that Bitcoin is what they really wanted all along.

 

This is why all of these changes and Blockchain adoptions, within banks and governments, are happening so fast and so furiously. They know it is a race against time. It is only a matter of time before the common man understands that the greater economic system is a centralized hustle built to exploit them. It is only a matter of time before people start using a digital currency built to use on their smartphone. It is only a matter of time before Bitcoin becomes the Internet 2.0, and they know it. 

 

So, take the open-source technology, spin it for your own private, centralized, closed-network purposes, and Bitcoin will not be so attractive when you give them Bitcoin-lite, now with more surveillance than ever and true access to 100% of the national economic power.

“The Internet” went ‘viral’ after 10-15 years, and Bitcoin is heading into Year #9 soon, so if you were to head off Bitcoin at the pass, now is the time and the powers that be are sure acting like it. For these reasons, expect sweeping changes in your nation’s currency sooner rather than later.

 

Reason #3 - More Practical Reasons

 

If you are in a major Western nation with a huge GDP like the United States, well over 95% of your money is sent digitally anyway. People have become very well conditioned and trained, like dogs, to spend their money digitally, not via cash. Most major national economic powers have 80+% of their people using plastic or computers to spend their cash. Famously, countries like Sweden are removing cash from their systems outright this year. A nice beta test that will be scaled up in larger nations in the years to come.

 

Governments won’t have to spend billions of dollars, pounds, or yuan to protect large sums of paper assets in banks, print paper currency, and redesign it to prevent counterfeiting every few years. The entire economy becomes centralized and controlled by one entity. Endless taxes. They can tell you any propaganda they want about why your benefits were slashed this month.

 

What are you gonna do about it?

 

Banks can charge you any fees they want since they will have no competition. You can’t pull your money out of the bank since all the money is their digital code. They would have nothing to give you, even if they wanted to give you “your money.”  Their money is their money and your money is their money. It’s like that right now, but that is the real end game.

 

Reason #4 - Their economic model has failed

 

I shouldn’t need to tell you your economy is in trouble. You should know this better than I would. It really doesn't matter what country you’re in, chances are you are a part of this global recession. You’ve heard of the scourge of negative interest rates from central bankers sweeping the globe. This is a tacit way of admitting that Keynesian economics is a complete and utter failure for society, unless you are a banker, then it is pretty damn awesome.

 

Your economy is in trouble because Keynesian economics built around central planning and manipulating the economy is a total failure, at least for anyone not standing at the top of the economic pyramid. The Austrian, free-market economic model is the greatest system man has ever experienced. This is what was used to build the United States into the world’s greatest superpower throughout most of the 20th century, creating the greatest new technologies, businesses, and military. The problem is that over the last generation the free-market has been corrupted, mutated, and captured by bankers, regulators, and central planners to control and manipulate the markets instead of allowing for market corrections.

 

Everything the central bankers have tried has failed the market. The globalists and collectivists who have orchestrated this financial coup d'etat have won with regulations, higher taxes and protection from competition. They win either way. Their plan either works or they reset the rules, give kickbacks and favors to their insiders, and make sure that your plan never sees the light of day, literally. (“Big Oil” vs Solar power is a great example of this.)

 

The point is there are no accidents. No coincidences. Everything is happening just as it is supposed to, under the guidance of centralized bankers, regulators, and politicians. This is becoming more and more evident with acronyms like CISA, TTP, TTIP, CETA, SOPA, and others designed to pass more and more power to bankers, corporations, and other unelected elite, and take your freedoms and liberties away.

 

There is a whole world of centralization, or a shadowy global government, if you will, working behind the curtains of life, trying to guide it. Do you really think they have your best interests at heart, while they negotiate this whole new world in secret, behind closed doors?

 

So once the bankers and corporations have inflated the world’s reserve currency into oblivion, have sucked every ounce of economic value out of the dying system they built to fail, and changed every law into their favor, they’ll just turn over the chess board and say:

 

”This is OUR new system. Get used to it, because it is now the ONLY game in town!”

 

Back in the day, when you went shopping, you used to get a choice on how to handle your groceries. “Paper or plastic?” In the future, your payment will be filled digitally, without you even entering the store. Your last order will be repeated this week, or amended on the store’s website. And your food will just be delivered directly to you…..

 

Or not, depending upon if you are a part of the new national control grid, and you guessed it, it doesn’t accept cash. Are you in?