I recently came out of the 'Crypto Closet' to my friends on Facebook after 28 months of research on the global trend that is being implemented. This global movement goes by a number of names.
Phrases are thrown around like:
The Fourth Industrial Revolution
Global Financial Crisis
Crypto Mass Adoption
The Downfall of the Dollar
One World Government
The Solution to the Liquidity Crisis
Whatever you want to call it, it is happening.
It's being kept relatively quiet in the mainstream news, but with each passing day, it becomes more clear that the world is becoming increasingly digital, and that it actually needs to be, to fix the severe problems in the existing financial system. Through the implementation of digital currencies.
I've put this post together as a way for you to quickly get up to speed on the global shift into the digital currencies.
Go through these in order to get a picture of what is happening.
First, let's go back to where the issue really began. In 1933.
The Removal of the Gold Standard
Then, to make things worse, President Richard Nixon's actions in 1971 to end dollar convertibility to gold and implement wage/price controls were intended to address the international dilemma of a looming gold run and the domestic problem of inflation. But that didn't work.
Our Money is Now called Fiat Currency
This is a problem because it means that the money we work hard for can be printed to oblivion.
Fiat Currencies like the AUD and USD have no real intrinsic value, but only the value they are given by the government.
They can be infinitely created meaning that each note becomes worth less (or you could say worthless) as governments try to solve their debt crisis. Read this article in Wikipedia about hyperinflation https://en.wikipedia.org/wiki/Hyperinflation
Hyperinflation produces situations like this photo where a wheelbarrow of money is worthless.
Bitcoin came out of the 2018 Financial Crisis as the first solution to the financial system
A programmer using the pseudonym Satoshi Nakamoto released his/her whitepaper on Bitcoin, bringing about a revolutionary technology called a blockchain, which allows for data to be chained together in a public and immutable network. This is, something that the world needs to prove the truth or genuineness of information. Think of electoral votes being publically traced and unchangeable. You can see the value in it to prevent election fraud.
Read the revolutionary white paper here: https://bitcoin.org/bitcoin.pdf
Read more about Bitcoin here: https://www.livemint.com/Money/YTYMYUD7dytGK5PGSpdRTN/The-2008-global-meltdown-and-the-birth-of-Bitcoin.html
The US Federal Reserve is Printing Money Like Crazy
They keep repeating the same failed strategy
This overprinting of money means that the purchasing power of your dollars is constantly decreasing. Think back to when your parents said "back in my day I could buy this for a dollar", that is a direct consequence of inflation, something that crypto can solve.
The dollar has lost most of its value
Listen to Jerome Powell the Chair of the Federal Reserve talking about how the Fed is printing money
We need a solution with a capped supply, one that cannot be printed into oblivion to save some political party in the short term.
Precious Metals and Crypto are Both Seen as The Solutions
For 5000 years gold has been the best store of value, and as currencies come and go, gold remains consistent.
Gold is incredibly valuable and will always be used for investing and other purposes. However, Bitcoin has come on the scene as the first new asset class since bonds were introduced in 1693.
Cryptocurrencies are as real as any other asset. The more institutions and people believe in the power of instantaneous, borderless assets, the more they’ll be worth.
Gold doesn't have a capped supply, it is still being taken out of the ground, and the supply is influenced by people like Peter Schiff, who have a strong interest in keeping gold above bitcoin. Elon Must has even spoken about the meteors in space that are covered in gold.
Bitcoin and other cryptos are deflationary assets. This is because the total supply is capped and the supply decreases as people lose their "passwords" called Private Keys.
When people lose their Private Keys the currency is essential burnt and lost forever. Like this man here who lost 7,500 bitcoin when he threw out his laptop.
Other currencies have deflationary attributes built into their currency simply by burning some tokens with every transaction to prevent spamming millions of transactions on the network.
So why is this important?
High Networth Individuals and Institutions are recognising Crypto as a better solution than gold
Bitcoin has seen explosive growth over the years.
Check out this chart. By Dec 2019 bitcoin had gone up 9,150,088%. This was before the institutions started adopting it.
Then. Guess what happened.
MicroStrategy becomes the First Public Company to announce they are buying $1 Billion USD worth of bitcoin as a treasury reserve asset to hold for 100 years
This is one of the best interviews I've ever seen on this topic. I took 5 pages of notes when I watched it.
Some Key Quotes from the Video:
"Inflation is coming. All other solutions are not working... There is a mad scramble for a store of value... other assets are being debased." Michael Saylor
"Bitcoin is the ultimate safe haven" Michael Saylor
"Bitcoin is the ultimate reserve asset, superior to gold in all aspects" Michael Saylor
"Institutional Treasury are coming... 50% of the money from 100% of the investors" Michael Saylor
Now, look at Bitcoin's price since the institutions started announcing they are buying bitcoin.
It broke the all-time high.
Do you want to know who is buying Bitcoin?
Check out my spreadsheet where I'm compiling a list of people who have purchased Bitcoin and XRP.
The reality is that Bitcoin has performed better than Gold.
The news is starting to get out, just like what happened in the movie THE BIG SHORT.
Too much reading? Keep researching by watching this MUST SEE MOVIE!
Watch THE BIG SHORT on Netflix
I put this here because it is helpful to see what happened in 2008 and how the same thing is happening again. The movie makes it clear that only a small percentage of people can see what is really happening.
Watch it here: https://www.netflix.com/au/title/80075560
Bitcoin is the Highest Performing Investment Ever
Read these articles, but if you haven't watched the Michael Saylor video yet, I recommend watching that. It is eye-opening.
The Bitcoin Price Has Outperformed All Other Major Asset Classes https://www.forbes.com/sites/ktorpey/2020/04/13/the-bitcoin-price-has-outperformed-all-other-major-asset-classes-over-the-past-year/?sh=63c8c9886fbb
How does Bitcoin compare with major assets? https://stockhead.com.au/experts/how-does-bitcoin-compare-with-major-assets/
People are Selling Gold to Buy Bitcoin
Watch this video from November 30th 2020.
So you can see that Bitcoin is the new kid on the investment block, only 11 years old, and making waves in the financial world. However, Bitcoin has a number of inefficiencies that have been improved upon by other cryptocurrencies, namely XRP.
Read my blog post about XRP here https://www.hamdev.net/post/what-is-ripple-xrp
XRP will Perform Better and has Approval from the Central Banks
It's important to note that there are a number of people who don't like what XRP stands for.
Bitcoin was created as a peer-to-peer payment network. Unfortunately, it has failed at that being a peer to peer payment network because people find the Bitcoins too valuable and inefficient to transact with.
It has now become a Treasury Reserve Asset - aka Digital Gold.
XRP is better positioned to be the global reserve currency and payment network because of its speed, efficiency, low transaction cost ($0.00006 USD) and banking partnerships.
IMPORTANT to note that not everyone likes XRP - particularly not the Bitcoin Maximalists
To read the next section you should know, I would be labelled an XRP maximalist by Bitcoiners, but I try to see both sides of the story. However, it's difficult to remove all bias when you are convinced of a certain technology. Here is how I would answer the three common criticisms of XRP.
The common arguments for why XRP is "not good" are the following;
Accusation 1: Ripple the company has 50% of the supply of the XRP tokens (which they Bitcoin Maximalists claim to make it centralised)
My answer: They are locked away in escrow, which is a mathematically time-locked software vault that releases 1 billion tokens per month to sell to banks and institutions. The creator of bitcoin Satoshi Nakomoto holds 1,000,000 Bitcoin. Also, 50% of the Bitcoin mining in the world is currently done by 4 miners in China meaning that in one sense Bitcoin is more centralised than XRP.