The Argument for a new digital Currency and what to do next.
A lot of people have been saying recently the paper based currency system (fiat currencies) is a flawed system that will ultimately fail. We are used to this happening, with recurrent failures every 7-10 years or so as we lurch from one financial crash to the next. Each time there's a crash a band aid is strapped on to prop up the system. This was achieved after the 2008 crash in the form of quantitative easing. Basically printing more money and giving it to banks to balance their books in the hope it trickles through to us, the real economy, providing much needed economic stimulus.
The result of this is that paper currency is becoming less and less useful as more and more gets printed out by central banks to balance the astronomical deficit created by the current financial systems misuse over time.(inflation)
Not only does inflation cause a massive problem for the average person who wants to live a life that is stable and easy to plan for, but the ever present middle man banker is continuously taking his percentage cut and bleeding the economy of money by moving it "off shore" avoiding tax, hoarding, lending it at elevated interest rates and/or gambling it on the stock market.
It is a system that is choking itself by the roots in that there is progressive impoverishment at the very foundation of the economy, the people. Without people you don't have an economy. Make most people in the world poor and the economy dies at its roots. The economist E.F Shumacher's analysis of the individual as the smallest and most important unit of an economy is a good example of this principle.
https://en.wikipedia.org/wiki/Small_Is_Beautiful
In short, "efficiencies" in business is generally aimed at creating more profit. Excessive profit centralises wealth to the extent that it reduces liquidity in the economy. For example, a supermarket does the job of a dozen or so small businesses and profits from stronger buying power and employing less people than the dozen small shops. The result is less money for the farmer, less jobs created, less liquidity in the economy, less tax revenues from big corporations ingeniously exploiting tax loopholes, less investment in infrastructure and so on and so fourth. The economy starts to dry up. This is what is happening and has been happening since the industrial revolution. In the early stages this system, for all its flaws, in the main, drove progress and made the modern prosperous world with all its benefits. But the continued abuse of this capitalist system, to the point that it really can not be identified as a true capitalist system anymore, is leading to its failure.
So how does the capitalist system correct itself? The main tool for a free market capitalist system is a solid currency to buy/exchange goods and provide loans for start-ups. Money is simply a tool for the transfer of value or work done. Its just a tool. When a tool doesn't work anymore you get a new one. Its as simple as that. Use a tool incorrectly and it wears out and becomes useless. No panic just get a new improved tool. This is were I feel the establishment of Bitcoin is inevitable. It's decentralised nature injects much needed liquidity into an economy focussing finance to the individual bypassing the rotten systems of the established markets. It opens up possibilities for peer to peer lending, inflation less store of value, greater security via encryption and easier taxation for governments. Most citizens don't have the time, skill or even want to take advantage of tax loop holes. Indeed, most citizens believe in fair taxation and want to contribute to their society in this way. I don't think it will take long for governments to realise that the people who vote them into power might want to actually contribute to society and declare their taxable earnings for the benefit of everyone. Most people are nice like that!
I think it would be a good idea over the next couple of years to move into the crypto space. There are signs now that the next big failure of the system is looming. When it will fail is anyone's guess but If you watch this link you will get a better of what's happening.
https://steemit.com/money/@marketreport/new-usawatchdog-interview-gregory-mannarino-deficits-and-debt-will-explode-higher
Why go with Bitcoin? A good link to a video with Andy Hoffman.
https://vimeo.com/groups/359067/videos/249417830
Declaration; I hold bitcoin. Not much, but as a small investment in a balanced portfolio. I tried some trading on etoro and have made 96% gains in the last month. I got burned a few times and would have made more gains if I had just held one currency. What with the buy and sell margins so wide in a volatile market you get nailed 5% each time you make a trade. My advice would be not to day trade the altcoin market. If you want to gamble don't gamble more than you can afford to lose. At most just do weekly trades and follow good content to keep well informed. (I follow some good Steemers!)
What to do next?
I think it would be a good idea to familiarise yourself with the cryptocurrency space. Maybe buying a small amount of bitcoin, setting up an off line hardware wallet and executing a simple transfer. So that should you need to move more towards the crypto ecosystem, you have that option open to you.
If you are already a bitcoin holder a free altcoin (a bitcoin friendly fork) will be released to all physical bitcoin holders on Jan 10th.
10 Brhodium to every 1 bitcoin held (0.01 Brhodium to 0.001 bitcoin works too!) You must have registered you wallet address to BRhodium's website by then. So if you haven't done it yet? hurry up!
Until my next post, I wish you peace, love and fulfilment and may your God, Starbuck, Bitcoin or fork, be with you.......................always!