Bitcoin and its impact to the economy.

Bitcoin today has reached a value of USD50,000 for the second time, in its history since its inception.

As long as Malaysia has corrupt practices among politicians, no matter which party, MYR will continue to depreciate.
So, is the economy still doing fine, like what it is portrayed in the media?

Did you know, once upon a time, in the 1980s the value of MYR1.00 was equivalent to SGD1.00? And the value of USD1.00 is equivalent to MYR2.50?

35 years later today, now we need MYR3.00 to get SGD1.00, and MYR4.05 to get USD1.00 !!!! What does that tells us? It is sign of the economy is declining sharply, and slowly. The Malaysian economy has never recovered at all.

The savings you have accumulated over the past few decades are declining in value through inflation. Is this fair for the people who are diligent in working for the betterment of the country, but the fact is that the situation and financial capability are all controlled by a handful of selected small and powerful groups, who are getting richer and at the expense of others who are getting poorer?

Banknotes that can be printed arbitrarily are issued by the central bank for distribution in the economy, reaching the hands of the people as loans.

Did you know, in ancient time, people traded using gold and silver money, the constraints from the government on those trades were very minimal? The ancient people usually did not have to pay taxes, and taxes were only imposed when the country was at war or wanted to build facilities for the people in certain areas. Taxes are only levied when necessary, not forced upon to pay long-term taxes, such as SST tax, income tax, import tax, carbon tax and so on.

Gold and silver are known to hold and appreciate in value and their value will increase because they are limited in supply, until they are replaced with banknotes where their value are supported or backed by the value of gold or silver in exchange for that banknote. These are also known as Gold or Silver certificates.

After August 15, 1971, this banknotes or paper currency is not as it used to be anymore, its value will no longer be backed by gold or silver, but its value is based on the confidence and trust of the people in the government or central banks that issued the currency, in a country, known as legal tender.

Each piece of banknote has a unique serial number, and the bank can curb and track your expenses, when necessary. Wait a second, who are these guys who have the power to decide what you can or cannot do with your money? The answer is, the government and the central banks.

Is the economy really declining spontaneously or naturally, or is it controlled by a small group of elected and powerful small numbers of people, who are getting richer and the others are getting poorer? I really want you to put some thoughts in this matter.

But we have been living like this for decades, right ? Isn't this normal?

So, what is the problem? Is there really "A PROBLEM" ?

Short answer : YES, IT IS A PROBLEM.

Long answer : YES, it's a big problem and here is WHY....

Gold and silver have become commodities and are traded in the global market. The people of the past owned most of the world's gold and silver supplies. They don't trust banks, and rarely they would exchange their precious metals for a piece of paper known as a Gold or Silver certificate. It just doesn't sounds right. But banks, being a business organization will need to earn trust from their customers, to deposit gold or silver into their custody for safekeeping.

Gold and silver are the main raw materials in the semi-conductor industry in electronics. The price of gold is strictly controlled by the big players globally who hold a large portion of gold and silver supplies globally, so if you have some gold, the gold won't lose value, but gold appreciation in value and increase in the price of gold takes a very long time. It is just too long, 5 years, 10 years, or 20 years . Interest rates for bank deposits are too low and overrun by inflation.

That is just small part of the whole problem.

The answer is we need to find a solution to the following questions.

1. What can replace banknotes or FIAT currency?

2. Is paper money really free from central bank constraints, regulatory and weakness in the monetary system?

3. Something whose value is not only guaranteed, but its value is determined collectively by everyone who uses it, by demand and supply.

4. It has to be in limited quantities, the system is not centralized, open source, but decentralized, and every transaction is encrypted to maintain anonymity.

5. Its value must be equally accepted worldwide and recognized by everyone who uses it.

6. Every transaction is confidential, and the identity of the user remains private and most importantly anonymous, invisible from central banks and regulatory.

7. The record of each transaction is immutable, permanent and updated without involving humans, in a peer to peer network, in a global ledger, with special computer processing power and electrical power, known as bitcoin mining. This global ledger is known as the blockchain.

The Answer and the Solution.

Bitcoin and its global ledger known as Blockchain, created by one individual or a group of people known as Satoshi Nakamoto, in the year around the end of 2008 and 2009. Who exactly Satoshi Nakamoto is to this day remains a mystery and a secret.

There are a few people who claimed to be "The Satoshi Nakamoto", but all eventually failed and dismissed , because all of them lacks the know-how and evidence to fully live up the legacy of Satoshi Nakamoto.

The value of Bitcoin is based on the processing power and the cost of electricity, and the time it takes to produce one bitcoin by bitcoin mining.

The system is scattered/decentralized across the world making it very difficult to hack, the larger the peer to peer network, the harder it is to hack, the entire network is connect through the Internet.

In other words, as long as Internet exists, blockchain and Bitcoin continues to exists.

Governments of every country around the world, to this day still FAILED to ban or even eliminate the existence of blockchain and cryptocurrency, despite repeated attempts. India till this day is still trying. Good luck with that, India.

Look at Singapore , and Japan. They have embraced and adopted the technology and the country is thriving.

However, Bitcoin and blockchain are not without its disadvantages.

One of the disadvantages, is that if you want to entirely eliminate or ban Bitcoin, and its blockchain network, EVERYONE ALL OVER THE WORLD MUST permanently destroy the entire Internet network, not using the Internet forever. The probability of this happening is extremely small.

So once you know the advantages of Bitcoin, buy a small amount of Bitcoin, follow your ability, as a savings. It is like gold. Ask me if you want to know more. I have shared everything I know above.

Yes, if you made this far, then congratulations.

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