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Why Bitcoin Is Generational Wealth

ozcopper

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Authored by 'NAMCIOS' via BitcoinMagazine.com,

Bitcoin truly enables people to plan for the future well beyond their own life, a luxury and necessity many throughout history did not have...

The short film "Bitcoin Is Generational Wealth" by Matt Hornick and Tomer Strolight premiered on November 1, 2021, to shed light on the true value proposition of Bitcoin.

[youtube]https://www.youtube.com/watch?v=3Rnqst5qCgA&ab_channel=SwanSignal-ABitcoinChannel[/youtube]

While many projects in the world today seek to enrich their founding members and provide palpable profits in U.S. dollars for anyone who joins, the world's most secure and robust monetary network aims to propel humanity forward based on the fundamental rights to property and freedom.

As people around the world watched the film, many different reactions emerged. Bitcoiners, aware of the goal for which Bitcoin was brought to the world in 2009 as a direct response to the bailouts of central banks to financial institutions the year before, got emotive when seeing the future reality that proper sound money could enable.

"The film stirred many emotions within the community, Twitter exploded with feedback and people sharing that they had been moved to tears," Daniel Prince, host of the ?Once BITten? podcast, said. "Hope was the main emotion shared in our home, a feeling so devoid in that place we call ?normie? land."

Driven by the desire to change the world, Bitcoin evangelists already preach that hopeful reality today; however, skeptics often fall for fallacious narratives instead and dismiss the nascent monetary network for some characteristics inherent to its early monetization stage.

    "Few understand the gravity of Bitcoin and the problems that it solves," Christian Keroles, managing director at Bitcoin Magazine, commented after watching the film.

Robert Breedlove, host of the "What is Money?" show, echoed Keroles' comments by remarking that the film posed "a trenchant critique on the prevailing fiat currency paradigm and a hopeful look into a more harmonious future for humanity through the monetization of Bitcoin."

In contrast, people who don't understand the Bitcoin revolution, and thus don't hold any bitcoin, experienced a mix of awe and confusion as the film progressed to show what the 22nd century could look like if humanity adopted bitcoin as its money. An extensive gap between the reality of the here and now and that of the depicted future led many to wonder how Bitcoin could bridge that difference.

"Bitcoin is Generational Wealth" portrays different epochs of humanity, starting from the war and hunger dominant in 1948, just a few years after the end of World War II, when a significant portion of human society had endured lengthy conflict and extensive loss. People then had to rebuild everything from scratch while passing warnings to future generations of what tyrants and the fall of individual rights could lead to. However, they didn't have the means to defend themselves from similar occurrences in the future ?? they could only hope such chaos wouldn't be repeated.

Fast-forward 50 years to 2008, and society had reconstructed itself. Information flowed globally, and trading networks evolved to encompass nearly every edge of the planet while entrepreneurship flourished. However, the subprime mortgage crisis ensued, wreaking havoc on businesses across the U.S. and leaving millions of people without a job. However, the Federal Reserve Board rescued the most prominent players, bailing them out with soft money freshly printed through cheap debt. The principle of fairness had been thrown out of the window, and amid chaos, Bitcoin was born while the system got addicted to easy wealth.

At a time of unequal treatment by the government and its monetary policies, Bitcoin promised the establishment of an incorruptible financial system in which users wouldn't be favored or discriminated against based on their credentials, status, power, or wealth. All participants are equal in the Bitcoin network, and anyone who participates can store or transfer value without needing permission. Compared to the then 37-year-old petrodollar system, which firmly applied double standards based on a political agenda and still does, the new system envisioned by Bitcoin challenged many established beliefs.

The film moves to 2021, the year this article is being written, a time that proved Bitcoin's value proposition to be even more relevant. Mandates and decrees enforced by authorities suppressed the freedom of many, leading to fear, hysteria, and division. A war over property and money began, and soft fiat currencies started to debase quickly. Society divided between those who believed in easy rewards and those who fought for freedom and honest work. The former proved very seductive, and leaders enacted laws to increase the money printing and make empty promises that things would get better if people complied.

Despite the barriers, Bitcoin began to flourish even more as El Salvador became the first country in the world to make BTC a legal tender. The antifragility of Bitcoin would be demonstrated through the protection of wealth, property, and freedom.

The shift Bitcoin enables society to make, and the point nocoiners don't yet grasp relates to incentives. The fiat system is based on the premise that high time preference decisions are conducive to economic growth. As people spend more, the economy grows further, and more money is created, and more money is needed in the now-more-productive economy.

Bitcoin challenges that status quo by reintroducing the values of hard, honest work and corresponding rewards. The analogy made from the network's consensus protocol, proof-of-work (PoW), is that participants are incentivized to behave honestly through economic incentives and game theory dynamics. By standing by honest work, compensation follows, and every participant benefits. This dynamic isn't valid with the current fiat system because the closer one is to the money printer, the more they benefit. Therefore, rewards are based on each participant's status and position in the system, rather than their proven work.

Furthermore, by reestablishing incentives, Bitcoin allows people to save and invest for the future ?? a stance that contrasts the "spend" mentality that reigns in the fiat currency system. Bitcoin is generational wealth because it allows individuals, families, companies, and governments to have a low-time preference and to think long term, resting assured that their money will preserve their purchasing power and enable more significant, multigenerational investments to be made.

Time preference is central because it underpins all decisions in society ?? from choosing what you want to eat for breakfast to the more complex investment in a new house. With distorted incentives, society fluctuates without constancy, forever seeking out the most gratifying purchase now instead of focusing on the long term. Many of the changes this simple shift would enable are depicted in the film, including agriculture, food, enterprises, education, and basic needs such as water, bureaucracy, and energy.

A prosperous society focuses on the small actions that can be done now to bring about a better future instead of focusing on what they can do now for instant gratification. Since most of a society's decisions are based on monetary trade-offs, money is central to establishing the proper incentives, and people act accordingly. By restoring sound money and ending the addictive, easy money culture, Bitcoin enables humanity to march together to achieve a second renaissance and achieve hope, productivity, creativity, and optimism.

    "The world is building wealth that is no longer measured in the quantity of currency, since the amount of currency is hardly changing. What has wealth become? It is now the sustainable, expanding, uncorrupted productivity of all humanity, enjoyed by all. It is measured in the quality of life of all mankind," Strolight narrated in the film.

Ultimately, by restoring proper incentives and freeing society from worrying about outperforming the inflation rate through paper investments, that's what Bitcoin enables.
 
Bitcoiner no longer recommends it as investors risk financial ruin

https://www.abc.net.au/news/2022-07-01/bitcoin-price-cryptocurrency-investing-buying-bridge-asic-ato-/101076794
 
Portsmouth, New Hampshire
December 5, 2022


JIM
RICKARDS
Dear Reader ,
I work hard to avoid promoting conspiracy theories. They?re too easy to adopt as explanations for all sorts of strange events and are highly implausible in most cases.
They require extreme amounts of intelligence, coordination and competence that, quite frankly, the alleged conspirators simply aren?t capable of.
Usually, stupidity is a perfectly good explanation especially when it comes to politicians and other public officials.
Even when elite coordination is apparent it?s not necessarily a conspiracy at work. It may just be the case that like-minded individuals are pursuing a common goal.
Elites mostly went to a fairly small group of top schools and took similar courses taught by a tight-knit group of academics. They came up through the ranks in the same government agencies and multilateral institutions.
With that much in common, it?s no surprise they think alike and share the same globalist goals. At the same time, some conspiracies are real. It?s na?ve to believe otherwise.
The Real Deal
But how do you distinguish between the dime-a-dozen conspiracy theories and the real thing?
Smoking gun evidence helps, but that?s rare. Firsthand experience with the matter under consideration is one of the best approaches. That brings me to this story?
It involves the CIA, the failed crypto exchange FTX, money-laundered campaign contributions to Democrats, the Pakistani bank BCCI (which was a criminal enterprise on stilts that collapsed in 1991) al-Qaida, Jeffery Epstein and the crypto stablecoin Tether.
That?s a lot to unpack.
I handled Citibank?s financial control in Africa in the 1980s and BCCI was a bank we ran into constantly. We knew it was bad news then years before the collapse and made sure we kept as far away from them as possible.
I also converted Citi to Islamic banking in Pakistan around the same time. My Pakistan experience was one reason I was recruited by the CIA to do financial counterterrorism aimed at al-Qaida and others in the 2000s.
That experience deserves a few words?
Project Prophesy
The CIA recruited me as part of Project Prophesy, which was launched as a strategic study under the direction of CIA veteran Randy Tauss, who was also a seasoned options trader.
I was tapped to join the group based in part on my experience with Islamic banking in Pakistan.
That was considered useful in understanding the mindset of potential terrorist traders. I later became one of two project managers reporting to Tauss.
In 2004, I helped build a working prototype of a Project Prophesy machine using artificial intelligence, applied mathematics, news feeds, price feeds, computing and human oversight. We were looking for terrorist insider trading.
We developed Project Prophesy in total secrecy. And much of my work is classified. But I can tell you that on Aug. 7, 2006, Prophesy?s system uncovered warning signs of an impending terrorist attack.
Three days later in London, a plot to blow up 10 U.S. passenger jets was thwarted. Twenty-four Pakistani extremists were arrested.
The Government Ignored My Warnings
Then in 2007, my system spotted an impending crash in the real estate and stock markets.
I presented my findings to Treasury officials. But they ignored my warnings. We all know what happened next.
We were ready at that point to build a more robust version of this for the CIA and sought additional funding.
But the CIA decided not to move forward with the project mainly for political reasons.
They were worried about possible adverse headlines if it were made to appear that the intelligence community was trolling through citizens? personal trading records.
That was never true; we used open-source price feeds to get initial leads and then operated through the judicial system after that. But the publicity risk was there and the CIA did not want to take a chance.
After 2008, I moved on to other projects, but I never lost sight of the potential predictive power that we had discovered in Project Prophesy.
I learned that the techniques I developed were useful far beyond the realm of counterterrorism. They could be used for any kind of geopolitical threats carried out in capital markets.
Cryptos and Capital Markets
And I?ve been expert on cryptos since 2010 shortly after they were created in 2009. Besides, I?ve followed the Tether story for years and have been able to drill down on FTX in real-time.
In other words, I?ve had enough hands-on experience in third-world bank fraud, intelligence work, cryptocurrencies and other touch points to know this story hangs together and makes a highly credible case.
I?ll leave the story to you rather than repeat all of the details. Here?s the main takeaway: FTX is just the tip of the iceberg.
Tether does not have the liquid dollar assets it claims to support its $80 billion of coins issued. When Tether does collapse the impact will be multiples of the FTX impact and will certainly affect mainstream finance leading to bank and hedge fund failures.
If the Tether collapse is delayed somewhat it will be because the CIA finds it so useful in financing Ukraine (a Democratic money-laundering scheme) and so-called ?color revolutions? around the world.
It?s all playing out before our eyes. Meanwhile, the crypto dominos continue to fall, and will continue to fall until they?ve knocked down mainstream finance.
Bye, Bye, BlockFi
The crypto exchange BlockFi has filed for bankruptcy. BlockFi had been on the ropes for some time, and finally suspended redemptions by its customers on Nov. 11 because it lacked available funds to repay those customers.
It had agreed to be acquired by a bigger crypto exchange FTX, but that deal was abandoned after FTX was revealed to be the biggest crypto fraud of all. In the end, BlockFi was illiquid with a crashing valuation and no way to pay customers, so it closed its doors and filed for bankruptcy.
There are a number of important lessons for investors to take from this even if you have no direct involvement with cryptocurrencies?
The first is that the crypto world is densely connected. One exchange will leave its funds on deposit with another exchange and so on in a daisy chain of interlocking deposits.
Of course, if one link in the chain fails, the entire chain fails, and no one is repaid. That?s bad enough, but what has been happening in crypto land is even worse.
House of Cards
The parties who receive deposits from others borrow against those deposits. This introduces leverage so that the amounts involved in a collapse are far greater than the amounts originally received.
Many of the participants in this reckless conduct offered to pay customers interest. How could they offer interest when the actual cryptos are not securities and don?t earn anything themselves?
Don?t ask. A party paying ?interest? would receive a yield from another party paying ?interest? so that the interest component was also added to the original fraud. Interlocking deposits, borrowings, leverage, interest, derivatives and more were all part of the crypto scam.
In addition, many of the ?billion dollar? losses you read about in the crypto world are not actually dollars but losses, loans and deposits in cryptocurrencies that are valued in dollars at highly inflated values of the cryptos (another form of leverage).
What?s left is a house of cards that is now tumbling down. Luna and Three Arrows failed before FTX. BlockFi and others have failed since. Genesis may be the next in line.
This slow-motion sequential collapse is far from over. It?s just a matter of time before the crypto-world collapse leaks into the mainstream financial world of banks, brokers and hedge funds.
All I can say is give it time.
Regards,
Jim Rickards







 
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