• According to Forex Academy “The United States printed more money in June alone than in the first two centuries after its creation.” Also, “In June, the US budget deficit, which counted $864 billion, was larger than the total debt that was incurred from 1776 through the end of 1979, which is shocking.” - Dan Morehead (Ref 1)

• Currency is an integral part of the economy and societies everywhere.

• Investing in the wrong currency or asset will diminish your funds.

• Understanding what gives an asset value in a monetary system can protect from you inflation.

Currency that is backed by an asset that can be infinitely created will always be subject to inflation and devaluation.

• weforum.org says: “Crisis-hit Venezuela tops a list of countries with the highest levels of inflation, with a rate estimated at almost 300,000% in April. With the nation’s political and economic turmoil showing no signs of abating, the IMF predicts the rate will soar to 10 million percent by the end of the year." (Ref 2)

• Supply is the total amount of anything and what governs scarcity compared to its demand. It is infeasible to transact in the market with a currency that can be minted endlessly. This is inflation.

• This happens because of quantitative easing, thus increasing a currency’s supply to detrimental degrees.

As more countries continue to print their fiat currencies, they spiral further into debt.

• According to Bitcoin.org “Bitcoin is unique in that only 21 million bitcoins will ever be created. However, this will never be a limitation because transactions can be denominated in smaller sub-units of a bitcoin, such as bits - there are 100M bits in 1 bitcoin. Bitcoins can be divided up to 8 decimal places and potentially even smaller units if that is ever required in the future as the average transaction size decreases”. (Ref 3)

• Bitcoin can protect one against inflation, better than any asset has done in the past.

• Bitcoins' total supply can never be increased and can be sent to anyone around the world for a low fee.

Most have heard the expression not to keep all their eggs in one basket. This concept is similar.

• Cointelegraph.com explains that: “The biggest difference between cryptocurrency values and fiat money is that fiat currencies are backed by central governments and declared as legal tender. Its value is basically derived from the fact that the central government has stated that it has value and two parties in a transaction put their trust in that value”. (Ref 4)

• Imagine your wealth was in gold. Now imagine a new gold mine was found that contained the total amount of gold that exists. This would decrease your wealth with the known supply found and added to the economy. This happened with the U.S.D. except, more than the total amount ever printed in 200 years was printed in one month.

• According to the International Bar Association: “Bitcoin creation is mathematically controlled in a way that the supply of bitcoin grows at a limited rate. In fact, the number of Bitcoin rewarded when solving a new block is automatically divided by two every 210,000 blocks. So, if the reward is 25 bitcoins, it will decrease to 12.5 when this ‘limit’ is attained. This voluntary limitation means that the number of Bitcoin in circulation will never outrun 21 million and bitcoin will never drop in value because of excessive supply”. (Ref 5)

Every 4 years Bitcoin goes through a quantitative hardening which is the basically opposite of introducing more. Instead, every four years the number of Bitcoin introduced into the world is cut in half.

Education and understanding are the most important things before investing in any asset. After deciding, ones’ biggest question may be where and how to start investing.

• According to moneyadviceservice.org “Bitcoins and other cryptocurrencies can be exchanged for goods and services in the same way as (£), ($), (€), and the other currencies you’re used to. To store and use your cryptocurrency you’ll usually need a specialized ‘wallet’ which will have its own unique digital address, allowing you to send and receive cryptocurrencies”. (Ref 6)

I would like you to investigate the current monetary system as well as countries that have gone through hyperinflation. Additionally, look up banks, institutions, and famous investors to see what they are investing in.

• Diligently research, educate yourself, and monitor other successful investors to help learn to diversify your portfolio so all your eggs aren't in one basket.

• In our world where traditional fiat currency or government money is being inflated and decreasing in value. It would be wise to invest in something that is holding its value over time or increasing.

In closing remember, Bitcoin is not a get rich quick scheme, it’s a don’t get poor slowly tool. If you own something that’s slowly decreasing in value, why not exchange it for something that’s at minimum retaining its value or gradually increasing.

Reference List:

1. Forex Academy. Retrieved November 16th, 2020 from:

https://www.forex.academy/the-us-printed-more-money-in-june-than-in-two-centuries/

2. WeForum.org. Retrieved November 16th, 2020 from:

https://www.weforum.org/agenda/2019/08/inflation-deflation-venezuela-global/#:~:text=Crisis%2Dhit%20Venezuela%20tops%20a,the%20end%20of%20the%20year.

3. Bitcoin.org. Retrieved November 16th, 2020 from:

https://bitcoin.org/en/faq#doesnt-bitcoin-unfairly-benefit-early-adopters

4. CoinTelegraph. Retrieved November 16th, 2020 from:

https://cointelegraph.com/explained/how-cryptocurrency-prices-work-explained

5. International Bar Association. Retrieved November 16th, 2020 from:

IBA Legal Policy & Research Unit Legal Paper Rule of Law Versus Rule of Code:

A Blockchain-Driven Legal World (ibanet.org)

6. MoneyAdviceServices. Retrieved November 16th, 2020 from:

https://www.moneyadviceservice.org.uk/en/articles/bitcoin-cryptocurrencies

Written by ForsakeFiat.eth