There is never a dull moment in the world bitcoinThere’s always something going on.
Some events are more memorable than others, but there’s never a dull moment. Among all these events, there are sometimes things that bitcoiners hope are “revealing” events. So things are happening in Western society that highlight Bitcoin’s value proposition. That’s how it happened a few weeks ago when we had to deal with several US bank failures. Call it a banking crisis.
There is a moment of hope that people suddenly appreciate the value of Bitcoin immensely. That sentiment was briefly reinforced by the fact that we immediately saw a sharp rise in prices. It seemed that people were taking their money out of the bank en masse and then buy bitcoin
Do people ever realize that the money in the bank isn’t really theirs? That once you put money in the bank, you are only entitled to it. That banks lend or invest their money to make a profit. This fractional banking is done on a large scale, which is why the bank has actually deposited only a portion of the total money in cash.
Could this be the big reveal that would lead to the start of the next bull run? In the end, this was not the case and the recent price increase had other reasons.
* Momenteel wordt Bitcoin nog gezien als een risk asset. Dit betekent dat de prijs volledig afhankelijk is van de totale hoeveelheid liquiditeit in de wereld. De FED heeft uiteindelijk moeten ingrijpen om de banken te ondersteunen en het systeem van extra liquiditeit te voorzien. De Bitcoin prijs reageerde hier direct op.
Last year we also saw two ‘tell-reveal’ events. First there was the protest of the Canadian truck drivers at the beginning of January. The government eventually resorted to a special emergency law that was never implemented. This allowed them to freeze protesters’ bank accounts. A few months later, some Russian banks were disconnected from the SWIFT payment system.
The question then is not whether you agree with the decision. The thing is, there are those in power who can disconnect you from the payment system if you do something they don’t like.
Our current financial system is built on trust, and central banks and governments around the world continually violate that trust. It is important to realize that permanent monetary expansion (money creation) is an absolute certainty in the current fiat system. There is so much debt in the system that it can only be paid off with newly created money, plus debt!
Bitcoin’s value proposition is that it cannot be seized. It is an alternative system that eliminates the need to depend on third parties. One can own Bitcoin, save on it and its monetary properties are known. Ultimately, what matters with any form of money is the credibility of its monetary holdings. With Bitcoin, this is laid down in the protocol and no one can change it.
Problems often only surface when they become relevant to us. Then it is usually too late. The money creation process happens slowly at first and then suddenly, just like our understanding of Bitcoin.
Those who understand Bitcoin can agree that the day Bitcoin was created was the eye-opener for the world. Satoshi Nakamoto chose this day for a reason and left a message on the Genesis block. An alternative system emerged in which governments can no longer lower the value of their money. The ultimate goal is the separation of money and state.
Each week, Bitcoin expert Rick Hutting writes a weekend column on the subject. You can also follow him on the substack through his free newsletter.
Source: Btc Direct
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
