Bitcoin Will Make a Comeback (Why Blockchain is Here to Stay) Part 1

Bitcoin Will Make a Comeback (Why Blockchain is Here to Stay) Part 1
Photo by Kanchanara / Unsplash

It'll come back... slowly, but surely.  Here's why.

First and foremost, Bitcoin is not a bet on a "new" technology.  It is an insurance policy against a failed one.  

The global monetary system has failed, not because it was a "bad" system but because the rules were changed - better put, abandoned on August 15th 1971.  That day, over 50 years ago, our soon to be disgraced President, Richard (the Dick) Nixon pulled us off the gold standard by "temporarily" closing the gold window. The net effect was twofold; the United States had defaulted on its promises while simultaneously allowing a private cartel, the Federal Reserve, an UNLIMITED monopoly on the creation of money.  To understand my emphasis on the word "unlimited," please take another look at the chart above.

Although the Fed has maintained strong powers since it's creation in 1913, Nixon removed the only protection remaining for the people.

Unlike EVERY MAJOR CURRENCY on Earth, Bitcoin's supply is limited.  And unlike those same currencies, the number of people using Bitcoin is growing exponentially.  

More and more people around the world are also starting to understand the dangers of INFLATION; many in a very painful way.  Bitcoin and the blockchain technology behind it, were created to reduce that pain over time.  Instead, it's portrayed and sometimes used, as a get rich quick scheme.  This is changing...

What's not changing is the current system, which continuously bails out the banks by printing more money.  Money worth much less than what it should be.

In Part 2, I will discuss a recent and real life episode of what happens when currency limits are ignored, abused, or forgotten.  Here's a quick preview from the Financial Times:  Venezuela’s economic and political crisis in charts.