One of the most common barriers people have around cryptocurrencies is believing that they are “real money”.
This always strikes us as a little funny and ironic, because in truth, the Fiat currencies that the majority of people use are far less “real” than cryptocurrency.
“Fiat money is a currency without intrinsic value established as money, often by government regulation. It has an assigned value only because the government uses its power to enforce the value of a fiat currency or because the exchanging parties agree to its value.” – from Wikipedia
But Fiat currency (which is different than true “money”) is based on nothing other than an authority saying it is so, and the people accepting it.
There’s no real “consensus” over the currency having value, only consensus based on authority. This means that we, as a collective people, are only attributing value to this currency because the government says so, and not because of actual supply and demand.
And of course, this can work for a short time, but will eventually fail when those in power have devalued and inflated the money past the point of recovery.
In fact, not a single Fiat currency of the thousands that have been used throughout history, has ever succeeded.
This point cannot be overstated. None. Nada. Nothing. Not one succeeded and stuck around.
Every single Fiat currency eventually returns to its intrinsic value of zero, and our current Fiat currencies are no different.
The Difference Between Fiat And Gold
Gold, on the other hand, has never failed to hold value over the thousands of years of our history.
Why is this the case?
After all, there’s not much “intrinsic value” of gold based on utility, meaning that we can’t really directly use gold for anything, other than looking pretty in jewelry (which is more about showing wealth and status than direct beauty), and possibly as a conductor in certain electronic and science uses.
But the major reason gold is real “money” and a real store of value is that it is scarce – we can’t simply “make more of it”, and so its value maintains over time.
When governments print more Fiat money, they’re making a profit on it at the expense of the people, who end up paying for this through devalued money and higher cost of goods.
Those who earn money through their time and effort are not only taxed on turning their energy into value, but the paper note they receive for that energy loses value over time as it’s sucked to the top by those who control the money supply.
But with fixed-supply monies like gold, your energy is maintained as value in the coin which cannot be extrinsically altered by someone in power.
This is precisely why every government has moved away from gold and tried to implement a Fiat currency – they have incentive to do so because it benefits those in power at the expense of the masses.
Gold, on the other hand, has a set supply and the value is based on the demand in the free market, which is the true voice of the collective people.
THIS is true consensus.
Does that sound familiar?
Bitcoin and most other good cryptocurrencies have a set limit that will ever be created, meaning inflation and government manipulation becomes impossible.
The value is decided by what people say it is through their inherent demand, and nothing else, making it far more “real” than the fake money the government uses to rob us.
Exiting The System Before It Falls
We mentioned in the beginning of this post that every Fiat currency in history has failed and returned to zero value.
Many people have become comfortable with how things have been working, and feel that they are using real money and that this system will never change.
But the truth is, we ARE at a massive transition phase in human history and signs of this system breaking are becoming more and more apparent.
And this isn’t happening in just one country. Now it’s global.
Collapses in the past have all been isolated to the country, but now we’re seeing that worldwide, the Fiat currencies are falling apart, as every single country in the world is seeing an increase in currency printed and a decrease in it’s value.
We’ve already been seeing this happening as countries like Zimbabwe, Greece, and Venezuela have their economies collapse. Don’t be fooled into thinking that it can’t happen to your country.
It CAN, and for as long as you’re using a Fiat currency, it WILL.
In the past this meant civil wars, government collapse, and a new system of power put in place that eventually repeats the pattern.
But now, for the first time ever, we have a real alternative – cryptocurrencies.
We see this change taking place and we see how this has played out over and over again in history.
And we know that the only way to protect ourselves is to leave the system before it collapses.
This means on the physical front, buying gold and silver, and other precious metals that have maintained value for thousands of years and will likely always hold value.
And on the digital front, it means switching to cryptocurrencies, which are like “digital gold.”
Truly, we’re at a time of transition, when the current system is becoming no more.
Don’t get trapped under the rubbage.
Get out now, and save your future finances.