By Scott Dennis
There will come a time in the near future that those of us in our community with an alternative reserve of wealth will be able to weather the storm of inflation better than others. Alternative to what you may ask? I am speaking of the US dollar, even now you must be noticing how much less your dollar is buying at the gas pump, the grocery store and most importantly with your utility bills. Alternative wealth can come in the form of stocks, land and precious metals however the most important version today is Bitcoin and other cryptocurrencies.
No doubt you have heard of Bitcoin and perhaps you are dubious, it can be complicated and scary just the way fire, electricity, computers and every ground breaking invention were before this one. I encourage you to learn as much as you can about it because the more of us in our community that hold crypto the more solid and less susceptible to foolish money policy we will be.
Bitcoin is the first of many cryptocurrencies and as of this writing is the most valuable in the market. In many ways it is the same as any commodity, at some point when it was first created by a particularly clever bit of software someone said to another person “how much will you give me for one bitcoin?” In the last decade the answer to that question has gone from almost nothing to close to $62,000.00 per bitcoin at this writing, so why is it so valuable?
There are many reasons including ease of use, transparency and security but I think the vital reason is that is decentralized, that is to say no governments can manipulate it, over print it or even outlaw it as this point. There is one interesting effect that researching crypto currency can have on a person however, it is not what one learns about the amazing uses of bitcoin, rather how little we actually know about the money we use now; the dollar also known as fiat currency and how money policy is making it worthless.
It is true that Bitcoin is simply information on something called the blockchain, but what is a dollar if not a piece of paper back up by nothing but a promise from our government, one that they cannot keep.
Scott Dennis
