This Economic Crisis Will Be Different Because Bitcoin Is Here to Help You Protect Your Money

Bitcoin gives you the power to decide and protect your money.

The world is entering the midst of an economic crisis whose outcome is more than uncertain. This is not the first economic crisis in history, and it will obviously not be the last. Nevertheless, this economic crisis will be totally different from the most recent ones: those of 2008, 2000, or even 1987.

Until now, when the powerful at the head of the monetary and financial system took decisions to try saving the system following these crisis, the population had no choice but to wait patiently before finally paying the bill.

I say this because, in the end, it is always the same 99% of the people who pay for the solutions put in place to save a system that only benefits the 1%. These 1% are made up of the people at the head of the system, but also of the richest people on earth.

The rest of the population suffers from these decisions. The most direct consequence is that what the majority owns in U.S. dollar is constantly devalued.

To give you a better idea of the extent of the problem, take a moment to look at what has happened to the buying power of $100 from 1971 to 2020. Of course, the year 1971 was not chosen at random since it was in that year that Richard Nixon temporarily ended the convertibility of the U.S. dollar into gold:

Buying power of $100 from 1971 to 2020 according to Official Data Foundation

As is often the case with politicians, the temporary has become permanent.

From that moment on, the U.S. dollar, and other fiat currencies, were no longer based on anything tangible. The presidents at the head of the United States have succeeded one another, but all of them have continued to support inflationary policies for the U.S. dollar.

In fact, a buying power of $100 in 1971 represents only $15 in 2020.

So what you have in U.S. dollar has been steadily declining in value for almost 50 years now. Unfortunately, many people don’t realize it yet, but that’s the sad reality of the world we live in.

Some people will tell me that going back to 1971 is not a good idea, and that we need to focus on the last decade.

I am ready to hear their objection, and that is why I carried out the same study from 2010, just after the previous economic crisis: the famous banking and financial crisis of 2008.

Bitcoin was created just after this crisis as a response to a monetary and financial system that no longer protects people around the world.

Let’s take a $100 bill that would have been in your possession in the aftermath of the 2008 crisis. If you had exercised your free will by deciding to keep this bill without spending it, you would have only the equivalent of $82.94 today:

Illustration by In Bitcoin We Trust

If you had made the decision to buy 1 BTC in 2010, you would still have 1 BTC in your possession today.

Note that at that time, you would have only needed $0.07 to buy 1 BTC. This price seems derisory today when you see the current price of Bitcoin.

Some Bitcoiners might even tell you that the current price of Bitcoin, which is around $6K, may well look ridiculous 10 years from now in 2030. We have no guarantees, and only the future will be able to tell us that.

However, you do have a guarantee that 1 BTC of 2020 will be equal to 1 BTC of 2030.

In the uncertain world we live in, that’s a pretty good guarantee to protect what you own and give you a choice.

Because the whole point of Bitcoin is to allow you living on your own terms by giving you the choice to save your money without the risk of it being devalued by the arbitrary decisions of those at the top of the monetary and financial system.

Without taking too many risks, I can already tell you that the recent decisions taken by the Federal Reserve, and other central banks around the world, will devalue what you own.

The liquidity injections that have been announced over the last ten days or so will increase the money supply in circulation.

Let’s take the example of the U.S. dollar money supply, usually represented by the M2 Money Stock. This index is maintained by the Federal Reserve and is freely accessible.

Here is its evolution since 2010 compared to that of the maximum supply of Bitcoin :

Comparison of Bitcoin maximum supply with M2 Money Stock USD

If men can lie, numbers don’t lie. This is the strength of Bitcoin, which is based on the laws of mathematics embedded in its source code.

These figures clearly show that the M2 Money Stock has almost doubled from 2010 to 2020. The maximum quantity of Bitcoins has remained frozen at 21 million units.

With the current decisions taken by the Federal Reserve, it can be estimated that the M2 Money Stock is expected to double, if not worse, by 2030. Bitcoin will always remain with a maximum supply frozen at 21 million units.

Waiting idly while keeping your U.S. dollar will only erode your buying power.

In previous crisis, you had no choice but to do otherwise. Today, with the economic crisis of 2020, you have a choice to protect your money and your future.

That choice is Bitcoin, which allows you to opt out of the current monetary and financial system. Facing this massive currency devaluation that we are witnessing live, Bitcoin is your best defense.

There is no guarantee that Bitcoin will succeed in its revolution. On the other hand, there is no guarantee that it will fail.

If there is a possibility that Bitcoin will succeed in becoming a credible alternative to the current system, you must seize it.

Some have already seized the Bitcoin opportunity after the crisis of 2008. Cypherpunks and innovators who bought Bitcoins in 2010 and still hold them are now being rewarded handsomely.

If you had exchanged $100 in 2010 for Bitcoins, you could have bought 1428 BTC:

Illustration by In Bitcoin We Trust

By making the decision to opt-out of the monetary and financial system after the previous crisis of 2008 with just $100, you would now be at the head of 1428 BTC worth about $8.5 million based on a Bitcoin price of $6K.

Of course, all this is based on the assumption that you would have kept those 1428 BTC on a hardware wallet without giving in to the temptation to sell them in 2013 when Bitcoin has exceeded $1,000 for the first time.

In short, this would have been possible only if you had a true confidence in Bitcoin by being a HODLER of last resort.