Banks can print money but Bitcoin is forever

The brutal irony of European Central Bank Tweets

I really couldn’t resist. Irony, reminiscent of the scenario of cruel satire, which resounds from the Twitter, published by the European Central Bank, is simply too brutal even for me. Why? It would seem that by passing such an obvious thing, the European Central Bank does nothing wrong. Everyone knows it!

Everything goes into question and answer, which, like a pair of subversive lovers, revealed their dark secret to the world.

European Central Bank and money printing

Yesterday, the Chief Economist of the European Central Bank, Peter Praet, answered questions from Twitter users, related, as is not hard to guess, to the monetary policy of the European Central Bank. Although most of the questions and answers were rather boring and little clear to an outside observer, one of them is memorable.

The European Central Bank was asked about how it obtained money to buy an asset (assets such as state treasury bonds, shares, etc.). With the sincerity of a nice old man who is not relevant to anyone anymore, European Central Bank replied that the bank can create the money. Yes, you did not overdo it. Create, literally. The same money that you work by the sweat of your brow, praying to receive them at the end of the month to feed the family, the bank can create. And he does not even ask anyone for a permission.

We all know banks can create a money, you fool!

This knowledge is generally available, voices will be raised soon. Yes, it is right, as in the era of the generally accessible global network which we call neatly the Internet, every knowledge is generally available. The fact that quantum mechanics can be taught by the Internet (there are extremely good resources available for this!) does not mean that your neighbor will explain to you the Schrödinger equation.

The same situation is with the awareness of the tools available to the manager of money — in this case, it is the European Central Bank, responsible for the financial system of 19 countries using the Euro. The European Central Bank, as Peter Praet has adamantly acknowledged, can create money.

Is creating money wrong?

There would be nothing wrong with it if it was about lollipops. Or water bikes. However, when the matter spreads through the most important, universal representations of the value in itself, our hard work and its fruits, as well as the wealth accumulated, a big problem arises.

How do you trust trust in the monetary system, as well as its defenders and governors, such as central and commercial banks, if they have the capacity to create money? How to trust that the colored papers we work with so hardly, for which we often give up our own needs, through which, when they are missing, often we and our families suffer, have real value?

Monopoly game analogy

What’s more, modern money has long lost its physical form. It has been replaced by a neat series of numbers on the screen.

Would you work as hard as you can for a bank note from Monopoly, knowing that your opponent has access to the bank? What’s more, nothing stops him from getting more money from the box next to him. Not very interesting motivation to play, right?

Do not get me wrong. Money always took various forms. From seashells, through gold coins to banknotes and their electronic record. The world is moving forward, therefore money and its representation must also evolve. It is hard to imagine our economy without smoothly functioning electronic money. But is this our money?

Strong money, our money

Although the European Central Bank, when asked about Bitcoin, replied succinctly that Bitcoin, unfortunately, is not money, I think it made a huge mistake driven by it’s ignorance.

What is Bitcoin? Although complicated in details and technology, its idea is very simple. Bitcoin is digital money. Digital money that no one can take away from you. Which is safe and cheap to use. Over which, the power have mathematical rules and economics, not the European Central Bank or other Banks and Governments. Bitcoin is indivisible, possessing the characteristics of anonymity, with a fixed monetary policy.

Bitcoin was designed in 2009 by an unknown inventor, hiding under the pseudonym Satoshi Nakamoto. It was a response to the brutal financial crisis that hit the world in 2008, as a result of the irresponsible and careless monetary policy of the American FED and World Banks.

At first you can be offended, because it sounds like a weak conspiracy theory. I had such an opinion at the first moment. However, there are many differences from the conspiracy theory — and the real hard effects were seen in 2008.

Who wields power over Bitcoin? No one!

The World Crisis is not the only example of banks irresponsibility. Perceptive observer will see correlations, for example, in the gigantic political and social crisis that Venezuela is facing.

Although over twenty years in Venezuela has passed when the socialist system was the main driving force, only the complete collapse of the local currency and the subsequent hyperinflation caused that Venezuela is sinking.

Do not get me wrong. I am very far from postulating that one should completely break away from traditional currencies. I would be a blind fool to say this. Do not kid yourself, although Bitcoin is acceptable in more and more places, it can be sent to the other end of the world for a few cents, and using it alone does not cause any problem, it is still young.

Bitcoin, as well as the blockchain technology that is it’s foundation, need time to develop to show it’s full potential.

Small steps

It should start with small steps. Read more about Bitcoin. Ask. Get acquainted with it, because the world of cryptocurrencies is not free from all sorts of cheaters and frauds! Once you get some knowledge, buy 1/10 of Bitcoin (yes, you can buy a part of Bitcoin, for example 0.05BTC).

Have fun, check yourself how everything works. In this way, you will gain the possession of independent, free money. And who knows if it’s about the freedom we will fight in the nearest future?

De Beers once said that diamonds are forever. Bitcoin is also forever. In a world in which traditional money collapsed, it is worth having something of your own.