The central banking system and how money is created out of thin air is unknown by many, leading to corruption and a system that benefits the banks over individuals. Bitcoin is an important solution because it puts the power back into the hands of the people.
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Understanding Money and the Importance of Bitcoin
Money is something that we use every day, yet very few people truly understand the concept of it. If you were to ask someone what money is, they may give you a vague answer about it being a means of exchange. However, they would have no clue about how the central bank system works or how money gets created out of nothing.
The Currency and Banking System
Money exists in various forms – from cash to digital transactions, and anything in between. Your paper note is essentially a promissory note from the bank that they will pay you the stated amount on demand. Meanwhile, digital currency takes the form of numbers in a bank’s computer system.
This currency goes into commercial banks, where banks create “pretend money” on top of the existing money in this fractional reserve system. Essentially, banks create money out of nothing through debt, which then becomes our currency. It’s a corrupt and evil system as we work hard to earn money with our blood, sweat, and tears, while the bank can create it out of nothing.
The Importance of Bitcoin
This is where Bitcoin comes in. Bitcoin is a decentralized digital currency that can’t be controlled by any central authority. It’s a peer-to-peer electronic cash system where transactions are verified and recorded in a public ledger called the blockchain. Bitcoin gives power back to the people and is the only open-source financial network in existence.
Bitcoin has a finite total supply of 21 million units, with each unit being divisible up to eight decimal points. It’s a deflationary currency as new Bitcoins get mined less and less over time. It was created after the 2008 financial crisis as a solution to the fraudulent and corrupt banking system.
Conclusion
Money is a concept that we use every day yet don’t understand entirely. Our current banking system is corrupt and evil as banks create money out of nothing through debt. Bitcoin gives power back to the people by being a decentralized digital currency that’s not controlled by any central authority. It’s important to understand money and how we can change the system to make it work for us rather than against us.
