Imagine a world where fiat currency does not yet exist. Now your government has decided to introduce dollars as a medium of exchange. You are the first to go to a bank and borrow 1 dollar. This dollar you have to pay back with interest, let’s say the interest on 1 dollar is 1 dollar so you have to pay 2 dollars back to the bank.
Since there is only 1 dollar but you have to pay back 2 dollars, you borrow another 1 dollar. Now you have 2 dollars but have to pay back 4 dollars.
The circle will go on forever but I think you get the point. Fiat currency is debt and made to make the ordinary citizen poor.
If the cycle goes on forever, can the debts ever be paid? I think the answer can be easily explained with the simple example above. The debt can never be repaid, and worse, it keeps growing. Fiat currencies have a life cycle and most of the time currencies die for the same reasons – massive inflation. Papiermark in Germany, Peso in Argentina, Dollar in Zimbabwe, and Bolivar in Venezuela are just examples.
Massive inflation comes from excessive money printing and if you have already noticed, since the COVID pandemic, the money printing machine has been running without pause around the world. We see this in the high consumer prices.
The time has come for everyone to take care of their finances. Gold, silver, and bitcoin are decentralized assets and can only benefit from high inflation. Gold and silver are known to keep up with inflation.
Bitcoin has impressively beaten inflation with 116% YTD.
Diversify your portfolio and hedge your bets. The endgame may be closer than you think.
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