In an interview on May 17, 2020, Federal Reserve Chairman Jerome Powell confirmed that the current monetary system has failed to stabilize the global economy even after the Fed and the other central banks printed billions of dollars to resuscitate the economy after Covid-19.
He suggested that the U.S. dollar seems to be reaching the end of life expectancy for a world reserve currency, arguing that Fiat money is not based on anything tangible, which is the root of the problem.
Indeed, many are beginning to ask themselves questions about this current monetary and financial system, whose flaws are being exposed as never before with the economic crisis of 2020.
The financial markets had already been artificially inflated for many months, and everyone agrees that it cannot go on like this forever.
Unfortunately, the unprecedented increase in the money supply will cause inflation that will adversely impact those who need help the most.
“People who were working in February who were making less than $40,000 per year, almost 40% have lost their jobs in the last month or so. Extraordinary statistic. So that’s who’s really bearing the brunt of this.”
Bitcoin is Not the ‘Villain’ in the Current Monetary System
According to a popular cryptocurrency publication dubbed “In Bitcoin We Trust”, BTC is a revolution that will transform the world of the future to provide a better life for more people.
The first cryptocurrency, which was created during 2008 by Satoshi Nakamoto, is a total paradigm shift that has been growing block by block since 2009.
Bitcoin now has a market cap of about $170 billion, with lots of users who have faith in its revolution. This is because BTC gives users complete power over what they own.
With Bitcoin, you don’t risk being censored when you want to make a transaction, and your coins cannot be confiscated like a bank can with your fiat money.
Moreover, Bitcoin fits the definition of hard money that could put an end to the mistakes of the current monetary and financial system.
With a finite amount capped at 21 million, inflation in the supply of new Bitcoins is steadily decreasing over time. In fact, for every 210,000 mined blocks on the Bitcoin network, the supply of new Bitcoins is halved, which makes this new form of currency resistant to inflation.
Bitcoin Offers Financial Inclusion to All
The benefits of Bitcoin go much further. The flagship cryptocurrency is an awesome tool for the inclusion of millions of people around the world into the global economy.
The coin has also helped countries like Iran and Venezuela hedge themselves from hyperinflation that is ravaging their economies.
Bitcoin also benefits the collective by helping to build a fairer world for the future, and offer a chance to people who are shut out of the current monetary and financial system.
Therefore, as the digital assets revolution goes further, buying Bitcoin will likely prove an incredible investment in every way.