Bitcoin (BTC) is the solution to the loss of purchasing power and downward mobility of society. However, individuals must understand the underlying economic issues to see the true value of Bitcoin as a savings vehicle, according to Natalie Brunell, journalist and author of “Bitcoin is for everyone.”
Brunell was a first-generation immigrant; His family came to the US for economic opportunities, but was negatively affected by The financial crisis of 2008he told Cointelegraph.
“I didn’t understand the financial system at the time, Brunell said, adding that it would take a decade for him to see that most of the social and economic problems were rooted in currency inflation and a broken financial system that was eating away at the value of money. He said:
“Until you know how the financial system really works, why buying assets is so important, and what inflation really is, I don’t think you appreciate what’s really going on in the world and why things are falling apart.
You don’t appreciate what the potential is to solve this, which, I think, is Bitcoin,” he told Cointelegraph, explaining that Bitcoin’s supply cap of 21 million coins and decentralized, consensus mechanism consensus mining mechanism Create a deficit that stores energy in the economy.
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Time preference and the social effects of monetary inflation
The price increase is just the beginning of the negative effects of currency inflation, Brunell said. Fiat currency inflation eats away at future purchasing power and incentivizes short-term thinking, which creates negative effects on society, he said.
Saving in a difficult monetary standard like BTC Low preference time is encouraged.
Fiat currencies, on the other hand, imply the behavior of high time preference and short-term consumption because the value of money is constantly depreciating.
This encourages the holder to spend the fiat as soon as possible or risk losing value through the slow trickle-down of inflation, according to Brunell.
“After we moved away from a hard currency standard and completely into the Fiat system, the numbers speak for themselves in terms of our decline in mental health, increasing crime rates, and the inability for people to own a home,” he said.
Self-care provides a critical lifeline in times of crisis
Bitcoin’s portability does the same Individuals fleeing tyrannywar, persecution, economic hardship, and territories devastated by natural disasters, Brunell told Cointelegraph.
“You can take Bitcoin anywhere with you. If you need to flee in an emergency, you can literally memorize a 12-word or 24-word seed phrase and take your entire net worth with you,” he said.
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