GM Bitcoiners,
“Nobody runs away from here. We don’t need a fence. Know why? Because we’ve got the only water for a hundred miles. You want to run away? You’ll be buzzard food in three days.” – Mr. Sir, Holes
If you haven’t watched it, the film Holes is about a juvenile detention camp where you have to dig holes in the middle of nowhere. There’s no point in escaping because there is nowhere to go.
If you have nowhere to go, you have no choice.
If your local currency hyperinflated tomorrow, where would you go to store your value?
There would be capital controls.
You wouldn’t be able to leave with hard assets that you can carry, even if it’s a minimal amount of gold.
Thankfully, we have a new exit.
But let’s start with the usual fiat money story…
People use hard money.
Hard money becomes centralised by the state.
Fiat money is created and backed by hard money because it’s easier to transact with and control.
Due to incentives, more paper notes are created than the hard money backing them.
The peg is broken.
Fiat money continues to be devalued over time until it eventually collapses.
Repeat.
When fiat currencies break, people go back to money based on reality, like gold. Zimbabwe is at this point right now – the government are releasing ‘official’ gold coins to tackle hyperinflation.
Zimbabwe is extreme, but inflation is reaching record levels all over the world; the question is, where will people turn and how is this time different?
Money has always died, but we’ve NEVER had an exit that’s so accessible.
Inflation can happen gradually, then suddenly.
A huge difference is that Bitcoin is available for the ‘suddenly part’. There would be supply issues, but think of how fast people can onboard and buy some Bitcoin compared to other assets they may try and store their value in.
This time there is an obvious exit that most people can access FAST.
How will this change the response and reaction to future inflationary events? Especially as Bitcoin continues to stand strong. Time will tell.
We want people to have access to Bitcoin fast… but NOT late. If you want to build Bitcoin savings slowly, then auto-saving is probably your best option. Decide on the frequency and the amount, we do the rest.
