The Bank of England governor-designate earned himself a place in Bitcoiners’ hall of shame alongside Peter Schiff and Warren Buffett. Bitcoin has “no intrinsic value,” he said. Anyone who wants to buy it should “be prepared to lose all your money.” Yet, amid weak forex markets and a global contagion, BTC is holding its own. Here’s why you should hold Bitcoin over government fiat.
Purchasing Power of Bitcoin Won’t Erode Like Fiat
As the coronavirus brings China’s economy to its knees and causes global stock markets to fall, Donald Trump urges the Fed for more quantitive easing.
While Chairman Jerome Powell stands by the policy saying “in no sense this is QE!”, we all know what happens when governments print money at will.
Jerome Powell (Chaiman FED): “This is not QE, in no sense this is QE!“
In fact what we are seeing right now is the most MASSIVE Quantitive Easing in the history of mankind!
LONG TERM this is BULLISH for #Bitcoin!! pic.twitter.com/H5wqCj6O6H
— MMCrypto (@MMcrypto) March 4, 2020
Just take a look at the purchasing power of the U.S. dollar over the last 100 years. If you had a $100 bill in 1900, that would be worth around $3.48 today. Your $10,000 would only leave you with $348. That’s a 96.4% decrease in its buying power.
Bitcoin’s purchasing power on the other hand, with its built-in scarcity and limited supply, will not erode, but increase over time. This makes bitcoin a far superior store of value when compared to government fiat.
BTC’s $9,000,000% ROI Since Last Financial Crisis
As the world braces for the next global economic recession, it pays to remember that this time around you have a choice. Bitcoin emerged as a response to the 2008 financial crisis in which excessive risk-taking by banks caused global economic dismay and widespread government bail-outs at the taxpayers’ expense.
#Bitcoin was created after the last financial crisis. It has risen 9,000,000% in the last 10 years when fiat and stocks were strong. How do you think it will do in the next financial crisis?
— CZ Binance
If you’re holding government fiat and the banks begin to collapse one by one, do you have a guarantee of being able to access your savings? No one can seize your bitcoin or initiate irresponsible monetary policies to control its price.
Unlike fiat, it also has an excellent chance of yielding a dramatic rate of return when compared to 0.01% in your savings account.
When faced with statistics like these, the Bank of England governor-designate doesn’t have a leg to stand on. In fact, if you’re holding government fiat now, it looks far more likely that you will “lose all your money” over time.
Do you think bitcoin is a better bet than government fiat? Let us know your thoughts in the comments below!
Images via Shutterstock, Twitter: @MMcrypto, @cz_binance, ObservationsAndNotes