The World’s Most Successful Central Bank BITCOIN
Bitcoin is a central bank whose monetary policy is already evident for hundreds of years. However, it is not clear what the world’s ‘most powerful’ Central Bank FED will do tomorrow.
The number of experts who show the world’s most reliable currency as BITCOIN continues to increase rapidly. After the FED’s decisions, the world market had a slight sway, and his eyes turned to a crypto currency like Bitcoin.
According to the classical media, probably the best performing central bank is the US Fed. After all, it successfully weathered the 2008 Crisis, reinvigorated growth in the United States, and lowered unemployment to a historic low. At first glance it is impossible to object to this view.
However, there are some disturbing truths under this superficial “Polyannaistic” assessment.
In order to get out of the 2008 Crisis, which brought the banking system to the point of collapse in the USA and all over the world, the FED reduced the interest rates to zero and printed four times the dollar amount of the Central Bank money it printed in its 200-year history!
FED first burned the money, then printed money
The same FED started to increase interest rates at the end of 2015 because the economy recovered, and at the end of 2018, it started to burn the dollars that it pressed from the air.
The target in this normalization operation was to increase the interest rates to the old level of 4–5% and to burn at least 50% of the extra money.
But in the middle of 2019, the interest rose to 2.25% and 17% of the money was burned, so the stock markets began to fall rapidly.
The FED immediately stopped burning dollars and cut interest rates. He couldn’t even get up to speed and started printing 60 billion dollars a month again with a new program he announced a few days ago!
Confused, aren’t you? What speed is that? We used to print money, then we burned it, and now we print money again…
The disturbing facts do not end there. Moreover, it is not the economy journalist Erkan Öz who speaks the truth; Switzerland-based BIS, known in the market as the ‘central bank of central banks’.
BIS: Low financing costs are a danger to the economy
In its 2019 Annual Economic Report delivered in July, the BIS cautioned that zero revenue and cash printing strategies make standardization troublesome. National banks additionally underlined that low financing costs undermine the productivity of the financial area. The BIS has reliably focused on that low loan fees can likewise debilitate productive asset distribution and monetary proficiency.
More terrible still, the FED and its other elder siblings, who follow it in limitless cash printing, are continually printing cash, for example, BOJ from Japan, SNB from Switzerland, ECB from Europe, BOE from England, PBOC, decreasing the buying force of their own monetary standards. from China.
The dollar, now considered the strongest currency in the world, has lost more than 90% of its purchasing power since the founding of the Fed in 1913.
For what reason does this emerge? Since traditional national banks are controlled by individuals whose choices can change whenever and whose political interests vary as indicated by the networks they have a place with. Specifically, the strategy of continually printing cash and deteriorating the worth of cash causes the 1% at the highest point of the monetary pyramid to expand their abundance continually.
So what could be the arrangement? At the point when Bitcoin is referenced, another innovative cash strikes a chord for everybody. While Bitcoin is likewise the name of the PC program that runs this money.
Bitcoin computer program almost automatic global central bank
Moreover, this central bank is an automatic formation that does not favor anyone and does not pursue interests or political views. As required by the Bitcoin program, vital monetary policy decisions such as when and how much Bitcoin will be produced, when the prize halving will occur, etc. are all predetermined.
In other words, Bitcoin is a central bank whose monetary policy is already clear for hundreds of years. People can plan their economic life accordingly. However, as we have seen above, it is not clear what even the ‘most powerful’ Central Bank of the world, the FED, will do tomorrow.
In addition, since Bitcoin currency production is limited to 21 million, it aims to add value, not depreciate the money it produces. While the US dollar has lost more than 90% of its purchasing power since 1913; Since its first price in 2010, Bitcoin has added approximately 260 thousand times its value to its own currency, despite the 80% price drop last year. The value increase has been 40 times even when taken since 2015.
One of the most important differences is that today’s classical central banks produce money in return for debt. In some countries, when the Central Bank, which is still privately owned, prints money, the state treasury writes a debt note and gives it to the central bank. Here, the Central Bank prints money in return for this debt stock (bill or bond).
What advantage would the “Bitcoin Central Bank” offer?
As the Central Bank prints cash, the obligation of the depository, or at least, people in general, continually increments. While, when the Bitcoin Central Bank prints cash, just PC power is spent and no obligation is kept in touch with anybody. Lately, because of the cash printing free for all of traditional national banks, how much worldwide obligation has arrived at almost multiple times the world creation.
The individuals who guarantee that exorbitant energy is spent for Bitcoin creation ought to consider and analyze all assets utilized by traditional national banks all over the planet, like individuals, places, food, and so on.
Bitcoin is a programmed, worldwide national bank that doesn’t incline toward anybody, has an unmistakable financial strategy, doesn’t oppress its clients with obligation, and in particular secures and truly builds the worth of the cash it produces.