Bitcoin & Crypto & NFT News
The fiat currency banking system is doomed to fail because most all new money is created as debt; only backed by a banks promise to pay it back. In other words, backed by nothing.
Banks make money by lending. But banks don't actually lend money they have. Instead, they create it by writing it into borrowers accounts.
Whenever we take out a loan, we are led to believe that we've received money from someone else's deposits. The reality is that the bank actually just wires you the amount it has promised to owe you.
In the real world, the lender must have something to lend. If you need a hammer, my written promise to provide a hammer I don't have will be of no use.
But in the magical world of money, a banks written promise to provide you money it doesn't have is allowed to be passed off as money. 95% – 99% of money exists this way; as digits on bank accounts representing debt owed by the bank to you.
DEBT = MONEY
That's not even the worst part. This system is doomed to fail because the debt is perpetual.
You see, banks only create the principle of the loans that they lend, not the interest. This means there will always be more debt than money. The money needed to pay back the interest accumulated on a loan doesn't exist. So the only way the interest can be paid back is by taking on even more debt, which just kicks the can down the road.
It's quite literally a scheme. Banks are parasites. They want more money than there even is money.
I believe Bitcoin/crypto can be the quickest path for the general public to take and ditch this system.
Now, I'm not going to pretend that Bitcoin will solve everything. But it does solve a lot and now I finally understand why it is better than fiat.
For the first time ever in a very long time, we have a currency that is not in control of any authority. A currency that can be sent between each other without a third party. A currency that does not require a private bank to issue.
It's revolutionary. It has the power to change the game.
But time will tell whether or not the people catch on.