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Few people realize how the monetary system works and how it has changed over time. That's according to Boris van de Ven, founder of Gamekings and creator of The Bitcoin Show in a podcast at The Trueman Show. He thinks that virtual currencies like Bitcoin have the potential to make fiat money from governments and central banks obsolete.
This makes the latest developments in the field of Bitcoin and central bank digital money very interesting, because it gives us a glimpse into the future of our money system. According to van de Ven, central banks will soon come up with their own digital currencies, with which they can map all citizens' transactions. They will also introduce negative interest rates to the general public.
According to van de Ven, with the advent of virtual currencies, an alternative has emerged that can break the monopoly of banks and governments. Unlike unbacked fiat money, virtual coins are scarce. This means that a Bitcoin is likely to hold its value better in the long run than money that can be printed all the time.
Governments and central banks are aware of this development and will try to market an alternative in the form of central bank digital money. China is already experimenting with a Digital Yuan and other countries will soon follow. This is a dangerous development, because it allows central banks to gain total control over our money.
"Bitcoin is a solution to the problem. It may not be the only solution, but at least it is a solution. It's still very early, but it's promising. It has already cleared some major hurdles. I could imagine that we are talking about the next ten years, in which our current monetary system is going to implode.
Central banks are trying to put something else in its place. That may or may not work. If that doesn't work, then Bitcoin may be one of the alternatives. With Bitcoin our freedom is won. If it doesn't work, we are at the mercy of central bank digital currency, where our freedom has disappeared. Then we go to social credits, then there are all kinds of conditions attached to the money. It will still be created by the central government, but it will be distributed under conditions. Those conditions, that's your freedom."
In recent decades, governments have taken full advantage of the opportunity to create money out of thin air and make debt worthless through inflation. Governments can borrow almost for free, while savers see their purchasing power evaporate. According to van de Ven, in our current money system, it is almost impossible to save for anything, because money loses purchasing power so quickly.
"You have to be able to take the time and energy you store in money with you into the future, to absorb the uncertainty of the future. And that's the interesting thing, that the euro doesn't do that anymore. Saving like everyone else used to do, that you save before you buy something, that has suddenly disappeared from society.
In the past, you saved for a house or for a down payment. If you got married at some point and you had worked hard enough, you had that house. Nowadays that is unthinkable, because who the hell is going to save half a million. That is not possible at all. No, you go directly to the bank and you try to get that loan. After that, you'll see how to pay it back. And that's the case with everything. You pay back your phone monthly, you lease a car...
We are no longer used to saving for anything. Why? Because it can't be done. You can't save in euros. If you save every year, so to speak: That money is worth 10% less every year, while houses become 10% more expensive every year. You can't save against that, it's almost impossible. So that doesn't work. That's why everyone is starting to borrow, that's why we've entered a debt cycle."
Click here or on the image below for the video. From minute 50 onwards, it's about the money system, gold, bitcoin and central banks.
The Trueman Show with Boris van de Ven
This contribution comes from Geotrendlines
