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What Governments Dont Want You To Know About Bitcoin

What Governments Dont Want You To Know About Bitcoin Bitcoin Bitcoin Bitcoin Bitcoin and Bitcoin bitcoin bitcoin bitcoin the reason why people dont understand bitcoin is because they dont understand money lets talk about this before some years this used to have value 500 and 1000 rupee notes are not legal tender from tonight now its just a piece of paper you may think thats very obvious but it tells us something very fundamental about this this piece of paper had value because the government said it had value and that we believed it had value now this kind of money is called fiat money almost all of our money is fiat money now you may think whats the problem well somebody has to create this money what if I told you that the same money that you and I have to work hard for somebody can just print it out of thin air no Im not talking about counterfeiting Im talking about how legal money is created monetary policies and money has more power than any politician or law most of us dont even know how things work its because its filled with jargon and mumbojumbo that its really hard to understand Henry Ford once said it is well enough that the people of our nation do not understand our banking and monetary system because if they did there would be a revolution before tomorrow morning a by assembly Ford ma so Im gonna try and break it down for you so that anybody can understand now many of the things I say in this article may seem disturbing at first I felt the same way when I discovered how the system works for every claim I make I have a reference so you could fact check me at any time first lets talk about how banking works hello mr.

What Governments Dont Want You To Know About Bitcoin

banker I have some extra money could you please keep it for me thank you sir is that all sir sir sir Im having a business please let me some money yes my friend we have the finest interest rates in the market just pay it back before we get really angry thank you sir now I can go start useless sir I have come to return the money we teen twist Thank You al hamdulillah thats how banking works right wrong most banks today follow something called fractional reserve lending there is a value called the reserve ratio which is declared by the Reserve Bank of India for the ease of calculation thats considered to be 10 what this means is that when banks receive a deposit of ten thousand rupees they now have the right to lend someone up to one lakh rupees you may be asking where do they get the money from well thats where we dont understand what money actually is to a bank money means just inputting a number in their computers ha ha ha that number gets reflected on the borrowers account and since hes not going to withdraw all of it as cash its okay and most of us are going to just transfer it to another bank anyway can you transfer this money into my friend Sokka so banks can just bounce these numbers between each other so banks create new money and lend it to you at an interest and they gain immensely out of this because its literally just free money if you dont believe me listen to this guy in a suit basically the banks sit there they wait for deposits to arrive and if they have enough deposits they lend them out to somebody else and that is completely wrong this is the wrong model of banks because what happens in reality is exactly the opposite and Ive done this Im a banker I know that thats how it works and you can read it on many central bank websites thats how it works is that banks when they decide the economy is good we optimistic we are now making loans they dont need to wait for any deposits because when they make a loan they create the deposit right there banks create money out of thin air now if everyone were to withdraw their money from banks all at the same time banks would go bankrupt and if we were to stop borrowing money there would be no money in circulation because about 90 percentage of our money is created in this way and these are private banks now the government also creates money do you think when they spend something on public works or when the Prime Minister buys a private jet they spend our tax money right wrong again they create new money this is for the war hmm this is for my private head hmm this this is for the role this is called deficit spending now you may be asking whats the big deal why should I care if you understand basic economics you will know the law of supply and demand it basically states that for the same demand an item which is high in supply is less valuable than an item that is scarce now when private banks and the government create new money they are increasing its supply what that means is that everybody now has more money and shopkeepers can price their goods at a higher price and everybody would be willing to pay the price of the items just increase or the value of currency in our hands just decreased because it buys less now they call this inflation so when the government prints new money to buy a private jet the money in our wallet loses value proportional to the new money printed thats the hidden tax that we all pay without us even knowing if its so easy for me to discover all this from just a Google search how our governments been able to get away with this for so long and why havent we done anything about it well this is hardly the first time in history that this is happening 50 ad room romance and countrymen from tonight the silver currency Denarius will be your currency the Denarius was introduced as their new currency it was made from pure silver and the people started using it as money as a medium of exchange and then they were invaded by the barbarians Wow they didnt have enough money to pay the army your majesty we dont have enough money to fight the war no problemo may come ordinarius but your majesty we no silver no problemo other led to the Denarius then we have a more than arias a dope the Denarius with LED in order to produce more of it people still used it as money because the government said that it was money Kings realized that they could make people do whatever they want by just creating money people did anything for money went to war built monuments the Denarius was doped so much that there was hardly any silver left and now since there were a lot more Denarius in circulation what used to cost about one Denarius previously now costed about 500 the prices of everything kept increasing uncontrollably until the whole Empire fell into itself on a civil war due to economic crisis when somebody is given the power to create money they abuse it 1789 France right after the French Revolution the newly formed government issued a currency called a signal against land and property we have come up with the new relatively cynical and secret I see no and then war happened make more as you know so between the types of property two decades but nobody is no exact they printed so much more that the value of a signal reduced drastically again there was inflation civil war until their whole empire fell and somebody is given the power to create money they always abuse it 1918 germany the german mark was first issued against gold but then World War one happened please mirthful savour it has printed more German marks than they had gold for and they printed so much more to make their people work that the German mark almost lost its value people were using it as wallpaper as kindling even there were record levels of unemployment strikes and hunger when somebody is given the power to create money they always always always abuse it in fact all fiat currencies go to zero there is this interesting website that lists all fiat currencies that have ever sister in history all of them go to zero the reason why this part of history keeps repeating itself over and over again the speakers there was no better way we cant carry gold around because its too scarce and somebody had to create our money and in 1900 the US dollar is issued by the United States of America it is initially issued against gold and then they printed more in 1944 major countries came together for a pact it was logical at that point of time but lets see how that ended it was called the Bretton Woods Agreement what it said was the US dollar will be printed against gold at a fixed rate and all other countries would print their currency against the US dollar hmm what could possibly go wrong of course US went to war with Vietnam and they printed more money to fund the war many countries realized that the US had just printed more currency than they had gold for and they wanted their money back and Nixon made the speech I had directed secretary Connally to suspend temporarily the convertibility of the dollar in the gold or other reserve assets in plain English thank you you werent getting your money back just like that all currency in the world became feared it was backed by nothing and thats the era we live in right now and most of our money isnt even printed by governments its printed by private organizations in fact the Federal Reserve of the u.s. is a privately owned entity Id like to know if youre not responsible for investigating that who is in terms of whos responsible for investigating would you mind repeating the question one more time chairman my time is up but I have to tell you honestly I am shocked to find out that nobody at the Farrahs er of including Inspector General is keeping track of this its one of the biggest open secrets that is the Reserve Bank of India used to be owned by a private group and they didnt go down without a fight when they were nationalized but that doesnt matter because every other currency in the world is printed against the u.s. dollar and the US dollar is printed by a private just look at this graph its the value of gold in US dollars whenever the price of gold goes up we know that people have printed more money because they cant escape the law of supply and demand just look at this inflation its a scam happening right in front of our eyes so you would work hard all your life and then keep your savings in your bank account people would eat it away without you even knowing it you would put it in the stock market things get even worse because the same people who have the power to create money also bid for stocks this creates extreme overvaluation of stock markets and then it all comes crashing down all at once thats what cost the Great Depression of 1930 so many people went hungry while a few rich came out even richer in 2008 like clockwork the housing crisis happened and the banks was bailed out by quantitative easing thats literally just creating more money printing money is like taking a drug when they stop doing it the vid drawl symptoms set in and they have to print more the world debt is more than our GDP combined like how does that even happen because every other country decided to print more money and export it to other countries thats what happens when somebody is in charge of creating money I think nobody should be in charge of creating money and thats where Bitcoin comes in in many explanations about Bitcoin you may hear the terms mining proofofwork and a lot of other jargon you dont really need to know about HTML and HTTP to really understand how the internet works right so Im not gonna go into the technical aspect of how exactly Bitcoin works there is a link in the article description if you want more on that the way Bitcoin works is that people on the Internet all have a record of how many bitcoins everybody had to begin with and then whenever somebody makes a transaction everybody records the transaction nobody can introduce new bitcoins without everyone on the network agreeing this way everyone can trust each other without a centralized body or an organization because everybody has the record of how much everybody else has this is why its called a distributed lecher how has become valuable if its created from nothing well the same reason why gold is valuable because its a scarce commodity there will only ever be so many bitcoins in existence unlike fiat currency which the government makes in order to manipulate people and whatever way they want no one person or an organization can create Bitcoin for the first time in history we have a system where nobody can create money its created by software and its run by everyone what this means is that if we all use Bitcoin as money governments cant go to war by making us all pour on your work will be valued and your money will not lose its value over time big banks and the top 1 who are in control of the current monetary system cant manipulate the people the way they have been thats what its all about its a power struggle between the old monetary system and the new one this transition wont be easy though the ones in power wont go down without a fight Gandhiji once said first they ignore you then they laugh at you then they fight you and then you win cryptocurrencies have only been getting negative media attention being presented as something for terrorist scams active currency of criminals world Im not denying that they dont exist if they do but cryptocurrency is represent something much more the start of a new age where trust from the governments is transferred back to the people an age where nations cant go to war because they just dont have enough money an age where the rich dont become richer by feeding off the poor governments central banks and the wealthy I could care less about Bitcoin they may ignore this is a massive scale and a massive email offer be encrypted currency trading they may fight this right in the end the reason why most of you might have clicked on this article must have been because of the recent surge in the price of Bitcoin now the price of Bitcoin or any other stock is just the last price that a buyer and seller agreed upon it doesnt reflect anything about its fundamentals so when you see price actions going crazy it just means that people were willing to sell and buy at those different prices and it has a lot to do with emotion rather than actual fundamental knowledge with that being said Bitcoin itself has a lot of flaws for one its really slow and it has a lot of transaction fees associated with it with recent currencies like nano and iota which are almost free and instant Bitcoin may even become obsolete the value may drop to zero dont get me wrong the cryptocurrency market will definitely raise in value but most crypto currencies would probably go to zero so if you are an investor dont put in more than you can afford to lose now I know I havent gone into how the blockchain itself works now the blockchain is the fundamental technology that Bitcoin was based upon its kind of like how email is to the Internet block chain is kind of like a data structure and its now being replaced by something called as directed acyclic graphs but the distributed ledger technology is truly groundbreaking and it has the potential to change our lives this article wouldnt have been possible without a hammer cidade Pratap Nene my uncle and me thank you so much for watching through this long article I always believed that doing your own research is better than listening to someone just because they said so and if you want to dig in deeper I highly recommend the series buy gold and silver article in the link description and also the article by ColdFusion or if you really like this article please do share it with your friends and for more content like this subscribe

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