Why Spain’s Government Destroyed Itself Economically + Why You MUST Invest in Crypto

There is a quiet revolution in money taking place around the world. And it’s called cryptocurrency. The timing could not be better! Because Spain- as well as some other countries in the EU like Greece and Italy have screwed up their economies. Let’s get into it… 

The cause of it all is complex and I don´t pretend to understand it all. What I do understand, is the cryptocurrency changes the rules completely. So strap in, as I try to explain briefly what cryptocurrency is, and why we need it. But first…

Read my guide to Getting Started with Bitcoin and Cryptocurrencies

What is money?

Money is traditionally said to have three functions:

• a Store of Value (SOV)
• a Medium of Exchange (MOE)
• a Unit of Account (UOA)

To do this, it must be scarce. But as central banks around the world continue to print currency en masse, the currency becomes devalued. This is called inflation, and it explains why the price of milk seems to go up every year.

Dollars are NOT money. Euros are NOT money. British Pounds are NOT money. These are all currencies.
Gold is money. Bitcoin is digital gold.

While they do function as a Medium of Exchange, they are Not a Store of Value. (The USD has lost 95 % of its value in the last 100 years.)

Wait- how much are they inflating the money currency?
Okay, it’s not quite like Venezuela which has an inflation rate of 653 %, but still the USA prints (ie creates out of thin air) $85 Billion per month. In what is now called a global currency war, every other country follows suit, printing more or less the same value of their own currency. In the case of the European Central Bank, this is 80 Billion Euros per month.

Anyway, Spain is an amazing country, but their economy has serious weaknesses. It’s hard to justify using the same currency as Germany when recent years have seen near 50 % unemployment among young people in Spain, and 25 % overall unemployment. I’d like to think it’s getting better, but we’re due for another global recession and we haven’t even recovered from the last one. It’s a mess.

What’s wrong with money?

Money as a medium of exchanging value should be simple- you give me a sack of potatoes, I give you a gold coin. You give me a gold coin, I take care of your sheep. Simple. Because we both know the value of a gold coin, we don’t need to know each others’ identity, and one gold coin is as good as another.

In the face of this simplicity, the current banking system seems ridiculous- why should a bank need to know all your personal information for the privilege of borrowing your money? And why should the government need to know about every penny in and out of your pocket?

As Anton Antonopoulos has said, “We’ve had the separation of church and state. Now it is time for the separation of money and state.”

This is not to endorse complete anarchy or refuse to pay any taxes, but when so many banks and governments prove themselves corrupt and incompetent, maybe it is time to reconsider the situation.

 Here are a few examples of how money is not working for people:

• • My friend here in Spain needs to send about €10,000 back to his family in Bangladesh. The bank refuses to send more than €3,000 per week. Whose money is this again?

• • In Cyprus quite recently, the government literally stole money from the citizens bank accounts. Needless to say, the bank was complicit in this. Now that’s what I call bank robbers!

• • In India in 2016, the government declared legal tender bills, useless overnight, crippling the day-to-day cash economy. My friend could not find enough cash for more than one meal per day.

• • Despite enormous oil wealth, the mafia government of Venezuela continues to inflate their currency and restrict foreign exchange. This directly leads to people starving.

• • The United States continues to pump an endless supply of money out of the sewers beneath Washington, D.C. This has the effect of inflating the USD at about 2 % per year. Unfortunately wages are not going up at this rate. Those saving for their retirement will discover the true meaning of compounded inflation as opposed to compounded interest, when their savings have halved in value 30 years later.

• Spain has declared any cash transaction over €1,000 to be illegal. If I were to pay you €1,000 in cash for your car, that would be illegal! Whose money is this again?

If you cannot buy a car with it, if you cannot send it overseas when you want to, if the government can take it from your bank account or declare it little better than toilet paper overnight, then whose money is it really?

So what has this got to do with cryptocurrencies like Bitcoin?

Everything! Unlike Euros, Bitcoin are scarce.

There will never more than 21 Million Bitcoins

Unlike Euros or dollars in the bank, they cannot be taken by the bank or the government. They cannot freeze your account or stop you taking your money out of the country. It is truly your money! You are sovereign over your own cryptocurrency without needing to trust any third party or central authority.

There used to be a time you could give your money to whoever you wanted because it was your money.
Now some of us are again doing this again, only digitally. When I want to send money directly to someone, I send Bitcoin. They are my coins and I choose to send them. 

Sovereign is often used to mean lording over like kings and queens. In this case, we are not asking to be kings, but we are demanding sovereignty over our money. Because if we do not own these, then who does? And who is sovereign over them? Or are we the property of governments and corporations- modern day slaves?

Bitcoin increases in value because it’s scarce

Unlike fiat currencies, Bitcoin’s value continues to go up (while the value of the dollar and the euro go down). This makes perfect sense, as there is a very limited supply, and an increasing demand.

The value is best modeled as an adoption curve, or ‘S’ curve. This is the same shape of adoption seen by technologies such as mobile phones, the internet, and dishwashers. A few early adopters try it, word spreads, it takes off and everybody’s gotta have one, and they when everyone’s got one the curve tapers off.

But hasn’t the Bitcoin bubble burst already? Haha not at all. Sure, over the last 9 years it has seen cycles in price, but it keeps going up, exponentially. And on the ‘S’ curve, we’re still in the very early stages of adoption.

If you want to understand the technical details of what Bitcoin and cryptocurrencies are and how they work, I recommend the courses at Cryptoversity.com. Chris Coney who teaches it really knows his stuff.

Learn how to claim 3 free cryptocurrencies here

But isn’t Bitcoin really complicated?

Well, underneath the hood, yes, it is. I actually read Mastering Bitcoin by Anton Antonopoulos. It blew my mind but I wouldn’t say I really understood it technically.

What I do understand, is the vision of why it’s important. Bitcoin makes money private, uncensorable, global, borderless, sovereign, deflationary, and it works 24/7.

While banks innovation has stopped- nothing more than ATMs and credit cards in decades, Bitcoin and other cryptocurrencies continue to innovate.

• Bitcoin has worked non-stop for 9 years now. Not just 9-5, and it doesn’t stop on weekends.
• It’s almost instant (just try sending dollars or pounds overseas, what a slow expensive nightmare).
• It’s transaction fees are way lower than the banks. While there has been some drama with this recently, the fees keep going down, and with the upcoming Lightning Network, will be practically zero.

Whether you see it as an investment or as a revolutionary technology, I think everyone today should hold some Bitcoin. Who knows what the future holds- John McAfee has bet that 1 Bitcoin will be worth a million dollars by 2020. We’ll see…

If this is new to you, most people start by buying a fraction of a Bitcoin through Coinbase. Yes, you don’t need to buy a whole Bitcoin. And once you start down the rabbithole, you’re bound to get excited about other cryptocurrencies like Ethereum, Dash, and Monero.

These are still early days, but there’s a revolution coming. It’s like the early 1990’s and the Internet. It was once just something for geeks. But now, it’s in everybody’s pocket.

Be an early adopter. Buy Bitcoin. And join the Cryptocurrency revolution!