From Gold to Dust to Bitcoin

Let’s kick things off with a splash: What the fuck happened in 1971?

The gold standard, a system that underpinned the value of money, was abandoned.

Before 71 the money in your pocket held its value year after year. This standard was reality for America’s first 190 years.

Dollars were linked to gold, which kept government spending in check and inflation nonexistent. But when Nixon ended the gold standard, severing money’s tie to scarcity. The fallout was rampant inflation and the steady devaluation of the dollar began.

Pre-1971, if the government wanted to print more paper money, they needed more gold to back it.

But perpetual deficits and runaway spending on the Vietnam War created an incentive to break free from gold’s discipline.

Here is Nixon ending the gold standard, “temporarily”. 😂

Video: 1min 18sec

The Aftermath: An Uncontrolled Spiral

However, what followed wasn’t a utopia of economic stability and prosperity. Rather, we observed the opposite:

• Diminished Savings: People's savings gradually lost their value due to persistent inflation.

• Rising Costs of Living: The escalating prices have made education, healthcare, and housing increasingly unaffordable for the average person, placing significant financial strain on families and individuals.

• Widening Wealth Gap: The departure from gold has exacerbated income inequality, with the wealthy seeing their assets grow exponentially while the middle and lower classes have struggled to keep pace.

• Increasing Debt: Both personal and national debts have surged, placing individuals and countries under financial stress and limiting their economic freedom and flexibility.

• Loss of Trust in Institutions: Public confidence in financial and governmental institutions has eroded, with many people feeling disillusioned and cynical about the systems meant to protect and support them.

Inflation tremendously disadvantages savers and those on fixed incomes. Excessive money printing enriches the banking system but crushes the buying power of the average person.

In 1950, it took 2.3 years of your life, your labor, to save for the cost of an average home.
In 2020, that figure ballooned to nearly 7 years. (Note: As our technologies get better and better the costs should have fallen tremendously)
The system has stolen that time from you, through inflation.

Check out this website for a shitload of statistics about what happened since 1971: https://wtfhappenedin1971.com/

The Silver Lining: Bitcoin Enters the Scene

But hold on to your hats because here’s where the plot takes a twist.

Enter Bitcoin – a decentralized, digital currency that embodies the principles of hard money. Here’s how this protagonist aims to right the wrongs of 1971:

• Scarcity-Driven Value: With a cap of 21 million, Bitcoin introduces scarcity, a feature paper money gave up long ago. This inherent limit makes it a deflationary asset, holding and even increasing its value over time.

• Decentralization: Without a central authority, Bitcoin is immune to government manipulation and control. It's money by the people, for the people.

• Inflation Hedge: As a non-correlated asset, Bitcoin offers a hedge against the relentless inflation that erodes the value of fiat currencies.

Navigating to Safer Waters

In a world still dealing with the aftershocks of 1971, Bitcoin is hope and a viable alternative to the fiat debacle we’ve found ourselves in.

By understanding the past, we can navigate through the present financial fog towards a future where money doesn’t have to work for you, because it holds its value.

With the advent of Bitcoin, we're witnessing a pivotal chapter in the epic saga of money, introducing a plot twist that holds promise and intrigue.

Vires in Numeris guys.

Peace out 🫡