Why Bitcoin
To answer why Bitcoin only and not other forms of currency, we must first understand the problem Bitcoin fixes.
Enter Fiat Money
Fiat money is any currency issued by a government or bank that is not backed by a physical commodity like gold or silver. Instead, its value comes from the trust that people place in the government or bank issuing it. Unlike gold or silver, fiat is entirely based on the public's faith in the issuer.
The school of thought advocating for this particular economic and monetary policy is known as Keynesian economics. It promotes government intervention as a means to stabilise the economy. Keynesian economics suggests that in times of economic crisis, measures such as increased government spending through money printing can stimulate demand and aid in helping the economy. It also advocates the regulation of the money supply as a tool for controlling economic activity.
However, there is another economic school of thought, known as Austrian economics, which advocates for a sound and limited deflationary monetary system. This approach has been effective in the past, but it has often been compromised by those in power succumbing to the temptation to manipulate the monetary system for their own benefit. We will delve further into Austrian economics below.
Today's Fiat Money
When the dollar was pegged to gold this used to say “In gold payable to the bearer on demand.”
The extraordinary power involved in the capability to generate money from nowhere is remarkable. To be able to effortlessly create currency and use it for activities such as war effectively constitutes a form of theft against the native users of that currency, or any nation linked to that currency. It essentially amounts to plundering the future of those who are obligated to utilise this currency.
The central control of money issuance leads to a phenomena called the Cantillon Effect.
This is the idea that the injection of new money into an economy has a ripple effect, impacting countries, corporations, small businesses, groups and individuals unevenly.
When new money is created, it is not spread evenly throughout the economy all at once. Instead, it enters at specific points.
The first recipients of this new money benefit because they can spend it before prices have risen in response to the increased money supply.
As the money begins to trickle down the economy, prices start to rise, and late recipients of the new money — often the general public — experience its decreased purchasing power.
This effect creates economic inequality, benefiting those closer to the money printer while disadvantaging those further away.
For this reason, people close to the issuance of money are often referred to as Cantillionaires.
Island Analogy: The New Stone Problem
To illustrate this point further, imagine you're on an island where smooth stones are used as currency, and everyone has a limited number of these stones, which they use to trade for goods and services.
The value of these stones is based on their scarcity and the agreement among islanders that they hold value.
Now, imagine a person discovers a hidden part of the island with an abundant supply of similar stones. They start bringing these new stones into the economy, using them to buy goods and services. Initially, they have an advantage because they have more stones than anyone else.
However, as they continue to introduce more and more stones into the system, the other islanders start to realise that stones are no longer scarce — and as a result, the value of each stone diminishes.
Now what used to cost one stone might now cost five, 40 or even 100!
All those hardworking savers suddenly find that their stones buy far less than before.
The person who found the new supply altered the economy's balance, disadvantaging those who had been saving and trading based on the original scarcity.
If you know, you know. If not, read The Bitcoin Standard by Saifedean Ammous.
Modern Hyperinflation: A Brutal Reminder
This same scenario is happening now with fiat money — leading to rising prices and the erosion of the purchasing power of people's savings and wages.
It's a theft of our time.
As prices escalate, wages always fail to keep pace.
This makes people poorer.
While the value of scarce assets increases, those who store their wealth in these assets still lose a significant portion to another form of theft: capital gains tax.
Hyperinflation in Germany 1923
German children had a lot of fun with cash!
Here are a few kids building a pyramid with banknotes.
It got so bad that it was easier to round up the cash, burn it in bulk, and use it to keep warm.
As hyperinflation spun out of control, the government responded by just printing larger denominations of cash.
This has happened in many countries, including:
• Hungary in the 1940s
• Yugoslavia in the 1990s
• Argentina in the 1980s
• Venezuela from the 2010s to the present
• Greece in the 1940s
• Nicaragua in the 1980s
• Zaire (Democratic Republic of the Congo) in the 1990s
• Bolivia in the 1980s
Government-funded bureaucrats present convoluted explanations to mask the real cause — central banking — but if you look at the big picture, the truth becomes obvious.
This fraudulent monetary system is designed to rob us of our time, efforts, and future — enriching the elite and the Cantillionaires.
Austrian Economics: Sound Money, Real Freedom
Austrian economics teaches that free markets, individual choice, and minimal state intervention foster a healthy society and economy (what a radical thought!).
It criticises government interventions for causing more economic problems than they solve, and it promotes a scarce, hard, deflationary form of money like gold.
(Bitcoin is even better.)
Austrian economics favours a system where economic and individual freedom are prioritised, leading to a more sustainable and stable economy.
However, Austrian economics often failed due to monetary manipulation.
During the Gold Standard, governments turned towards fiat because gold was hard to secure and transport.
Banks then printed more paper money than they had in gold reserves, effectively severing the gold backing.
This allowed infinite funding of wars and other endeavours — without needing to directly tax the public.
Gold Made Illegal
In 1933, gold was made illegal for private ownership under Executive Order 6102.
Gold ownership — coins and bars — was outlawed for Americans and punishable by up to 10 years in prison.
If caught, you also had to pay a fine of twice the amount of gold that wasn't surrendered.
End of the Gold Standard
The final death blow came on August 15, 1971, when President Richard Nixon announced that the U.S. would no longer exchange gold for U.S. dollars.
More info: https://wtfhappenedin1971.com/
The prohibition against owning gold wasn’t lifted until 1974 — but by then, the link between gold and money was gone for good.
Why?
Because fiat is free — and those in power can print it endlessly.
Free Markets and Real Money
In a truly free market, people naturally gravitate toward the hardest, most reliable form of money.
The existence of multiple fiat currencies today is a symptom of coercion, not freedom.
Communities that choose weak currencies will see their wealth evaporate.
Those that choose hard money will protect their savings and thrive.
Why Bitcoin?
Bitcoin surpasses every other form of currency in history.
It solves every problem that plagued money for millennia.
• Unstoppable
• Decentralised
• Scarce
• Censorship-resistant
• Immune to inflation
Bitcoin is the final separation of money and state.
It’s bigger than the internet, bigger than electricity — because it empowers everything that comes next.
Bitcoin isn’t just "digital gold."
It’s a tool to break free from mental and financial slavery.
You are NOT too late.
Where gold failed after 5,000 years
Bitcoin is succeeding.
It’s not just a revolution of money — it’s the evolution of money.
The currency humanity has been waiting for.
And it’s ready to set you free.