I have to be honest. In a perfect world, I would not even be considering using bitcoin. I do not match the first adopter profile (and in fact, I am not a first adopter. I probably count as second or even third tier). In terms of investing, I would be far happier with an investment of bonds making a safe 4 percent a year. I would be perfectly happy sitting in an office working towards a secure retirement, doing my best to provide value to my employer. I would be perfectly happy trusting the institutions of our society, governmental and financial, etc., to operate with high ethics in the interests of the general public.
But, let’s look at the reality. Real wages in the US have been essentially stagnant for forty years. Pensions and job security have been eroded to the point where almost no one can feel secure in their future. Massive fraud in the financial institution led to a bailout of the industry and no consequences for those who precipitated the crash of 2008. The government is locked in permanent partisan stalemate with no will to overcome the real problems of the country. Or even discuss them in a serious way. The vast majority of politicians have ears only for those with the money and power to gain access to their offices. Once in, the politicians servilely forward the agenda of this entitled class at the expense of the vast majority of the people, the environment, and our future as a nation. Corporations have now claimed themselves to be people under the law to allow themselves more rights and protections, but then claim themselves to be international to skirt paying their fair share to support the infrastructure of the country that allows them to exist and thrive.
And despite massive banking and corporate fraud, the stock market has been rising to record highs. What is causing this confidence? We still have high levels of unemployment. Growth is anemic at best. Only the investing class is doing well. Something is askew. All of this together suggests that the wealth being created at the top is based on manipulation and not fundamentals. The same flaws in the system that caused the last crash are still rampant, and perhaps even worse. We have another financial crash coming in the not too distant future. The question is not really if it will happen, but when.
That is what makes bitcoin a viable option.
It is perhaps inevitable that this type of digital, peer to peer, currency would rise, but it is the flaws in the current systems that are giving it a boost. As people lose faith in the government and banks, they are going to be looking for something that will provide more options. They will see the advantages of skipping the middleman of credit cards. International transactions will start to happen skipping the middlemen of banks and wire services. As national currencies destabilize, they will start to see an electronic, non-national, currency as a good reserve currency to hedge against inflation, runs, etc.
Because of the abuses in our current system, bitcoin has developed a momentum. That momentum is turning into a manifest destiny. That destiny is that it will take its place alongside national currencies as the real world reserve currency.
This currency, once it reaches critical mass, will not be easily manipulated by individuals or governments. It will give us a chance, not a guarantee, but a chance, to correct the system.
Let’s get to it.