As you can clearly see, the Bitcoin network is growing more and more secure as time goes on. There is a lot to go into as far as the technology behind the Bitcoin protocol. Yet, Moe doesn’t need to concern himself with that. No one cares how the internet really works, no one cares how hockey was started, no one cares how the restaurant made your delicious mushroom risotto. Bitcoin & money only work because of a belief system. You need to believe it is money and then the technology can come after. Bitcoin is just a better form of money and, on top of that, it is the biggest supercomputer in the world with no leader to bring it down.
Keeping Moe’s Wealth Secured
Moe has a belief that his bank is keeping his money safe and that it is hard to steal. Moe says, “My bank is FDIC insured up to $250,000. There is no insurance against Bitcoin. I could lose it all.”
What Moe doesn’t understand is that the bank is stealing your money, they just call it a few different names like mortgage-backed securities, increasing the money supply, changing interest rates, or normal 2% inflation.
“Hedge funds, banks, and insurance companies caused the subprime mortgage crisis. Hedge funds and banks created mortgage-backed securities. The insurance companies covered them with credit default swaps. Demand for mortgages led to an asset bubble in housing. When the Federal Reserve raised the federal funds rate, it sent adjustable mortgage interest rates skyrocketing. As a result, home prices plummeted, and borrowers defaulted. Derivatives spread the risk into every corner of the globe. That caused the 2007 banking crisis, the 2008 financial crisis, and the Great Recession. It created the worst recession since the Great Depression.”
The point here is that banks, hedge funds, you name it, don’t care about your FDIC insurance. They don’t keep the necessary reserve deposits required to operate properly. Why? Banks make money by lending money out. Banks also know the Federal Reserve will bail them out if they are over-leveraged and don’t have enough liquidity.
The minute you put your money into a bank, they are using that to leverage. The number you’re seeing in your account is just a fairytale number. It is Fugazi! They don’t actually have that money, which is why in times of crisis, banks make limits on withdrawals. These situations are way more severe in foreign countries.
I am not fighting against lending money. Banks have every right to run a business and a profitable one. Yet, the consumer should be compensated for such risk and we are not. We get no return to hold our money in a bank. We actually lose money and purchasing power every year holding cash in a bank due to low-interest rates and inflation.
Banks are robbing us blind and the Federal Reserve Bank is creating an inflationary environment to do it.
“If you save money, you lose.”
-Senator Proxmire in “Secrets Of The Temple” by William Greider (page. 165)
Most recently, the chairman of the FED, Jerome Powell said this on a recent interview with 60 Minutes:
Published at Wed, 20 May 2020 00:03:22 +0000
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