Is the answer to Global Debt Bitcoin? The global debt now stands at $243 trillion dollars according to a report by the Institute of International Finance. We’re reaching levels of debt that are just mind-boggling.
Not only is the system unsustainable, it’s the fault of a broken and irresponsible monetary system – one that allows for printing of money and the issuance of credit out of thin air. It’s time we admit that we need a new system – a new alternative. Bitcoin isn’t perfect, but it does offer a viable solution with its fixed supply and regulated output.
Do you know how big $243 trillion dollars is? That figure is 3 times the world’s total gross domestic product (GDP). In other words, this debt is 3 times larger than the value of all products and services on this planet.
This figure peaked in the first quarter of 2018 when it hit $248 trillion dollars. It has since fallen back slightly. Guess who’s one of the biggest offenders? That’s right. It’s the US of A. What’s even more worrisome is that nonfinancial corporate debt is close to its pre-2008 crisis highs.
We all know why this is happening. Credit was eased following the Great Recession of 2008. Credit was eased, and credit is how growth happens. Governments, companies, and individuals all borrowed money to fund economic development.
But what happens when there isn’t enough growth? Simple. According to John Mauldin wrote in Forbes: We just borrow more!
Bitcoin is a better alternative because it’s not just a treatment – it’s the cure to Central Banks and their addiction to printing money and encouraging debt. There will only ever be 21 million Bitcoin. They’re regulated by math, and the supply cannot be manipulated or increased based on the whimsical desires of a government or bank. As debt continues to rise and eventually implode, people will flock to crypto for their holdings.
Bitcoin offers itself as a sharp contrast to the fiat system. In our fiat system, money can be created – it doesn’t back anything – rather, it’s backed by the faith of the government and or entity supporting the currency. Once a country starts lowering interest rates and introduces Quantitative Easing, it’s just a race to the bottom to see who can flood the economy with its cheap money to stay competitive. This is how the world supports $243 trillion dollars of debt on the backs of its people.
Bitcoin can and is the answer. What do you think? Let us know on our Facebook page!