The state of the world economy just over a decade ago was not a pretty picture. A solution was needed and one was offered in the form of a decentralized peer-to-peer digital monetary system. Bitcoin was born and a decade on it appears to be d\u00e9j\u00e0 vu for the global economy.<\/p>\n
The previous economic crisis was caused largely by banks<\/a> engaging in hedge fund trading with derivatives then demanding more mortgages to support the profitable sale of these derivatives. Essentially the bankers brought down the economies of the world and everyone suffered.<\/p>\n Banks have proved that they cannot be trusted and Bitcoin was created out of that notion. As Nakamoto himself wrote;<\/p>\n \u201cThe central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.\u201d<\/p><\/blockquote>\n US debt has escalated to unprecedented levels and all signs are pointing to another imminent economic collapse. With a national debt<\/a> approaching $23 trillion, the situation has clearly spiraled out of control and America, being one of the world\u2019s largest economies, will drag the rest of the planet into the financial quagmire again.<\/p>\n Goldbug Peter Schiff has predicted this collapse time and time again and asserts<\/a> that it will be far worse than the last.<\/p>\n \u201cThe economic collapse that is going to follow the bursting of this bubble is going to be far more dramatic than ’08.\u201d<\/p><\/blockquote>\n Naturally Schiff wants to plug his gold funds which do provide a relatively stable store of wealth in times of economic despair. Gold prices rose sharply from 2009 to 2011 as the world picked up the pieces from the last crisis and they are likely to do so again.<\/p>\n Bitcoin, which has often been referred to as \u2018digital gold<\/a>\u2019 is also seen as a store of value and that narrative is now stronger than ever. The majority of millennials will remember the last crash and will be wary of banks and their meddling. Bitcoin is likely to be the choice for them above gold simply because they have been raised with technology and the internet, unlike the generations before them.<\/p>\n The sentiment has been echoed by Weiss Ratings in a recent tweet which sums up the current situation.<\/p>\n \u201cBitcoin was an overreaction to the financial crisis and the monetary system that allowed it to occur. Today, instead of functioning as an efficient peer-to-peer system for transferring cash, $BTC is evolving into a store of value like gold.\u201d<\/p><\/blockquote>\n #Bitcoin<\/a> was an overreaction to the financial crisis and the monetary system that allowed it to occur. Today, instead of functioning as an efficient peer-to-peer system for transferring cash, $BTC<\/a> is evolving into a store of value like gold.#BTC<\/a> #crypto<\/a> #cryptocurrency<\/a><\/p>\n — Weiss Crypto (@WeissCrypto) October 17, 2019<\/a><\/p><\/blockquote>\nBitcoin is<\/em> Digital Gold<\/h2>\n
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