The World's Biggest Ponzi Scheme (And how you're probably a victim!)
Author: Elle Miller
The world’s biggest Ponzi scheme…. we’re all victims of it. It’s called our Current Monetary System. Yes, our current monetary system - fiat - is causing the poor and middle class to struggle while the wealthy and persons in power get even richer!
This blog post is not for shock-factor or a political piece. We think everyone should know this information to make an informed decision about their current and future wealth.
Let’s dive deeper.
What is Fiat Money?
Fiat money is a government-issued currency not backed by real assets like gold or silver.
The dollar, yen, yuan, and euro – are all being used to represent the value of a currency. Back in the day, this amount of cash had to be backed by the gold reserves of the country. At one point, 1 ounce of gold was about 35 US dollars. This allowed users to have trust in the currency.
All that changed when in 1971 US President Nixon decided that extrinsic value was no longer needed to print the US dollar. This gave centralised institutions all the power. Suddenly, they could print money depending on the perceived value and power of a country.
Instead of real-world assets to back up the value of the currency, the government can now print as much money as needed and the world is required to accept it. This money can now be used to get goods and services, store and grow wealth, or borrow money (debt) against it.
How do governments distribute this newly printed money?
The government gives this money to the wealthy 1% earners of the country through different grants, tax breaks, and other welfare programs which extend cash reserves for the already wealthy.
These big corporations and the top 1% now pay interest to the government as payment for this money. Instead of paying that outright, these big corporations pass on the debt to lower-income households by using banks to create more debt. These banks then pass that on to the ordinary person where we have to pay extremely high interest for this cash through mortgages, credit cards, loans, and more.
Just like a Ponzi scheme, this extra cash reserve is paid for by those at the bottom and then only benefits the big institutions, governments, and the already rich.
What is a Ponzi Scheme?
A Ponzi takes money from newer investors to pay off existing investors.
In fiat money, things unravel when the governments cannot pay their debts anymore. Instead, they print more money to cover dues and the cycle of the creation of debt starts again.
This leads to governments going bankrupt and struggling to sustain their nations and we’ve seen this occur with countries like Sri Lanka, Venezuela, Greece and many more.
The cracks in this complicated system are now even more prevalent with high inflation rates, the nearing recession, and the widening wealth gap between the rich and poor. That’s why more and more people are switching and integrating more of their hard-earned assets into a completely decentralised currency, Bitcoin.
To learn more about how Bitcoin can hedge against the current monetary system Ponzi scheme and help you grow and preserve your wealth in the long term, start here: decryptingcrypto.com.