Bitcoin solves the world’s biggest problem. Money.

More specifically, the debasement of currency.

Inflation is the Scourge of our Times

Have you ever wondered why the price of milk or eggs or bread or even vegetables is higher this year than it was last year? We’ve gotten quite accustomed to the fact that they are constantly changing - and for the most part always increasing. There’s a reason the signs at the gas station have big plastic numbers that they can easily change from one day to the next, one week to the next, one year to the next. Those numbers always change, and over time, for the most part, always go up. Things get more ‘expensive’. We’re used to it. But why? Is it ‘greedy corporate price gouging’ as some politicians claim? Is it ‘supply chain issues’ related to the Covid crises or wars in the middle east? Those factors may contribute a small percentage, but the truth is that prices would be going up regardless of these other factors.

Why is that? What’s going on? Well, it’s called inflation. And it’s a brutal, pernicious, and never ending scourge.

The politicians get us all riled up over the cost of eggs or the price of prescription drugs. But the reason costs go up across the board, including and especially housing… is because of INFLATION. So what is inflation, exactly? And where does this menacing dragon come from? I’m glad you asked.

Inflation is – the INFLATION of the amount of money sloshing around in the system.

This is where most people start to blank out or fall asleep, and something attune to collective denial as I would describe it, kicks in —because this just doesn’t make intuitive sense. Money should be a fair abstract representation of all the value in the world. There's an old saying: "Money doesn't grow on trees". And it's true; it doesn't. But paper money does grow on trees. So how could there be more money in existence this year than there was last year? Where does it come from? I know from experience in my life that I have to work - and work hard to make everything I earn. So why does it seem like there are boatloads of money that seem to appear out of nowhere? Why do some people seem to have tons of it while others can barely survive?

The Jedi-Mind Trick

The US Dollar is not money. The US Dollar, which is the dominant and global reserve currency is not money. Most people think the US Dollar is money. But it’s NOT money. We refer to it as money.....we think of it as money. But the sad truth is that It just isn’t. If you ask monetary scholars or economists they will claim that of course the US Dollar is money. And then they will proceed to condescendingly explain to you that a money that is based on a series of debt obligations and relationships between the government and central banks is just as valid as any historically used commodity money such as Gold or Silver and in fact it is better and even necessary due to the complex nature of modern society.

The US Dollar has evolved over the years. It used to be redeemable for a specific amount of Gold or Silver, and that is why people trusted it and began using it as money, and thinking of it as money. But now, the US Dollar is a RESERVE NOTE — a piece of paper that represents a percentage of the DEBT obligation of the US Government. Now I think most people have heard that at one point or another, and it makes no sense to them, so they carry on with their lives, and don't bother trying to understand it any further. But in fact, a debt-obligation is the exact opposite of money. Debt is an amount of abstracted value that you OWE. Money is an amount of abstracted value you HAVE. I think this distinction is critical, and to me it seems pretty clear that they are polar opposites. Again, scholars and experts will laugh at this simple-minded way of thinking. But I think that is just foolishness in some sort of sophisticated wrapper, and I don't buy it. I buy Bitcoin. I think this is the crux of the Jedi-mind trick that fiat currencies play on the masses. How can money be both something you have and something you owe to someone else at the same time? It can't. It's like a game of 3 card Monte - where you are getting tricked. You are getting scammed. And the reason it works is because no one understands it.

So if this debt-obligation isn’t money, then why is it that we can go to the store and use it to BUY bread?

The World's Largest Ponzi Scheme

We can use these debt-obligations to BUY things because the US Dollar is a giant pyramid. A Ponzi scheme. This is particularly ironic of course, because one of the biggest misconceptions and mischaracterizations of Bitcoin is that it is a Ponzi scheme. Once again, the exact OPPOSITE is true.

The US Dollar works because you use it to get stuff and other people are giving you stuff in exchange because they think that they will always be able to turn around and hand it over to other people to acquire the things that they need. So it works because it is currently serving the function of money. And the bank knows that they can definitely get more for it than what they paid for it because that is exactly how US Bonds -- (Treasury Bills) work.

OK, so then what does the US Dollar have to do with Treasury Bills? I think this is something that most people, myself included- REALLY don’t understand. But here’s a brief break down: We have the US Treasury – the part of the US Govt. which is supposed to be in control of money and spending (issuing currency). The Treasury sells (issues) bonds / T-Bills. The Commercial Banks buy these bonds with a contract that says at a certain date in the future the government will not only return the value - but also an additional amount – a certain % that incentivizes the banks to lend.

So - BUYING BONDS = LENDING MONEY to the Government. Lending Credit. The Federal Reserve Bank is a quasi private / public entity that is the LENDER of last resort. They are also known as the CENTRAL BANK. So if the Banks are lending to the government, then the government runs on Credit to the Bankers - not on money.

The US Dollar is a CREDIT based system - not a MONEY based system. And remember, CREDIT isn’t money - it’s money YOU OWE. So if the entire US government runs on money they OWE, money they BORROWED… then that means they ALWAYS have to work harder to get more - to pay back the lenders. This creates an endless pyramid scheme - an endless Ponzi scheme.

The Pyramid

Who is at the top of the pyramid? The private banks that are shareholders of the Central Bank. And guess who is at the tail end of the Ponzi scheme - or, the bottom of the pyramid. You are.

You will forever be at the bottom of the Pyramid, unless you buy a house. Now, if you buy a house - you have successfully climbed up the first wall - the first stone- of the financial pyramid. Now you are lifted up by all the people in the world who haven’t yet been able to buy a house. Therefore, you are contributing to the structure of this pyramid. This doesn’t mean that you are evil or bad - you’re just IN THE SYSTEM. But don’t feel bad - we’re ALL in the system.

If you have multiple houses - and / or stocks or other assets, now you are another stepping stone up the pyramid. We have learned various techniques or behaviors that over time have allowed us to move further up the pyramid, and despite the pontifications of various thought leaders or spiritual advisors, we all play the game. When you move up the pyramid, life gets easier. You get more stuff, more optionality, and your wealth begins to look like it is expanding.

You bought your house for 300,000, and now the market says it is worth 800,000.

You feel wealthier. You can borrow against the value of the house to purchase a new car - or take a vacation. Buy all of the consumer goods your family desires because it’s all relative to the ‘wealth’ you have gained from the value of your assets increasing in dollar denominated value. But did you actually create 500,000 in new value?

Maybe you renovated the kitchen or bathroom – you spent 45 or 50 k improving the house. But the value isn’t just 350k now. It’s 800k. So where did the extra 450K of ‘value’ come from? Even if you make a decent annual salary, it would easily take several years of work to create that much value. So where did this value come from? The truth is that this is YOUR portion - your payout - your percentage of the Global Financial Ponzi scheme. Congratulations. You’ve earned it.

But again, where does this payout come from? Well it comes from inflation. It comes from that “3%” additional cost on the price of eggs. Except it’s not just eggs. It’s EVERYTHING. And the more desirable something is, like a house, the higher the % of increase. Basic needs like gas and groceries might increase in price by 3%, but the price of housing increases more like 10%. The aggregation of all the people who are lower on the pyramid beneath you, helps raise the nominal value or price of your assets, which pushes you further up the pyramid. When the ‘value’ of your house goes up, you feel wealthier. This feels good – It feels like you are doing the right thing and being a successful member of society - and you are. But the problem is that our entire society is a fraud. It’s a fraud because it’s built on fake money. It’s built on DEBT.

Remember - when you have more US Dollars - your house is worth more – it means you have more Dollars. But this doesn’t mean you have more MONEY. It means you have more DEBT OBLIGATIONS. More PAPER. This Jedi-mind trick has brainwashed our entire society to learn how to work harder to climb up the pyramid– which further perpetuates the system of control and forces everyone else to also work harder, which further perpetuates the system. This is the world's biggest problem.

People do not realize that our ‘money’ is broken - that the entire world’s financial systems are unfair and corrupt. Or they realize it - but they think it is ‘just the way it is’... or that if they just elect the right politician, it will improve. But it won’t. People don’t realize that we no longer have money – MONEY was stolen from us. We can no longer SAVE. SAVING was STOLEN from us.

What we have is a system of Government issued - but Private Bank owned and controlled debt-obligations. We have FIAT money. FIAT money, when it was first introduced was originally ‘backed by GOLD or SILVER’. You could literally go into a bank and exchange your US paper dollars for a set amount of GOLD or silver. This is why people faithfully used and trusted the US Dollar - because it was based on a determined amount of precious metals that over the last 5 or 6 thousands years, humans had come to rely on and recognize as MONEY - as having VALUE. And this worked - for a while. But the history of money over the last century is a directional function, a bit like evolution.

For example, we as humans have eyeballs that always need to be wet. Why is this? It’s because when our eyes developed evolutionarily - we were still small creatures living in the oceans… When we eventually became land based animals, evolution didn’t start over and create new eyes for us based on our new land-based reality - no - it just adapted our already created wet-eyeballs. Evolution is a linear process. Our eyes evolved based on the circumstances at the time - as a process that moves in one direction. Money has also had an evolution – based on certain circumstances and events in history that have caused it to change and adapt over time - but these changes or adaptations were based on the needs of humans at the time that those changes took place – not on some sort of plutonic ideal or optimally engineered ideal.

The story of money is far stranger than fiction, but a few key milestones help explain how the US Dollar has evolved. It’s a slippery slope that we have been sliding down over the decades. Early economies relied on barter, which gradually gave way to metal coinage—most notably gold and silver—because these metals had durability, scarcity, and divisibility. Over time, gold proved more effective for large-scale trade, while silver remained useful for smaller transactions. The U.S. Constitution reflects this hard-money heritage by prohibiting states from making anything but gold and silver coin legal tender, though it does not prevent the federal government from issuing paper money.

That changed decisively with the Federal Reserve Act of 1913, which created the Federal Reserve as the U.S. central bank and introduced Federal Reserve Notes as the dominant form of currency. These notes initially remained redeemable for gold. And the wording on the paper dollar itself read: “Redeemable in gold on demand at the United States Treasury or in gold or lawful money at any Federal Reserve Bank.” During the Great Depression, however, the monetary system shifted: in 1933, President Roosevelt issued Executive Order 6102, outlawing most private gold ownership and ending domestic gold redemption, and the wording on the printed paper dollar was changed to read: “Redeemable in lawful money at the United States Treasury, or at any Federal Reserve Bank.”.

This ambiguous wording is part of the great deception. It marks a significant step - a significant evolutionary change – that the US Dollar was no longer redeemable for gold or silver. But made it sound as though it still had value because it was ‘redeemable in lawful money’. But this is the bait-and switch. Because now the US dollar was completely FIAT. The redeem-ability, and therefore the value of the dollar was no longer pegged one-to-one against a particular physical amount of hard-commodity money that humans had come to rely on over the centuries. This is the first point in the evolution where the link to the real-world constraints of the physical world was severed.

Then in 1934, in the Gold Reserve Act, the dollar was no longer redeemable for Gold for US citizens. And, the dollar was officially devalued against gold, which rug-pulled everyone who had patriotically sold their gold to the US government for paper dollars. The US Government had paid 20 dollars per ounce to acquire the gold from its citizens, and then afterwards, declared that the new value was 35 dollars per ounce. During World War II, U.S. gold reserves were centralized, including at Fort Knox. After the war, the Bretton Woods Agreement of 1944 established the U.S. dollar as the world’s reserve currency, pegged to gold at 35 dollars per ounce, while other currencies were pegged to the dollar; U.S. citizens could not redeem dollars for gold, but foreign governments could.

Then, in 1963, as a result of the Legal Tender Act, the wording on the US Dollar changed, again. It was changed to read: “Federal Reserve Note: This note is legal tender for all debts, public and private.” This officially ended any wording that even remotely mentioned redeemability or convertibility. As of Bretton Woods, since the dollar was no longer redeemable for Gold, the government was free to borrow more money than it had acquired through taxation. This was the great money drug - the addiction. The ability to spend more money than it has.

This system allowed the U.S. to run persistent deficits, and by the late 1960s some countries—most notably France—got smart to this deception, and began demanding gold instead of dollars. That window closed in 1971, when President Nixon ended all remaining gold convertibility, fully severing the dollar’s link to gold and transforming it into a purely fiat currency. Since then, the dollar’s value has rested not on intrinsic backing but on legal tender laws, economic output, and collective belief. While this fiat system enabled unprecedented credit expansion, it has also led to chronic inflation, with the dollar losing well over 95% of its purchasing power since the early 20th century.

Bitcoin, on the other hand, has increased in value tens of millions of times over just the last 17 years. So rather than losing purchasing power, it has greatly increased in purchasing power. I don’t know about you - but I’d rather ‘save’ my money in a money that is gaining in purchasing power - rather than in a money that is losing purchasing power. Bitcoin is money.

Money should be an abstraction of value, not an abstraction of debt. This is not necessarily some grand conspiracy. It is evil, to be sure - and there are certain villains we can name along this evolutionary path. But the main takeaway is that what we thought was money isn’t money anymore. It has evolved. It is the way it is now because it is the summation of a long history of events and circumstances and human actions, that led us to this point.

But the good news is that now we have money again. Because we have Bitcoin. Bitcoin is real, actual money. It is an abstraction of value. And it can be argued that having money is the very cornerstone, the very essence of what it means to have a society. Without real money, society breaks down. With it, society flourishes. Bitcoin solves the world’s biggest problem. Money. And how does it solve this? Bitcoin re-introduces real-world physical constraints. Bitcoins are created by expending real-world physical energy - which means that there is a direct link between the value of Bitcoins to the physical world that we live in. It takes a certain amount of energy to create them, and that amount of energy has a certain cost. This is a real-world constraint on the creation of Bitcoin.

The US Dollar was still money - and had value when it was tied to the value of Gold. Money gains value, it’s “money-ness” not from what it is made of, but from what prevents it from being created arbitrarily. Gold was rare and difficult to mine and that prevented it from being created arbitrarily. Similarly, Bitcoin is difficult to mine which prevents it from being created arbitrarily. But Bitcoin has an additional property that increases its “money-ness” over Gold. It also has an absolute cap – a fixed total amount. Twenty One Million. That’s all the coins that can ever be mined. There is no way for a company, an individual, a government or central bank to print more of it out of thin air. As such, it represents real value that cannot be debased. Rather than a debt-based money, where each unit in the system loses value every year because there are always more currency units being added to the system, Bitcoin is a value-based money, where each unit in the system increases in value every year because there is a fixed number of units, and people spend real energy and effort and capital to acquire them, which prevents them from being created arbitrarily. As Bitcoin adoption evolves, the money-ness of Bitcoin is increasing its relative value to Fiat currencies around the world - not just the US Dollar. And it also increases its relative value to Gold and Silver. It’s proving itself to be money. It’s proving itself to be an ideal, engineered money, which just might solve the world’s biggest problem.