The pioneering cryptocurrency makes a difference for people that cannot trust their rulers. Bitcoin is an economic system based on a currency that no government can control.
The president of Argentina Alberto Fernández stated that the country has no more dollars and that the habit of saving in foreign currency has to come to an end. The leader’s comments caused quite a stir in social networks since some consider that forcing citizens to save in pesos is attacking their ownership.
All seems to indicate that Fernández’s statements led many Argentines to realize that there is a real need for money that is not controlled by the State. This is where Bitcoin comes into play with its main value proposition: the independence from regulated, conventional and established systems.
The value is based on Bitcoin’s independence from the mainstream, from any type of government regulation, from the assets that are subject to traditional market sentiment and regulators’ prescriptions. In the case of Venezuela, the ground gained by Bitcoin and other cryptocurrencies is undeniable, which demonstrates that the ability to own something completely beyond the power of the State exceeds volatility. In fact, in Venezuela Bitcoin’s volatility seems to reveal that the market is trying to calculate how much the value of financial freedom is worth.
Back in Argentina, Alberto Fernández also said that they “must end with a certain culture that Argentines have that there is a human right to buy dollars.” At that moment, citizens started asking on Twitter how they would protect themselves from hyperinflation. It should be noted that a user argued that without the option of saving in dollars it would be impossible to acquire real estate.
Bitcoin as an Added-Value Alternative
Bitcoin provides individuals with economic freedom and allows them to be custodians of their wealth. Regardless of whether banks are closed, capital controls are imposed or government sanctions are applied, people can transfer value through Bitcoin and other cryptocurrencies. It does not even matter if governments try to ban Bitcoin since the world will still have access to it. Even if it is declared illegal, its resistance to censorship will allow people to use it.
Doubts may lead some people to wonder what would happen to Bitcoin and their financial freedom, in case the government decides to stop the Internet supply. The answer is simple since Bitcoin can even be sent via SMS text messages through one of the five satellites arranged by Blockstream to transmit the Bitcoin blockchain from space.
Bitcoin is designed in such a way that it prevents people from extracting money at will. Of course, a mixture of inertia and early indoctrination makes it hard to imagine an economic system based on a deflationary currency, which rewards users for saving and spending rationally, thus promoting the ability to invest in longer-term projects, which will benefit even those who have no propensity to save. For the same reasons, it is hard for imagine an economic system based on a currency that no government can control.
By Willmen Blanco