Children work in unstable 25-meter-deep pits that could collapse at any moment. They mine gold underwater, along the shore, or in rivers, with oxygen tubes in their mouths. They also process gold with mercury, a toxic metal, risking irreversible health damage from mercury poisoning.
Mining gold uses about 0.27% of world wide oil consumption.
The figure below shows the amount of gold mined.
To pay for the war in Vietnam, President Nixon needed to print more money than there was gold to back it up and there was no gold left to confiscate. He convinced the world banks to adopt a new fiat dollar, no longer based on gold to become the world reserve instead of gold. America was able to do this by agreeing with oil producing countries to develop and protect their oil fields as long as oil traded only for dollars.
When president Clinton allowed banks to speculate, banks saw this as a new way of acquiring profits. As the government had laws to protect the savings of people, the banks had nothing to lose, so they speculated. When governments lowered taxes to encourage corporations to grow, the CEOs instead used this money to buy back their stock to increase their value for the benefit of the shareholders and their bonuses.
A new monetary theory was proposed and adopted where money was created debt-free by the government. It issued as much as it needed and distributed it directly to the public interest free. Taxes were used to control the money in circulation to control inflation.
The purchasing power of the dollar continued to drop.
Bitcoin to the rescue.
As the dollar was losing it value, it was seeking a safe haven free of the manipulations of governments and their bankers with unlimited amount of fiat money. Gold was mined at a rate that was much more predictable. Much of the capital went into gold, a storage of wealth for millennia.
The risks of storing, transporting and having gold confiscated were solved by creating a digital version of gold called Bitcoin that could not be confiscated. The idea of an internet money free of borders, governments and banks was timely and well thought out. It was basically simple, open source and totally decentralized with no center of control to shut down or compromise.
Using state of the art cryptography and the full power of the internet, the Bitcoin network was developed by geeks who were convinced of Bitcoins promise to revolutionize world economy and return it to the people. The network caught the attention of entrepreneurs who were convinced to build on top of it. They made Bitcoin so user friendly, that investors started to open up exchanges so that people could buy the Bitcoins from the miners.
The exchanges were so user friendly that professionals and corporations began to invest in Bitcoins. This allowed geek programmers mining Bitcoin from home with their computers to replace gold miners, many of them children, working in dangerous conditions. The value of Bitcoin rose so rapidly that the geek miners were soon overtaken by warehouses of computers called Bitcoin mining farms.
Bitcoin uses about 0.07% of world wide electricity capacity, a very small fraction of what the mining industry uses, and a fraction of the electricity used to run the financial industry.
The figure below shows the amount of Bitcoins available to be issued.
The figure below shows the price of Bitcoins up to 2020.
The figure below shows the predicted price of Bitcoin.
Inflation proof:Saving in fiat currencies, especially at zero interest rates, is seeing the buying power of your saved money slowly weaken by inflation as more and more money is issued into the economy to try and save it. This is much like trying to keep a leaky bucket full.The rate of Bitcoins issued is fixed and limited to 21 million. Most of the Bitcoins have already been issued to relatively few people who are using Bitcoins as a way of saving. Their interest is to raise the price of Bitcoin and if they manipulate the price, it will be to raise it. This make saving Bitcoins as a safe way to save wealth, either for short term private investments or long term investments for your children and grand children.Can not be seized:While gold, property, houses, and bank accounts can be seized, as long as you or your inheritors have your key, your Bitcoins are secure from loss, theft, or seizure. .
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