Why Every Government in the World Is Nervous About Bitcoin

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by Justin Splitter, Casey Research:

The White House is watching bitcoin.

Germany’s central bank recently called it a “speculative plaything.”

The European Central Bank (ECB) thinks bitcoin is “a sort of tulip.”

The Royal Bank of India is telling people to avoid it like the plague.

I could go on and on.

My point is that every government in the world is nervous about bitcoin.

And they should be…

• Bitcoin is a direct threat to their monopoly on money…

That’s because, as regular readers know, bitcoin is unlike every paper currency on the planet.

It’s decentralized. This means it’s not controlled by any government or central bank.

That’s why many people, especially its early adopters, bought bitcoin. But that’s not the only thing that makes it special.

• The supply of bitcoin is predetermined…

It’s set to grow at a fixed rate over the next 123 years.

Not only that, the supply of new bitcoins that enter the economy is set to decrease by 50% every four years.

This will continue until the very last bitcoin is mined in 2140.

This practically ensures that bitcoin will become more valuable over time.

• Paper currencies are a much different story…

Governments can create them at will. They’ve been doing this since the dawn of time.

Of course, “money printing” comes at a steep price. Eventually, it destroys the value of paper money.

If unchecked, it can even render a currency completely worthless.

That’s why hundreds of paper currencies have failed throughout history.

• Unfortunately, central bankers have yet to learn their lesson…

They continue to print money by the boatload.

They do this to fund wars, entitlement programs, and a host of other bad ideas.

Because of this, practically every paper currency in the world is approaching its intrinsic value of zero. It’s one big race to the bottom.

I’m not just talking about the currencies of places like Zimbabwe and Venezuela, either.

• Major currencies are also in serious trouble…

That’s because the Federal Reserve, the ECB, and the Bank of Japan (BoJ) have been printing money with reckless abandon for nearly a decade.

In fact, they’ve created more than $12 trillion since the 2008 financial crisis.

Unfortunately, this money printing has done almost nothing for the “real economy.”

The U.S. economy, for one, is recovering at the slowest rate on record. Japan’s economy, on the other hand, has grown just 1% over the last 20 years.

About all these “stimulus” measures have done is rob everyday people of purchasing power.

Just look at the U.S. dollar.

It’s lost 97% of its value since 1913.

As if that weren’t bad enough, there’s nothing to stop the Fed from printing more money during the next financial crisis.

• Because of this, many people are losing faith in paper currencies…

…and turning to bitcoin.

It’s a big reason why bitcoin is up 1,937% over the last three years.

Read More @ CaseyResearch.com