Bitcoin solved Govt. money printers will destroy world reserve currencies

The current financial system as we know it is broken. If all went well, the world's central banks should not start helping private banks that are abusing other people's money. Bitcoin is again taking shape to respond, especially in regards to the future of the future.

The printing money cycle

A recent report by the founder of Bridgewater Associates, Ray Dalio, explores the failures of the current financial system. Lenders are delivering money without consequences because they have so much to offer. This is great because central banks are pressing them and buying financial assets in their futile efforts to increase economic activity and inflation.

Dalio says that the prices of financial assets have increased, but expected future returns have declined as economic growth and inflation remain slow. Companies can sell dreams without clear profit plans because investors are full of borrowed money. The system is clearly defective.
This piece continues to add that there are large government deficits, and these will increase substantially, requiring huge amounts of debt from governments. During the economic downturn, rising interest rates are not an option. So central banks will print more money to buy loans. This process is especially likely to gain momentum in countries with reserve currency such as the United States, Europe and Japan.

He says that pension and health responsibility payments will be payable at the same time. But they will no longer have the money to cover them. Pension funds whose investments are used to meet their obligations are like returns that will exceed reality.

"Since there is not enough money to meet these pensions and health care obligations. There is likely to be an ugly battle to determine how much the difference will be 1) cut benefits, 2) increase taxes and 3) print money."

The third option is the easiest route according to Dalio because there are no limitations on the amount of money. That can printed or the value of that money. The risk of this path is that it jeopardizes the viability of the main world reserve currencies as viable reserves of wealth.

This would eventually widen the monetary gap because only Creditworth would have access to borrow more money and without which there would be a deep fall in financial frustration. While the value of those reserve currencies would continue to decrease.

Bitcoin solves this

Bitcoin, with a predefined supply, immune to the central bank's cash printers and decentralization of any nation or political movement, creates the perfect solution to this problem. In theory, the demand for Bitcoin will increase. As it is the world currency that gives control back to people, not banks.

Shapeshift CEO Eric Voorhees Brief;

"I don't need to say Bitcoin here … but this is an escape hatch for those who pay attention clearly. It's really sad how many people will be linked to the will and monetary systems of the government."

The widely defective banking system and the financial crisis of 2008 was the catalyst that led to Bitcoin for the first time. Unfortunately, it still used as a vehicle for speculation. But that paradigm is likely to change as the financial system crumbles and the fiat has less value than paper. It has printed on.