The whole world economy can only work properly by keeping people forever in debt. I read an insightful article about this last week.
In the debt based economy money held by banks is lent out on the promise that it will be repaid.
For example, suppose that a total of one billion dollars had been given out in loans, this would create one billion dollars in 'bank money' which is used to pay salaries, or purchase goods and services.
This works in theory so long as the money continues to circulate, if people start to pay down their debt this reduces the amount of liquidity in the market.
Ever wondered why banks are so keen to lend you more, to keep you in a constant cycle of debt, where you keep paying them back with interest for as long as possible!
Think of the measures being taken to kick start the economy at the moment. Cutting interest rates, to encourage more borrowing, and quantitive easing as well, printing more money, which of course reduces the true value of the money that we have.
Interest rates are already at record lows, what can they do now to keep us in this cycle of debt?
Maybe the banks will cut interest rates to below 0%!
Imagine that, they would actually take money from us for keeping it in the bank. This would encourage us to spend, this would encourage us to take out cheap loans this would help to keep people in this cycle of debt and keep this broken system going for some time.
The banks and governments are running out of tools to keep this going forever though.
I think that it is only a matter of time before we see another financial meltdown!
Bitcoin Cash is designed is very differently from the way traditional 'fiat' money was created.
There will only ever be 21,000 BCH coins ever created.
We who understand and have the foresight to see that the current global economic system is broken have the chance by investing in BCH to be shielded to a degree from the looming financial crisis.
BCH is anti inflationary. I believe that it can hold it's value better than fiat money. It is becoming accepted more and more as a means of payment particuarly in South America, Japan and the Phillipines.
The transaction fees are low and I think that when people see the true potential of BCH, more and more shops and buisnesses will begin to accept BCH as a means of payment.
BCH may even one day replace traditional fiat currencies.
The system is broken!
BCH is the solution.
Disclaimer:
This is not financial advice, always do your own research.
My own article
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