Why Money Requires Energy?
Because anyone with the power of creating money from zero (or very little) energy will be too powerful, up until it’s impossible to believe that he/she (or his/her successors) won’t be corrupt & harmful to society.
It’s just human nature.
That’s why, I don’t blame past & current Indonesian governments, because they just follow the global system on each time. I even only partially blame the 50s-60s USA governements, as the weakness of one-country-printing-world’s-money-with-gold-as-the-only-reserve solution decided in 1944 is quite obvious since the beginning.
Wait.. wait.. so?
Yes. Our Current Money Doesn’t Requires Equivalent Energy
The paper money ONLY costs 0.08% to 2.8% of its printed nominal (face value), as the issuer said. The digital money? 0. Zero.
No wonder the money supply has been increasing exponentially since five decades ago, unlike the flat increase of the world’s gross domestic product.
In the USA, Indonesia, and any other countries.
It does matter to discuss it now. Why?
Because the harms to society has been slowly & steadily materialized for decades. I’m coming from a low-income family. I can feel it.
The Proofs of Corruptness & Harmfulness
In Indonesia…
Up until 1978, Indonesian Rupiah had a fixed exchange rate with US Dollar, just like US Dollar to gold in the 1944-1971 era. Thus, prior to 1978, Indonesia's US Dollar reserve was psychologically limiting the Rupiah supply. Source: World Inequality Report 2022.
…also in the USA (where it all begins).
Post USD-gold de-pegging in 1971 up until now, the low & middle-class income increase fell compared to the rich.
No war in 1971, yet the price keeps increase up until now. Without much income increase, this will hurt the poor most.
The Best Solution
Let me tell you two reasons why NOW is the time to end the problems stated above.
First, 2023 is the time. Global trust in US Dollar as the main global currency & reserve finally declines. It’s monumental because US dollar was the only money pegged to gold – a thing that can’t be created by any human – for almost 3 decades (1944-1971). Here are some evidences:
- Indonesia is one of the leaders of de-dollarization initiative in ASEAN region.
- Saudi to finally break the petrodollar deal of 1974.
- Central banks just broke a record buying more gold
Secondly, in 2009, there was a birth of apolitical, limited-supply, & digital money which can only be created by spending energy not far from its market price – just like gold. Fast forward 14 years to now, some institutional early adopters like Tesla & El Salvador had already hoarded Bitcoin – seeing its potential as the future global money & reserve. US Securities and Exchange Commission has just declared Bitcoin as a commodity – not security – which will invite more institutions to buy Bitcoin. Blackrock, the world’s biggest fund manager, publicly praised Bitcoin as gold in digital form.
Unlike gold, Bitcoin validity is easy to verify & and cheap to transfer. Thus, it’s more powerful as currency. It also solves the transparency problem of gold-as-reserve-currency, as anyone could see the current amount & the entire transaction history of any Bitcoin address.
That transparency problem was the cause of the 1971 USD-to-gold depegging, which lead to non-USD-money-to-USD de-pegging & banking deregulation, then ended up with increasing economic inequality, monetary destabilization of developing countries, and ongoing inflation. Ongoing inflation hurts they who can’t buy hard asset like stocks or property & can only hold cash – the poor.
What Should You Do
Do your research. Confirmed the validity of my data & opinions above. If you can’t find the loophole, spend a little portion of your routine income to buy bitcoin (or gold). In this current unstable geopolitical landscape, it’s very unlikely that you’ll cut losses in the far future. This gold & bitcoin buying will accelerate the shift towards hard commodities (like bitcoin & gold) as the main reserve of central banks.
If you’re not a USA citizen, your central bank will be more immune to USA & world problems – they REALLY care about this now. Also, it’s easier for your fellow citizen to put pressure on your central bank & government to not create much more money than the hard commodities they store. This will maintain this holy equation: money = energy.
Do not dream that bitcoin will be the only money & currency in this world. Not because it’s impossible, but because the change is too dramatic to our current system.
What Am I Doing Now?
I’m saving in bitcoin & gold. And spreading this idea to Indonesian – my people. To make it simpler & more inviting, I wrap it with the fifth principle of our nation (Pancasila):
Social justice for every Indonesian citizen.
Not only simpler & inviting, it’s also fit the narrative. As there’s no social justice with widening income inequality. Coming from a low-income family helps me to care about this issue.
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