Read on Twitter
National debt, bitcoin, systemic racism and why young people should care.
This thread is tailored to the US but can be applied to everyone around the world
This thread is tailored to the US but can be applied to everyone around the world
The US national debt is roughly $26 trillion and counting. This number continues to rise because the US government continues to borrow more than it can payback.
Young people should care about this because current generations are benefiting directly at the expense of younger generations and it will only get worse unless we take action now.
Little is being done at the federal level to improve and ensure the economic stability of future generations...they keep printing money with zero hesitation which can be detrimental in the long run.
If you listen to any economist it is likely that the US will face hyperinflation in the near future. This means the value of the dollar will go down and give the consumer less purchasing power, which will have a greater affect on the middle and lower classes.
This is where bitcoin comes into play. Unlike the dollar BTC is a decentralized currency that cannot be manipulated by monetary policy (you canât just print bitcoins). And there is a limited supply!
Because there is a limited supply or market cap, the value of BTC (in theory) will only go up over time. Think of it as internet gold, fortunately for us the last BTC is scheduled to be mined in the year 2140.
Whatâs a decentralized currency?
Right now when you make a purchase, the money goes from your wallet, to the bank, then to the seller.
Right now when you make a purchase, the money goes from your wallet, to the bank, then to the seller.
BTC eliminates the third party intermediary (banks) and allows for peer to peer transactions using the blockchain. This is what makes BTC so intriguing. I will talk more about this using a real life example.
In my mind BTC is more valuable than gold because I donât see a society where we make purchases using gold coins. We can at this very moment make daily purchases using BTC. This is key to understanding the value and usefulness of BTC and other cryptocurrencyâs.
If a global economic collapse happens which seems inevitable at this point, BTC is readily available to use (unlike gold). This is especially important to those living in countries that are most vulnerable to a global economic collapse.
If younger generations especially those in vulnerable/unstable countries start buying and storing BTC now, it will only help improve their economic stability and wealth in the future and in the short run as well.
What does this have to do with systemic racism?
The National Bureau of Economic Research found in 2019 that black mortgage borrowers were charged higher interest rates than white borrowers and were denied mortgages that would have been approved for white applicants.
The National Bureau of Economic Research found in 2019 that black mortgage borrowers were charged higher interest rates than white borrowers and were denied mortgages that would have been approved for white applicants.
This is also discussed by Isaiah Jackson in his book âBitcoin and Black Americaâ (read this book!!!)
âThe economic injustice that we have today is the result of history. Take redlining, for example....
âThe economic injustice that we have today is the result of history. Take redlining, for example....
most people donât understand that generational wealth is accrued through homeownership. Being able to purchase a home in a community that increases in property value over time has given other communities the ability to gain that value without having to do much.
Black people were excluded from receiving home loans, and when they did, were offered extortionary rates and relegated to neighborhoods that could never really gain in property value â by design.â
Since BTC is a decentralized currency and allows for peer to peer transactions (like buying a home in this example) you eliminate the banks involvement all together.
This gives black people a fair chance to buy a home which will gain property value over time and increase generational wealth.
Buying a home is just one example, think of all the other situations where a black person might experience systemic racism...
Buying a car, renting an apartment student loans, small business loans etc.
Buying a car, renting an apartment student loans, small business loans etc.
This leads to a conversation about how group economics works. Which is that everyone benefits from the ability to circulate money within a community and makes that community more independent.
Right now in the US the black community is, by design, obstructed from circulating money within their community due to systemic racism (like the homeownership example.)
BTC can give black people an opportunity to enrich their community by using a decentralized and secure currency. Which can ultimately put a dagger in systemic racism that exists around money.
Cryptocurrency and blockchain technology can offer people all around the world an opportunity to fight systemic racism and many other injustices we see happening globally.
I encourage you to do some research on bitcoin and blockchain technology. Consider how these technologies can change your life and the lives of others
