Okay. The financial world is a mess right now. We all know that. But now’s not the time to bury your head in the sand or sell your stocks and run for the hills. Even though every cell inside us is itching to sell and go in survivor mode. But there’s a solution to all this bank drama that’s sitting in plain sight.

This bank has no CEO. No board of directors. And your money is not someone else’s liability. It’s sound money. Oh, and unlike central banks, this one will not decide to inflate (or deflate) your money’s value if and when it wants to! Without consulting you. 

Say hello to bitcoin. 

A solution that’s hidden in plain sight.  

Ironically, bitcoin was born in the wake of the biggest banking mess: the credit crunch of 2008. The one that we’re all scarred from. In one way or another!

Bitcoin is not anyone’s liability

I went down the bitcoin rabbit hole during the pandemic. I was bored what with uni going online and my summer exams being cancelled (big fat silver lining!).

I found a great podcast and got hooked. I didn’t approach it from a tech perspective – I’m not a tech gal. I find it all pretty confusing but I am coming at it from a finance perspective.

I saw how during covid govs around the world were able to print money (in the US they really went to town with 3 trillion dollars worth of it!) without asking anyone.

Instantly debasing our money. Meaning it was suddenly worth a lot less than it used to be. Again, without asking us.

And the sneakiest of all is inflation. It’s really a tax on our own money except it’s disguised in such a clever way that we don’t dare to question it.

But if inflation’s running at 10% ha-ha it is right now (even with all these rate rises…..) after 1 year your money is now only worth 90% of its value. And it goes down from them on. 

Anyone lucky enough to live in a country where inflation is semi-normal, but look at Venezuela, inflation is 100%! This means your $100 bill is worth $0 next year. What??? 

Bitcoin solves this. 

No one can tamper with it. Okay, apart from Satoshi himself but like why would he wanna do that?

Inflation and bitcoin: what’s the deal?

Right now we’ve got a scary situation where inflation is not budging. Here in the UK, we’ve got the worst inflation out of the G7 – at 10.4% compared to 6% for the US.

It’s pretty nuts to think that each year we’re losing > 10% of our purchasing power just for being British! Exciting!

But we’re all seeing inflation, no matter where we are (unless you’re in China – you guys are seeing normal rises of 2% each year. Bliss).

But you’ll probably argue with me that inflation is way higher than that for you. And you’d be right in saying that. 

We all have different spending habits and so we not only buy different things but we buy different amounts of the stuff we buy.

Random ex but I have this bubble bath soap I like using. I kid you not, it has doubled in price. Some other random things have not only shrunk (like my protein bars!) but they’ve also risen in price. Nasty buggers. 

So despite central bankers across the world doing all they can to get rid of inflation, hiking up rates at every corner, it’ll still not working.

Wanna know why? This inflation we’re seeing is structural. It’s coming from the supply side. Just look at your local restaurants/pubs/cafes and see how well-staffed (not!) they are.

There’s simply a lack of workers in the service biz. They’ve all but vanished. Now the Fed (and everyone else) wants to bring up unemployment to fight inflation.

But while tech and banking are firing their workers, it’s not like these guys are gonna work in your local starbucks or hotel. They’re gonna get jobs in similar industries.

You need to own real assets

We could be facing a reality where inflation stays for for a lot longer than anyone ever thought.

And when central bankers realise the extent of the trouble we’re in, they’ll run back to their drug of money-printing. Which basically causes yet more inflation! And we end up in this stupid cycle of money erosion.

Sorry, I got on a bit of a tangent then! Let’s back to bitcoin. Aka sound money. 

I have a little under 15% of my net worth in bitcoin and am increasing it day-by-day. It’s my insurance policy. If all hell breaks loose, at least I’ve got my (small slice of!) bitcoin.

Bitcoin is the king of vol so sit tight but while credit suisse was busy being bailed out for taking risks with money that wasn’t even theirs to begin with, bitcoin was chugging higher. It’s like it didn’t even care!

I’d like to think it’s been going up cuz everyone’s finally seeing the light of day again but it’s probs because rate cuts are on the horizon! And back to the QE clown show? We’ll see! 

Research and learn for yourself before you reach a conclusion!

If you’re super sceptical about bitcoin and you think it’s a load of crap, please talk to people who have been positively impacted by this genius piece of sound money backed by tech that gets stronger every day.

When my family fled the Nazis in Germany in 1933, I bet they wished they had bitcoin that would’ve allowed them to take their wealth with them rather than leaving it behind, taking only a suitcase each.

The fact that you can now literally go anywhere in the world with your wealth on a small stick that weighs (almost) nothing is mind-blowing. Imagine schlepping bars of gold while fleeing your war-torn country!

But most of us are too scared of the unknown. And that’s what bitcoin is. It’s a new form of money. A new way of interacting. Minus the big fat institutions who have screwed us over. And it’s scary. 

I’m in no way telling you to buy bitcoin. Do your own research and if you don’t understand it don’t buy it.

But don’t live in your own echo chamber. It’s okay to admit you’ve been wrong about the coin.

So read. Learn. Unlearn. And learn some more. 

Enjoy! 

Disclaimer: This blog is not investment or financial advice. It is my opinion only. This blog is not a personal recommendation to buy/sell any security, or to adopt any such investment strategy. Always do your own research before you commit to any investment