The House of Debts – Bitcoin could be the solution.

The House of Debts – Bitcoin could be the solution.

by November 23, 2015

Greek Crisis and EU Policies

The prevailing monetary system shows it’s ugly side in Greece. People can only withdraw small amounts of their own money. A bloated state apparatus does not pay the invoices from suppliers and craftsmen. Pensions and social benefits will be reduced. Yet for the last eight years the Greece economy has done nothing but collapse.

The trend of the European politicians of literal, uninspired „reform measures“ of raising taxes worsened the situation of the people of Greece even more. A Greek exit from the euro and a reintroduce of the drachma might not address the cause of the problems.

Hayek’s competing currencies and Bitcoin 

The deeper cause of the misery could be the current money system, which is the norm since the end of the gold-backing dollar in 1971. It could have led to countless financial crises and the divergence between rich and poor. The governmental privilege of central and commercial banks to create money out of nothing is leading to a dilution of the value of money and to an unfair preferential treatment of those close to the source of this “out of nothing money “, i.e. primarily bankers and politicians. 

Because of that, it has become much easier to make debts. Since the end of the gold-backing the debt mountain of nearly all states have grown in unprecedented heights. Greece is no exception. At some point the house of debts has to collapse. Greece is only a part of a development and if we do not tackle the development at it’s roots we will all inevitably share the same fate.

Global Debt Development The Economist

The best way out of the crisis would be to abolish the State monopoly on money and to replace it with a free competition of “non-state currencies” like Bitcoin. Bitcoin has the same qualities as gold – both are scarce, divisible, indestructible and tamper-proof. Nobody would work for printed money, if not the compulsion of the State would be recognize it as “legal tender”. Gold and Bitcoin are as money and they are however accepted by the people without any constraint, due to their special qualities. Because of the QE, ABS, OMT programmes of the ECB, Mario Draghi can produce billions of euro out of nothing every day. Do you want your savings devalued?

However the increase in Bitcoins is strictly regulated. The total amount of Bitcoins is limited to 21 million. In contrast to gold it is possible to send Bitcoin in seconds around the world. Therefore it would be the perfect money for the Digital Age. The state will certainly not voluntarily renounce its monopoly on money but as Friedrich August von Hayek has already suggested, the free competition of currencies is already there. The Bitcoin is a closed system which is immune from state persecution. If there is a collapse of the house of debts we would have a well-functioning , global payment system alternative – Bitcoin.

A possible collapse of the House of Debts

If we think about the possibility of the collapse of the house of debts everyone should consider to convert a portion of their money into Bitcoins. Bitcoins have the great advantage that they can not be blocked or confiscated by any power in the world. Bitcoin is digital cash which you can not prohibit. As we have seen in the movie Total Recall with Collin Farrell Future Banks could be more likely physical storage clouds where you can back up your net worth on a USB Stick or even a sheet of paper. Everything you need to back up is a digital code.

After the banking crisis in Cyprus, in which the citizens bank accounts got frozen and the savings of more than 100.000 euro got confiscated, the interest in Bitcoins and it’s course increased significantly. It is to be expected that a similar development will occur in the foreseeable case of Greek , Italian or French national bankruptcy. If you would invest in Bitcoin now, you could benefit from a relatively cheap price.

Save your fortune

Non-governmental currencies like Bitcoin are effective ways to diversify the risk of a possible future house of debts collapse. Do not give the State the opportunity to confiscate your property or to mitigate your fortune through inflation in value. The Greek crisis has made the weakness of the current money system particularly clear. You have the freedom to switch to a better system. To End the Article with a changed quote of House of Cards – “Everything is about Money. Except Money. Money is about Power.“

Book Review:

Bitcoin – Money without State (german)


The Economist
Wikipedia Gold Standard

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6 Comments so far

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  1. cookie clicker
    #1 cookie clicker 30 June, 2022, 06:20

    The bulk of the support package are from the European Financial Stability Agency, with Germany and France being the classic mainstays. It is not in the bank to support Greek banking costs of the European Central Bank, the combined debt taken by Athens to foreign countries up to 316 euros.
    Greece owes private banks in Germany, France and Britain another 30 billion euros.
    If Athens declares default and leaves the eurozone, issuing a new currency, those debts are considered lost.

  2. María
    #2 María 12 August, 2022, 19:24

    Bitcoin is the most popular cryptocurrency in the world and has been on a rollercoaster ride since its inception.

    The House of Debts is a new book that talks about how we can prevent future financial crises. The book talks about Bitcoin and other cryptocurrencies and how they could be used to avoid the next financial crisis.

    The author of this book, David Andolfatto, believes that Bitcoin will be used to pay for goods and services in the future. This would help avoid high inflation rates in countries with weak currencies.

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