There have been a few improvements in the economy but it is no new news that it still lies in shambles as America continues to shovel money into the abyss. A few aspects have turned around but as the government waits on a double standard to shift the balance, Bitcoin continues to rise.
Bitcoin is a virtual form of currency, only composed of 1’s and 0’s–an open source form of currency that allows for personal adjustment for specific needs. In a land where the currency we depend on is tanking, it’s no wonder why people are looking elsewhere to place their worth.
As the American economy continues to bleed out, the Fed occasionally throws a band aid onto the gushing wound. For instance, they recently—slightly–reduced the rate of bond purchases—money sold to American’s in the form of an IOU. In other words, we are selling future money that we don’t have now and may not have later in order to incur some form of financial gain now. So in order to slow the blow it may take in oncoming years, the FOMC (Federal Open Market Committee):
“Will add to its holdings of agency mortgage-backed securities at a pace of $35 billion per month rather than $40 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $40 billion per month rather than $45 billion per month.”
In other words instead of selling $45 Billion dollars of future money at an extremely discounted rate, they are only going to sell $40 billion dollars worth. Whoopty-Doo!
Last I checked, were in just a little over $5 billion—although I suppose every amount helps.
So as certain aspects of the government try to slow the bleed-out, others are doing nothing more than waiting. You see, they are waiting for American consumers to just miraculously start spending again. That just isn’t going to happen.
In their mind, once Americans start spending, we will raise the economy, lower the national debt and create jobs, but they aren’t looking down the road. It doesn’t take an economic scholar to realize that Americans need the government to fix the economy and create more jobs before Americans can partake in this wishful spending spree. So as it stands, the government and the American people stand gridlocked waiting for the other to make a move.
In the mean time, Americans are spending less, paying off their debt, and actually saving their money for a time in the not-so-near-future that they may actually need it. This of course is no good for the government as money in our pockets is money out of theirs.
But instead high ranking officials would rather insist that it is America’s own fault as we are placing restrictions on the spending and borrowing of money we already don’t have. The lunacy to this theory is really quite astonishing. The fact of the matter is, when you don’t have money in your bank account, you stop spending.
But for now we wait for the government to actually participate in the healing process. This isn’t going away on its own, and it certainly isn’t going to be fixed by the American public. We have a duty to do what’s best for our family and children, and if that means save instead of spend, that’s exactly what we’ll do.
To me though, if the value of Bitcoin drops by half when a country does something as simple as make a statement, I’m going to find a more stable place to put my money. However, the worth of Bitcoin relies on the probability that it will be spent in a diverse amount of locations. So as more people invest in it, the more popular it becomes, the more it’s worth. And really, with this economy, who isn’t looking for a better place to put their money.
Read more: Bitcoin Value Cut In Half Over Night)
Let us know what you think—is Bitcoin a valuable alternative to the U.S.’s tanking currency?