[ad_1]
The subordination of citizens to the deficient economic decisions of their rulers is one of the problems that most affect Latin Americans. At longer or shorter historical moments, Latin Americans have suffered the ravages of hyperinflation, which has depreciated their currencies, reducing their purchasing power and increasing poverty to scandalous levels.
note this statement: Bolivia, between 1982 and 1985; Peru, in the year 1990; Argentina, between 1989 and 1990; Brazil, between 1980 and 1990; and, currently, Venezuela, the most devastating hyperinflation in the history of the region.
All cases show similar traits in their causes – although with particular differences – and in the catastrophic responses of their leaders to the difficulty: a decline in national income after the fall in the prices of goods. Export to the international market; the increase in the public deficit by emphasizing the maintenance of public spending (generally related to social policies and subsidies) at its previous level; accelerated price increases for products intended for domestic consumption; issuing of inorganic money by the authorities and increasing price and exchange rate controls, as well as subsidies to protect citizens; devaluation of the currency and widespread impoverishment of the population.
This cycle is often repeated almost as a mathematical formula in different cases. But, if there is one invariable element in each of these economic tragedies, was the governmental control of monetary policy . Print more tickets, control prices and increase subsidies for both these savings and push the stairs to a person with broken bones. On the contrary, the solution found for repairing the bones of these economies by the following governments was to lift the controls and allow it to keep pace with the market: a reduction in the role of the state in the activity economic.
commercial, popularly called shock therapy, often generate resistance and detractors. Increasing subsidies to reduce public spending and thus the budget deficit can hit the less fortunate in the short term. But what the paternalistic discourse tries to hide, is that precisely because of the interventionism of the state, the disease occurs. They condemn the one who shoots the arrow from a wounded body – painfully, but quickly – when they have introduced the arrow and pretended to avoid the pain by introducing new arrows into the open wound.
That it is a true malpractice or, rather, a deliberate and deliberate management of poverty in order to increase control over the population, is another problem. The certain thing is that living subordinated to a monetary policy managed under the arbitrary design of the turn government is too great a risk for the lives of the citizens of any country . And knowing the particular tendency of Latin American voters to favor the election of paternalistic politicians, falling and relapsing again and again in these cycles of systematic impoverishment is a latent danger.
It could be argued that these disasters only occurred in a few years. However, the use of the economy as a tool of political control is almost invariable in Latin America. However, the history of the monopoly of the issuance of banknotes by central banks is less than a century in most countries in the region, as the bank's younger history on the continent, relatively stable only at the end of the nineteenth century. The brevity of this story makes the presence of these economic crises more reiterative than one might think at first glance. And, with that, the danger that weighs on all the countries of the region to be subjected to an arbitrary economic policy with each change of government becomes more visible.
At this time, after the establishment of this monetary monopoly in the last century, Latin Americans have the opportunity to protect their finances from fluctuations in their national currencies and from their own. emancipate inflationary policies from paternalistic governments. They have the opportunity to access financial services without needing the approval of a bank or a state. They have the opportunity to access a currency resistant to censorship, cross-border and exchange, as simple as sending an email. They have the opportunity to access a currency whose total issue is predetermined in advance and its issue rate is decided solely by the laws of mathematics: Bitcoin.
It was precisely in the midst of the financial crisis due to the bad decisions made by the banks and indicates the historical moment of the birth of Bitcoin. In 2009, during the subprime crisis, Bitcoin emerged as a "peer-to-peer electronic cash system (p2p)", to avoid the intermediation of trusted third parties in the flow of capital between people.
Digital money, whose price depends only on the laws of supply and demand, resists the economic problems of each country and serves as a store of value for citizens living in hyperinflationary economies. Owners of small and large businesses that accept payments in Bitcoin, as well as employees who are paid in that currency, can be sure that they will be protected from devaluations managed by their government leaders.
Also, in the context of migrations that are a consequence of these overwhelming hyperinflationary contexts, Bitcoin has enormous potential for Latin Americans. As a cross-border currency, you can always carry all your savings with you, safely and in a click radius. If your trip is long and involves several countries traveling by land, you should not worry about changing your currency into currency: you can check on sites like CoinMap which premises accept bitcoins or change only part of your money again, at one click, through platforms like LocalBitcoins). And if you need to send funds to your family and friends who remain under hyperinflation headquarters, you can do it in minutes and without paying exorbitant commissions to trusted third parties [19659012]. Individuals the opportunity to be their own bank, as has happened in the past when private banks issued money. Not only because the money is issued by minors (and anyone who owns the equipment can be minors), who receive the coins as a reward for the certification of transactions made on the network. Also, in Bitcoin, each currency holder is responsible for storing and keeping his funds. Nobody other than the user himself is the keeper of the keys and words of support for his wallet; There is no centralized agency that manages the keys or is able to control or freeze these funds.
Although this offers more freedom, by allowing to transfer the desired amount of money without the need for external approval, the amount also increases. the level of responsibility of each individual on his own funds to be the sole administrator of the keys of his portfolio; if you forget, you will not be able to forget your password, so it is important to keep the keys. And, in the midst of financial childhood in which we have maintained the paternalistic governments of Latin America, the increase of individual responsibility is essential to maturation.
But the biggest difference that Bitcoin has against the traditional currency issue. most important advantages for Latin American economies, is the impossibility of exercising a discretionary inflationary policy. The issuance of bitcoins is controlled by mathematics, and nothing more impartial than the numbers.
It is known in advance that the last bitcoin to be extracted will be issued around the year 2140. Thus the processing power goes up to 20 thousand Yo-octets, the technology is internally regulated to increase the difficulty of the Extraction to such an extent that it still keeps adding new blocks to the chain in a time that oscillates between 10 minutes. In this way, no one can manipulate the amount of money in circulation at will and, therefore, no one can affect its value directly.
But there are still knots that need to be unleashed before Bitcoin can function as currency in Latin America. Two of them are interrelated: volatility and adoption.
The price volatility of Bitcoin remains a reality. Keeping product prices in a currency whose value can vary from one thousand dollars from one day to the next is very complicated for monetary stability. However, to the extent that Bitcoin has been increasingly embraced by people who understand the true meaning of the project and who remain attached to the currency beyond its variations, the Bitcoin price has found higher levels or higher levels. of support after his corrections, while he increased his stability. If you can raise the levels of adoption, and with it, the price of cryptocurrency, it will become increasingly difficult for a sale of coins to significantly change the price by giving it more strength and stability
It is the responsibility of all of us who are certain of the possibilities of this technology to promote its adoption. Educate the rest of our fellow citizens, friends and family on how to use Bitcoin. Teaching them the world of financial freedoms that it opens is imperative; Every day, the shadow of paternalistic governments and their inflationary policies hangs over Latin Americans. It is necessary to spread the word, to show entrepreneurs and small traders, through the cyber sellers, the financial protection tool available to them. Leading events, conferences, fairs or explanatory workshops can be one of the strategies for continuing to spread this technology on a larger scale.
Bitcoin came to subvert the traditional economic system, to subordinate subordinates and establish a new financial order. Bitcoin does not ask permission: it remains for everyone to make this financial revolution a reality.
Image selected for blacksalmon / stock.adobe.com
[ad_2]
Source link
