Digital money like Bitcoin has become expensive and prominent, perhaps because people think such forms of “money” are superior to “regular money.”
Don’t think you may adequately protect yourself against the current East-West deadly combination of inflation and recession by using digital currencies such as Bitcoin instead of normal money.
The unwise trust that digital currencies are safe, or protective, extends to national governments, since some of them (El Salvador declared that Bitcoin has legal-tender powers) have built into their official financial structures such Ponzi devices.
Solid data are hard to get, but it is widely believed that Bitcoin use is greatest in Asia, most particularly in India. Wisely, China makes Bitcoin use illegal, although such a law, at the moment, is difficult to enforce at a general level. Canada, the US, the UK and others have not made Bitcoin illegal – yet.
Don’t get me wrong: I support the general idea of private money. Government-run banks have a self-interest in creating inflation. An inflated currency makes it more easy for a government to pay its debts. An inflated currency allows a government to tax its citizens by a sort of back door.
Citizens find they cannot remove from the markets as much “stuff” as they did in the past. This makes room in the market for government to take away “stuff.” If the government-run bank issues money, the government may use that money, usually paper…
