Bitcoin (BTC) is presented as a solution to the erosion of purchasing power and declining social mobility, according to Natalie Brunell, a journalist and author. Brunell argues that individuals must first understand the fundamental economic issues to fully grasp Bitcoin's value as a savings vehicle.
Brunell, a first-generation immigrant, shared that her family's pursuit of economic opportunities in the US was adversely affected by the 2008 financial crisis. She explained that it took over a decade for her to recognize that many social and economic problems stem from currency inflation and a flawed monetary system that diminishes the value of money.
"Until you learn how the financial system really works, why acquiring assets is so important, and what inflation really is, I don't think you appreciate what's really happening in the world and why things are breaking down."
Brunell believes that Bitcoin has the potential to solve these issues. She highlighted Bitcoin's capped supply of 21 million coins and its decentralized, proof-of-work consensus mechanism as key factors that create scarcity and preserve economic energy.
The Social Impact of Currency Inflation and Time Preference
Brunell elaborated that currency inflation leads to more than just price increases; it erodes future purchasing power and promotes short-term thinking, resulting in negative social consequences.
Saving in a sound monetary standard like Bitcoin encourages a lower time preference. This allows individuals to focus more on long-term goals such as family, health, innovation, art, building generational wealth, and strengthening communities, Brunell stated.
Conversely, fiat currencies incentivize high time preference and immediate consumption because their value is constantly diminishing. This pressure compels holders to spend their fiat currency quickly to avoid further loss of value due to inflation.
"After we went off a hard money standard and completely into the system of fiat, the numbers speak for themselves in terms of our declining mental health, increased levels of crime, and the lack of affordability for people to own a home," Brunell observed.
Self-Sovereign Money: A Lifeline in Crises
Brunell also emphasized Bitcoin's portability as a critical asset for individuals facing tyranny, war, persecution, economic hardship, or natural disasters.
"You can take Bitcoin anywhere with you. If you needed to flee in an emergency, you can literally memorize a 12-word or 24-word seed phrase and take your whole net worth with you," she explained.