Bitcoin as a Defense Against CBDCs

Dear New American Magazine,

I recently read your June 12, 2023 issue during a visit to my father. He is a long time subscriber. One particular article on Central Bank Digital Currencies (CBDCs) caught my attention, as I closely follow the world of cryptocurrency.

While the content of the article accurately describes the potential dystopian future where governments and central banks exert even greater control over our money through CBDCs, I believe that you did not do enough to emphasize how Bitcoin is a mechanism by which individuals can resist this control. In my view, Bitcoin provides an escape from the current flawed fiat system, which relies heavily on debt. It marks the first time in human history that individuals worldwide have access to an alternative which is completely beyond the control of any government or entity. Bitcoin stands in stark contrast to CBDCs, as it lacks an issuer and is decentralized.

I believe that CBDCs are inevitable and highly detrimental. They will exacerbate the negative attributes of the current flawed system. In addition to the problems outlined in your article, CBDCs could enable negative interest rates, introduce time-limited currency, restrict spending to specific purposes, facilitate instant stimulus for favored groups, promote further consolidation and centralization, increase opacity, hasten currency debasement, and increasingly subject money to political interests.

In contrast, Bitcoin represents a currency governed by rules, not rulers. It is immune to corruption, censorship, and tampering, while offering transparency, stability, decentralization, and security. Unlike the current system, Bitcoin does not require individuals to place their trust in any particular authority.

Bitcoin is not marketed or sold by any single entity, but rather gains traction through growing understanding. While only a small percentage of the population currently comprehends Bitcoin, this awareness is likely to increase over time. Consequently, the transition to Bitcoin as a global currency will be gradual. Governments will undoubtedly attempt to dissuade its use, but banning Bitcoin is impossible as it exists only as information on the internet. By virtue of Gresham's law, I expect Bitcoin to gradually displace most other forms of money. It functions as a foundational layer akin to gold and utilizes layer 2 protocols such as Lightning or Ark to enable high-volume transactions with negligible fees compared to credit cards.

In the past, gold was the sole alternative to fiat currency. However, Bitcoin possesses several advantages over gold:

• Bitcoin is a harder form of money, boasting a higher (and increasing) stock-to-flow ratio than gold.
• It can be securely stored and rapidly transported at minimal cost, whereas gold entails expensive secure storage and transportation challenges.
• Bitcoin has a fixed supply, whereas accurately calculating gold's supply can be difficult, and unexpected changes could occur in the future.
• Bitcoin's use of a pseudonymous public ledger ensures transparency, while gold remains opaque and susceptible to manipulation or confiscation.
• The majority of gold is mined in a few specific countries, whereas Bitcoin mining can occur anywhere with access to low-cost electricity.

One could argue that gold is to fiat currency what Bitcoin is to CBDCs. I've noticed that every article asserting that gold is superior to Bitcoin is authored by individuals attempting to profit from selling gold.

Bitcoin represents more than a mere currency. It embodies truth and freedom for a world oppressed by the fiat system. A war is being waged, and Bitcoin provides a peaceful means to victory.

Sincerely, Barry Becker
June, 2023