When the Banks Break: A Call to Embrace the Chaos - #211
TL;DR - Banks are slowly breaking and people are discovering that what was once safe isn't, but pain and suffering is necessary for society to learn.
Dear Reader,
The banks are breaking.
Slowly at first but then with greater and greater force until the cracks become chasms and the very foundations of the financial system begin to shake. Many are beginning to sense the remnants of 2008 in the air.
People are discovering that what was once safe, isn't…
That the promises made by the bankers and the politicians are nothing more than empty words. That the security they thought they had was an illusion, a mirage in the desert of modern finance.
But pain and suffering is the only way that society learns at scale. It’s a harsh lesson, a bitter medicine, but one that is necessary if we are to build a better future.
On one hand, we save the banks. Investors and people are made hole, however, we suffer the consequences of rampant inflation on the back end. On the other hand, we let the bank fail. Businesses go bust, people lose their jobs, many lose their savings on the front end. Suffer now or suffer later. Either way, pain is sure to come.
There is no other way for society to understand and make fundamental change. We must suffer the consequences of our mistakes, feel the full weight of our folly, if we are to truly learn and grow. And yet, for many people, banking is a way of life.
Their parents, grandparents, great-grandparents, and great-great-grandparents have always done it. It’s a tradition, a cultural touchstone, a symbol of stability and security.
No one stops to question why.
No one asks whether there might be a better way…
The truth is, the safest thing you can do is custody your own money.
To take responsibility for your own financial future, to hold your own assets, to be your own banker. It’s a simple idea, but a powerful one. It puts the control back in the hands of the people, where it belongs. It removes the intermediaries, the middlemen, the gatekeepers, and allows us to transact directly with one another.
Of course, there will be challenges along the way.
There will be obstacles to overcome, barriers to break down, and new solutions to develop. But that’s the essence of progress. It’s messy, uncertain, and often painful. But it’s also exciting, exhilarating, and full of opportunity.
So let the banks break.
Let the old ways crumble and fall.
Let us embrace the chaos, the uncertainty, the unknown.
It’s only in this crucible of change that we can truly discover who we are and what we are capable of. It’s only through pain and suffering, as a society, that we can learn at scale.
Opening a bank account is one of the riskiest things you can do.
It’s a step into the unknown, a plunge into the murky depths of modern finance.
And yet, so many people do it without a second thought, without understanding the risks they are taking.
Why is it risky?
Because people don't understand how banks earn their pay.
They don't know how fractional reserve banking works.
They don't know how government bonds and treasury bills are issued.
They don't understand how interest is generated.
They don't know how to do due diligence on an investment.
They don't know how to conduct an audit on their bank.
They don't understand how Know-Your-Customer (KYC), at a basic level, threatens their privacy.
They do not understand the difference between money and currency.
And yet, once they sign up for a bank account, they hand over their time and energy (a/k/a money) for someone else to manage and care for. It's a recipe for disaster. It happens time and time again. “The beatings will continue until morale improves.”
Opting out of the banking system is the only way. It’s the only way to take control of your own financial future, to safeguard your own assets, to protect your own privacy. It’s a bold move, a courageous move, but one that is necessary if we are to truly be free.
Of course, it’s not an easy path…
It requires discipline, sacrifice, and a willingness to learn new skills.
It requires a willingness to take responsibility for your own financial future, to be your own banker, to hold your own assets.
But it’s worth it. It’s worth it to be free from the tyranny of the banks, the middlemen, the gatekeepers. It’s worth it to be free from the risk and uncertainty of the financial system.
It’s worth it to be free to live your life on your own terms, to pursue your own dreams, to create your own destiny.
Gold and silver are supposed to be financial safe harbors…
They were the bedrock of monetary systems throughout history, the anchor against the tumultuous waves of inflation and currency devaluation. And yet, in our modern world, we no longer transact with precious metals. We’ve lost the knowledge, the expertise, and the confidence to use them effectively.
People have been conditioned to see everything in terms of fiat price. They no longer understand the true value of gold and silver, the worth that has sustained economies for centuries. They are trapped in a world of fiat currency, where the whims of central banks and governments dictate the value of their money.
But still, people and central banks will buy and hold precious metals, knowing that they represent a store of value that cannot be easily inflated away. And yet, because no one has priced goods and services in precious metals, the only way to acquire a good or service at present is to sell for fiat. Until transactions are priced in precious metals, until there is a standard of value that can be universally understood and accepted, precious metals will always be held, but never used. And supposing precious metals are used in commerce, then comes the issue of transporting and verifying, which is costly. To save on transporting, precious metals result in becoming centralized, no longer truly representing the decentralized and distributed financial system that they were designed to support.
We live in the information age, where the majority of our life, how we transact and communicate with each other is digital. We need a native digital currency, one that is designed for our modern world, one that can be used anywhere, anytime, by anyone.
For many in the digital age, Bitcoin is a solution.
It’s a new form of money, one that is not tied to any government or central bank, one that is truly decentralized and distributed.
It’s a currency that is based on cryptography, math, and computer science, not on the whims of politicians or bankers.
But those who do opt out of Bitcoin need to understand that it's not just about hodlin. Bitcoin is a way of life. It’s a mindset, a philosophy, a belief in the tech to create a better, more just world.
The difference between saving and hodling is subtle, yet profound.
It's like the difference between savoring a fine wine and chugging cheap beer to get drunk.
Hodling came about in 2013 on the Bitcoin talk forums, coined by GameKyuubi. The idea was to hold onto bad positions throughout a bear market with the intention of selling in a bull market or when fiat profits are available again.
Over the years, it's evolved into a mantra or mindset of "generational wealth" to never sell their Bitcoin ever. Hodling has come to mean hoarding bitcoin with no intended future use.
This is different from saving.
The purpose of saving money is usually to achieve a specific financial goal or to build wealth over time. Saving to retire, to buy a car, to take a vacation, to invest in a business or for kid's college education.
Hoarding money, on the other hand, is often associated with a fear of losing financial security and can be seen as a symptom of anxiety or other emotional issues.
The fear of losing financial security stems from years of fiat living and stems from the uncertainty of our financial systems and institutions.
Bitcoin should fix this, but it's conditional.
The conditions are that we fully adopt Bitcoin. Not just to hold and succumb the tool to the fate of precious metals, but to use it as the monetary tool of honest, quality, sound money.
For that, we need to…
Build the Bitcoin economy.
Our financial system is a broken machine.
Since 1913, it’s been running on fumes, breaking down time and time again. We keep trying to fix it with the same tired methods, but they're not working.
We can't keep patching up this broken down machine, but there’s no use in trying to patch up a structure that’s inherently flawed.
The only way forward is to start over, to build a new economy that isn’t driven by policy, but by programming. Only then can we create a system that works for all of us, and not just for the chosen few.
Bitcoin is more than just a way to store wealth, it's a way of life. It's about breaking free from the fiat mindset and embracing a new, digital way of living.
Don't just buy and hodl, use it to transact, to build, and to invest in the future. The Bitcoin economy is still in its infancy, but it's growing every day.
Bitcoin's full potential won't be realized without monetary velocity.
We can do more than just buy and hold.
We can earn Bitcoin.
Businesses can learn to accept Bitcoin and use it to pay their employees and other expenses. They can even learn to price goods in Bitcoin. If you work for a business that isn't capable of paying you in Bitcoin, you can convert your fiat paychecks to Bitcoin using services such as BitWage, CashApp, Strike, or even Coinbase direct deposit.
Saving in Bitcoin is also a wise choice.
When you are paid, set aside a portion of your earnings in Bitcoin. Since wallets are infinite, you can create different wallets for different purposes. Learn to be your own bank.
Spending in Bitcoin is also important.
Set aside a portion of your Bitcoin earnings for expenses and pay for goods and services such as food, clothing, and rent with Bitcoin. Teach merchants, vendors, cafes, restaurants, and landlords to accept Bitcoin. If no options are available directly, use other services. And if necessary, move to Bitcoin-friendly towns, cities, states, or countries.
Conclusion
The future is uncertain, up to a point.
We know that our banking institutions and governing bodies are broken. We know that the traditional means of saving and investing are warped.
We know that confidence in the old industrial age is waning.
We know that all fiat models have been destroyed.
But we also know that Bitcoin is a path forward.
However, it's important to understand that this path is not without obstacles.
We must acknowledge that the future is uncertain, and that Bitcoin is not a panacea. But we must also acknowledge that Bitcoin offers a unique opportunity to build a new economy that is not based on policy but programming. By embracing Bitcoin and building its economy, we can create a system that is fair, transparent, and resistant to corruption.
The path to true financial freedom is not an easy one, but it’s worth it.
Opting out of the banking system and taking control of your own financial future requires discipline, sacrifice, and a willingness to learn new skills. It’s a bold move, a courageous move, but one that is necessary if we want to be free from the risk and uncertainty of the current financial system.
Until next time…