Thursday, July 18, 2019

Paris Protests Support Bitcoin in Unchecked Government Inflationary Action

Paris is currently experiencing a series of violent protests following increased money printing by the government. For those who have forgotten the lessons taught to them in economics, more money supply into the economy leads to hyperinflation.

Hyperinflation leads certain citizens into the situation of being pensioners and creditors. For example, say the value of a country’s currency was eroded to twice its previous value, pensioners who live on a fixed income which can’t ever be changed will be forced to adjust and will experience a fall in their standard of living and a simultaneous rise in the cost of living. Creditors are also affected in the same way as the value of the currency is eroded.

The French Government Taxes and Subsequent Inflation

The riots in Paris are the worst since the 60s, and violent protests are rocking the country with videos showing citizens hurling stones at law enforcement vehicles and street fights prevalent in the city. It has been reported that the riots were as a result of increased taxes on commodities and services with the average French citizen experiencing the worst of the new government policies. The government police have led to an increase in prices of goods and services used for everyday use like fuel and transportation.

The country’s government is notorious for its high taxes and the new president on the block, Emmanuel Macron is trying to cover the cost of its social programs and other expenditures. The government has also taxed Bitcoin in the country and is bearing in mind a tax of 30% on all gains on cryptocurrency. The taxing has come at a time when the Euro and every other country in the world are experiencing a decrease in value with more currency being printed by the government. Politician Charles Gustav Binderup stated that;

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

The Fiat and its Erosion of Value in Relation to Crypto

The U.S. dollar has been eroded by over 95% of its value since 1913 with an average loss of 3.13% since the creation of the Federal Reserve. The tax imposed on its citizens by the government has led the French to realize that their standard of living will only take a turn for the worse as their money has its value eroded. The government also experiences this loss of value as they need more money printed to keep up with their budgets.

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Basically, the cost of living isn’t rising, but the Euro and other fiat currencies are what is losing value. Bobby Lee, the co-founder of BTCChina, has attributed the riots all over the country to ‘unchecked money printing’ by governments.

Bitcoin has a finite supply at 21 million units with supply not being able to be manipulated by any government. The price of bitcoin is determined by the traders in the market and is totally decentralized. Another typical example of money with uncontrolled value is Gold.

The internet has now seen an influx of images with protesters wearing vests with the words ‘Buy Bitcoin.’ It shows that the realization of bitcoin’s value has started with a looming adoption by citizens around the world. More people are realizing the fact that the government controls traditional fiat with no thoughts of the citizens in mind. It has been predicted that Bitcoin could become more adopted in France in the nearest future in the wake of recent events. It has been reported that next month, thousands of French tobacco shops will start selling bitcoin.

Adedamola Bada
I'm Damola, a computer engineer from Obafemi Awolowo University. A crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through hard work and positive contribution to the organization that aspires for excellence. Contact me on [email protected]

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