4 IS BITCOIN THE FUTURE OF MONEY? and illegal actions of a unit in the police BITCOIN CAN’T BE DE-PLATFORMED Removing cash and moving all financial transactions onto rails monitored by governments raises the potential risk for
force called The Special Anti-Robbery Squad (“SARS”). Within days, groups supporting the protesters had their bank accounts frozen. With no other option, they turned to Bitcoin, raising funds that sustained the movement. Now, exactly one year later, the government has made the drastic decision to ban all cryptocurrency accounts, threatening severe sanctions. The young, tech-savvy and vocal population of Nigeria is gearing up for a fight. How it will end is not clear, but it reveals the power and potential of a censorship-resistant form of money in the hands of oppressed people. Nigeria’s story is a harbinger of what to expect across the world wherever young people with access to technology are unbanked and disenfranchised.
de-platforming of financial services. Despite what you might think, this is not unique to China and other emerging markets and/ or authoritarian regimes. The recent de- platforming by big social media companies has raised concerns of similar risks in financial services, such as accessing bank accounts, credit cards, and so forth. Regardless of your politics, the ability for big technology firms with unelected leaders to silence individuals and groups should raise alarm bells for everyone. This tactic, common in authoritarian regimes, could become more common at home and spread to banking. But you simply cannot be de-platformed from Bitcoin.
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BITCOIN OFFERS AN ALTERNATIVE TO THE DOLLAR’S DECLINING PURCHASING POWER
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BITCOIN ENCOURAGES FREEDOM FROM FINANCIAL OPPRESSION
The pandemic has required governments to become far more involved in the economy through unprecedented fiscal and monetary schemes. Some of this was necessary to stem the tide of the pandemic, but there are concerns that governments won’t pull back and that their actions will cause a steep increase in inflation. Already, inflation expectations are at their highest since 2013. Recent statements by Federal Reserve Chairman Jerome Powell that inflation is no longer a priority of the Central Bank has stoked fears even more. With concerns that savings will erode, and wages will be worth less than before, many more people may turn to Bitcoin. A prominent
Bitcoin usage in the global south is increasing rapidly, albeit from a small base, especially in areas where people are unbanked and underbanked. While Bitcoin has long been touted as a better alternative for unbanked peoples who don’t have the means, access, or even the basic proof of identity to open a bank account, it turns out its greatest value to people living in emerging economies is its censorship resistance. Consider what happened in Nigeria... In 2020, protests erupted in Lagos and across the country against the government because of the brutal
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