Why Bitcoin Adoption is Spurred by Dr. Evil Governments- Fiat Meltdown
You are a citizen of Evil Land, blessed with a leader described as
"intrepid and heroic" ... at least by your history books and national media.
Dr. Evil's government borrows a Billion dollars from his beleaguered citizens and a few idiot foreign donors, to weaponize sharks with frickin laser beams on their heads, and to fund a huge "coke and whore" party for his generals; only one of which works according to plan.
When his plan to hold the world hostage is thwarted by Austin Powers, his treasury is in the red. What's his solution?
Of course, when you can simply print currency, and people freely start spending it- prices go soaring. To give you a simplistic example, let's say your country is an island consisting of 5 families and there is one plot of land unaccounted for, with the clans bidding their life savings for it. The leaderboard shows one household has saved $50,000 versus $20,000 for second place.
A bid of $20,001 should secure the plot, but suddenly the governing authority prints 1 billion dollars and divides it equally amongst the families. Now the minimum winning bid is in excess of 200 million dollars, and the previous savings are basically worthless.
This is inflation to the extreme, but it does happen in Evil Lands; currently Venezuela and a few years ago Zimbabwe literally printed a ten billion dollar denomination. To demonstrate their worth, while in Dubai I saw one of these bills displayed on a cork bulletin board outside a store.
Video: How Corrupt Governments Hasten the Demise of Fiat Currency + drive Bitcoin Adoption
So, do you want to be a spender or a saver in Evil Land?
With the threat of nuclear devaluation ever present you spend every last dollar you have. If you want to save either purchase an asset that has recognized value worldwide (like, sigh, gold) or, if you're super smart you'll invest in something which produces utility (a farm, livestock, a house) whose nominal value will rise with inflation.
This helps protects your nest egg from the Dr. Evils of the world who would destroy your life savings without a second thought.
And Now Bitcoin EmergesSo, citizens of Venezuela and Zimbabwe hear about Bitcoin, and discover there is a limited supply that will ever be created- no one can simply print more more of it.
Additionally, while currencies of Eviland only has value within their countries, (not a soul outside the borders is dumb enough to touch one of your bills) Bitcoin can be sent to anyone, anywhere, for a very low cost, and has recognized value in that it is readily convertible into the world's most stable fiat currency, the US Dollar.
So, if you are an intelligent resident of Evil Land, knowing it's only a matter of time before your government turns your life's savings into tinder, you're going to be really tempted to buy up some crypto-currency.
As word of this potential store of value spreads, it speeds the demand and thus adoption of Bitcoin worldwide. It explains why bitcoin is such a hot commodity in China, whose citizens have both the technical know-how to acquire it and a Dr. Evil lead government.
While the true value of Bitcoin is in the magnificent technology behind it, the blockchain which creates instant trust between unknown persons, corrupt regimes hasten the demise not only of their currency, but of fiat currencies worldwide, and make possible Bitcoin (or another digital coin) ending up as the world's single, recognized unit of monetary exchange.