Government backed currency is not sustainable
The latest tidal wave of headlines pushing Bitcoin's price down include major banks declining crypto transactions, to the Chinese government cracking down on exchanges by blocking them with "The Great Firewall".
The timing of all these attacks on bitcoin is no coincidence. These entities have sensed a weak point in the strength of belief of the people, and they are timing their heavy handed attempts to seize back total control of the financial ecosystem of their people. And remarkably...many crypto detractors downplay bitcoin and other coins for that very reason. "I don't want or believe in a currency that isn't backed by anything or controlled by the government".
This is the exact type of thinking that keeps societies oppressed and progress from being achieved. But perhaps most alarming is not the sheep mentality that prevails, but rather the utter lack of simple observation around the globe to the fact that governments and banks controlling currency is causing systematic failure that solidifies the need for a global decentralized currency like bitcoin.
Failing Government Backed Currencies
In Venezuela, a national crisis has arisen and the central culprit stems from the government controlling and manipulating their local currency - the Bolivar. The currency has lost 99.9% of it's value in less than 2 years time. The price of goods goes up 80% each month, and according to this report, Venezuelans are now throwing currency into the trash because it's nearly worthless. As a result, people are now forced to work in exchange for rations of food, which are also controlled and subsidized by the government.
Is this what government control of a currency is supposed to look like?
Inflation is happening Everywhere - just more slowly
While many might look at the situation in Venezuela or Zimbabwe as isolated incidents of governments not knowing what they are doing, those same people should look at the plight of their own currency and situation and realize that the same hyperinflation, manipulation and loss of purchase power is happening to them, albeit on just a long drawn out timeline.
Take the U.S. dollar for instance, long the standard of financial stability and measuring stick against global currency value. Since it was introduced in the early 1900s as a representation of the value of gold, it's seen a steady decline in value relative to purchase power.
Governments, regardless of political affiliation, have largely all taken the same steps to counteract this effect : print more currency. What they have always failed to do is pace creation of more currency with the rise in prices and thus the purchasing power of individual consumers slides down year in and year out. The dollar gets deflated and who holds the bag? The consumer/citizens whose dollars earned or saved are now worth less and able to purchase less as the year before.
When governments control the currency you will lose money over time
Bitcoin being decentralized and thus not owned by any government or bank is one of the primary reasons it is so revolutionary. The price and purchasing power of bitcoin can not be deflated by governments printing (or mining) excess bitcoin because they don't mine any bitcoin at all (and never will). Bitcoin will never be created in such excess as to lose value relative to inflation - after all only $21MM bitcoins will ever be created. In fact, the opposite will happen. That is to say that bitcoin's scarcity coupled with global demand to use it as a transactional currency will cause the price and value (purchase power) of bitcoin to rise...exponentially.