In Canada, annual inflation rose to 4.7% in October 2021 and in January 2022, we are talking about an increase of 5.1%. This is the first time in 30 years that we have observed such an outbreak and nothing predicts a short-term decline.
Since January 24, 2022, the Quebec government has chosen to react by putting its hand in the wallet, just to tackle the rising cost of living.
Thus, about 3.3 million people with low or middle incomes began to receive a check for $200 ($400 if it is a couple); $75 being added for single people. The balance of the invoice? 740 million dollars drawn from public finances.
For more than two years we have been talking through Cryptonews articles about the “magic money” generated by the printing presses that have gone full throttle and flooded the planet at a level that is dizzying: over 40% of all US dollars in existence have been printed between May 2020 and May 2021”.
Concretely, this means that people who use the dollar have seen the value of their wealth drop by more than 40%. Let’s zoom out a little to see that since its creation, the dollar has lost more than 96% of its value!
Among the critics of these monetary and economic policies are Bitcoiners like Maciej Cepnikcommunity manager of the Canadian non-custodial exchange bull bitcoin. The one who is also co-founder of the Bitcoin security platform Veriphireacted via his LinkedIn page in evoking the famous “plan B”, the Bitcoin standard, which, according to him, would make much more sense.
“As of next February, millions of Quebecers will receive between $200 and $275 per month directly in their bank account to counter the rising cost of living (inflation). I suggest Bull Bitcoin as the place where you should spend that money. A population artificially supported by the government is a fragile and controllable population. It is possible, however, to get out of this harmful cycle by adopting Bitcoin as your main money and switching to a Bitcoin standard. In the current economic context it can be difficult to admit that we are running to our own loss”.
Beyond the question of the low amount sent by the government, there is the more general question of the best choice to make when it comes to investment. In an ultra-inflationary context where magic money is king, the deflationary nature of Bitcoin (there will never be more than 21 million bitcoins) is attracting more and more people, from retail investors to the biggest fund managers of the world who have already crossed the crypto-rubicon for months.
“I find that the amount proposed by the government for a full year is simply ridiculous and will in no way compensate for the high inflation that Quebecers have to face. The amount is so small that when I saw the news, I first thought it was monthly and not annual aid,” says Maciej Cepnik.
For this pro-Bitcoin, we are faced with a form of paradox:
“These kinds of initiatives of handing out massive amounts of money from governments only create more public debt. Abusing monetary creation to counter an inflation which was itself partly generated by an abuse of monetary creation is absolute nonsense”.
Maciej Cepnik takes a lucid look at the power of Bitcoin, but also its short-term limits at least:
“You have to admit that bitcoin has lately followed other financial assets quite a bit and hasn’t proven to be the perfect tool against inflation, but this is a situation that will not last in the long term. It is important to anticipate, because there is a risk of moving towards an increasingly controlling and restrictive financial climate, in particular with the use of central bank currencies (CBDC) which will make it possible to collect information under the pretext of protection client. What GoFundMe did, freezing donor funds, is the perfect illustration of censorship that Bitcoin provides a solution to because we are talking about a network that is completely uncensorable. No one can prevent someone from carrying out a Bitcoin transaction, or freeze Bitcoin funds for political reasons”.
A few days after this interview, reality would prove Bull Bitcoin’s community director right since the Prime Minister of Canada Justin Trudeau announced on Monday that his government was invoking the Emergencies Act which, among other things, gives him the power to ask banks to freeze the accounts of those who have provided support to Ottawa truckers. It will be recalled that the crowdfunding site GiveSendGo, which raised $8.4 million, suffered a data leak, exposing the donors.
Despite everything, the emergence of the cryptocurrency invented by Satoshi Nakamoto more than a decade ago is inevitable.
“Bitcoin is taking its place on the international scene and will eventually become a universally accepted form of money, I am convinced of it, continues Maciej Cepnik. The example of El Salvador where Bitcoin is legal tender is already inspiring other countries that are considering adopting BTC as legal tender as well.”
The Canadian news of the last few days highlights that it is always possible to attack centralized entities such as donation platforms that have received money via traditional circuits. Recently, the hashtag #BankRun has seen some popularity. More than ever, Bitcoin represents for many players in the cryptosphere, a certain form of monetary sovereignty and therefore, of inalienable freedom.
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