2020 was unforgettable, especially for Bitcoin. To help rethink this year for our readers, we asked our network of contributors to think about Bitcoin’s price action, tech development, community growth, and more in 2020, as well as what all this could mean for 2021. These writers responded with a collection of thoughtful and thought-provoking articles. click here to read all the stories from our End Of Year 2020 series.
It was not the year we wanted, looking back over the past 365 days. It started well, but as the harsh reality started to work it got worse.
I was back from Germany just a few weeks after a trip to visit some fellow Bitcoiners, when the New Year brought news of an unknown infectious pneumonia virus spreading in the Chinese mainland city of Wuhan. I was still able to attend a Guns n ‘Bitcoin Meetup in Switzerland before the world started to change, maybe permanently.
As they say, “gradually, then suddenly,” all these beautiful journeys came to a halt. I thought no one could stop Bitcoiners from meeting, discussing their views and organizing in meat room, until the World Economic Forum’s “New normalArrived. (Remember that sentence: you will not own anything and you will be happy. Right.)
The new normal “
The global economy derailed and began to crash amid financial panic. A few months later, bitcoin price witnessed an annual low of around USD 4,600 and a new one thereafter highest point ever in the same year, showing that bitcoin itself is resilient to natural disasters, even if greater volatility occurs during such a crisis.
2020 revealed the bad side of monetary nationalism and centrally managed monetary policy. The Federal Reserve Bank of the United States has inflated the US dollar, with the New York Fed distributes more than $ 9 trillion to bailouts and printing huge amounts of money. It created wealth from scratch for banks and itself to buy bonds and other financial junk products to blow up its own balance sheets, moves reminiscent of similar actions taken during the 2008 financial crisis when the U.S. government placed Freddie Mac and Fannie Mae under conservatorship. (Fannie Mae and Freddie Mac are government-sponsored real estate financiers and investment entities that control $ 3 trillion in assets, and this federal conservatory continues today.)
You may have noticed that there are more people out of work in the US. than at the beginning of the year, but they are virtually invisible and the stock market continues to hit record highs. The latter fact is largely due to the printing of money and the practice of the US government to buy stocks and bonds in the market, pushing up the price of these assets, stocks and bonds. The Fed pumps everything.
This year was also a challenge for Bitcoiners. Our organizational structure changed and those who attended conferences more often had to adapt to the year of limitations. Anyone who wanted to work together moved into the awkward realm of Zoom and Jitsi – the lucky ones who own a VR headset can enjoy AltspaceVR or VRChat. (Seriously guys, haven’t you ever heard of Second Life?)
And now, the biggest shocker of the year, Joe Biden’s 2020 presidential election victory. Our American comrades can now expect a further acceleration of the breakdown of social norms. There will be more lockdowns and soon more people will lose their jobs.
We were already living in a world that was trying to control us, but now the virus was giving it an excuse to go beyond its legal boundaries and try to ‘protect us’ by introducing these restrictions, and the forced acquisition of property in companies and other institutions with the money printing that the Federal Reserve is doing today. It was just a matter of time for evil to show its true face, and it is happening today just as many predicted.
It is important to understand that we already lived in an unstable world ravaged by social injustice instituted by the US Federal Reserve. But now these factors have forced many millions of Americans to deviate from the path of “American” and instead become left-wing Marxists currently trying to gain control of the United States. This is one of the problems that we cannot solve as long as the monetary policy of the central banks is maintained, further driving those betrayed by the system towards socialism and communism.
Bitcoin as the balance
If we are to survive in the years to come, we need to start educating people about the importance of personal finance and the importance of avoiding inflation at all costs. Without it, we will have a bleak future in which another civil war could be on the horizon that will pit the totalitarian communists against the capitalist libertarians.
But for now things look stable. After the virus has long since disappeared, we will face more challenges, more and more complex issues to be solved, such as Bitcoin privacy, KYC, mining pools and the Travel Rule. The privacy war is upon us, and it will be the most devastating chapter of civil wars in Bitcoin’s history.
As we slowly move the activation of Taprootwill significantly improve privacy and the Lightning Network will be able to develop further.
But there are those who are against the Lightning Network because their interest has been in the development of on-chain infrastructure that is slowly being threatened by the growing fee market. Many would like to see Bitcoin fail and we need to draw the red line there and stick to our principles and continue to defend Bitcoin even if it doesn’t need our help or anything from us at all.
Today we can see that there is a renewed interest in acquiring bitcoin in the retail space, precoiners are coming and their curiosity-driven interest is seeking connections. It’s only a matter of time before more people come into our line of sight and start consuming our communications on Twitter, Reddit and Telegram. These people will understand Bitcoin less, they will likely seek out the thrill of profit, but since this is the survival of the fittest, only those who have the opportunity to find out why things are like this in the world today will stay. and learning. These newbies will learn about Bitcoin, maybe they will be ill-equipped and have coins stocked on custodial exchanges, but we must be tolerant of those who have just been ‘exposed’ to BTC in this way and try to get them to to become.
The world around us is slowly becoming dystopian; the more we allow the national central banks to keep inflating their currencies, the more unstable the world will become. I don’t want to speculate about the future as the outcome could be totally unexpected. But I’m sure the fight isn’t over yet.
We must maintain our vigilance and personal integrity if we are to function as full members of the society of the new world order that Bitcoiners are currently building. We need to unite with others, strengthen those bonds, and keep organizing. Trust at this point may be Shambolic, but believe it or not, goodwill and determination will take us far into our destiny.
This is a guest post from Karo Zagorus. The views expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.