As the Global Economy Falters, Bitcoin Offers an Alternative for Prosperity


As the Global Economy Falters, Bitcoin Offers an Alternative for Prosperity

The global economy has suffered through many busts and booms leading to prolonged recessions. During these economic downturns, governments have instituted capital controls, money seizures, and austerity measures. In these times of unrest, it’s nice to know people can always depend on Bitcoin.

Also read: Cash Culture: Bitcoin Is a Savior in a World that Demonizes ‘Big Bills’

As the Global Economy Shudders State Officials Clamp Down On Citizens

frozen bitcoin assetsThe global economy has been quite the roller coaster ride, to say the least. Many of the nation-state economies are suffering and indefinitely crumbling. This can be seen in areas like Venezuela, whose sovereign fiat currency has inflated by over 700 percent. Countries like Greece are in so much debt that the citizens who reside there are witnessing turbulent times. While the country’s markets fall by the wayside authorities from the region, have clamped down on Greek residents.

In recent months, the Greek Tax Administration has rigorously collected debt from citizens in the country. From January to April 2016 Greek officials seized “428,465 bank accounts” according to a local publication. Since 2015, bank account seizures per month have increased 7-fold.

Greek tax officials also want seizure activities to become more prominent, as the General Secretariat of Public Revenues asked if the daily limit could be raised.

A War on Cash

cash smugglingIn China, capital controls and money seizures have also risen exponentially. Since the Chinese stock market crash in June 2015, the country’s government has moved towards monitoring its citizens’ wealth.

Capital controls have made it so citizens of China can only send certain amounts of funds outside the country’s borders. These regulatory policies have spurred many in the region to smuggle gold and cash.

At the Vancouver International Airport in Canada, Chinese travelers smuggling funds has increased yearly. Last year, according to documents, authorities seized $6.4 million from Chinese citizens at that one airport. This year, law enforcement confiscated $13.5 million found by customs agents. The number accounted for 70 percent of the $18.7 million seized from travelers residing in many nations.  

In the U.S., where the economy is also struggling, law enforcement has cracked down on those carrying large amounts of cash. This September the South Bronx Police Service Area 7 confiscated $18,000 from a man carrying a box cutter. The NYPD alone has seized at least $347,000 in the past couple years from the gravity knife law, prosecution settlements, and false arrests according to New York outlet Village Voice.

Born Out of the 2008 Crash, Bitcoin Is a Global Solution

btcoinSatoshi unleashed Bitcoin onto the world at the cusp of the 2008 economic crisis. Since then, the cryptocurrency has seen enormous growth and increased value during market fluctuations.

In many ways, bitcoin can help people in China by enabling them to move funds safely and securely. There are no legal controls placed on the cryptocurrency’s network, and it operates 24 hours a day, all year long. In places like Greece, where bank accounts are being seized, people could hold their savings in bitcoin without fear. The cryptocurrency puts the user in the sole control of the funds and no banks, corporate entities or governments can confiscate it.

It is also worth mentioning that people residing in U.S. cities such as New York would have an easier time securing a Bitcoin wallet than $18 thousand in cash. The Bronx resident with the small knife could have kept the money on his phone or a hardware wallet and just faced charges of carrying a weapon. The NYPD wouldn’t have even known his money existed.

Bitcoin: Freedom to Do What We Want With Our Money

Bitcoin gives people the freedom to do what they want and it never asks permission. This way, global citizens can do as they please with their hard earned wealth.

Of course, bureaucrats in all countries take issue with this type of privacy and individualism. However, they’re the reason for Bitcoin’s existence.

As governments continue to manipulate our economies and seize more of our wealth, Bitcoin will be there for people to fall back on.

What do you think about Bitcoin helping the global economy escape economic austerity measures? Let us know in the comments below.

Source: The Guardian, Keep Talking Greece, CBC, Village Voice.   

Images via Shutterstock, Pixabay.   

Tags in this story
Capital Controls, China, Greece, new york

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Jamie Redman

Jamie Redman is the News Lead at News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for News about the disruptive protocols emerging today.

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