How Bitcoin solves the problems of the fiat debt system through a value shift

How Bitcoin is a solution

One of the biggest problems with fiat currencies is the enormous printing of money in times of crisis. In fact, under the claim of helping, vast sums of money are printed, which are then invested in various companies that are on the verge of bankruptcy. An example of this is Lufthansa. Although the German airline suffered an actual loss of orders during the Corona crisis, this is not reflected in the balance sheet. This is because freshly printed money was used to manipulatively maintain Lufthansa ‘s balance sheet.

In reality, the number of available aircraft was cut from 800 to 600. This means that although the group has a sharp drop in orders and is selling over 20% of the fleet, freshly printed money has lifted the balance sheet into positive territory. This action does give Lufhansa a brief boost on the sheet, but ends up with a smaller market share and a bigger drop in the balance sheet unless freshly printed money starts coming in again in the future.

This is a good example where bitcoin is coming up as a solution. Because Bitcoins only exist in 21 million, which are also marked with inflation (new Bitcoins every 10 minutes), however this inflation decreases by half every four years (block halving after 4 years). Therefore, Bitcoins cannot simply be created out of thin air.

Through the action with Lufthansa, the group is artificially kept alive, but other market participants who do not get a cash injection have a bigger problem compared to the share valuation of the airline. This is because they do not have the competitive advantage that the freshly printed money has given them. An unfair market situation has been created by the fiat money system, although in liberal capitalism everyone is actually entitled to the same rights.

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If Bitcoin were to be integrated as a solution, the airlines would only be affected to a limited extent by the manipulative demonetization of the federal government. This is where Bitcoin offers the solution due to its limited number. Therefore, nowadays, there are more and more companies that put their deposit in Bitcoin. This is also the solution proposed by the century-old Vienna Theory: stop printing money and use non-manipulated currencies.

Want to dive deeper into the connection between our distorted debt system and Bitcoin and the Vienna Theory? Then click here and read this exclusive article on the Austrian School and Bitcoin!