Control Your Future with Crypto and Diversification

Stop believing the narrative; crypto is the key to controlling your future

by Rich Dad Cryptocurrency Team

last updated

May 10, 2023

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Summary

Many people don’t understand crypto’s true purpose
Diversification is the key to controlling your future
Crypto is a key component of successful diversification

With the recent catastrophes that took place regarding Silicon Valley Bank, Signature Bank, and Silvergate, it’s no shocker that cryptocurrency has become the scapegoat of all scapegoats for their collapse.

Below, we’ll discuss the truth about cryptocurrency, and why the new narrative simply doesn’t fit.

The birth of crypto

Bitcoin was created as a means to avoid the financial crisis that took place in 2008. It offered a way that individuals could hold, control, manage, and transact their money in a digital format anywhere in the world without third parties needing to be involved.

Blockchains such as Ethereum, and systems like decentralized autonomous organizations (DAO) were developed with the intention to operate independently of any human intervention and are meant to enable and facilitate a self-sustaining and self-governed system of technology, finance, and operations.

The true developers in crypto (not the scam artists you’re hearing so much about in the news), have been aggressively developing these blockchains and systems for years, implementing things such as:

Full Reserve Banking
Transparency
Decentralization
Open-Source
Community Ownership
You being your own bank
Proof of reserves

These developers knew a time would come when the debt ceiling for the US dollar would be too great to overcome. They knew based on the events in 2008 that businesses dubbed “too big to fail” did not exist, and in fact gave themselves such titles simply to ease public panic. They knew the US dollar had lost over 90% of its purchasing power, and they knew fiat from any nation that builds its wealth on creating debt, wouldn’t be able to sustain long term.

Why crypto is being blamed

Despite this, the smaller market (crypto) is being blamed for the problems the bigger markets (fractional reserve banking) created.

But what is fractional reserve banking? Simply put, it’s a system where banks don’t actually keep all the cash that customers put in. Instead, most of it is lent out to other people or businesses. In the event that many people try to withdraw money at once, it can cause what’s called a “bank run,” where there is not enough cash left to cover every person’s withdrawals.

This is the kind of situation that leads to an economic crash and devaluation of currency. To summarize, it’s when too much money is circulating, but not enough real value is supporting it.

What’s the truth?

The theory is that crypto is being blamed because of the general - but genuine - fear and concern surrounding crypto lies. If pricing and fiat value don’t matter to those who use crypto, those who control the financial world have no power over them.

In all honesty, even if crypto exchanges were banned and the barrier of entry with fiat-into-crypto was lost, no one can stop or control fiat itself. At most, there can be laws that forbid companies from allowing and recognizing crypto as a usable currency for commerce. But peer-to-peer, and merchant-to-customer direct usage cannot be stopped. For example, if one wanted to accept crypto in exchange for giving you eggs, that can still be done. With crypto, you can still have control over your future.

So, what’s to do?

The time to control your future is now.

We are being told not to panic, and that banks are fine. But the same issues that plagued the financial systems in 2008 are still present today.

That’s why, now more than ever, it’s time to be diversified outside of just cash.

Diversity can look like purchasing farmable land, crypto, precious metals, physical assets, and skills to help generate residual or passive income. But what matters most is that it’s some combination of the different types of assets - including cash, but not limited to it.

As the markets turn and things shift, we will see the paper price of these items also change; but the price of the assets outside of cash doesn’t affect the fact they still hold value all around the world.

Metals can be borrowed on, or even used as legal tender depending where they are used. While constraints are being placed on crypto-based services within the US, this is not the case in every country. And as other countries use and adopt these more open DAO systems, they’ll likely make their way back around the US again, especially if they’re seen as better than our older systems.

You have to take back control of your money. You have to take control of your future. You have the right to own and hold that which you have earned.

Finances are changing

How finances and investing work is changing. In the past, people were encouraged to invest in big things, the things that were considered ‘constants.’ But now, we have learned that what once seemed constant and immovable, can be altered in the blink of an eye.

At first, many of us refuse to accept this truth. Yet, when it finally sinks in, we wonder how we didn’t see it coming. Hindsight is 20/20.

Time-honored banks have been struggling to keep afloat. The banking system appears to be crumbling before our eyes due to its reliance on a system of creating money out of thin air and reaping windfall profits while socializing losses and offloading them onto society. This practice has been occurring for years.

CBDCs are being offered as the solution, but they are not a financial savior. The solution is honest money and ownership of the value of the assets we earned.