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  • Writer's pictureJarrod Carter

Why we accept Bitcoin for Legal Services

Accepting both Bitcoin and the Australian dollar for legal services reflects our broader understanding of the evolving monetary landscape. When the Reserve Bank introduces new money, it initially benefits those who receive it first before it gradually circulates throughout society. This action equates to legal counterfeiting. Furthermore, as the currency devalues, it erodes the wealth of everyone with savings.

Now, how does Bitcoin factor into this? Unlike traditional currencies, Bitcoin is immune to control or manipulation by powerful entities. Its supply is predetermined and safeguarded by robust and unbreakable computer programming and algorithms. This offers a countermeasure to the machinations of central bankers and government officials who devalue the currency with short fix measures that causes catastrophic damage over time. Bitcoin’s value cannot be eroded with deflation.

To shed light on the implications of monetary policy, consider the global financial crisis in 2009. This was a significant disruption to the financial systems worldwide. Yet, Australia sidestepped a recession. How? The government at that time intervened in measured fashion to ensure liquidity. They adopted a balanced approach, injecting additional funds into the system to those who needed it most. The government revealed a stimulus package worth $10.4 billion, representing approximately 1% of Australia's GDP. Of this amount, $8.7 billion was designated as cash bonuses for pensioners and low-income households. Furthermore, $1.5 billion was allocated for bolstering housing construction, and an additional $187 million was set aside for new training opportunities. This stimulus staved off a recession without causing devastating inflation.

A glimpse into history reveals insights that Philip Lowe of the Reserve Bank and his cronies would surely be aware of. Fast forward to the pandemic era, and we see an economy subjected to immense stress, largely due to the government's aggressive actions. They chose to nearly halt the economy in response to a disease that, statistically, posed a minuscule risk to the working-age population in good health. While it was undoubtedly essential to shield the elderly, was it justifiable to halt society as a whole? Why not let the public choose to take the risk? After all, don’t we all choose risks everyday like driving to work?

This self-imposed economic calamity was further exacerbated by what many argue, was a governmental overreaction. The response? An avalanche of stimulus measures like JobKeeper and JobSeeker. By April 2020, the government’s stimulus package reached $200 Billion. The 2021 federal budget revealed the total spend to be $311 billion.

As a part of this stimulus, substantial funds were funnelled into the construction sector. Predictably, the impending inflation stemming from the increase in the money supply led numerous construction firms to go bankrupt.

In the backdrop of these broad governmental initiatives, the Reserve Bank discreetly embarked on quantitative easing—essentially creating money from nothing and introducing it into the financial system. In November 2020 they introduced $100 billion into the economy by purchasing government bonds with money that they created out of thin air. When you factor in the quantitative easing and the government spending, that’s over $400 billion new dollars splashed into the economy.

The synergy of quantitative easing and widespread government stimulus certainly caused impending inflation, aligning with the theories of economists like Milton Friedman, who proved that increasing the money supply is the sole cause of inflation. A historical look at the origin and uses of the word inflation, arguing that although the term has become nearly synonymous with “price increase,” its original meaning - a rise in the general price level caused by an imbalance between the quantity of money and trade needs. Other words, if there are more dollars competing for the same amount of goods and services, then the prices go up.

The government, in collaboration with the Reserve Bank, seemingly overlooked the consequential pitfalls for builders. These professionals, entering contracts under the assumption of stable material costs, were left vulnerable. It's an essential caution to the construction industry: if you commit to a contract with deliverables spanning a year or two, inflationary pressures can render your contract unprofitable. If you can’t lock in the cost of materials and labour, your contract may cause you to lose money. Who are the victims? The tradies not being paid for their work and the families with life savings tied up in half-finished buildings.

Dr. Phillip Lowe, above all, should have been acutely aware of these dynamics. Yet, instead of pondering whether the government's stimulus might suffice to fend off a recession, he followed the global trend of other central banks: he activated the proverbial money printers.

In 2009 during the global financial crisis, we avoided recession with a very reasonable $10 billion stimulus. However, in 2020, in an attempt to be seen to be “doing something” the cronies threw cash at the situation like drunken sailors on shore leave. Apparently an extra $400 billion into the money supply would yield no negative results. What a joke. Thanks for the cost of living crisis guys.

In stark contrast, Bitcoin stands independent of any central banking authority. Its decentralized and secure nature empowers Bitcoin holders with complete autonomy over their assets. Its attributes are reminiscent of gold in terms of value storage, but Bitcoin outshines gold in security and ease of transaction. While its value might oscillate in these initial stages of global adoption, Bitcoin's worth generally trends upward over time. Its valuation is intrinsically linked to its increasing user base and reduced inflationary pressures. Thus, as adoption grows, its network's value amplifies and stabilises.

I personally hold a decent portion of my savings in Bitcoin because it is superior and in protest to the corrupt central banking cartel. Even if we park our savings in gold, we still must pay capital gains tax on the increase in dollar value despite the inflation stealing the purchasing power of the money accrued.

In light of these circumstances, we've chosen to accept Bitcoin as an additional form of payment. This decision acts as a firm stance against those, like Dr Philip Lowe, who seem all too content devaluing our hard-earned savings. We're tired of the status quo. We encourage everyone to delve deeper, researching and understanding the intricacies of our monetary ecosystem. An immense wealth of information awaits those eager to grasp the nuances of the current financial framework.

I strongly recommend the book: The Bitcoin Standard by Saifedean Ammous.

Understanding the fundamentals of effective currency and why Bitcoin is the panacea to counterbalance central bank overreaches is crucial. The clout held by these central bankers is immeasurable. Curiously, the same entities that induce economic quandaries through actions like quantitative easing are hailed as saviours when they introduce countermeasures, like quantitative tightening. The media, instead of attributing inflationary issues to the Reserve Bank and government stimulus measures, praises them for their "solutions." This incongruous narrative hints at a deeper level of media manipulation, safeguarding the reputation and dominance of central banks.

Dr Philip Lowe, just before a sharp ascent in interest rates, asserted his anticipation for rates to remain stable until 2025. He made this statement knowing $400 billion had been injected into the Australian money supply. Given his academic credentials in economics, it's bewildering to think he believed that rampant money printing and generous government stimuli wouldn't spur inflation and subsequent rate hikes. There are only two plausible explanations: Dr. Lowe is either profoundly incompetent or operating with questionable intentions. His assertions on steady interest rates permitted the continued inflation of the asset bubbles, fuelled by cheap capital circulating the economy. When news finally broke of impending quantitative tightening and rate hikes, those "in the know" conveniently capitalized, selling at the bubble's peak.

Such antics have left many, including myself, exasperated. It's frustrating to see our earnings diminished by taxes and then further eroded by Reserve Bank policies. If you too are weary of seeing your hard-earned Australian dollars diminished by questionable policies and are looking to convert them into a more stable asset like Bitcoin, we're open to accepting payments in this digital currency.

Over the past century, the Australian dollar has seen a staggering erosion in its value, losing nearly 98% of its purchasing power. This decline isn't a mere happenstance, but a direct consequence of deliberate policies enacted by governments and banking institutions that have expanded the money supply. The continuous dilution of our hard-earned dollars equates to a systematic pilferage of our purchasing power, with each dollar saved buying less year after year.

Banks often cloak this devaluation with a veneer of generosity by offering interest on savings. Yet, the interest we receive is frequently outpaced by inflation rates. And then we must pay tax on the interest earned! The illusion of a growing bank balance masks an inconvenient truth: our ability to purchase with those savings dwindles.

The pandemic era epitomized this economic dance. The initial euphoria of government-led stimulus and Reserve Bank's money printing created a mirage of prosperity. But like all illusions, reality eventually prevailed, manifesting as soaring inflation and an unprecedented cost of living crunch. The brunt of this reality is borne not by policymakers or financial magnates but by the everyday individual. The family dreaming of a holiday, the entertainment seeker, and especially the mortgage holders — who were assured of static interest rates till 2025 — are the ones left grappling with financial strain. However, Dr Lowe could not care less about mortgage rates. His annual salary was $1,037,709. What a reward for throwing Australia into this mess.

It's this very landscape of eroding trust and diminishing financial security that underscores our advocacy for Bitcoin. We envision a future where central entities won’t be able to covertly pilfer the masses by continuously devaluing the currency upon which we depend. With Bitcoin, we see hope for a more transparent, equitable, and financially secure tomorrow.

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