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Why Gen Z Needs Bitcoin

Growing up marked by a decaying financial system, we have the chance to change the narrative set before us and create a world grwoing up in for future gnerations.

Sophie Tobert
Sophie Tobert
Jan 20, 2022January 20, 20227 min read7 minutes read

I was born six months before 9 — 11, with the icons of the legacy system of global finance crumbling before me. When I entered first grade, my young friends told stories of their parents losing their homes in the Great Finan­cial Crisis 2008.

As I began to under­stand money, I got used to increasing prices and was fasci­nated by listening to stories of the 15-cent hamburgers my parents enjoyed when they were my age.

More than any prior gener­a­tion, Gen Z has been a victim of increasing govern­ment regulations.

We have seen freedom slowly slip away in all aspects of life. From the growth of content moder­a­tion within social media platforms in an attempt to censor free speech to invasive searches in airport security, and then lockdowns, curfews, and manda­tory Covid-19 vacci­na­tions, we’ve become accus­tomed to witnessing freedom crushing govern­ment regula­tions in every little aspect of our lives.

The Debt Challenge

Exploding college tuition prices and decreasing value of educa­tion have left us with insur­mount­able debt and no way to climb out of it. College tuition has risen almost twelve-fold since 1980, more than twice the rate of overall infla­tion. As a result, we’re on track to be the most indebted gener­a­tion, with current 18-to-23-year-olds holding an average of $16,043 in debt. 

Addition­ally, according to a survey by Cengage, half of recent college gradu­ates chose not to apply to entry-level positions, feeling unqual­i­fied.

The Econo­mist describes us as a more lonely, stressed, and depressed gener­a­tion compared to previous gener­a­tions, and we are projected to be poorer than our parents.

Although personal debt is a problem, public debt is a catastrophe, and as we begin our careers, we face the real possi­bility that our currency could collapse. The M2 money supply, already growing rapidly, has gone parabolic since the 2019 pandemic. The acknowl­edged U.S. national debt is about $30 trillion, $237,000 per taxpayer. Promises of Social Security, Medicare, and other social programs bring the United States govern­ment liabil­i­ties up to about $200 trillion, $500,000 per citizen (including kids!) Other countries’ finances are in similar shape. 

Because this fiscal situa­tion is global, our gener­a­tion has no chance of keeping the world afloat using the current fiat system — we’re past our tipping point. 

To make matters worse, our current leader­ship shows no signs of either under­standing the severity of our finan­cial problems or any willing­ness to do anything about it. 

Our leaders have lost our trust. Collapse feels imminent.

Hope in Gen Z

However, there is hope in us, Gen Z. We are the Fourth Turning gener­a­tion, and we will change the world. We under­stand the need for radical change — and we’re not afraid of it. 

Looking to history as a guide, it’s clear that there’s a gener­a­tional cycle that explains our current circum­stances. William Strauss writes, “A Fourth Turning lends people of all ages what is liter­ally a once-in-a-lifetime oppor­tu­nity to heal (or destroy) the very heart of the republic.” 

Gen Z has the weighty task of disman­tling the current analog systems and recon­fig­uring to digital ones, and it’s our choice whether to heal or destroy what we know. Because we are digital natives, we have more insight and clarity into the connect­ed­ness of the problems set before us. 

To restore society, young people must realize that fiat money is central to this coming era of creative destruction.

Bubbles, Big Macs, and Bitcoin

The unlim­ited printing of fiat money is the root of most of our problems. Many believe the attacks of 9⁄11 were in retal­i­a­tion for the unending war in the Middle East. 

These wars cost trillions of dollars and were paid for by money printing; there is no way the citizens would pay for them in taxes. The Great Finan­cial Crisis was due to a housing bubble enabled by exces­sive money printing. A McDonald’s Big Mac now costs $5.65 due to this money printing. 

Govern­ments have too much power because they can print money and use it to bring tyranny. College tuition is unafford­able because of uncon­trolled money printing. This extrav­a­gant printing of money is the epicenter of our problems, and Bitcoin fixes this.

Bitcoin is the radical solution that we need. It is as different from the fiat system as night is from the day. Bitcoin’s hard cap of 21 million coins means it is impos­sible for anyone to print more — even govern­ments. This defunds endless wars. Also, without infla­tion to raise prices, when produc­tivity increases, so does Bitcoin’s value, meaning the costs of Big Macs and college tuition will fall over time.

On a Bitcoin standard, borrowing money becomes far less attrac­tive as it’s more diffi­cult to pay off, so people and govern­ments will be encour­aged towards patience, hard work, saving up for purchases, and only purchasing things of high quality with lasting value. A college educa­tion has to get a lot more valuable for people to want to pay for it, or the industry will shrink dramatically.

Freedom is in Bitcoin

As a gener­a­tion, we value honesty, certainty, and stability — all charac­ter­is­tics of Bitcoin. Honesty is enforced by the blockchain, a trans­parent record of every trans­ac­tion to have occurred. With an exactly known supply and code that univer­sally verifies every trans­ac­tion, the nature of Bitcoin is much more specific than fiat, whose opera­tions are known and controlled only by the few in charge of the Federal Reserve. 

Some mistake Bitcoin as an unstable form of currency while looking at its volatility in the market. This is a misin­ter­pre­ta­tion that can turn people away from the oppor­tu­nity that Bitcoin is. Because it’s still in its infancy and working through the growing pains of the price discovery phase, Bitcoin will be volatile in fiat currency terms. 

However, an individual who owns one Bitcoin and stores the private key properly will forever own one 21 millionth of the total Bitcoin supply. Looking at it this way, it is the ultimate stable asset.

As old insti­tu­tions break down and the national debt continues to make govern­ment promises a practical impos­si­bility, our gener­a­tion has the choice to be the heroes of the fourth turning; but we risk mistaking Bitcoin as a foolish invest­ment. 

Bitcoin is rules without rulers. It takes power away from a small, central­ized group and gives it back to all individ­uals, with no one in between you and your money. Bitcoin restores freedom and inher­ently works to make money fully extri­cated from politics and uncon­fined by borders. 

Bitcoin creates a society where govern­ments must provide value in exchange for taxes paid. The impli­ca­tions of this are unending.

Swan Bitcoin IRA

Our Swan Bitcoin IRA product is an ideal path for a young Gen Z’er with a low-time preference investment horizon to get exposure to Bitcoin.

Also take a look at our comparison review of the Top 6 Bitcoin and Crypto IRA options and Why Bitcoin is the Ultimate Asset for Your IRA from our Swan Research department.

No matter what questions you have, we have the answers to help you avoid IRA icebergs and make the most informed choice possible.

Bitcoin is Hope For Gen-Z

Growing up marked by a decaying finan­cial system, we have the chance to change the narra­tive set before us and create a world worth growing up in for future gener­a­tions. Bitcoin is the revolu­tionary solution to extreme problems. 

Knut Svanholm says in his video, Bitcoin: Every­thing there is, divided by 21 million, “Bitcoin is balancing on the edge of our under­standing of the world between what is tangible and what can be imagined. The more we allow ourselves to imagine, the more useful it becomes.” 

As Gen Z, let’s rise to become change agents by imagining a world that embraces Bitcoin.

Sophie Tobert

Sophie Tobert

Sophie is a sister, daughter, friend, and student who is passionate about freedom. She studies Management Information Systems at the University of Minnesota and enjoys traveling, coffee shops, and introducing her friends to Bitcoin.

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