Thread by @ammar_wth

Why do governments and banks absolutely hate crypto?

Explaining like you are 5 years old👇🏼

[Thread🧵]

📍We haven't seen much improvement in the financial system of the world.

There used to be dollar bills back in the 1800s; there are dollar bills now(except their size decreased!)

Almost everything in the banking system is the same as it was 100 years ago.

📍Government has a monopoly over money, so they don't want the system to be changed.

Because if they lose control over the money, they lose everything.

📍You work your ass off, earn money, then keep it in the bank. The government prints more of it, the value of it goes down.

"What is scarce is valuable; what's in abundance is cheap. "

📍Also, the money the government gets by taxing you is not enough. So they have to issue bonds to raise money for the ''development.''

📍So how do bonds work?

Consider bonds as contracts.

You buy a bond from the gov at $100, let's say. They will repurchase it from you for $125 after 5 years. So you get a profit of $25.

📍When you buy bonds from the gov, you give them money. A lot of people like you do the same.

The amount of money in circulation goes down, the money becomes valuable. The interest rates go high.

📍When you sell it back to gov, you get paid through cash. The money in circulation increases, there's more cash in the bazaar.

What's in abundance is cheap—the value of the currency goes down. Interest rate decrease.

📍The gov gets to control the supply of money and the interest rate doing this.

📍Private companies also issue bonds when they want to raise capital.

📍Who profits when bonds are issued—banks.

Banks get paid for creating and underwriting these bonds. The more bonds being made, the more money banks make.

They make a fortune off of government policies.

📍Let's say, you buy something for 100 bucks through visa and MasterCard.

They charge the shop owner a fee of 1 to 3% of that transaction, not to mention the unfair 20% late fees they charge.

This way, local businesses can't compete with giants like Amazon.

📍You send money to Alejandro in Brazil as you hired him as a freelancer to make a website for your eCommerce store; Western Union charges you an unfair 10%.

Want to PayPal to your supplier in Japan, you'll have to pay around a 3% fee.

📍How much do crypto companies charge?
Close to 0 %.

📍If crypto tokens are accepted as a global currency, the gov will lose the power of issuing bonds and thus the power of supplying money and regulating interest rates.

The banks won't profit.

And most of them would literally go bankrupt.

📍Capital elitism will face a huge pushback.

📍How many people in Africa have bank accounts?
A: 20%

How many people in Africa with smartphones?
A:⅔ rd

Meaning: People in remote areas will have more access to cryptocurrencies than they had access to banks.

📍To know the truth:

-> Never ask a banker about bitcoin.

-> Never ask a taxi driver about uber.

-> Never ask a hotel owner about Airbnb.

-> Never ask a 9-5'er about remote work.

-> Never ask a news outlet about internet.

-> Never ask any government about anything.

RT = I'd like cryptocurrency to take over banks and governments.

'Cause the rich get richer and the poor get poorer!