On August 15th, the 50th anniversary of the “Nixon Shock”, (when Richard Nixon took America off the Gold Standard), I read an article on LinkedIn about an elderly African American woman who went to her local bank to withdraw some money.
She approached the teller and requested to withdraw $10.00 from her account.
The teller informed the lady that because of the minimal amount of the withdraw, she would need to use the ATM machine. But the elderly women insisted on making the withdraw at the teller window. The teller, getting irritated, demanded that the lady use the ATM, to
which the elderly women replied, “In that case, I’d like to close my account.”
The teller, once realizing how much money the women had in her account, promptly informed her that she would not be able to close the elderly women’s account, because the bank simply did not have that much cash on-hand (you see the elderly women had over $300,000 in her account).
So, the teller informed the women that she could only withdraw up to $3,000, to which the elderly women did, and then removed $10.00 and re-deposited the remaining $2,990 back into her account.
Now, there are several lessons from this story, but the one that sticks out to me, is the fact that today’s modern banking establishment is broke. Banks simply don’t have that much cash on hand. Banks only keep enough cash on hand to honor ATM withdraws, and other cash
obligations from the teller window.
Americas fractional reserve banking has left its citizens with little, to no cash savings, no cash reserves, only an I.O.U for withdraw in the future.
On the other hand, those who are in full control of their money through investment in cryptocurrencies such as Bitcoin, Litecoin, Ethereum etc. enjoy an accruing asset, that is the hardest money on earth, in demand, and is real money, not just currency.
The U.S. dollar is collapsing, has no purchasing power left, and all the cash in banks is loaned out, with no reserves on hand.
So, if you’re wondering Why Bitcoin? and Why Now? think about this. With Bitcoin you’re the soul custodian of your money. You can get your money when you want it, and how much or little you want 24/7, 365 days a year.
After all it’s your money, right!
Bitcoin Doesn’t Need Banks! But Banks Totally Need Bitcoin!
Author: Majeed A. Kariem, CBP
C4-Certified Bitcoin Professional | President, Blockchain Merchants Assoc.
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