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Leestijd: 4 min.

Brecht Soenen


Mindset Money, whether we want to admit it or not, our lives in the materialistic world revolve around money. We need money in every aspect of our lives. A roof over our heads, food on the table, a car, vacations, etc........... Yet there is something very strange about money, and that is that no one is interested in the origins and workings of money, our monetary system and the economy. It is, however, a very fascinating world where you can learn a lot about how to make your money work for you. People stay away from bonds, stocks, cryptocurrencies, etc... While these are the ways to achieve financial independence. Actually, this should already be covered at school. Financial freedom is only for the rich and people from rich families, who learn how money works and how to tackle that lifestyle. The best example is Robert Kiyosaki's book, Rich Dad & Poor Dad. In this book he talks about the mindset of his poor dad and the mindset of his friend's dad who has turned into Robert's mentor. I think the best example of this is: a poor person says of, I can't afford this, while people with a rich mindset say of, how will I pay for this. A world of difference that just has to do with mindset. This makes all the difference in the world. People who grew up in a poor family lack the mindset to make something of their lives. Of course, there are exceptions here and there, and fortunately, there is a lot of literature on this subject these days, headed by the books of Robert Kiyosaki. I recommend everyone to definitely read his books. The lessons learned are priceless. And because knowledge about economics is extremely important, today I will explain 2 interesting movements in economics. Namely Keynes economics and austrian economics.

Keynes economics This is a movement in the economic world based on the ideas of John Mayndard Keynes who lived from 1883 to 1946. The idea stems from the year 1936 as a response to the Great Depression of the early 30's. It is also the prevailing theory to this day. It is said that in difficult times money may be printed. In order to take money out of circulation again in better times. In itself this is not so crazy, but the theory is disproved so that money is always printed and is never destroyed. This causes high debts and inflation. The more money that is printed the higher the inflation. Corona and the war in Ukraine are blamed for high inflation when it is more due to the mismanagement of central bank politics. The hole in the budget can never be closed and we are heading for the great reset. You can find a blog about this on our website. We are literally being driven to the abyss and no one can stop it.

Austrian economics Austrian economics stems from the work of Carl Menger in the year 1870 and his colleague in Vienna. This theory states that a fixed amount of money is put into circulation. That way if more value is needed the value of the money will increase, a deflationary system. A much better system than what we have now. Unfortunately, there are fewer supporters of that theory so our old monetary system continues to work in the Keynes economics way.

Bitcoin However, due to Satoshi Nakamoto's invention, Austrian economics is starting to gain traction because Bitcoin has a fixed supply of 21 million coins. So the more Bitcoin is used the higher the value of the cryptocurrency. That in itself creates a deflationary system so the hodlers are making more and more money just keeping up with the coins. Bitcoin is the future, we know that by now but it is also nice to see how this revives the theory of Austrian economics. What the future holds remains to be seen but we are heading in the right direction in my opinion.

Mind you, central exchanges tend to bank as well as fractional, so more on customers' accounts than they really have in liquidity.

We are only going to have a real Austrian model if the decentralized exchanges start working only with real liquidity. Meaning everyone has their coins under their own control and the third-party exchanges only work with 100% capital managed by themselves, or via strike in liquidity pools.

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