The main central banks of the world are increasing money supply in an uncontrolled and unjustified way in what is the largest transfer of wealth from savers to governments so far.

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While savers see their deposits disappear with negative real rates, and while devaluation and central banks seek at all costs to impoverish their neighbors through devaluations to benefit deficit-ridden states, financial repression continues to generate responses from citizens who seek to safeguard their savings from the monster confiscator: devaluation and inflation.

The main factor that has led Bitcoin (BITCOMP) to skyrocket is the global fiat currency debasement. In a year where headlines talked about a weak dollar, the US currency has strengthened relative to 67 currencies. It is not weak dollar, but weak fiat currencies.

Bitcoin and other cryptocurrencies like Ethereum (ETH-X) become an alternative to financial repression and a store of value, especially for citizens in emerging economies where currency depreciation is not a risk but a certainty.

This “currency start-up” that we mentioned three years ago has begun to be used in a generalized way for commerce. It is gradually moving from being a financial asset to being used more widely to exchange goods and services. But we must not ignore the risks. At the moment, countries do not consider Bitcoin a threat, but if its monopoly in currency and devaluing greed is put at risk in a relevant way, legal repression may be used to try to stop it. Although it will not be easy and will likely fail.

I am convinced that Bitcoin is going to serve as a brake on the unbridled monetary expansion that we have been experiencing for years with the excuse that “there is no inflation," creating crazy bubbles in bonds and risky assets, and laying the foundations for the next crisis. Bitcoin can be a shock that forces central banks that know they must hold their currencies as a store of value to regain sanity.