The Debt Cycle: Borrow, Print, Repeat

The world economy is trapped in a debt cycle.

Here is how it works:

1. Borrow: The government spends more than it earns. It borrows money to fill the gap.

2. Print: To pay the interest on that debt, it prints more money (because raising taxes is unpopular).

3. Inflate: The printed money causes inflation, making everything more expensive.

4. Repeat: Because things are more expensive, the government needs to spend even more next year. So it borrows more.

It is a hamster wheel that spins faster and faster.

In the past, this cycle always ended in a currency collapse. The debt became so big that the money became worthless.

We are seeing signs of this today. National debts are at record highs.

Bitcoin was built as a life raft to escape this debt cycle. It operates outside the government’s balance sheet. It doesn’t care how much debt a country has; it just keeps producing blocks every 10 minutes.