In a strikingly relevant educational video by Bitcoin media company TFCT, which portrays a deteriorating society, abandoning the gold standard is described as the “most costly mistake we ever made” and the onset of generational downfall.
The video, released in commemoration of Nixon’s closure of the gold window, showcases a grandfather on his porch sharing his insights (and regrets) with his grandson, who asks:
“What was so bad about gold?”
The grandfather responds:
“It kept them honest.”
Many believe this is ‘just how life’s supposed to be’
For a lot of individuals, this bleak reality of rising prices, household debt, fractured families, and an economy sustained by unlimited credit feels like the normal course of life. As the grandfather expresses:
“Folks today think this is just how life’s supposed to be.”
However, it wasn’t always like this. Earlier generations could raise a family on a single income and share meals together each night (instead of working overtime, glued to screens, or juggling multiple jobs).
He argues that the foundational changes in our monetary system occurred when the U.S. let go of the gold standard; an economic decision that brought severe repercussions affecting families, culture, and the fabric of society.
Abandoning the gold standard: a fatal error
The value of America’s dollar was once anchored by gold. This was more than a policy; it was a commitment, a mechanism that kept governments “honest” and restrained them from overspending.
The gold standard enforced fiscal discipline. Once the dollar’s convertibility to gold was abolished, a new era dominated by fiat currency emerged.
Politicians acquired the unchecked capability to fund whatever they desired:
“They printed paper backed by nothing, funded wars we couldn’t afford and shouldn’t have been involved in.”
While countries like France recognized the perils of this change and dispatched a warship to reclaim their gold, the majority of the world permitted the fragile, trust-dependent system to persist.
The decline was not immediate but rather eroded gradually. Prices skyrocketed, wages stagnated, “life became harder, and no one understood why.” The traditional family structure, where one job supported a household, home-cooked meals, and a feeling of security, became antiquated:
“Turns out when you fake the money, everything else follows, and you screw the next generation over.”
Bitcoin brings hope for future generations
As paychecks lost purchasing power following the abandonment of the gold standard, and families had less time, they began to “outsource parenting” to governmental schools and television. The culture shifted towards debt, not savings. Consumerism surged, accompanied by rising anxiety and prescriptions. Grandpa articulates:
“They learned debt, not savings. Bought houses they couldn’t afford. Played video games. Gambling, antidepressants, and crimes. Families fractured. Divorce rates doubled. Birth rates plummeted. Things got so bad, people started financing Chipotle… We got softer, sicker, and lazier. A nation in decline.”
The message from this generational sorrow is unmistakable: fake the money, and everything else unravels. When currency can be endlessly devalued, it leads to chronic deficits, generational inequality, and a perpetual cycle of “kicking the can down the road.”
Nonetheless, amid this bleak contemplation lies a rallying cry:
“We didn’t get it right, but you’ve still got a chance. So, take the reins, kid. Hold your ground, and don’t give up on sound money.”
While leaving the gold standard may be the root of many issues, Bitcoin gives newer generations a chance to mend the money and the world.
In contrast to fiat currency, Bitcoin is limited to 21 million coins and unaffected by political whims or central banking decisions. It is digital, divisible, borderless, and, crucially, has a fixed supply. Just as gold kept prior generations honest, Bitcoin serves this purpose in a digital age.
