The Little Bitcoin Book: Why Bitcoin Matters for Your Freedom, Finances, and Future

CHAPTER ONE
What’s Wrong with 
Money Today?
The year is 1981. 
In Manila, a young Filipino couple welcomes their first child 
into the world just months after martial law is officially lifted for 
the first time in a decade. The dictator Ferdinand Marcos will 
stay in power for a few more years, but for now, Luis’ parents 
are concerned only for their young family’s well-being. They 
have a small savings account and have begun putting money 
away in earnest for the first time, preparing for the turbulent 
years ahead. The exchange rate is seven Philippine pesos for 
one US dollar.
The year is 1993.
In Lagos, the Nigerian General Sani Abacha seizes power 
and fixes one US dollar to 22 Nigerian naira. It is an aggressive 
move that attempts to stabilize the economy by preventing the 
naira from further decline. The pegged exchange rate gives 
rise to a vibrant underground economy where naira trade at a 
much lower value. At the time of Abacha’s death in 1998, dollars 
change hands on the black market for as much as 88 naira, four 
times the official government rate. Millions suffer as they can 
no longer afford the rising prices of food on their static govern-

ment salaries.

The year is 2018. 
Everywhere along the porous border of Venezuela, citizens 
flee the country’s record-breaking 400,000% hyperinflation by 
crossing into neighboring Colombia and Brazil. More than 3 
million have already escaped from the devastating starvation 
and social breakdown.
Lorena, a 48-year-old baker, makes the difficult decision to 
cross into Colombia. At the border, guards search her belong-

ings, looking for valuables to confiscate. They find nothing. 
They don’t know that Lorena spent hours beforehand carefully 
rolling US dollar bills around bobby pins and hiding them in 
her elaborate braids. She strides into a new country, head held 
high.
In Manila, Luis’ parents see their luck turn for the worse. The 
exchange rate is now 50 Philippine pesos for one US dollar, and 
their patient saving over the years has resulted in an overall loss 
of more than 80% of their wealth. With their retirement immi-

nent, they have no choice but to continue working and saving 
for an unforgiving and unpredictable future.
In Lagos, the naira is in a brief period of relative stability 
after losing another 50% against the dollar in just a few years. 
Prices of local goods have skyrocketed again. No one trusts that 
the government can prevent another economic crisis, not even 
the government officials themselves.
The year is 2019.
In Shanghai, a young professional named Annie messages 
one of her friends on WeChat, the popular social media platform 
used daily by more than a billion Chinese. Her friend mentions 
that he’s in trouble for smoking marijuana, and in the middle of 
their chat conversation, he suddenly stops responding. 

The Little Bitcoin Book: Why Bitcoin Matters for Your Freedom, Finances, and Future