- The farming industry is under pressure.
- US cattle company turns to Bitcoin.
- Public confidence in TradFi is waning.
Since 2019, the farming industry has been reeling from soaring input costs, compounded by policy uncertainties and the rippling effects of conflicts in Europe and the Middle East. These challenges have cast a shadow over food security, jeopardizing the viability of many farming operations. Yet amid this turmoil, a small US cattle company is fighting back by adopting Bitcoin as a treasury asset.
Bitcoin Combats Inflation
The Kansas Cattle Company (KCC) announced adopting Bitcoin as a treasury asset in response to the mounting economic pressures of raising livestock. In the company’s own words, the sector is grappling with a “debilitating loss in purchasing power,” rendering the decision to embrace Bitcoin as a reserve “one of our easiest.”
KCC’s 2020 annual turnover was $1.46 million, making it a small player in the farming and Bitcoin worlds. But its Bitcoin embrace is a stark reminder of the dire economic straits faced by countless businesses and individuals, as reckless monetary policies have eroded the value of fiat currencies globally, leading to an alarming decline in living standards.
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The company’s decision to incorporate Bitcoin into its treasury reserves underscores a growing disillusionment with traditional financial systems. As inflation erodes the purchasing power of fiat currencies, more individuals and businesses will inevitably be compelled to explore alternative options.
Collapsing Living Standards
Mounting disillusionment with TradFi is becoming more apparent, as highlighted by a recent Wall Street Silver post. The post featured an individual blasting the decline in living standards, pointing to Canada experiencing significant financial turmoil fueled by rampant inflation.
The speaker challenged the prevailing narrative that inflation is subsiding and under control, criticizing the data collection methods as distorting the true picture. Referencing the Shadow Stats website, which calculates inflation using the more accurate methodologies employed in the 1990s and 1980s, the individual asserted that the extent of the crisis is worse than reported.
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Echoing these concerns, renowned investor Cathie Wood has attributed the recent resurgence in Bitcoin to the global erosion of currency values. In her view, individuals increasingly turn to Bitcoin as “A hedge against devaluation. A hedge against loss of purchasing power and wealth.”
On the Flipside
- KCC‘s stated goal is to produce quality meat that has been reared appropriately, as opposed to modern standards prioritizing quantity.
- The rising gold price further signals a loss in confidence in fiat currencies.
- European farmers are forcing policymakers to reverse “green policies” and improve subsidies.
Why This Matters
KCC’s Bitcoin strategy signals the growing disillusionment with TradFi and the associated flight to safety. Bitcoin’s inherent scarcity and decentralized nature offer a compelling alternative to combat the eroding value of fiat currencies and broken incentive models.
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