In a world where power structures are endlessly intertwined, Bitcoin (BTC) offers an alternative path. So, is this road hard or easy? Will people accept it or not? Here are the details…
Decades of controversy around Bitcoin (BTC) has portrayed it as a bubble, tulip frenzy, or some kind of Ponzi scheme. But now even non-believers agree that Bitcoin is here to stay. They may not realize that, under the mask of charlatans, gamblers, and swindlers, there is a slow movement towards a vision of a grand future. It promises a future where money is a tool of a thriving society rather than an oppressive arm of the state.
As the chances of Bitcoin (BTC) crashing on its own become less and less with each passing day, Bitcoin’s enemies are beginning to understand what its steady progress means to them. As politicians and central banks slowly realize the ensuing revolution, they are starting to rant the silent part, arguing that Bitcoin is a threat.
Bitcoin’s rivals are indeed right in their analysis on a relevant issue. The threat is precisely Bitcoin (BTC): a vicious threat to fiat currencies and government repression everywhere. The media may have chosen to spread this idea as Fear, Uncertainty and Doubt (FUD). But Bitcoiners embrace this as the reason for Bitcoin’s entire existence; “It’s a practical way to separate money from the state.” says.
There are two lies that society strangely accepts as truth:
- a) It is natural for the state to control money.
- b) inflation is necessary.
People prefer to distinguish between powerful institutions when it comes to church and state. However, they do not apply the same logic when discussing money and government. The impact of money on society cannot be underestimated as it is a means by which people transact with value and interact with the economy. Is it the natural conclusion we draw from putting this powerful institution into the hands of the government, an immensely powerful institution with a history of abuse of power?
When the government is given full control over the money, it has the capacity to drop the money as the ruling party sees fit. Everyone is aware of the dangers of hyperinflation. But people cannot live with the phenomenon of arbitrarily expanding the money supply of a small minority.
Not only are they not bothered, they even find it natural that most central bankers should determine the value of the money they use to store their hard work, and that this intervention in money is necessary to prevent an economic collapse. This fact is not surprising, given the economy’s dominance in politics, central banking, and academia!
What is the Keynesian Approach?
The entire theory of the Keynesian approach is focused on government intervention and increasing demand to stimulate economic growth. So they naturally hate anything that severely limits these goals. Hard money, like Bitcoin and gold, encourages saving and planning for the future, which Keynesians self-admittedly see as harmful. To them, inflating the money supply is the necessary motivation for people to unnecessarily consume nest eggs in favor of high time-preferential production.
Purpose of Bitcoin (BTC)
Inflation, often called the hidden tax, breeds financial rigidity for citizens as they succumb to the silent theft of purchasing power. Bitcoin (BTC) finally offers the masses an opportunity to abandon unilateral regulation. With an unshakable monetary policy and a decentralized consensus structure, there is no fear of arbitrary changes in the rules of the game. Those in power can no longer shape the money supply to achieve their own ends.
One of the most important properties of money is its portability over space and time. Fiat is good for transferring value around the world. But it is terrible at transferring value over time, as it is guaranteed to lose some purchasing power each year through inflation. Conversely, gold is difficult to transport in large quantities or over distances. But it has proven adept at holding value for thousands of years.
Before Bitcoin came into existence, gold was seen by many as the solution to separating money from the state. However, this is misleading because gold is heavily dependent on central institutions. Wardens need to protect a significant amount of gold and organizations must be trusted to issue coins or notes honestly. For Bitcoin, it does not require such trust as each individual can receive and securely store the asset.
Gold is a durable, scarce, shiny rock that we have chosen to use collectively as money for thousands of years because of its durability and superior qualities to other types of money. Likewise, bitcoin has value. Because it serves the purpose that gold does as a monetary good chosen by the free market. But without the barriers inherent in the physical nature of gold. Simply put, bitcoin gold is 2.0. Because it has an easily divisible, verifiable limited supply.
It is practical for self-containment, seizure-proof, and completely intrusion-proof. Bitcoin’s only valid criticism of gold is that gold has stood the test of time. But Bitcoiners are willing to leave Bitcoin’s relative infancy behind and bet that its ever-growing network effects will allow it to do the same.
Bitcoin (BTC) is incredibly strong as it is one of the few real bearer assets. Practically every other form of property you own belongs to you only because some central authoritarian power sees it that way. Strong property rights are necessary for the development of society. In stable democracies, these rights can often be relied upon to be respected and supported.
The same cannot be said for most of the world’s population. In countries with authoritarian regimes or where the rule of law means nothing, private property is a luxury that few are afforded and the solution can be found in Bitcoin. A person’s bank accounts can be frozen, their property stolen, and their home repossessed. But as long as they memorize the mnemonic seed phrase, their Bitcoins are stored in cyberspace, ready to be claimed.
In the United States, this real estate concept can function as an insurance policy. Or it can also be used as a political statement. Bitcoin exists completely separate from the current financial system operating under the scrutiny of the government. Transferring your wealth from one system under their control to one outside their jurisdiction severely limits the state’s ability to enforce. By having an entity that the state is powerless to seize or freeze, an individual gains great leverage over those who want to thwart their civil liberties.
The narrative that Bitcoin is a store of value has successfully entered mainstream discourse. Many Bitcoin advocates, especially Michael Saylor, focus their speeches on how Bitcoin’s fixed supply schedule and hijack-resistant properties make it a leading store of value. It’s a much less threatening narrative than they can tell. Heralding Bitcoin as the world’s future currency immediately draws attention. That’s why it’s the perfect Trojan to bring out the tastier idea that Bitcoin is “digital gold.”
As this narrative continues, more capital and individuals will flock to Bitcoin in search of a store of value amid inflationary fears that kickstart the hyperbitcoinization process. Soon, as the development and adoption of the Lightning Network increases, Bitcoin will make progress towards being accepted as a scalable medium of exchange. Once proven to be proficient at this, bitcoin will steal the final usable quality of fiat (i.e. currently used currencies).
While some are due to good intentions or misunderstandings, FUD against Bitcoin has never been about saving the environment, preventing ransomware, or stopping criminals. This view, which is supported jointly by the statists, is now a restriction on individual freedom. They see it as a tool to keep people entrenched in compelling legacy systems that power them.
If you want to see real bipartisanship in government, start messing with the monetary system. Two diametrically opposed people, Elizabeth Warren and Donald Trump share the same stance on Bitcoin. But monetary sovereignty is simply a matter of power, not clearly a matter of left and right. Even the noblest of politicians are enslaved by the temptation to use other people’s money to achieve their own ends. That’s where bitcoin can fix it.
Can Governments Change Their Minds?
Now, don’t expect governments to give up a valuable property without a fight. If history and recent regulatory review are any indications, a Bitcoin ban is inevitable as a mass exit from fiat (current currency) approaches. Unlike the criminalization of gold in the US after the Great Depression, trying to successfully ban Bitcoin is an almost hopeless task.
While there is nothing nations can do other than shut down the entire global internet to restrict the network itself, the best they can do is to value fiat in a different way. Doing so will certainly weaken bitcoin’s price, but it will succeed if every nation shows a united front. The idea of Russia, China, North Korea and the US working together to ban everything from Bitcoin is nothing short of ludicrous.
Without a completely uniform ban, bitcoin users would benefit from judicial arbitrage by moving to countries (or US states) that created Bitcoin safe-havens. Nations will be encouraged to create these safe havens to attract the wealth and investment of Bitcoiners into their local economies. Ironically, disconnecting bitcoin from the legacy financial system will likely force Bitcoiners to leave fiat forever.
It will remove the state’s control over the valuable property. The time has passed for a vengeful revolution that will bring back the stable currency chosen by the market. The answer is not to grease the wheels of politics to restore a gold standard that voters either think is outdated or simply don’t care, even though it’s in their best interests.
Not to mention how politicians on both sides of the road would be reluctant to give up control of the money writer who helped finance their agenda so easily. Instead, as FA Hayek presciently predicted 37 years ago regarding the removal of money from the state, “all we can do is to introduce in a cunning roundabout way something they can’t stop.” Which is what is happening right now.
Did El Salvador Do Well By Choosing Bitcoin (BTC) As Its Currency?
The move to separate money from the state should always remain purely voluntary. No one should be forced to agree with it, so some aspects of El Salvador‘s new bitcoin law are worrying. If the law were to end up treating bitcoin as currency and eliminating capital gains, that could be considered a gain for freedom. But it doesn’t end there. Instead, Article 7 requires investors to accept Bitcoin. Investors now have the option to immediately exchange Bitcoin for dollars through a $150 million government fund. But this is a Salvadoran taxpayer-funded fund that shouldn’t be burdened by Bitcoin’s volatility.
It is not yet clear whether Article 7 will be strictly enforced, but its mere inclusion is alarming. The moment we sink to the level of the beings we are trying to change for greater adoption, we lose any moral superiority possible. Make no mistake!
The step of a country adopting bitcoin to end its reliance on the US dollar is a big step forward. But that means there will be more eyes on bitcoin, and FUDers will hold their breath if things go a little wrong. Therefore, Bitcoin users should stay vigilant and change their minds by criticizing them for those who want to attack Bitcoin (BTC) if we want to maintain the Bitcoin ethos.
Ultimately, Bitcoin Offers Us Our Freedom
Nothing is more powerful than an idea whose time has come. Bitcoin can provide property, hope and self-sovereignty to billions of people. Money is a purely social construct; This means that each of us has a say in what we see as valuable and what we choose to trade. Don’t be fooled into thinking that money must be a top-down phenomenon bestowed upon us by our masters!
Bitcoiners are used to being the ones who have to defend their positions. So the next time a nocoiner or precoiner friend asks you about bitcoin, ask them a question instead. Ask: During this groundbreaking currency revolution, why did you choose the side of theft, coercion, and censorship when the alternative was so open?
If this completely digital currency proposal, which is not controlled by anyone, is immediately accepted by everyone, it will not be a revolution. It is precisely because of how radical and ambitious Bitcoin is, that we as a society have to undertake this project. What does that say about us, unless we want to embark on an absolutely Herculean endeavor whose success we will not see in our time? How does our society fare when we build for the future? Now we have a tool to create a freer life for ourselves together.
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