Cryptocurrencies are the first self-limiting monetary systems in the history of mankind, and could be our greatest chance to check the growth of political power since the Magna Carta. Cryptocurrencies could be greatest revolution in human history, and the foundation of a truly free and prosperous planet.
There’s a lot to say, but hopefully I’ll make the case here.
Bitcoin is great technology and the premiere example of the coming crypto-technical world, global commerce by cryptocurrency. . Cryptocurency is genius. The public ledger of value transfer and information copyright, deeds, wills, almost anything you can think of can be implemented in the Cryptocurrency architecture. It is one of the greatest economical innovations in human history.
As business interests and financial interests gained more presence in the government the voice of the people became more distant. This country became an oligarchy. It’s a government in which the wealthy class rules. It’s a modern day plutocracy.
We all know this to be true and my position is that it is the fiat currency that enables this tendency in most governments and it is the politics of the fiat currency that make an oligarchy.
It is cryptocurrency that can stop an oligarchy and stop a lot more besides.
How is cryptocurrency a solution?
What was the original money historically? Solid gold is the correct answer.
Aristotle defined money as having five characteristics.
It had to be portable.
It had to be long-lasting and not perishable ,
It cannot lose its value.
It had to be divisible to smaller denominations and be reassembled to primary denomination,
and it has to have intrinsic value. The most important characteristic of money, intrinsic value, is that it is limited.
Gold has those properties. It lasts long. You can slice it up. It retains its value. You can reassemble it and it has intrinsic value because people historically have come to value it. It’s has thousand of years of perceived value.
Cryptocurrency has the same characteristics as gold, except of course, it’s digital. Cryptocurrency is divisible. It is portable. It will last as long as it is used. Once established it will not lose its value.
A cryptocurrency only has value in its exchange – it has no inherent value – this is precisely the same as with a ‘conventional’ fiat currency. A dollar is only actually worth what someone is willing to give you in exchange for that dollar. If everyone were to stop accepting the dollar it would become worthless.
Unlike the dollar, cryptocurrency has a limited issue. It is limited.
Where’s the rub? Cryptocurrency works.
This quality of the “limits of money”, the limiting of money, is the limiting of political power.
One of the things that cryptocurrency has the power to do is to limit the seemingly endless growth of political power that, today, literally is unlimited because of the Citizens United ruling.
In the 19th Century when money was limited by gold, prices went down for a hundred years in general. Everything was like todays computers. Everything got better and cheaper over time. We can’t fathom this anymore, but that’s how it used to be when money was limited.
When money is limited on a fixed asset, gold for instance, the government can’t just make up money by printing. In a limited money environment, it means, if you want to transfer money for a business transaction, you must have it first. You just can’t take money from other people freely, with fees and interest without resistance.
Since WWI, governments have always tried to enrich themselves. They have persistently tried to break the bonds of limited money. As war expenses exceed the amount of gold each nation had in reserves, and it always does, each nation went off the gold standard. Until, in 1971, Nixon took the US off of the gold standard. That set our government free as well as the governments of every other country in the world.
So when governments can print money, they don’t have to ask the people to make rational decisions or to balance their financial things, or to adhere to the normal basis of economics. To the government, all human desires are infinite and must be met. However, all resources are finite, but with the magic ledger and the printing press, the magic of the Federal Reserve creates whatever amount of money they want into their own banking systems. As this is practised, they have a tendency to go into this crazy, psychotic world of limitless capacity for destruction and death.
A government free of financial limits is out of control.
Financial freedom for the government is enslavement for the people.
We’re talking about the power of the people. When the government is free, the people are enslaved. When the government is contained, then the people are free.
To limit money is to limit political power.
Cryptocurrency will limit money and contain the government.