What do you see when you turn on the TV or scroll through your news feed on your favorite social media platform?
You see a failed war ended after 20 years, hundreds of thousands of deaths, billions of dollars wasted, and the same illiberal regime in place as before.
You also see inequalities, price hikes and protests.
And you see setbacks for terms of office.
Bitcoiners regularly respond to every problem in the world saying “Bitcoin solves this problem”. Hyperbola? No, Bitcoin is the only realistic path to the libertarian ‘good word’, our witty ‘fix the money, fix the world’ remark. Indeed, Bitcoin is the best asset libertarians have to reduce the size of government, fight inflation, reduce debt due to inflation, starve the military-industrial complex, and avoid ever-growing reach of government.
How does Bitcoin achieve this?
Bitcoin is a saving technology that is nascent money. Historically, money has three functions: it must serve as a store of value, a medium of exchange and a unit of account. Bitcoin, despite its volatility, is certainly a store of value but is therefore much less widespread as a medium of exchange or unit of account.
However, Bitcoin has only been around for 12 years, and its adoption rate is already growing faster than that of the internet. Money is the ultimate “good of the network” which means that its value and ease of use increases with each user membership, and each user is incentivized to encourage others to adopt bitcoin as it directly benefits them. . As a result, in a short time, Bitcoin has become a somewhat esoteric toy for cypherpunks, adopted by financial institutions and the country of El Salvador, as well as savings technology for tens of millions of people around. the world (Bitcoin’s current user base is estimated to be around 120 million). It is absolutely remarkable.
It does not matter Why people use bitcoin. Perhaps this is because it is cheaper and faster than traditional cross-border payments. This may be because it is collapsing on the upside and increasing in value by about 200% per year. Maybe it’s because some people are speculating on it. Or, maybe it’s because it saves lives and allows people to escape some of the worst environments possible. An example of this can be seen in some excellent articles written by Alex Gladstein, director of strategy at the Human Rights Foundation, on the use of bitcoin in Afghanistan, Cuba or Palestine.
Bitcoin is already empowering millions of people, not just the wealthy elites, who already have access to banks, stock markets, and other financial technologies. Bitcoin empowers the billions of unbanked people and promises a future that takes control of money from government. Bitcoin attracts millions of people and each person joining the Bitcoin network will be incentivized to attract more users.
Bitcoin presents hope to millions of people and presents a viable Plan B for holding fiat currency, which is melting in your hands due to the irresponsibility of central monetary planners. Right now, the most important reason government can grow beyond its mandate – beyond its tax revenues – is the government’s power to print and force everyone to use its lost money.
In the past 24 months alone, the US Federal Reserve has printed 40% of all existing dollars. Naturally, this has resulted in huge levels of inequality, as people close to government supply (like banks) enjoy higher purchasing power compared to people at the bottom of the chain. food (such as recipients of fixed incomes, students, etc.) who see prices rise only with a decrease in real purchasing power. This is called the Cantillon effect.
The Federal Reserve directly monetizes government debt, and the Fed provides an endless demand for public debt, which could not grow at the astonishing rate it does without the power of the print media to buy all of it. this. up.
The Bitcoin network itself and personal possession of Bitcoin is an act of peaceful rebellion against the fiat currency system. Every day when someone buys bitcoin, they take money out of the fiat system and put it in a store of value. It is placed in a system which cannot be inflated. There will never be more than 21 million bitcoins issued. Bitcoin has been tested, Bitcoin has been attacked, and the protocol has remained robust against 12 years of adversaries trying to undermine it.
Many Bitcoin detractors fundamentally fail to understand Bitcoin’s value proposition. And it makes sense that they don’t. We have not seen a new type of currency emerge for over five millennia. Additionally, Bitcoin’s roots lie in more atypical fields such as Austrian economics, game theory, cryptography, and economic history. Thus, the frameworks through which most economists and experts analyze Bitcoin are very inadequate.
Another new aspect is that Bitcoin gives its users absolute control over their money. They can decide when to send money, how much and how much to pay for a transaction. No one needs to be asked if you can send money to a nonprofit four thousand miles away, and no one needs to confirm if you can send money to your. family in other countries. No agency or bank can prevent this. Bitcoin allows you to become your own bank. It is incredibly stimulating and such technology has never existed before.
This is a guest article by Dr Wolf von Laer. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.