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Opinion article: Crypto Matters: Government money won’t create value
Fiat currency is not your friend. Money today is controlled by governments and central banks. It is used to harm the average human. A large number of people on the planet are poor. How do we define “poor” – someone who lives on less than $3.20 a day?
Is it the governments fault?
Kind of. But here’s the thing: fiat money is inherently inflationary from a practical standpoint. There is no way for unsecured currency to maintain its value when created in ever-increasing quantities.
Fiat currency loses value because it is debt – and governments continue to spend more than they have. Add to this equation the impact of fractional reserves and it’s easy to see why that big $3.20 a day doesn’t go as far as it used to.
But wait, it’s much worse!
Not only does fiat currency rob the poor of their tiny purchasing power, it also empowers governments and the rich. Don’t worry, this article is not socialist nonsense that would lead to a North Korean economy.
In fact, we believe the only way forward is to adopt completely laissez-faire monetary systems globally.
To hell with the central planners!
Sorry Boomer – Central Banks Mean Central Planning
We are not here to teach you any history. It’s boring for most people. In the crypto game, people come to make profit. Small problem: the profits of cryptocurrencies are measured in fiat currency.
Central banks are not an agnostic force in the world of money. Banks like the US Federal Reserve have a product – and that product is money (the US dollar). By issuing one of the most important currencies in the world, the FED has incredible power.
Also, for those of you who didn’t know, the fucking FED is a private, for-profit entity. The owners of this entity are a secret. And just for fun, the FED sits at the center of the Western financial system.
Books have been written about this situation and are worth reading. That said, the important takeaway for the purposes of this article is that the FED and all other major central banks enable global central planning.
Setting interest rates is a rudimentary tool of central planning, but the active bailouts that took place following 2008 are far more insidious. While poor idiots who bought houses they could never have afforded at higher interest rates were evicted – penniless – the banks in the financial centers got away with bailouts of several billion dollars.
Money should not be a commodity
Yuval Noah Harari trusts the “system” to an unhealthy degree. You can see his views on Bitcoin, which probably extends to all cryptos, here.
If you’re more of a reader who burns YouTube in effigy when he can, Harari doesn’t like Bitcoin because it means bankers are limited when it comes to creating money for governments. He also hangs out with Klaus Schwab at WEF, which would be a lot less creepy if it was just cosplay.
Aside from strange personal choices, Harari actually wants governments to devalue money, making the poor poorer and allowing the military-industrial complex to spread war. We’re not just talking about the US military-industrial complex: fiat currency allows every government to support the arms trade and the mass death it causes.
If we used sound money, Harari would have to trust the currency, not governments and central banks.
The shadowy groups that actually own the central banks have a vested interest in protecting their monopoly on money; therefore, one should not expect positive change to come from within the system. In fact, we can expect the situation to become even more extreme – and it’s all centered around the lust for power.
Back to North Korea
The modern Western mind does not understand the dangers of true authoritarianism. North Korea is a nice place to watch if you want to understand how bad things can get when humans allow concentrated power to metastasize into vital social systems, and how many people die as a result.
Of course, none of this is new. The same thing happened in the USSR when a lovable rascal named Trofim Lysenko was put in charge of agriculture. So many people died of starvation. And not only in the USSR!
Lysenko’s ideas were adopted by Chairman Mao in China at the time, and tens of millions more died. The scientist thought he could train plants to jump high enough to dunk in the NBA, but everything fell apart when Stalin told him that professional basketball was a tool of the bourgeoisie.
Just kidding about the basketball part.
What actually happened was much worse. Lysenko’s appalling ideas destroyed the USSR and China’s ability to produce food at previous levels, and mass starvation ensued. To make matters even worse, he had everyone who opposed him killed or sent to the gulag, so his power and dangerous policies remained unchallenged until Stalin’s death.
In other words, Lysenko was a sociopath turned authoritarian and his ideas killed an incredible number of people (the total is probably in the hundreds of millions).
Today, the same authoritarian tendencies are consolidating power in the Western fiat monetary structure, which is likely to cause problems for the average human. There was also a lot of cannibalism in China because of Lysenko’s ideas – which may have increased the death toll.
You can’t count what you don’t see!
An anchor for one, a necklace for the other?
Gold is hated by modern central bankers. When the world used gold as the basis for making money, there was a limit to the amount of money that could be created. In a sense, gold acted as a brake on the ability of central bankers to create money out of thin air.
Power-crazed sociopaths hate limits, which is why modern technocrats took great satisfaction when the postwar gold standard collapsed as a result of America’s spending spree on wars in Southeast Asia.
For everyone except bankers and wealthy warmongers, gold served as an anchor. He held bankers accountable and ensured that fractional reserve banks could not go too far in multiplying money. Despite massive purchases of gold by central banks, they will not restore the gold standard anytime soon.
If we want sound money, we must choose assets like Bitcoin. It is not enough to own cryptocurrencies: we must use them.
Fiat currency retains its power because it is used by billions of people around the world every day. Crypto can replace fiat currency in most cases. If the masses understand that they are empowering the worst parts of the human psyche, real change is possible.
In fact – with the current level of development of cryptocurrencies – the fiat currency system could be replaced in a week or two. People just need to wake up and start using honest digital money.
