Bitcoin is not a money system.

in bitcoin •  10 months ago

Libertarian leader Jeffrey Tucker, liberty resource Director.me and the publisher of political literature told why he doesn't consider Bitcoin a monetary system.

When I started writing about cryptocurrencies in the spring, a lot of questions about Bitcoin were sent to me. And it is clear why-who would have imagined that some programmer, nameless "botanist", invent and put in open access a new currency," made of units and zeros", and after some five years, its market capitalization will come close to 10 billion dollars.

What does it all mean? I had to do some serious research to understand how completely different technologies are related. For a real and complete understanding of Bitcoin it is necessary to understand the theory of money, programming, movement for open source code, distributed/peer-to – peer networks, cryptography and development of process-oriented SOFTWARE-and this is a fairly large amount of information. That is why many wonder how any "Protocol" can become the basis for a new world monetary order.

However, I do not think that the lack of technical knowledge can explain why even some very smart people can not understand the reasons for the success of Bitcoin. The correct answer was prompted by a letter from a person who asked how to enter into contracts and keep records in case Bitcoin is "approved as a currency".

I thought about the word "approved." Here's the main misconception, which, however, it is not difficult to understand. In 1974, Hayek wrote that governments have owned and operated monetary systems for centuries: even in ancient times, the production of a full-fledged coin was considered an obligation of the state. In the 19th century, all governments tried to implement systems that were best suited to the needs of the population.

In the 20th century, governments went even further. They began not only to issue money, control the system and decide what to consider money, but also to use the "scientific approach" to determine the optimal rate of increase in the money supply. In addition, they have created a centralized banking system to ensure that the money will be exactly what it should be. All aspects of the monetary system – that is, half of all economic transactions – are controlled by the state together with private partners in the financial sector.

And it went on for years. None of the living did not find those times when money was not completely dependent on the state. Governments have actually made money socialist property. And what did that lead to? Money has become a political tool – it loses its value, for them you can buy less and less goods and services. In fact, they have become the main means of financing the expansion of power to the detriment of freedom.

The emergence of cryptocurrencies completely destroys this model. Satoshi Nakamoto did not ask anyone for approval or permission when he released his program model of the ideal currency. He did not send working papers to the national Bureau of economic research, did not consult with economists of the Federal Reserve System and its Chairman, did not report to the Senate Committee on banking Affairs. He appealed to the right people.

He bypassed all power structures and spread his idea over a distributed network. He created a new world in which everyone could participate. In fact, he offered not a system, not a structured plan of monetary reform. Over the past hundred years, we have seen a lot of such reforms, and none of them has led to anything. One can talk for a long time about monetary rules, political reforms, audits and hard currency rates, but the fact remains that governments own money and will use it for their own purposes.

That is why a completely different approach is needed – a free market. A free market is not a system whose rules are determined by specific people. It cannot be influenced by governments, legislators, government regulations or instructions. It is governed by the independent actions of individuals, without any centralized management. People manage their own property and unite to create something new in their own interests. It is an ideal that arises from a complete lack of control.

Does it look like anarchy? Karl Marx would have been shocked. He never understood the essence of the liberal revolution of the 18th century: society can govern itself independently and can create its own ideal order without centralized control. Bitcoin is a paradigm example, but only one of many emerging these days around the world.

Who Chronicles these revolutionary events and systematizes them to illustrate how freedom penetrates into the lives of individuals and society as a whole? After all, right now everyone can become a participant in the wonderful changes that are taking place in the global political and economic system before our eyes.

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It's nice to see that somebody does not just copy and paste or write stupid posts like information about the price of cryptocurrencies...thanks, upvoting $0.02