The Reason We Are Here

The current monetary policy is not sustainable on many levels. The main reason we are here is due to the unfairness of how liquidity is created into existence providing the catalyst for the invention of Bitcoin. It is important to state this point many times over until there is a clear understanding of this idea. Until then, cryptocurrencies and the use of blockchain technology will have a difficult time building a strong foundation that is not easily raddled when a satirist's misguided comments are broadcasted or Google's advertising ban of cryptocurrencies is publicized.

Money Is Created Into Existence Through Debt

It is true and most bitcoin holders do not understand this very basic principle. Take for example the young man in John Oliver's introduction. He was happy about making money but had no idea of the underlying foundation. As an aside, I hope he did and it was edited out! The goal of bitcoin is to build liquidity in a manner that does not lose its purchasing power with the passage of time and not that it grows in extreme value over time. This will ultimately be the case where 1 bitcoin could purchase today the same amount of value twenty years from now with a decent adjustment to counter inflation and population growth. Of course the previous statement won't come true until it levels to a value that is difficult to move in a month-hour period.

Most bitcoin holders do not understand that there have been three central banks in American history. The current system which we call the Federal Reserve is the third one. Andrew Jackson's greatest accomplishment was to kill, no pun intended as there was an attempt on his life because of this particular belief, the Second Bank of the United States. I bring this up because there are two ways that money is created into existence through debt. One is fractional reserve lending. The other one is when the government borrows. I am not going to go into the details of this as there are plenty of references to prove my point. However, I will point out that when there are bond auctions for the money the government wants to borrow and there are no private hands that are willing to buy it, then by default they are bought by the Federal Reserve Bank. The Federal Reserve Bank just makes accounting entries and boom, just like that, the American people are responsible for this debt. Those that think China is the biggest bondholder, as it is the most popular thought on our national debt, are highly mistaken. Those that think the Federal Reserve is public have to ask themselves why then would the government borrow from itself. A small percentage of the interest income the Federal Reserve "earns" is by law returned to the people but it is minimal. Also, the interest income generated from all this debt goes to a few very hands to accent the criminal enterprise. I will put it this way, those of you reading this article are most likely banking with Wells Fargo, Citibank, Bank of America or Chase. Frankly, it is incredible to me that there has not been an uprising, but I seem to be more convinced that it is human nature the culprit of this.

Monetary Act of 1862 and 1863

Most bitcoin holders are not aware that there was only one time in our history that the government printed money into existence for the benefit of its citizens. Yes, I am aware that the treasury mints coins without further debt and there are precious metals being mined that add to our liquidity and other inventions like solar power that add to our liquidity by preventing the need of money, but they are all very low in value compared to how much debt is created. I am also aware of the attempt during colonial times to print a monetary unit but that was gamed by creating counterfeits. If we had remained with the idea of the Monetary Act of 1862 and 1863 system and taxed the supply of money to keep the inflation in check while making sure of no counterfeits, maybe we would not be satirizing about an uniformed satirist because bitcoin may have not been needed.

Most bitcoin holders do not know that the federal government prevented the ownership of gold by its citizens. I don't know how that was even sold to the masses. I guess there was a Roger Stone back in those days, lol. Sadly, most bitcoin holders do not know the implications of the Monetary Act of 1980 to monetary policy. Prior to this Act, the Federal Reserve could only buy government debt and only the debt of the US. The passage of this Act is what saved the undeserving banks to be bailed out, and possibly, on the positive side, gave "Satoshi Nakamoto" the final push to create the example of how liquidity should be created.

The Rise of EOS

Along the way, intelligent people on the shoulders of intelligent people were able to figure out that code could be deployed on a blockchain that would do more than just keep track of values through keys. Whoever is not excited about this will always be a lose hand with their bitcoins. If you have read this far, I thank you and I declare the variable that bitcoin is equal to all cryptocurrencies as it pertains to the academic discussion of this opinion. To further develop this idea, deployment of code on a blockchain, EOS is attempting to make the user end transaction free, to more than 50 fold transactions per second, to limit the use of energy while still creating a safe ledger, to empower all people by staking ownership, and the list does not end there. I just don't know enough to keep listing more incredible never existed possibilities. Ironically, the examples he outlined, Uber and Facebook, are going to be disrupted. I have met many likeable individuals while using the Uber service and would prefer to see them get all the fare not just a part. Well, we are not too far off from that possibility and it would be through EOS more than any other platform that this could be achievable.

Brock Pierce

Brock Pierce belongs as part of this company. He is the sizzling energy that neither @BrendanBlumer nor @bytemaster7 could ever have. I saw him give one of his speeches at a blockchain conference in Santa Monica and I was excited by his mannerism and positive energy and this is before I discovered EOS. He made an impact enough for me to remember that I am hoping to find my super power, and when I do, believe me I will be contacting @brockpierce so we could put it to work. They make a great group, perfectly complimentary and sooner rather than later this is not going to matter anyways. The EOS blockchain will be up and running and it will be owned by the community. It will not matter that Brock Pierce was accused of illicit acts or has a folksy way of thinking. Yes, marketing is important but marketing has to have passion first. Everything about EOS has been different. It is a technological advancement that besides having the objectivity of code carries the subjectivity of loud and energetic passion. EOS firms up my conviction that we are on an alternate path to our current situation and it is my hope that it firms up yours as well.

Is the Fire Out?

Undoubtedly, the 25-minute John Oliver show was a painful setback for such a promising development, but that is all that it is, a setback. We are blessed that alternatives are being created to free us from a debt-money future. The current monetary policy is immoral and sooner or later math, and compound interest specifically, will have a say about it. Yes, to be fair, we do need to agree with John Oliver that many ICOs are and will be creating losers. It is just unfortunate that EOS was singled out when it is the opposite and time will deliver this message. EOS will be creating winners, many winners and on many fronts, many fronts. Is the fire out? I don't know. Does @iamjohnoliver have Federal Reserve dollars in his pocket?