It’s getting really easy to get lost with all the volatility and headlines out there in Bitcoin lately. Various altcoins are becoming more and more distracting, albeit useless, and newcomers to the space still make us forget the real reason we are here. Unfortunately, the people behind these charts simply do not understand what crucial time we are living in.
Bitcoin is a fix for the current corrupt system.
Traditionally, governments collect a percentage of the goods and services produced and manufactured in their economies in the form of taxes (the inevitable evil that everyone hates). The state takes taxes from productivity, then collects them and reinvests them in the country. These investments can be anything, from infrastructure to the military. The A native The purpose of all governments (past and present), their functions and taxes are to protect the people, protect the country and build infrastructure. Ideally, there is an incentive alignment where what is good for the people is also good for the government. By reinvesting this tax revenue into the economy, the country grows and is able to modernize its infrastructure, allowing everyone to become more productive.
Increased productivity along with reinvestment of tax revenue results in the growth of the economy and thus its overall tax base. The government can collect more taxes the higher the production. The organic growth of the economy discourages the government from raising tax rates.
However, our economies today are heavily driven by central banks. Enter “Money go BRRR!” Our economies are overdriven quantitative easing. Instead of financing government spending with tax revenue and maintaining a balanced budget, central banks have allocated new money to purchase government debt, allowing the government to spend beyond its means. The main problem in a central bank driven economy where a government can simply get its central bank to print new money is that at this point the country no longer has to bother with reinvesting tax revenue in the economy, infrastructure or education system in order to benefit the people and develop tax base. The state no longer had to rely solely on taxes. He can simply use as much new money from the central bank as he needs to. look at the stream US Federal Budget for fiscal year 2021 and ask yourself “How can this be sustainable?”
Under this system, taxes do not disappear. They go to the top. Wealth and savings fade through.”2% annual inflationIn this central bank-driven economy, the alignment of incentives between government and people has been broken. As income is generated, the prices of assets such as stocks and real estate rise over time. As a result, we have more wealth inequality, as those who own these assets become Richer People who don’t own assets have no dominance against excessive printing of money as their cost of living increases Governments finance murder and senseless wars through their central banks Inequality of wealth leads to social unrest Instead of governments being honest with its citizens, they instead lie and pit them against each other.
When I talk about Bitcoin, it’s not about “increasing the number” or “enjoying staying poor” (although those jokes may be funny) but about buying and holding bitcoin as a necessity. It’s a way to fight the central bank-driven economy. Bitcoin is the unique way in which we can protest against – and possibly overthrow – this system.
There are a lot of deep ideas that have gone into and are still flowing into Bitcoin. How the Bitcoin network works is pure and majestic on its own. Bitcoin is still a mystery unfolding before our eyes. I’d go so far as to compare it to how messy, but amazing, our universe is. You simply do not see it in other projects. Such as Alex Gladstein states in his great article, “87% of the planet was born into autocratic rule or vastly less trustworthy currencies. 4.3 billion people live under tyranny, and 1.2 billion people live under double or triple inflation.” loves people Paul KrugmanAnd the Charlie Munger And Western elites piss me off whenever they pitch their Bitcoin ideas to the rest of us. They enjoy a degree of civil liberties and stable currencies that most of the world does not. In the summer of 2018, I visited the Palestinian Territories. You have seen what the current economic system driven by our central bank has done all over the world.
Fix the money, fix the world.
This is a guest post by Paul Opoku. The opinions expressed are their own and do not necessarily reflect the opinions of BTC, Inc. or Bitcoin Magazine.