Bitcoin: How The King Kong of Currency Is Shifting Power To The People
2024-8-6 03:0:19 Author: hackernoon.com(查看原文) 阅读量:4 收藏

Fun Fact:

Only 1.1% of the total cryptocurrency volume is deemed to be illicit.

Money laundering costs the global economy between $800 billion and $2 trillion per year, according to the UN.

Annual total transaction volume on the Bitcoin blockchain in 2023 was approximately $16 billion.

This means that out of $800B to $2T in laundered funds, at most $200,000,000 passed over the Bitcoin blockchain, assuming no other cryptocurrencies were used(which they were).

Somewhere between $799,800,000,000 and $2,000,000,000,000 of “dirty money” went through traditional banks.


The Appeal of Bitcoin in Unstable Political Climates:

In the face of governmental instability, inflation, war, political persecution and other threats, Bitcoin stands out as an empowering tool to free those capable of wielding it effectively. Political conflicts, be they military coups or simply run of the mill totalitarianism, pretty much always lead to economic volatility, with direct effects like inflation, limits on banking and transactions, and deteriorating public trust in banks and government in general.

This is because when governments do things they shouldn't and cause problems, often their go-to solution is to print money and throw that at the problem. But this just shifts the cost to you, the people who now get to buy the same amount of food, with money that is half as valuable because the government printed money and bought the fertilizer to make bombs rather than food. Even RFK Jr. knows that much.

In countries experiencing economic implosion due to IMF debt contracts that now go as far as discouraging bitcoin usage, and coordinated currency devaluation by central banks, bitcoin has a stable supply. This enables people to get groceries when the supply of fiat is rapidly inflating. Bitcoin can't be easily manipulated like fiat currencies, which can be printed without limit and thus lose value constantly every time a government weapons contractor/arms dealer gets his wings.

Moreover, no matter where you are, politics and catastrophes alike may lead to the outright loss of assets. When the legal system fails to protect property rights, and when the ATM doesn't work, Bitcoin is still alive and kicking 24/7, and providing a secure, non-confiscatable asset that remains under the owner's sole control. At no point in human history have we had such a robust tool for safeguarding personal wealth against rogue government and cataclysm.

[Musical Interlude]…

Intrinsic Value:

This appeal underscores real value. Bitcoin's digital nature allows it to be stored in digital wallets and carried across borders even in hostile territory without little to no physical requirements. This offers a unique advantage in situations where traditional financial systems are unreliable, such as war zones, rural areas, or authoritarian regimes where the currency is weaponized and the market has not been freed, such as in Canada, North Korea and the United States.

For example, in Venezuela, where artificial scarcity brought by government corruption met central bank fueled hyperinflation, the national currency was hit hard. People turned to Bitcoin as a viable solution. Being an independent currency system with low friction that doesn't discriminate gives it intrinsic value to anyone facing these sorts of challenges. Sometimes people confuse the two words and have a hard time understanding this point. It is not tangible value that bitcoin has. You cannot touch and feel the usefulness like a towel. It is however, intrinsic value that is inherent to what it can do for you a bit like a password that gets you more freedom and less slavery no matter where you go.

Unlike traditional currencies, which are often subject to the whims of government policies and geopolitical tensions, Bitcoin operates on a decentralized network that spans countries and continents, making it less susceptible to the direct impacts of political instability within any single nation. Again this gives it intrinsic value as a hedge against rapid deterioration of any political climate.

Bitcoin has been used to fund protests for not only Canadian truckers protesting lockdowns and coerced human experimentation but __others around the world opposing the WEF “You vill own nussing, und you vill be happy” agenda; such as in the Netherlands against restrictions on farming that would lead to famine. It's been used to fund the Ukrainian instigation as well as other conflicts and charities that might put you on a list that your government doesn't like, depending on what country you live in. Vitalik Buterin famously used Tornado Cash to donate to Ukraine himself.

Many isolated communities worldwide face significant challenges in accessing basic financial services due to political oppression and central bank money printing. While you may think you are in a stable zone, and your bank account will not be stolen, the truth is that this can happen to you anywhere in the world at any time. It can occur tomorrow or next week or next year, or next election, or in ten years. While it may be rare where you live, historically and geographically that stability isn't so common. The norm is for the government to eventually degenerate into more or squeezing everything out of the population that they can.

Traditional banking infrastructure is usually scarce or non-existent in rural areas and developing countries, which means that you have to rely on inefficient and sometimes risky alternatives like burying your cash in jars. The introduction of Bitcoin offers a resilient alternative for these folks by giving them a decentralized financial system that can function independently of political strife or "trad-fi" infrastructure. It also offers hope for you, should the SHTF, if you're brave enough to make it part of your portfolio.

By design, Bitcoin operates independently of any government and established financial system, stripping governments of their power to create more money to buy fertilizer and make bombs instead of food and fund wars without end. Their answer is to hold BTC in reserve, and possibly eventually print dollars backed by BTC. No surprise there, and in a way it makes sense and sounds much better than the fiat dollar. For Bitcoiners it could be a good thing and for the world it’s even better. While this alone wouldn't stop the wars or government oppression of the people, it could greatly reduce it. If they had to get BTC to pay for bombs then maybe we would have fewer wars. But they could still have them, albeit without an unlimited budget. While claims have been made that it would lock up much of the BTC available, I like to think it would drive the price up fast enough that by the time the government got a few million BTC it could be worth enough to fund development and make it ubiquitous enough that we may see something more like a circular economy which the government has to barter with. While some it may be somewhat ossified and some believe SOL etc. are the currency of the future- none of those coins and their networks are as secure, stable, and well tested.

Nations such as El Salvador and even individuals are increasingly leveraging Bitcoin’s attributes to assert economic independence, navigate regulatory complexities, and confront challenges in conflict zones. Again, this independence won't make problems and wars evaporate completely, but it will by nature limit and guard against them due to it not being a central bank that can inflate the supply at will.

Countries like El Salvador have even adopted Bitcoin as legal tender, aiming to reduce reliance on the U.S. Dollar and address the costs associated with remittances and cross-border transfers. Now instead of fattening the bottom line of Western Union, by utilizing Bitcoin, El Salvador seeks to offer its citizens a cost-effective and seamless method of conducting transactions, both domestically and internationally, and saving them hundreds of millions of dollars per year in Western Union fees.

Threats to Bitcoin and Fungibility:

Money is money, the saying goes. What it means is that one dollar bill has the same value as any other. Doesn't matter if it's your dollar or mine, it doesn't matter if I found it on the ground, got it selling ice cream, or found it on a dead body. It's a dollar, and it's value is one dollar. And Bitcoin is largely the same. It's an agnostic protocol for storing and exchanging value and treats each satoshi the same. But the powers that be are trying to change that.

They call it "anti money-laundering" which itself asserts that some money is "dirty". There’s been various calls to regulate self-hosted wallets and the like to prevent you from doing bad things so certain parties don’t have to do police work. Legally speaking, obviously any money earned in a crime is illegally gotten, and thus is "dirty"- you're not supposed to have or spend it. Unfortunately we don't decide what constitutes "dirty" money- the government does. The government can tomorrow decide that selling on Ebay or Amazon is a crime and all your money is "dirty". Any attempt to cash out into something they cannot steal...that is now "money laundering". See the problem?

They didn't charge you with a crime- they charged you with the "crime" of having money they want you to not have. You have no chance to face a jury and proclaim that you earned that money and owe nobody any of it. You have no judge to look at your actions and decide that you have every right to earn and store funds as you see fit and you have not been convicted of a crime such as drug dealing tied to these funds. But the way the US law and much of the world today is set up, alas they call this "illicit activity" and sanctions evasion and money laundering and so forth. If someone deals drugs, charge them for that. Taking money and saying you're money is no good here so we're taking it- that's illegitimate. The founders of the U.S.A. threw the tea into the harbor for far less.

There are a growing number of instances of efforts by governments to do things such as seize hosted accounts on exchanges like Coinbase for things as simple as protesting rogue government actions, such as in Canada when their tyrant in chief infamously declared Canadian truckers racist and had their bank accounts seized for refusing human experimentation. Not your keys, not your coins, eh? Or like Samurai Wallet and Tornado Cash developersbeing charged with aiding sanctioned parties such as NK.

But because Bitcoin is an open source protocol, it's also possible someone may find an innovative way of heading this off at the pass, such that governments cannot ban or delete or otherwise sabotage your assets. This is again one of the things that makes bitcoin resilient, and possibly our best shot at a free market without financial oppression.

The Pressure is On:

In the quest to combat inflation and revive the cold war economy, sanctions on Russia have effectively frozen hundreds of billions of dollars in assets. This situation creates a compelling incentive for Russia to explore alternatives, much like El Salvador did, potentially channeling resources into developing a robust cryptocurrency network that may or may not include Bitcoin, zk-proofs and other enhancements that would make it more viable as a world currency. Such a move could enable the nation to circumvent the weaponization of the dollar and simultaneously enable the wider market to utilize Bitcoin on a broader scale.

While this idea may seem unusual or even unsettling, it represents a kind of latent energy within the crypto landscape. Both Russia and the global crypto community have significant motivations to either liberate or regulate Bitcoin and the broader cryptocurrency markets. As this dynamic unfolds, we may witness major players make bold moves that could dramatically influence market trends reminiscent of BlackRock's push to get the SEC to approve a Bitcoin ETF. It represents a great opportunity for those who have some weight to throw around, and I don’t just mean Elon. It’s important to know that landscape and support people working toward that end, and the more people do that, the more positive outcomes should result, so don’t be afraid- they want a chilling effect and it’s up to you to push back and stand tall.

Get Ready For a Bumpy Ride!:

Bitcoin stands out as a compelling store of value and a dynamic medium of exchange, especially during times of economic turmoil and political unrest. Its capped supply and decentralized nature create a powerful safeguard against inflation and government overreach. Beyond mere numbers, Bitcoin empowers individuals, offering a shield against confiscation and providing an alternative to traditional financial systems that often favor the few over the many.

This resilient cryptocurrency resists manipulation, fostering hope among marginalized communities and curbing unchecked governmental authority by limiting their capacity to print money without oversight. As adoption accelerates, exemplified by countries like El Salvador recognizing Bitcoin as legal tender, we may be on the edge of a transformative shift toward a more decentralized and equitable financial landscape. Amid the complexities of our current global climate, Bitcoin's promise shines ever brighter, illuminating a path toward a more inclusive and prosperous future for all.

It's still the wild west, and anything can happen. CBDCs, BTC-Dollars, World War IV- there's no telling. Yes, that's right. In case you missed it, there was a "War on Terror'' with multiple nations involved- a.k.a. WWIII. Donald didn't start it either. You totally slept through WWIII, folks.

The next one won't be fought with sticks and stones, but with bots and bytes. The question is, will Bitcoin be in your arsenal, and will it be enough?


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