Government afraid of people — freedom / People afraid of government — tyranism
I connected all the dots and figured out what the purpose of Bitcoin / Blockchain is.
The world is simple to understand, unfortunately “great minds”complicate access to knowledge by hiding a simple meaning under sophisticated definitions — So unless you spend years decoding this knowledge, you will not experience the truth. I will try to introduce you to the monetary system in an accessible language. The article also contains the topic of Blockchain technology on which the new 21st century monetary system will be based.
To understand the reason for creating a blockchain system, you must go through a brief history of the monetary system.
As early as the Byzantine Empire, gold was used to support FIAT currencies — that is, those considered legal tender in their nation of origin. Gold was also used as the world reserve currency up through most of the 20th century; the United States used the gold standard until 1971 when President Nixon gave up gold parity to fiat money.
Until 1971, printed money — fiat money, had to have its reference in gold, which meant limited supply ( deflationary money ).
Since 1971, by Nixon’s decision, gold was not required for increasing the money supply ( inflationary money ).
- The government is unable to control the economy
- Assets in precious metals could be anonymous, and the exchange of goods may take place on a peer-to-peer basis without the participation of a third party who issues the means of payment (if you know the blockchain theory you will quickly notice the similarity of “blockchain peer-to-peer”), as a result, tax control is more difficult
Proponents of the gold standard argue it provides long-term economic stability and growth, prevents inflation, and would reduce the size of government . They say a gold standard would restrict the ability of government to print money at will, run up large deficits, and increase the national debt. They say the economy has historically performed best under a gold standard.
The basic law of economics is demand and supply — If the supply decreases (precious metals, gold, silver) and the demand increases (population increase), then, as a result, we have deflation , i.e. increasing value of money — for the money you have saved in 1961 each year you will be able to buy more goods — the saving person is rewarded at every moment in which he refused to spend his savings — This was the gold standard
Opponents argue a gold standard would create economic instability, spur periodic economic deflation and contraction, and hamper government’s ability to stimulate the economy and reduce unemployment during recessions and financial crises. They say returning to a gold standard would be extremely difficult given the scarcity of gold and could severely harm the already fragile US economy.
Since 1971, as a result of Nixon’s decision, the government has the right print “unlimited” (not completely unlimited, but this is a topic for a separate article, and from 2020 completely unlimited without “ “) the number of money out of the air, resulting in inflation, and then hyperinflation — history shows that at the end of such events in extreme cases (Venezuela) paper on which money is printed is worth more than that money itself — savings lose their purchasing power. Example — money which you not spend in 1972, will lose their value for every moment— you will be able to buy less and less. The government is trying to control this process so the differences in prices are so spread that most people do not notice them. Gold and silver always exposes rising inflation , so to hide the true value of fiat money, silver and gold rates are kept low, which creates the illusion of very low inflation — This is the current fiat money system
The history of the last few decades shows us that with a regular interval of approximately every 10 years, the monetary system collapses or, as some call it, undergoes a 20% correction — Which results revealing the true value of gold, silver and fiat money.
Shortly before this point economists, elites, insiders exchange their fiat money for gold and silver to maintain the purchasing value, as they know that the government can not lose people’s trust and will interfere by printing more money to maintain the fiat system . Unfortunately, these actions have a dramatic effect also for government, because between the busts the prices of gold and silver are at low levels, which gives the opportunity also to ordinary people to purchase precious metals at discounted price.
Government is aware that the greater the wealth (gold and silver) privately possessed the less control they have,but they also know that historically the best performed economic was under a gold standard. Reasonable would be return to the gold standard, but the new form must limit people’s avoidance of taxes and anonymous possession of gold and silver assets.
Since its founding in 1776, the United States has had a variety of monetary systems including bimetallic systems where the dollar was backed by both gold and silver (1792–1862), a fiat monetary system (1862–1879), a full gold standard (1879–1933), and a partial gold standard (1933–1971). Since 1971 till now the United States use fiat monetary based standard. History shows that every fiat money have been lost their value so at the end every fiat money value = 0. In the opposite site the gold standard gives power to the people — limiting government controls .
2008 — The last crash on the world stock market. People’s awareness is growing with every such crash. On the main pages of newspapers we see the headlines — buying debts of the world’s largest banks for taxpayers’ money. Inflation is rising, banks are bought out for our money, which, in effect, reduces the purchasing power of the money we have kept hidden in a safe place in recent years — savings.
Satoshi Nakamoto appears out of nowhere and introduces deflationary virtual money which is supposed to block all these cheats by banks. He is promising that if you buy Bitcoin and promote this payment method, then others will buy Bitcoin from you at a higher price — the financial pyramid.
I will not present here all the knowledge about blockchain, only the necessary information.
Blockchain — virtual accounting book, practically irreversible, which has been verified by the whole world of programmers and hackers trying to steal blockchain data — encouraged by life-changing financial benefits.
Anonymously you create a monetary system, encouraging all criminals and libertarians (all anti-system groups) to use it keeping all illegal funds inside the system. The growing value of this system encourage all who have savings so that they can effortlessly increase their savings value. This system works in the form of open source code — everyone has access to the source code, can check the operating principles of the system and possibly improve the code or find the hole to stole money from participants while the rewards still growing. At the end the perfect code will be yours for free.
After 10 years
- you get the perfect code that can’t be hacked — for free
- people leave their assets in the system, which you can close at any time along with its value — legal regulations
- you can take the best out of this code and build a new monetary system that will be used for the whole world
e.g. a new programmable money based on full or partially gold standard using an unreliable blockchain ledger — excluding tax avoidance or anonymous assets (you can own this property anonymously knowing the backdoor but ordinary people must disclose all their assets).
You control a system based on gold parity — which was previously unattainable.
Welcome to the new monetary system that will rise from the ashes of the system we have known so far. Full control, full surveillance, separate property law for the government, separate for you.