Bitcoin philosophy and the political promise of unlimited and resolving the shortcomings

Bitcoin philosophy and the political promise of unlimited and resolving the shortcomings

It is not just a peer-to-peer decentralized electronic cash system. there is more. It is a new way of thinking about economics, philosophy, politics, human rights, and society.

Most of the literature I read on Bitcoin focuses mainly on Bitcoin as a store of value, a medium of exchange, an investment tool, a shield against government overreach, and more. However, there is little literature on the philosophy of Bitcoin and the politics that it represents.

Modern political systems have made it difficult for individuals to focus on what they are doing. Besides working hard to create value and storing that value for future use, the global citizen has to work twice as hard thinking about money and how it can be modified to maintain value or increase value.

This is mainly because political systems are centered around controlling paper money and cannot control the temptation to increase supply while citizens bear the burden of rising inflation and cyclical stagnation.

The average global citizen does not have complete freedom to do what he does best because he must turn his attention to the subject of money. They realize that inflation erodes their purchasing power over time and that they must allocate a large portion of their income to hiring money managers to invest their money.

Instead, they actively invest their money in the markets, which is tedious and time consuming. A larger percentage are delegating the job by putting their money into financial institutions and financial instruments that rarely beat inflation.

What if there was an effective store of value? Will this leave the global citizen free to focus on creating value in whatever he does best?

In my opinion, Bitcoin’s philosophy is based on freedom and no boundaries. If it eventually acts as a stable store of value, which it has achieved over 4 years and fails under this time horizon, the global citizen would have more freedom to focus on what they do best without handing control over to a third of a party or spending too much time managing their store of value.

Bitcoin without limits. It sails across multiple jurisdictions and possibly planets, well, if Elon Musk’s mission succeeds. It makes a strong case for resolving the global shortcomings associated with different countries using different fiat currencies of varying quality.

For example, the problem of immigration, where people who live in countries with bad money move to countries with better money, can be settled with the adoption of Bitcoin. For people working in the digital space, cryptocurrency payments (and not just Bitcoin) are starting to solve the income inequality problem. Developers, content creators, artists and other online workers are starting to close the pay gap no matter where they are located.

In the Bitcoin philosophy, an individual’s country of birth or residence should not dictate their economic outcomes. When they work hard to create value, they must be able to store and build value on a relatively fair playing field. A truck driver in a country like Nigeria should have a similar level of financial results to a truck driver in the UK for example. The generated value must be infinite.

The shortcomings arising from the different quality of fiat currencies and government regulations must be resolved through the broader adoption of Bitcoin. For example, an investor looking to invest in a coffee shop in a crowded city such as New York or Nairobi should find it easier to allocate capital either without worrying about the impact of fiat currency used in the two jurisdictions or applicable governance systems. Bitcoin allows for unlimited investment without the headwinds associated with traditional financial institutions and systems.

In Zimbabwe, annual inflation exceeded 250% in July, and the central bank raised interest rates to 200% to combat high inflation. What kind of business can thrive in such an environment? I am confident that there are great companies in Zimbabwe that are solving critical societal problems, and they deserve to be able to access financing at competitive rates. As a result, they will price their products more competitively, which leads to lower inflation.

The lack of political influence on the Bitcoin supply makes it the hardest asset on earth. This means that as adoption grows, value rises because supply is limited. This eliminates the possibility that political elites could print more as they do fiat currencies that lead to hyperinflation and later stagnation. It also makes Bitcoin a trusted store of value and medium of exchange. Where am I going with this?

With broader institutional adoption, the political promise of bitcoin is working to resolve its shortcomings. For example, according to United nationsThe world produces enough food to feed all of humanity. However, waste and inefficiencies in storage and distribution leave an estimated 800 million people hungry or malnourished.

For example, with Bitcoin no limits, investments can be made in areas where there is excess food production at lower costs to improve standards, storage and distribution channels. This would reduce food waste and reduce food costs worldwide. However, current financial systems make it more difficult due to taxes, devaluation and poor access to finance.

This promise of infinity is already being experienced in energy production and distribution. Bitcoin miners invest in regions that have surplus energy production at low costs and redistribute that value to other regions. Additionally, some miners act as grid stabilizers where they consume excess power when demand is low and off when demand is high, helping power producers gain value during high-demand and low-demand grid cycles.

On a macro level, the Keynesian capitalist system that led to central banks printing trillions of cash during the pandemic has led to the current high inflation environment we are seeing today. Although it helped people survive, to some extent, during the pandemic, spillover effects further impoverished the poor and made the rich even richer.

Bitcoin commoners who understand the philosophy of Bitcoin collect Satoshis at lower valuations since they understand the basics. They are able to store value in peace while focusing on doing what they do best. They are not worried that the Fed will reverse course and print more dollars and thus reduce their stored value. They have become sovereign individuals.

In my article on How Bitcoin Helps People Become Sovereign Individuals, I make the issue of the infinite when it comes to spending and storing your value and achieving a level playing field for everyone.

Disclosure: I own Bitcoin and other cryptocurrencies.

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