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Can Bitcoins Wean Us Off Our Money Addiction? 

Posted: Mon, February 04, 2013 | By: Special Guest



by Brandon King

Money, like government and religion, once had its purpose and was useful for society. But today money - like government and religion - is increasingly obsolete and it’s becoming a detriment to society and the progress of Human V1.0. 

Once upon a time, money was what fueled innovation and progress and led to the world we live in today, but time and time again now, when we’re faced with new technologies that could prevent damage to the environment, help raise the standard of living for humans, or just help move our society closer to a Level 1 society on the Kardeshev Scale… inevitably, people with power, influence, and money do everything they can to ensure those technologies never make it to the market, or they use regulations and smear campaigns to ensure they stay in a fringe market. 

Let’s talk about a well-known example of this: fossil fuels. We should obviously move to alternative energy sources which are environmentally friendly and renewable. But, are we? No, the oil barons fight tooth and nail to remain in power and keep their money. 

My father argues that fossil fuels are renewable, and that does have some truth to it, but it’s not renewable enough to be sustainable. So much money is in the hands of so few people that any attempt to spread it out through use of the free market and capitalism is just shot down by the powers that be. Losing their money is the last thing the oil barons want to have happen, so they stall progress and innovation as much as possible.

Now, how does Bitcoins enter the equation? Bitcoins are a decentralized crypto-currency created by Satoshi Nakamoto in 2009, when he created the “Genesis Block” in the Block Chain. Bitcoins work like this -  whenever a transaction is made with Bitcoins, it creates a block of hash data, and miners use their GPUs (formerly CPUs until the math got too hard for the CPUs to handle it) to solve increasingly complex mathematical algorithms to “mine” the block. The complexity is determined by the amount of people using Bitcoins. 

Mathematical algorithms confirm the transaction did in fact happen utilizing real Bitcoins; if counterfeits were used the math wouldn’t add up and the system would reject the transaction. When a block is mined and transactions are confirmed, 25 Bitcoins are released into the Bitconomy. (It was previously 50, but every four years the amount released is cut in half.)

Bitcoin’s value goes down 8 places past the decimal, as compared with most money that goes down only a mere 2 places past the decimal - this means Bitcoins can be cut in half enormously. 

The system is designed to only generate 21 million Bitcoins… to prevent mass inflation - this is what Pre-Nazi Germany went through. Using Austrian Economics, the more people that use Bitcoins, the more the value rises, but because there’s only a limited amount in circulation, smaller and smaller increments will be used to make Bitcoins naturally deflationary. 

The only way the Bitcoin value can inflate is if no one uses it. The money we use right now can inflate no matter how many people use it. 

Like any drug, you can’t just stop using it, you must wean it off. It is Bitcoin’s naturally deflationary properties that I see having the potential to wean us off our money addiction. It is evident that centralized monetary systems are on the verge of total collapse globally, the unsustainable debts that every government, and indeed most people, are in, is evidence of this. 

The present monetary system is simply too unsustainable in our increasingly globalized society. With its decentralized and peer-run nature, Bitcoins may be one of the only currencies, if not the only, to survive. With many people running to Bitcoins to feed their addiction, the value will drastically rise and will make smaller and smaller increments more valuable. 

Over time the value of the Bitcoins will continue to deflate as our technology continues to advance exponentially until we ease into a Resource-Based economy of abundance when we will discard money completely and are cured of our addiction plagued society. Removing money and emphasizing compassion and love towards our fellow humans is how we can cast off our shackles of tradition and rekindle the innovation and progress that made America a superpower, but on a global scale.



Comments:

why did you choose to write about this topic? it reads like an advertisement for bitcoin rather than informed reflection on the history and or present value of bitcoin relative to other currencies. you describe money as an anachronism. bitcoin is money, just a newer one. if you are going to talk about old moneys versus new moneys, you at least have to explain what you mean. try again please. in fact, why not start by reading my article i posted about money. it’s a simple place to start and think about what money is. maybe we can talk after and you can explain what you mean with more clarity and detail in the post above.

By zeev on Feb 05, 2013 at 6:55pm

Indeed. Simply a New money indeed. And that’s if you ignore the ultranationalistic flourish at the end.

By Shane Harris on Feb 10, 2013 at 9:59am

For my first article, it’s not too bad. I didn’t mean for it to sound like an advertisement, I was trying to explain Bitcoins as if no one has heard of them. And I consider myself a Global Citizen, I was trying to compare how America used to be with how the world may be one day. America used to be THE world superpower, a place where innovation and ingenuity flourished, but it’s far from what it used to be, Japan and China are quickly moving into the lead, I do dislike the form of government China has. It’s too oppressive. I see a future where dictatorships(government in general even, I daresay) are obsolete and long abandoned. I see Bitcoins as a means to wean us off money. Like any addiction, you cannot just quit cold turkey, and I admire the deflationary properties of Bitcoins. I envision a future of hyper abundance, one where money is worthless, where 3D printing is the main source of production, where everyone is free to pursue their lives and futures as they see fit.

By Brandon King on Feb 27, 2013 at 1:34am

@zeev: With the benefit of hindsight - don’t you wish you had been sold to this advertisement wink

By Anu on Apr 08, 2013 at 1:21am

In simple terms, when a person changes something even slightly - a person can completely change for themselves and the people around him. Thanks for good article.
Купить курительные смеси Спб в Санкт-Петербурге онлайн.

By Walter White on Jun 07, 2013 at 12:51am


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