Tag Archives: central banks

Is Bitcoin Political? It’s the Currency Stupid!

Is Bitcoin Political? What will Bitcoin do to the establishment?

People have told me they were surprised I left the world of politics for cryptocurrency – the truth is I am fighting exactly the same battle and it is political. It is a battle against the political corporate elite, in support of a form of currency that will benefit ‘we the people’.

Is bitcoin political? Understand this is a battle against the control of the means of exchange by government, central banks and big financial corporations. It is a battle to take money out of the hands of the powerful and put it in the hands of everyday people.Is Bitcoin Political? What will Bitcoin do to the establishment?

The establishment want people to use fiat currency (eg. $AUD, $USA), because they control it. It perpetuates the wealth and privilege of central bankers,  financial corporations and those in power.

However, does this system serve we the people? I do not believe it does and I am genuinely surprised at people’s faith in fiat currency in general.

It is a knowledge of history and politics that makes me reluctant to trust fiat currency.

I remember well reading about the utterly disastrous effects of hyperinflation on German society in the early 1920’s. By September 1923, as the hyperinflation crisis neared its worst, Germans needed enormous amounts of paper money to buy even the most basic items. It was not uncommon to see shoppers hauling buckets, bags, even wheelbarrows full of banknotes. ‘

One Munich woman dragged a suitcase of banknotes to her local grocery store; she left it outside briefly, where someone stole the suitcase – after emptying the money onto the street. Children used worthless banknotes as toys; their mothers used them to light stoves and boilers, even as wallpaper. Many Germans abandoned money altogether and had no alternative to returning to bartering as a means of obtaining what they needed.

Is Bitcoin Political? It’s the Currency Stupid! Germany experiencing hyperinflation in the 1920s.

There have been many more failures of fiat currency than can be recounted here, most notably in South America and Africa. There is the often told tale of the Zimbabwe worker who needed a wheelbarrow to collect his salary. Asked if he was worried his money might be stolen he replied ‘no, as long as they do not steal my wheelbarrow”.

Greece is one of a number of modern European countries to experience a sovereign-debt crises. The social effects of the austerity measures imposed on the Greek population have been severe, as they have been on the country’s poor foreign immigrants, with some Greek citizens turning to NGOs for healthcare treatment and having to give up children for adoption.

The suicide rate in Greece used to be the lowest in Europe, but by March 2012 it had increased by 40%; Dimitris Christoulas, a 77-year-old pensioner, shot himself outside the Greek parliament in 2012 because the austerity measures had he said, “annihilated all traces for my survival”. Patients with chronic conditions attending treatment at state hospitals in Athens are told to bring their own prescription drugs.

Is Bitcoin Political? It’s the Currency Stupid!

For me it was the Global Financial Crises (GFC) that dissolved the remaining faith I had in our monetary system. The very bankers and financiers that created the crises through their rampant greed, were not thrown in to jail (as some suggested) but bailed out with taxpayer funds!

However, let us assume, despite everything, you have faith in Government, central bankers and Wall Street. If this is the case you are probably in a position of privileged, unlike billions of the worlds population who have no access to the banking system.  Often people  whose governments are unquestionably corrupt? Surely those people, including people without the identity papers or a credit record, through no fault of their own, have the right to a reliable currency? Bitcoin and cryptocurrency fills that need, and is surely a currency for the masses.

What will Bitcoin do to the establishment? It will take away their control and deliver a system of exchange that is global, open, border-less and egalitarian.

Is Bitcoin Political? The use of it sure is. After all, its the currency stupid!For an articulate and entertaining assessment of how populist right-wing governments engage in currency wars to the detriment of the people, check out this video by Andreas Antonopoulos. He also outlines the opportunity to opt out of nationalistic game playing  through bitcoin and cryptocurrency.