Bitcoin: A Declaration of Monetary Independence

Fiat Money is Unfair

At the root of the unfairness of the current system is money. This is not the first place people look, but it is where every sound analysis leads. The system is unfair because the money itself is unfair.

How Fiat Money Works

Is it really so simple? Can we help everyone who needs help just by printing more money without bad effects? Can we get something for nothing?

The Dollar Hegemony

The dollar privilege, or dollar hegemony, is propped up through its position in international trade. Oil, in particular, has to be bought with dollars, so every company and every country has to keep some reserve in dollars (or get loans in dollars) if it wants to buy oil. Because of the dollar’s usefulness in buying oil, international trade tends to be settled in the dollar as well. As a result, the dollar has far more liquidity than any other currency. So in a liquidity crisis like we have now, capital flows toward the dollar, meaning that there’s higher demand for USD.

How Bitcoin Is Different

Bitcoin has two unique qualities which make it especially fair. First, it is near impossible to counterfeit. Anyone running a full node can check quite easily whether the bitcoins they received are genuine (spoiler: BCH is not bitcoin nor is BSV). That is, Bitcoin is easily recognizable and cannot be faked.

Conclusion

The monetary system that we’re under is a tyranny. The Fed is an independent organization and is not accountable to voters. Furthermore, the dollar standard means that inflation gets exported to people outside the US, who have even less say. The dollar hegemony is an unjust system where the wealth of the world is controlled by an organization that’s able to tax without anyone’s consent.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Jimmy Song

Jimmy Song

Bitcoin Educator, Developer and Entrepreneur. Book: https://amzn.to/2RSlnTb PGP Fingerprint: C1D7 97BE 7D10 5291 228C D70C FAA6 17E3 2679 E455