How bitcoin can

How Global Bitcoin Adoption Can Bring World Peace

How many 13 year old’s can solve problems as consequential as World Peace?

Many 13 year olds spend their time figuring out ways to destroy the Nexus in League of Legends, or outdo their friends latest picture on Snapchat.  One thing is certain with this generation, electronics are, and will be a fixture in everyday life.  There is however, one newly-minted teenager whose pioneering use of blockchain technology has the ability to create a sensible, secure, and ‘level’ financial playing field for the world to transition to.  This 13 year-old is quickly changing the millions of minds around the world who believe Fiat Currency and the legacy financial structure, is no longer serving their interests.  And, perhaps the time has come to flee Fiat, and to never look back.

Meet the 13 year old re-making the World of Finance

Why Bitcoin will change the world

An open-sourced, censor-resistant, decentralized, peer to peer financial network, built on the blockchain.  

Many believe Bitcoin has the opportunity to become the go-to store of value for many Nation States, Pension Plans, Hedge Funds, and Average Joe’s in the years to come.  It is, and will be nothing less, than a game-changer!

Where Bitcoin started and where many see it in the future

People often ask me, why does Bitcoin even have value?  Or, how do Bitcoin transactions work, and for those looking to speculate, “where do I see the price of Bitcoin in 5, 10, 15 years”?  These are all valid questions for an asset capable of changing the world.  For me however, Bitcoin’s value is far more than just what financial implications it can have, and truly, in my humble opinion global Bitcoin adoption has the opportunity to bring about world peace.

From the beginning…..

In 2009 the late Hal Finney, a brilliant computer scientist, responded to a post from the ‘presumed’ creator of the Bitcoin Network, Satoshi Nakamoto.  The post was an invite to run the bitcoin network on his personal computer, as a way of broadening the decentralization of the network.  Hal took up Satoshi and put a Bitcoin Node on his personal computer.  Hal believed he mined “Block 70 something” and as payment received 10 Bitcoin, which at the time was worthless.  Fast forward 13 years and those same Bitcoin are worth a cool $440,000 at todays price, and well worth the intellectual investment of placing the node on his computer.

What caused Satoshi to create Bitcoin and why it will succeed.

The Financial crisis of 2008 and the subsequent bank bailouts appeared to have been the leading cause for the creation of Bitcoin.  Satoshi, refers to this in his/her’s whitepaper, and his/her’s desire to eliminate ‘trusted’ third parties for financial transactions.  The Lehman Brothers bailout, AIG and Bear Sterns ‘Emergency’ Loans were some of the catalyst for Satoshi to invent a more equitable peer to peer lending system.

Bitcoin will succeed because of its perpetual network growth

Because of the transparency of the Bitcoin Network, all transactions are visible in real time.  Here is a visual representation of the networks hash rate over a 12 year history.  The hash rate, is the estimate number of hashes per second produced by the miners on the Bitcoin Network.  Hashes are computational power, which require the electricity miners need to process a transaction on the Bitcoin Blockchain.  As you can see the amount of hashes on the network has seen steady growth since 2010, which is long considered a barometer of Bitcoin network adoption.    what is bitcoin hash rate

Why many see Bitcoin as a hedge against Inflation

The United States is currently experiencing a 40+ year record inflation.  The Trillions of new dollars that have been injected into the system by ‘government fiat’ are chasing fewer goods and services, which inevitably leads to the prices of those good and services to increase.   Unfortunately, the United States didn’t learn from countries like Germany in the 1920’s whose currency; the German Papiermark got so devalued by Hyperinflation?   Wheelbarrows of money were brought to the bakery to buy a loaf of bread.  Money was used as kindling to warm the family in the winter and kids made kites, paper chains and confetti to pass the time.  This is how worthless the German Mark became because of Hyperinflation. And who owns the burden of blame for getting it to that point, and so quickly.  One guess; It’s not the German citizens.

Or….

How does a nation such as Venezuela, whose profound oil reserves were producing 3.2 Million barrels of oil a day in 2008, and 13 years later, manage a measly 871,000?  Was it a lack of demand, due to the growth of electric vehicles?  Again, it wasn’t the Venezuelan citizens. 

I ask this question rhetorically, because these are simply nothing less, than an a country’s abuse of it’s economic might.  An intentional currency crash serves as a governments ‘procurement of power’ over its citizens.  It’s how nations fail, it’s how Super Powers become ‘lack of powers’.

Government spending is the lightning rod of division. 

President Nixon removed the United States from the Gold Standard in 1971, partly in an effort to fund the Vietnam War, partly to stave off inflation and a potential for a ‘run on gold’.   After Nixon’s pen stroke, foreign governments could no longer exchange their dollars for gold, thus removing the last obstacle that impeded the creation of a fiat monetary system.

It used to be that central banks would increase spending to increase military might, but lately they have taken a liking to increasing the money supply to expand the welfare state.  This only creates a further divide among its citizens.  Bitcoin and its limited supply keeps the central banks from using deficit money printing to create societal division.

So, what can Bitcoin do to solve world peace

Per the Bitcoin code, it will only ever have 21 million coins, and this will not be realized until 2040.  And, as of this writing, nearly 4 million coins are said to be lost in events like the Mount Gox bunkruptcy, general misuse of wallets, lost keys, death, and many other reasons.  Bottom line, unlike USD (US Dollars) which is fiat money, Bitcoin will have a hard cap on the number of coins that will ever be in circulation.

Having a hard-cap on the number of coins in circulation keeps everyone in check.  Central banks cannot print more bitcoin to fund wars, to expand the welfare state, or for any other reason it sees as a “benefit to society”.  Imagine a government being forced to live within its means which is really what most citizens; right, left, or independent, truly want of their government.

Bitcoin represents Freedom through Sovereign Monetary Policy

The proximate cause of Monetary Freedom are individual rights and liberties.  Citizens having total control over their money means governments are at the mercy and the will of its citizens.  Like Thomas Jefferson said in his 1825 letter to William Short:

“Some are whigs, liberals, democrats, call them what you please. Others are tories, serviles, aristocrats.  The latter fear the people, and wish to transfer all power to the higher classes of society; the former consider the people as the safest depository of power in the last resort; they cherish them therefore, and wish to leave in them all the powers to the exercise of which they are competent.”

Freedom will be forced upon authoritative regimes as the competition for capital and freedom of mobility exists.  If capital is not treated fairly in the United States, Canada, or Europe, it simple moves.  Capital is agnostic, all it seeks is yield, and without yield it moves to where yield does exist.  If that’s El Salvador, Asia, Greenland, or Brazil, well then they will be the countries who enjoy increased freedoms and higher standards of living.

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