“Money doesn’t grow on trees”. The familiar fable that is hammered into our heads during childhood. A favourite, used by mothers and grandmothers the world over. Usually to coax children into doing something against their will. Their intentions – however noble – lacked a basic understanding of how our monetary system actually works.
Bitcoin would not be so relevant if our current system was not so vile. Central-banked Western-styled capitalism exploits the masses to serve an unelected few; rife with corruption, oppression and pure nonsense. Over and above the systemic flaws, it is a human-administered system which merely accentuates the cracks. Humans are inherently susceptible to emotions of fear, greed, hatred and selfishness and are driven to action by these emotions. Any system that is human operated & centralized therefore hinges on the emotions of a single person (this is not a comforting thought living in the atomic Trump age). It is fatally flawed. No matter how well-thought; how well imposed; or how well-meaning any system is, it will ultimately crumble in the hands of humans.
A small breakdown of the radical differences between Bitcoin and Fiat Currency:
Fiat [from Latin]: An authoritative order or official decree.
In order to fully appreciate the magnitude of these differences a complete understanding of our current system is required. For this I will enlist the teachings of Mike Maloney: Episode 4 of his series ‘Hidden Secrets of Money’. In his series, Maloney exposes how we have lived under a system where our money does in fact grow on trees. The only differences are instead of a tree we have the Federal Reserve (or equivalent central bank), and our money doesn’t grow, it gets printed.
The further down the pyramid you find yourself the less access you have to the tree and the greater your debt burden.
Maloney’s entire series is an awakening experience and I strongly recommend watching all the episodes.
Once we have a firm grasp of the system that we are currently living within, we can then proceed onto looking for alternatives. In forthcoming posts I will start to decompose Bitcoin in more detail and to explain how the Blockchain works. Thereafter we will begin to investigate where monetary value is derived and what the future entails for the USD vs Bitcoin.