Bitcoin’s philosophy and political promise of limitlessness and solving inefficiencies

BitcoinBTC
is not just a decentralized peer-to-peer electronic cash system. There is more. It is a new way of thinking about economics, philosophy, politics, human rights and society.

Most of the literature I’ve read on Bitcoin focuses mainly on Bitcoin as a store of value, a medium of exchange, an investment vehicle, a shield against government overreaction, and more. However, there is less literature on the philosophy of Bitcoin and the politics it represents.

Modern political systems have made it more difficult for individuals to focus on what they are doing. In addition to working hard to create value and store that value for future use, the global citizen must work doubly hard to think about money and how it can be adjusted to preserve value and or increase value.

This is mainly because the political systems are entrenched around the control of fiat money and cannot control the temptation to increase supply while citizens bear the burden of increased inflation and cyclical recessions.

The average global citizen does not have full freedom to do what they do best because they have to divert their attention to the topic of money. They understand that inflation erodes their purchasing power over time and that they must use a significant portion of their income to hire money managers to invest their money.

Alternatively, they actively invest their money in the markets, which is tedious and time-consuming. A larger proportion delegate the function by investing their money in financial institutions and financial instruments that rarely beat inflation.

What if there was an efficient store of value? Would this free the global citizen to focus on value creation in what they do best?

In my opinion, Bitcoin’s philosophy is based on freedom and limitlessness. If it ultimately functions as a stable store of value, as it has achieved over a 4-year time horizon and failed over that time horizon, the global citizen will have more freedom to focus on what they do best without handing over control to one-third parties or spends considerable time managing its store of value.

Bitcoin is limitless. It cruises through multiple jurisdictions and maybe planets, well, if Elon Musk’s mission is successful. It presents a strong case for solving global inefficiencies associated with different states by using different fiat currencies of varying quality.

For example, the emigration problem, where people living in countries with bad money move to countries with perceived better money, can be leveled with Bitcoin adoption. For people working in the digital space, cryptocurrency payments (not just Bitcoin) have started to solve the income inequality problem. Developers, content creators, artists and other online workers have started to close the wage gap regardless of their location.

In Bitcoin’s philosophy, an individual’s country of birth or residence should not dictate their financial outcome. When they work hard to create value, they should be able to store and build value on a relatively fair playing field. A truck driver in a country like Nigeria should have a similar level of financial outcome to a truck driver in, say, the UK. The value created must be limitless.

The inefficiencies resulting from varying quality of fiat currencies and public systems should be addressed with wider Bitcoin adoption. For example, an investor looking to invest in a coffee shop in a busy city like New York or Nairobi should find it easier to allocate capital to either without worrying about the impact of the fiat currency used in the two jurisdictions or the governance systems that applies. . Bitcoin makes it possible to invest limitlessly without the headwinds associated with traditional financial institutions and systems.

In Zimbabwe, annual inflation was over 250% in July, and the central bank raised interest rates to 200% to combat high inflation. What type of business can thrive in such an environment? I am convinced that there are large companies in Zimbabwe solving critical societal problems and they deserve access to financing at competitive rates. As a result, they would price their products more competitively, resulting in lower inflation.

The lack of political influence on Bitcoin’s supply makes it the most elusive resource on earth. This means that as adoption grows, the value becomes higher since supply is limited. This eliminates the possibility of political elites printing more as they do with fiat currencies leading to hyperinflation and subsequent recessions. It also makes Bitcoin a reliable store of value and medium of exchange. Where am I going with this?

With wider institutional adoption, the political promise of Bitcoin solves inefficiencies. For example, according to the United Nations, the world produces enough food to feed all of humanity. However, the waste and inefficiency in storage and distribution leave an estimated 800 million people hungry or malnourished.

For example, with Bitcoin’s borderlessness, investments can be made in regions where there is excess food production at lower costs to improve standards, storage and distribution channels. This will reduce food waste and lower food costs worldwide. However, current financial systems make it more difficult due to taxation, currency devaluation and poor access to finance.

This promise of limitlessness is already being experienced in energy production and distribution. Bitcoin miners invest in regions that have excess power generation at low cost and redistribute this value in other areas. In addition, some miners act as grid stabilizers where they consume excess energy when demand is low and shut down when demand is high, thereby helping power producers earn value during both high-demand and low-demand grid cycles.

At the macro level, the capitalist Keynesian system that led central banks to print trillions of cash during the pandemic led to the current high inflation environment we are experiencing today. While it helped people survive, to some extent, during the pandemic, the ripple effects have made the poor poorer and the rich richer.

The Bitcoin plebs who understand the Bitcoin philosophy have been collecting Satoshis at lower values ​​since they understand the basics. They are able to store values ​​in peace while focusing on doing what they do best. They are not worried that the FED is going to reverse course and print more dollars and thus devalue their stored value. They have become superb individuals.

In my article on how Bitcoin helps people become supreme individuals, I explained the issue of limitlessness when it comes to spending your value, storing and achieving a level playing field for everyone.

Disclosure: I own bitcoin and other cryptocurrencies.

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