Dec 07, · Bitcoin correlates at only with Global Political Risk but increases to versus U.S. Political Risk, while the DXY shows very weak correlations with both ( and ). Bitcoin will become the most value asset in history not only because it is a better form of money, but because of the astounding economic, social, and political power it creates. Jul 26, · The political implications of bitcoin by Hunter Baker • July 26, Keynes gave political leaders a license to abandon the requirement of balance. Now, they could spend beyond their means and still claim to be responsible. Declining purchasing power over time attests to the impact massive deficit spending has had on currency. But as long as.
Bitcoin political impactThe Implications of Bitcoin: Money Without Government
Through refusing to use their corrupt money that they use for war, oppression, violence, and to keep the general population impoverished; we can force governments everywhere to respect our freedoms which our ancestors fought and died for.
Strike against state capitalism , and reclaim your financial freedom which was never suppose to be taken in the first place! When we see the kind of capital efficiency that bitcoin and other digital currencies exude from their near-zero transaction cost , scalablity, security, and most importantly not being controlled by any government, we can see there is no way that fiat money can ever win over digital currencies in terms of their economic efficiency.
Bitcoin and digital currencies will always be a cheaper monetary systems to maintain and utilize than a fiat money, partially when we consider the cost of scaling and security over the long-term, and on a global scale. Fiat money must be defended from counter-fitting, banking fraud, note destruction, and physical theft.
Fiat money will always be more expensive to service, use, and maintain as a whole monetary system than any kind of digital currency system because of those weaknesses and flaws. Digital currencies have greater security and scalability than their fiat counterparts as well. Despite the wide acceptance of the U. That expense is imbued into all U. It is this scalability flaw within all fiat money system that digital currencies exploits to be superior money.
This is not due to an actual higher interest rate of digital currencies, but due to an increase in the demand for digital currencies over the total available, fixed, known supply. This causes for value appreciation of digital currencies as demand outstrips the limited supply. Sovereign digital capital will always out preform state fiat capital.
Funny that he sees that, yet he seems to be unaware that bitcoin and other DCs are going to destroy his wealth. Due to the zero-sum nature of how currency competition economics function, bitcoin and other digital currencies present an existential threat to all forms of state fiat money. Over the next decade we are going to see one of the greatest transference of wealth the world has ever seen, and it will be from the failure of fiat money the coming economic hegemony of digital currencies.
In capitalist countries, the rulers own the means of production and employ workers. The capitalist class is also called the bourgeoisie. Means of production are what it takes to produce goods. Raw materials, satellite networks, machinery, ships and factories are examples.
Workers own nothing but their ability to sell their labor for a wage. Considering how deep capitalism penetrates into all facets of our globalized society, it can be said today that capital is the primary means of production. Capital within our society can purchase all, and can do anything, and can make any decision: money is the only true sovereign in a capitalist society. Money is the central component of a capitalist system.
Ironically, FDR did this to save capitalism , and in doing so he created the conditions state-capitalism. Nearly all economic exchange is taking place using fiat money; a money that cannot be differentiated or distinguished from state power itself.
Through the legalized monopoly that central banks have, the state now fully controls the means of exchange and the mode of production within advanced capitalist societies: money.
This is nothing more than propaganda. It is part of the greater illusion that the state has any bearing on the value of money. Through using a monetary system that is outside of the control of any state, we are creating the scaffolding for the next epoch of society.
The command of money is little more than command of the economy itself. Through using cryptocurrencies we seize the greatest means of production in our society: The monetary system itself. Through refusing to use their corrupt, inflationary money; we seize the greatest means of production and deactivate the state totalitarian machine. Through striking at the monopolization of money itself, we strike at the very root, the very heart of the problem in our globalized world today.
We are choosing to use a different monetary system. One that is protected by the immanence of cryptography, and outside of the corrupt hands of the state. By striking at money itself, we can reappropriate our economic system from the hands of the state capitalism, and usher in a new era of freedom, and liberty for all. With digital currencies acting as a new sovereign monetary force, they are facilitating the growth of a radical new sector of the digital economy that is total unregulated, and removed from the onerous regulations of all state governments.
While many are duds and even outright scams, there is a whole new economy being built, and many of the ideas are both huge in scope, and with the impact they want to create.
Adam Smith first presented the idea of specialization in Wealth of Nations. This, in turn, radicalizes not just money and finance, but anything to do with the internet and economics.
Thus, using bitcoin as a mode of exchange to invest in new and exciting technologies not only is quicker, cheaper, and more secure when using appropriate security protocols!
Each one of these project are focused on an area where the traditional economy is failing or falling short, and where a new digital version of it can change everything. Usually a public offering from a company is going to take millions of dollars, lots of legal fees, and huge amounts of regulatory oversight. The massive inefficiencies and regulatory burdens of this process has locked out most people from being able to be involved in this process, and unable to reap the massive profits that can come from high-risk investing like this.
Now with the ability to raise tens of millions of dollars using cryptocurrencies, almost anyone can create a public offering for just fractions of what it once cost. The most common way of doing this with crypto at this time is through an initial coin offering ICO.
Cutting through all of the red tape of investing and assuming the risks and rewards for oneself; there are huge opportunities and scams! The creative destruction of cryptocurrencies is changing all of the old way of investing and economic control, and imbuing that into the digital sphere.
One of the reasons that this can be done is because of the stable store of value and the unit of accounting that bitcoin provides to these new investments. I see bitcoin as being a core stable money of the internet, like gold throughout the world for most of modern history, and ethereum as being finance for the internet.
These Dapps are the applications which are going to fundamentally restructure the economy. These project range from simply dice games, to robust prediction platforms, and public offerings for decentralized companies. Much of the reason for this is the simple object-oriented programing language, Solidity, that was developed for building smart contracts in Ethereum.
This allows for simple smart contract to be built in a few days, rather then the few months it would take to do the same with bitcoin. Monero in many ways is what bitcoin originally wanted to be. Using a new kind of cryptographic protocol that is different from bitcoin, Monero provides strong anonymity that ensures that users financial information, along with their personal identity is much harder to track then it is with bitcoin. For this reason, several darknet markets have recently started supporting Monero, and Monero looks like it is trying to create its own niche within the cryptoeconomy centered around true anonymity and privacy.
I personally also like that the devs of Monero are anonymous, as I cannot imagine the state would ever let someone build a cryptocurrencys like this, and not attack them directly. Augur is a Dapp, meaning that it was built on top of etheruem as a decentralized app. Augur is the first of a few different prediction market apps that seek to create a prediction platform by letting users bet on pretty much anything. There are a few different projects similar to FileCoin such as Storj and Madesafe, which are all seeking to create a decentralized storage and hosting solution for the web.
These are the kinds of huge, infrastructure changing, decentralizing projects which I think can radically change the internet, and in turn society itself. While FileCoin has not had an ICO yet, both Madesafe and Storj have, and they also have small limited application of the project released. These are the sort of radical project that are creating the new cryptoeconomy. Through creating alternative, decentralized networks that have the same functions as more expensive, centralized, state-sanctioned networks; we are creating the conditions of dual power in order to collapse the state.
It is not just the market efficiency of these systems that will do this, but the very decentralized nature of them that will come to fully challenge the power of the state, and the networks they use.
Each state-sanctioned network facebook, fiat money, ISPs, exchange markets, etc. The digital age is presenting the interregnum between centralized state power, and decentralized digital power. They could live not only without hunger and also probably without fear, but also freely. Through the power of digital technology and crypto, this world will become a reality.
This is because the form of power that crypto is based upon is only a destituent kind of power—it only finds value in a world where money, language, and politics have been fully corrupted, and the only thing left to do is to refuse it.
The new digital economic exist outside and beyond the control of any and all forms of government. From the NSA, CIA, and DOD, there is no lettered agency that can claim any degree of sovereignty over our means of economic exchange, and private communications that we have made for ourselves within the framework of crypto. A power that was only just overthrown by violence will rise again in another form, in the incessant, inevitable dialectic between constituent power and constituted power, violence which makes the law and violence that preserves it.
The goal is not to create a new form of money—that has already been achieved. We shall vanquished such evil from this world through simply absconding into bits spread all through the globe. Our power is a destituent one. This empowering a new system which they cannot affect, they cannot touch, and they cannot corrupt.
We can do this through shattering the current economic-political monopoly, and rending those powerful in old world indifferent to that of the digital realm. Once we see that abandonment of the current political architecture is the only way forward, that we will be able to start to creating our new form of politics.
We can reactivate the power of being ruled by constitutions—agreements to what we are entitled to as citizens. No longer do we need to tolerate the violations of our sacred compacts, and the trouncing of the very rights which create our governments. The deployment of all of these new cryptosystems with harden cryptography is not just a mathematical breakthrough, but the roots of an epochal change.
However, instead of closing operations, we see mining operations transition to locations in North America and Northern European countries with looser regulatory environments and physical environments that favor the cost of crypto-mining production.
Indeed, anywhere that cryptocurrency mining is dependent on dirty energy sources, such as coal, the environmental impacts are markedly negative, such as near the coal-fueled cryptocurrency mines in Mongolia. Depending on the energy source, researchers estimate that crypto-mining can produce million tons of global carbon emissions. Recent figures indicate crypto-mining facilities may subsidize the development of renewable energy resources by seeking the cheapest resource, optimizing consumption value.
Bitcoin mining operations in China illustrate the relationship between renewable energy and crypto-mining. The providences that host most crypto-mining facilities correlate with providences that produce their energy from renewable resources. If the value of a cryptocurrency depreciates below its cost of production, mining becomes unprofitable due to large energy expenditure.
The most prosperous crypto-mines are facilities that can operate at the lowest cost by obtaining the cheapest electricity capable of supporting extreme consumption, supporting enormous cryptocurrency mining farms across the world with easy access to cheap energy, or access to surplus energy stores.
As a result, miners seek cheap electricity markets while benefiting from policy environments that do not regulate the ways in which electricity can be consumed. As early as , crypto-mining pools began to emerge throughout the Mid-Columbia Basin in the state of Washington, comprising of Chelan, Douglas, and Grant counties. Most of the surplus energy is exported at higher prices,  enabling public utilities to keep electricity prices significantly low.
Rogue operators circumvent vetting systems and the impact assessment processes completed by established public utilities district PUD application channels. Craig also reported that small-scale cryptocurrency mines in residential neighborhoods and houses are not properly equipped to handle the immense amount of energy consumption required to run multiple crypto-mining servers.
To keep the machinery cool, the miners were leaving the windows and balcony doors open. In addition, the PUD instigated a new high density load HDL classification in January to distinguish between crypto-mining energy consumers from regular commercial consumers, and recover the projected net costs incurred by the PUDs for providing energy to crypto-mining customers.
This classification measures how energy is used, accounting for industries with portable and distributable units of power, volatile load growth, and high exposure to volatile commodity or asset prices. However, in March , the Chelan County PUD passed a moratorium to halt the application for cryptocurrency mining energy service in March due to immense request volume.
The Columbia Basin is not the only region to experience the repercussion of crypto-mining energy consumption. US-based crypto-miners gravitate to hydroelectric dam-powered regions across the country, including upstate New York where residents pay an average of 4. There, local PUDs experienced similar challenges in balancing energy demands for economic development with sustainability and safety of the residential power grid.
In order to accommodate the increased, Plattsburgh was forced to purchase additional power for the city, and place an month ban on new commercial mining operations. Additionally, purchasing electricity directly from power stations allow to monitor surplus and isolate public consumption.
While crypto-mining companies claim that established facilities will attract development attention and other accompanying opportunities presented by the technology sector, crypto-mining offers few long-term benefits for the communities in which they are based.
Other than paying for the energy used, miners contribute little to the communities they operate in at the same time they can see significant personal economic benefit. There is no ceiling to the price of Bitcoin, which means there is no limit to the resources that can be allocated to the crypto-mining process or the amount of mining that can take place.
The biggest threat to the stability of crypto-mining facilities, and the municipalities in which they operate, rest in the lack of regulation and oversight. The legitimacy of selling surplus electricity to mining organizations is only starting to become legally clear with outlined regulations. Policy makers should consider ways to curb rouge operators while maintaining a balance between public safety and economic development.
March 19, A Relative Study on Bitcoin Mining. Imperial Journal of Interdisciplinary Research, 3 5.