Skip to main content

Against the IFP

Centralizing control over a currency’s infrastructure is a seemingly obvious mistake.

One would think any Austro-libertarian worth their salt would be able to see thru such a charade. Yet here we are, again. Face to face with economic illiteracy. Not garden variety lefist economic illiteracy, but one far more stinging and painful - one which comes from within our own community, rather than from without. 

First, Bitcoiners faced the economic illiteracy of maximalism and small blockers. Attempts to masquerade money’s primary function as value storage (Ammous) or rejecting Menger’s Regression Theorem altogether (Szabo) are luckily demonstrably false. Nevertheless, the shock of our fellow Bitcoiners illiteracy was like an unexpected slap in the face. Suddenly, we were forced to confront the fact that the ignorance of our allies in the fight for sound money, had led them astray. Yet, thru BCH we were thankfully able to keep Satoshi’s dream of peer to peer cash intact. 
Well, crypto anarch…

Using Your Bitcoin





So we've got a wallet, we've invested in it, now what? Honest answer, start looking at all of the avenues to use your crypto. You will quickly realize that it's a lot like walking through your favorite store with $1000 cash in your pocket, the potential is limitless and the rabbit hole only gets deeper.

First and foremost, run a quick search for "vendors accept Bitcoin", what do you see? A relatively impressive, broad, and tempting list of companies. The list has grown substantially since around 2014, and includes a number of sites that appeal to the type of cyber enthusiast who would be attracted to crypto in the first place, places like The Pirate Bay, Newegg, and ExpressVPN. Additionally you can order Domino's Pizza, buy knick knacks off Etsy, or shop on Amazon.


For those who can't find a preferred vendor that explicitly accepts Bitcoin, well there are other options. For one, you can get a cryptocurrency debit card. Most operate on one of two methods for funding the card. You either have a crypto wallet that connects directly to the card, the type of service Coinbase offers, though not currently available in the US. The other option is to fund the card by depositing crypto into a card specific wallet, the type of service offered by bitpay. Generally, either method will convert your cryptocurrency at the time of purchase when used at any debit card accepting vendor.

All of this is pretty cool isn't it, especially if you're new investment wallet has gone from say $1000, to $1300 in value, you're practically able to spend free money at any place you'd like. What does all this mean for the future of cryptocurrency? Great question, and the answer is something that was foreseen a decade ago, when Bitcoin was started as a ledger. It means that Bitcoin will indefinitely become the most attractive, and most used currency worldwide. It's impossible to regulate so it's not subject to manipulation by Government, plain and simple. It gives humanity a way of holding onto what is truly theirs, tax free. Of course you'll be extorted into reporting your earnings on crypto, but why would you do that?

The operating platform for cryptocurrency is unmatched by any other currency to ever exist. Given enough time, and enough information shared about cryptocurrency, a large number of assets will be liquidated into cryptocurrency in some way, shape or form. As of 2017, the global market cap for money was greater than $80 trillion, that's only money, it does not include all other types of assets like gold, stocks, and real estate. The market cap for Bitcoin alone is currently at around $200 billion. When global markets begin to crash due to inflation and Government manipulation/intervention, there won't be a complete loss of value in the livelihoods of billions of people. That value has to go somewhere, and when cryptocurrency is so easy and available for use, well just do the math. The current price for 1 BTC is around $11,500, so in an ideal scenario where literally all value in fiat currency is siphoned into Bitcoin, you're looking at 1 BTC holding a value of $4.6 million. That's not an outrageous estimation, of course not all of that value will go into Bitcoin alone, there are other cryptocurrencies out there, but I didn't even account for the liquidation of real estate or stocks, which together hold much more value than money.

Cryptocurrency has an incredibly bright future, and in turn so does humanity.

Follow me on Twitter: @pop_toy


Find a list of useful links and citations for my market cap numbers below:

https://www.coinbase.com/card

https://bitpay.com/card/

https://www.coindesk.com/price/bitcoin

https://money.visualcapitalist.com/worlds-money-markets-one-visualization-2017/






Comments

Popular posts from this blog

Global Warming & Economics

Libertarians who deny the existence of global warming run the risk of making us all look like a bunch of illiterate fools.

Much like economics, being ignorant of planetology or climate science isn't a crime, but having a "loud and vociferous" opinion on the subject while remaining in a state of ignorance can be a dangerous thing. And frankly, the science behind climate change is elementary.

Sunlight enters our atmosphere and warms our planet. Earth then gives off that heat in the form of infrared radiation (this is the same principle behind those cool goggles our collapsitarian friends have). However, and this is a crucial point - the CO₂ molecules in our atmosphere do not allow IR to easily escape back into space. This is known as the greenhouse effect. As the temperature of the planet increases, polar ice caps melt and eventually surface water will begin to evaporate. Since H₂0 also prevents IR from escaping our atmosphere, the additional water vapor only compounds th…

Technological Agorism I: Digital Feudalism

We live in the age of digital feudalism.

In earlier times, peasants saw their productive capital rerouted to their feudal lords. Likewise, we modern serfs see the monetary value of our digital presence being rerouted to big tech CEOs. And just as medieval lords used this capital to maintain their elaborate manors & their status in the nobility (thru kickbacks to the monarch), these modern day lords do precisely the same. The advent of tokenization promises to change this.



Big tech has profited enormously from the digital peasantry in two ways. 
They earn money based on the popularity of user-generated content. In other words, we use FB, Twitter, & IG to view content posted not by these companies, but by the individuals who use their platforms. Big tech collects & monetizes our personal data & has been doing so for quite some time. Own Your Content The tokenization of digital content has already started the process of disrupting legacy business models. Seeing as the fir…

The Economics of BTC Maximalism

BTC maximalism is a flawed doctrine, fallacious in numerous respects. 

First, if you'd prefer to hear these arguments in audio, check out this recent episode of ABNP, where @mrpseu & I discused these same topics. 

Also, a qualifier: I'm not capable of making, defending or refuting technical arguments. I'll leave that aspect of the debate to others. My concerns with BTC maximalism are entirely economic and can be divided into four areas. 


Based on the criteria for saleability as laid out by the austrian school, BTC is not the most marketable digital commodity.A lack of portability relative to other cryptocurrencies implies BTC isn't as sound of a commodity. Value storage is a secondary function of money and cannot satisfy the use-value requirement of regression theorem. BTC maximalism lays waste to the Hayekian notion of competition as a discovery procedure. This final point was addressed in detail on episode 50 of The Agora, Crypto-Economics and thus, isn't elabor…