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…

10 Use Cases for Crypto in the Counter-Economy





Blockchain technology has been a boon for counter-economists. Prior to Satoshi's white paper, in order to conduct a transaction with an individual or firm not physically present, a third party was required to verify transmission and receipt of funds. Historically, the state, whether directly or indirectly, has played this role - albeit poorly.

Therefore, most of the items on this list will be new ways to utilize blockchains, fresh takes on existing infrastructure, or entrepreneurial paths to spread the mass adoption of cryptocurrency.


1. Sell Crypto


We're all aware central banking is evil. The question is: What to do about it?

We can cross our fingers & support the Federal Reserve Transparency Act for the 4th time (the bill died in the Senate on 3 previous occasions), or we can use competing currencies to instantaneously liberate ourselves from the cartel.

Using p2p exchanges, you can not only help others make the transition from fiat trash to crypto, but you can earn a profit for doing so. Sites like local.bitcoin.com, localcoinswap.com, & localethereum.com allow buyers & sellers to connect & place orders using a variety of payment processors. When an individual opens a trade with a seller, the funds are placed into escrow & payment is made. Once payment is received, the funds are released from escrow to the buyer. 


Denying the state revenue is the essence of counter-economics & this is an easy and highly profitable way of engaging the grey market. 

2. Smart Contracts


Know how to code? Consider writing smart contracts professionally.

Smart contracts are protocols designed to automatically execute the terms of an agreement based on a set of pre-determined conditions. Agorists use smart contracts to disintermediate the just-us system. By easing the public’s dependency on court services, smart contracts help bring the outdated & barbaric court system into a state of irrelevance.

In the state’s kangaroo courts, public employees are regularly treated like first class citizens while the rest of us are their personal cash cows. Pigs, prosecutors, & public employees, are given breaks that you and I are regularly condemned for.

No more of this nonsense. With smart contracts, all parties are equal and judgement is free of bias and prejudice. Moreover, all parties to the contract agree to clearly definable terms prior to it taking effect.

Smart contracts will also help facilitate the internet of things, which I expect to cause cascacading disintermediation in a variety of industries.



3. Tokenization of Securities & Assets


We’ve covered the tokenization of securities and assets here at The New Libertarian, and also on The Agora extensively. The idea is simple and goes back to Rothbard’s conception of compulsory cartelization.

Essentially, cartels aren’t possible in a free market. They pollute the economy like tumors pollute the body and can only be maintained by the state apparatus. Cartels are formed when a group of industry leaders agree to cooperate rather than compete. They decide on a particular price and everyone agrees to stick to it. At least, that’s the idea.

In a free market, one member of the cartel will always let ambition get the best of them. In a bid for increased market share, they lower prices beyond the agreed upon number & briefly enjoy market dominance. Once other cartel members realize they’ve been duped, they can either lower prices to establish an equilibrium, or exit the market entirely. To avoid this inevitable breakup, cartel members eventually began bribing politicians to enforce their rules. Thus, it became the job of the agorist to bust the cartel. 


FINRA, is one such cartel, composed of brokers. They pay the state to enforce their stranglehold on the brokerage of securities. By creating digital tokens to represent ownership shares in a security or asset & then trading them on decentralized exchanges, we strip the state of their ability to cartelize the brokerage industry. This will open the flood gates and allow capital to pour in to projects previously inaccessible



The SEC’s days are numbered.

4. Tokenize a Raffle


That’s not the only thing you can do with tokens. Using a different type of token, non-fungible tokens (NFTs), like the ERC-721 or SLP NFT, you can create digital tokens with unique identifiers. This may include group tokens with a subset of child tokens.

This is useful for generic purposes such as issuing tickets for an event. You’d create a group token for Event A and child tokens representing tickets - each bearing a unique identifier - say, seat, row, etc.

For the agorist this opens a world of possibilities.

Imagine for a moment, creating a political death pool, similar to a football pool - 100 boxes containing the names of politicians who individuals can buy in the hopes that the parasite occupying their “box” will croak first. The owner of the winning “box” receives a payout, and the agorist running the raffle, a small percentage.




With the use of NFT tokens, we can now digitize this process and by incorporating smart contracts, we can automate it as well. Tokens representing a particular box can be sold, funds can be stored in escrow and payouts may be issued automatically based on input from the entrepreneur.

5. Trade Crypto


This one isn’t for the faint of heart & I only recommend it to those who are well versed in day trading. I tried this method years ago and had limited success. Before Poloniex required KYC I’d spend most of the day in the trollbox. I didn’t get rich, but thankfully I didn’t get my clock cleaned either.

That being said, there are a number of successful day traders in the crypto community. Those who are able to pull it off make a good living. I personally know several millennial day traders who take their laptops & move where the cost of living is cheaper and the sun is alway shining.

By doing so, they help stabilize crypto-markets and in this way, help promote mass adoption.

6. Mining 

Although mining has become less profitable, it remains a valuable tool in the agorist toolkit. There are two main reasons for this.


First, mining increases the hash power of a chain, making it stronger & more secure, & thus encouraging wider adoption.

Secondly, and perhaps more importantly, mining allows agorists to acquire cryptocurrency without going through an exchange subjected to government imposed KYC/AML regulations. This clean crypto can then be traded on p2p exchange without the state’s knowledge.

7. Masternodes


Masternodes are servers carrying a full copy of the blockchain, backed by collateral & are used to provide auxillary features & governance. They were discussed in detail on this episode of The Agora.

This can be a bit costly. Running a masternode on DASH for example will require 1,000 DASH upfront.


However, DASH masternodes empower individuals to use the Private Send & Instant Send features. DASH masternodes thus help conceal user identity & transaction details from the prying eyes of busy body federal agents. Masternodes also enable quick transactions - a necessary prerequisite for any commodity seeking to become a general medium of exchange. For their services, DASH masternodes are rewarded with roughly 7% return on their collateral.


8. Dark Web Retail

Deep web retail is a great way to protect income from political parasites. Ross Ulbricht proved, with the legendary Silk Road, that an encrypted marketplace combined with a p2p cryptocurrency, can effectively enable free trade. 

You can buy or sell anything!

From unregulated showerheads (yes, most countries including the USA, regulate the water flow of showerheads) to pure China white heroin, deep web retail is a powerful tool for the counter-economist. 

Indeed, it has brought agorism from the theoretical to the practical.

9. BlockFi High Interest Savings Acct.


BlockFi wealth management offers up to 8.6% APY on crypto savings accounts. That’s certainly a better deal than the banking cartel will give you. Also, blockfi accounts are not FDIC insured - thank God.

10. Be Your Own Bank


Quit banking with the cartel like you’d quite any other habit that is detrimental to your health. Although crypto infrastructure remains sub-par, it is nevertheless, a better option for agorists & cypherpunks than legacy banking.

A BCH wallet using CashShuffle, or a BTC Wasabi wallet (or for that matter, a Dash or Monero wallet), is generally more secure than a Swiss bank account.

Open two wallets; use one as a checking account & the other as a savings account. Draw funds from the former to load a BitPay card. The latter can be a vault wallet, meaning a 48 hour window must pass before withdrawals can be made. 


You can even have your paycheck direct deposited into crypto using BitWage.

Conclusion


As you can see, crypto-currency and counter-economics are natural bedfellows. Considering all of the ways one can use blockchains to disintermediate the state, it's no wonder crypto has been in the cross-hairs of governments around the world.

My advice to budding agorists is to begin with the use cases which you're comfortable with, and as you grow more accustomed to utilizing blockchain technology, advance incrementally. 

Find ways to disrupt, disintermediate and decentralize state infrastructure in a secure and profitable fashion.

I hope this list helps. 


Comments

  1. Thanks for sharing this article here about the cryptocurrency. Your article is very informative and I will share it with my other friends as the information is really very useful. Keep sharing your excellent work. If anyone looking for the Easy Bitcoin Loan, Nebeus is a good choice.

    ReplyDelete

Post a Comment

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…