Trojan Horse Blockchain

trojan horseBitcoin is the trojan horse of the fiat monetary system and will ultimately end the state’s control of money. However this process will also compromise bitcoin’s core principals and cause for the corruption of bitcoin’s pseudonymous traits. Over the next decade as the cryptoeconomy expands its reach to become truly global, the financial system will quake as its foundation shifts from state fiat money, to decentralized digital currencies. While we should celebrate the rise of digital currencies, the full collapse of governments and global financial system is unlikely.

What we will see instead will be the horrifying metamorphosis of bitcoin into a panoptic nightmare. Bitcoin will be used by governments, bankers, and regulators to track our every purchase, and monitor all financial activity. Tainting tools will become so powerful that pretty much any bitcoin transaction will be possible to de-anonymize.

The crisis of fiat money will change not only finance and banking for the better, but the nature of governance as we know it. Bitcoin is going to be a trojan horse to the fiat banking system, and will destroy all government monopolies on this issuance of money. While bitcoin will be able to act as a check on the economic power of governments, in doing so it is also going to expose bitcoin to rigorous state regulations, and ultimately the full capturing of bitcoin as a whole system. Bitcoin may end the state’s control of money, but it may also open the path to the state’s ability to watch all financial transactions.

Inverting Bitcoin

Blythe Masters

Blythe Masters

This video at the Bank of England with Blythe Masters she speaks about what she believes to be in store for the future of bitcoin. She openly admit that the state supports her project, and that, “There will be no currency that gets around government controls.” Later the host of the program states, “There is no innovation that governments cannot seize for their own advantage…” This is followed by a discussion of the panopticon effect that bitcoin can have through tainting bitcoins and tracking their movements. All of this seems to be eluding to the capturing of bitcoin–banks and governments are working together to ‘inverting’ the blockchain to monitor all transactions.

Capturing Bitcoin

To capture bitcoin, all that governments need to do is auction off the bitcoin payment system to be regulated under the threat of force. This is already happening and companies like Coinalytics and Elliptic and providing the tools to taint and track bitcoins coming from anywhere. Effectively, this make every bitcoin highly traceable, which in turn can allow the banking system to merge with bitcoin to create a financial panopticon.

bitcoin-taintingThis new global monetary system where bitcoin will act as the rails of the financial system is magnitudes more efficient than all current fiat systems. This will create a lower general transaction cost when compared to any fiat money today, and will be the foothold that digital currencies will take to win out economically over fiat money in the long run. This is the inversion of bitcoin and will be how bitcoin will finally ‘die’ because of state compromise.

However, this is only the death of bitcoin’s body, not its soul.

Death by state and bank compromise will create the conditions for bitcoin’s core mission to be achieved through it becoming a trojan horse within their own system. This will cause for the destruction of fiat money, and will reassert the power of the purse back into the hands of the people.

There is no way that banks and financial service companies will be able to use ‘the blockchain’ (i.e. bitcoin) without also causing two other actions to happen simultaneously:

  1. The legitimization of bitcoin and other digital currencies as a global money.
  2. Exposing the legacy financial system to speculative attacks from the cryptocurrency economy, ultimately leading to a devaluation of fiat money against bitcoin and other cryptocurrencies as fiat money is displaced.

Capturing the State

If bitcoin becomes a global reserve currency, as the central bank of Barbados believes it could be, then bitcoin is forging a path towards capturing the state through the very means by which it has captured all of us: through economic means.

resistBitcoin has some flaws in regards to its privacy that should scare off neer-do-wellers and privacy advocates alike. However, these same aspects are what makes bitcoin very, very appealing to the financial world, and is the reason they will start using bitcoin as their base currency under the mantra of ‘blockchain’. The transparent nature of the blockchain offers the possibility of a totally regulated and systematized world of digital currencies that is a statist wet-dream. However, through implementing such a system, states will also lose control of their choke hold on the economy, and will eventually find it slipping through their grip entirely. The fundamental truth is that Bitcoin and other cryptocurrencies are better money than ANY form of money that we have ever seen! This is by virtue of that cryptocurrencies are not state-controlled, and cannot be state-controlled. It is plain and simple economics at the end of the day which is going to cause for bitcoin and other digital currencies to win out over fiat money.

Bitcoin has created a whole new generation of crypto-activist who see the power of digital currencies and cryptography in a way that will allow for a new fundamental form of power to exercise itself. The trojan horse is not bitcoin itself, but to see the possibility of real economic independence outside and beyond the control of the state which bitcoin enables. There is no longer any separation between politics and economics, and that is the very space in which we will make the new digital economy, and ensure our liberties through strong crypto.

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. The state was never suppose to have economic sovereignty over us, and it is now time for us to reclaim that sacred right, and ensure it can never be taken away again. Strike against state capitalism, and reclaim your financial freedom which was never suppose to be taken in the first place!

5 thoughts on “Trojan Horse Blockchain

  1. Hello Sir, it’s me again and I have a few questions about this topic. I’m highly interested in the blockchain usage inside of state or state-like institutions but I feel like you’re a bit too optimistic about the average Joe. Most people won’t like to be responsible for their own money. Once you own a cryptowallet and crypto-currencies, any error will be on you and losing the keys will indubitably lead to lost money. Implementing ways to get your password back shall open weaknesses in the system and make human error even more potent in terms of danger. I do not fear the code but the human error, if that makes sense? I know most people will just accept to follow along with the autorities and I’m not so sure that blockchain and Bitcoin features will disrupt the system. Banks are already jumping on the opportunity and if they’re smart enough to create a public blockchain where they own most of the coins or mining power, back by states and make true p2p blockchains illegals, we’re done. So can you explain how you’re so sure that it won’t go down that path? Thanks!

    • Hi again Nate,
      Perhaps you are right, maybe I am too optimistic, but I think that is because I see that cryptocurrencies are fundamentally political by nature and once that is recognized and owned for what it is, I think it will be the spark that ignites The Revolution. I believe that once people start to understand this, and the very real form of power that is embedded within cryptography, there becomes a real chance for a political struggle for free and independent money that is outside of the state’s control. While people may not want to be their own bank, it needs to be very, very clear that such a choice is political. There will be more devaluations of fiat currencies, more bail-ins, and more outright theft from bankers and politicians alike. These are political decisions first and foremost, they can happen because of the state and banks control of money. If we make the political choice to not allow for them to control our money, there is a realistic chance that we can break the back of the state’s control of the economy via fiat money. Also, I think systems like Uport, and U2F are going to help with the human error component, but those being rolled out more massively will take a few years. Thanks again for the thoughtful comment and have a good 2017!

      • Thanks a lot for your answer, I’ll definitely check Uport and U2F, I didn’t about them. Have a great 2017 yourself! Your content is always interesting, thanks again!

  2. I am 100% percent for bitcoin and freedom. But last night, I was trying to explain this to a friend. I was explaining government will not be able to control money as before, etc, etc …. His reply was that he was worried that government wont receive any more money and he was asking me who is going to pay for the sick, the old, etc … I couldn’t really offer him a decent answer …. Any hints ?

    • Hi Eles,

      My answer would be, “Well, can we just pay for those good things, and not war? Because at this time, 40% of U.S. tax dollars are spend on the military industrial complex, and I have no interest in funds wars with people who I don’t know, and I have no wish to harm. While I want my tax dollars to be used for good, I won’t pay ANY tax dollars if I know ANY of it will be used for murder.”

      As Henry David Thoreau said more than 150 years ago, “If a thousand men were not to pay their tax-bills this year, that would not be a violent and bloody measure, as it would be to pay them, and enable the State to commit violence and shed innocent blood. This is, in fact, the definition of a peaceable revolution, if any such is possible.”

      Thanks for commenting !

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