The Political Nature of Cryptocurrencies

“Government is instituted for the common good; for the protection, safety, prosperity and happiness of the people; and not for the profit, honor, or private interest of any one man, family, or class of men; Therefore the people alone have an incontestable, unalienable, and indefeasible right to institute government; and to reform, alter, or totally change the same, when their protection, safety, prosperity and happiness require it.”

Massachusetts Constitution, Part VII, John Adams

Cryptocurrencies by their very nature are political because no single government can control them. They act as an explicit form of wealth for the individual alone, that no state can expropriate. Unlike all other forms of wealth that can be expropriated from the individual, cryptocurrencies cannot because of the cryptography that they are build on top of. People are coming to understand that cryptocurrencies are better forms of money because they are governed by code alone, which makes the contract a digital sacrosanct.

Cryptocurrencies exist only for the benefit of those that hodl and use them while creating an explicit economic program of counter-economics in which the state’s coercion and violence is banished. Through building money on top of cryptography–a communication explicitly designed for war–a new kind of value is created from the explicit incapacity of governments to control them.

With the recent abolishment of the largest bank notes in India, Venezuela, Pakistan, and Australia’s announcement to join them, the war on cash is coming. This is a war for the total economic control of money by both governments and banks. This is not for our safety, or security–it is to ensure the theft of our wealth, and the continued enslavement to banking and political interest of the oligarchs.

To have a truly independent form of money strikes at the very root, the very heart of the issue: politics and economics are one in the same.

To Politicize Money

Money is the most fundamental of the social contracts. When we can come to understand that the monopoly that all governments and banks have on the issuance of money under the guise of ‘safety and security’ is nothing more than a ruse for their own enrichment, we can start to understand the very real power we now have to fight back.

Through taking our economic power and choosing to put it into a form of money that they cannot control, we create the most powerful form of political resistance that is possible: economic resistance.

If money is the only thing that these corrupt monsters care about, then lets make it about money–how much money we can cost them? What can we do together when we all withhold our economic power from their parasitic system?

Because it is for each and every dollar that is not spent in there system, we get strong. For every single economic transaction that does not occur in their system, we become strong. For each person that realizes that the state should never have had control of the monetary system, we get stronger.

It is only a matter of time until we are strong enough to take them on publicly and openly. What should be apparent is that money itself is the strongest and the most potent political weapon that there is. Once we acknowledge that money itself is first political, and secondly economic, that we can start to understand the true nature of bitcoin.

Bitcoin is not about money, it is about power.

Building The Revolution for Fun and Profit

Bitcoin turned eight years old this week and the price is back above $1000 per coin. For those of us that have valiantly and steadfastly been working on the finance system of the future for the last few years, we are all reaping the rewards of our efforts today.

Every person that you ask about investing in cryptocurrencies will tell you, “Don’t invest more than you can afford to lose,” but keep in mind that is a knife that cuts both ways.

If you really want to make money, big time money with trading bitcoin and other digital currencies, here is the strategy:

Buy bitcoin and maybe a little of some other crytocurrencies like Ethereum or Monero.
Move those funds into cold storage, into a safe location.
Make backups.
Wait and forget about that money.
Profit.

That’s it. That is the brilliant and amazing way that people have made huge fortunes in the last few years with bitcoin and other digital currencies. Go ahead and buy some, and see how you feel about it at the start of 2018.

The Economic Efficiency of Digital Currencies

Bitcoin and other digital currencies are new kinds of money and exchange networks that are superior in nearly every way to state-controlled fiat money. Due to the fact that all monies are directly competing with one another as economic units, money create a zero-sum game of competitive economics against one another. 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.

Capital 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. Due to the unique construction of digital currencies from a security stand point, digital currencies create nearly perfectly secure money systems at rest. Out of the box, through cryptographic functionalities built directly into digital currency protocols; they are magnitudes more secure, efficient, and scalable than fiat money. 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.

Scalability and Security

Payment and storage of value systems are huge social networks of economic acceptance. This is why new, crisp $100 bills are accepted almost anywhere in the world due to the economic hegemony of the U.S. dollar. However, there is nothing in the dollar bills themselves that have true value; just that the next person who gets that bill will know that it is worth $100–a relatively stable value against many local currencies like the Venusalian Bolivar, or the Argentinian Peso, which have both experienced bouts of hyperinflation.

Despite the wide acceptance of the U.S. dollar, it still has the fundamental problem of transportation, security, and counterfeiting that all fiat money has–a huge expense that cost the US economy about $250 billion dollars a year. That expense is imbued into all U.S dollar transactions due to the inherent nature of fiat monetary system. As the size and scale of the U.S. dollar usage increases, so does the degree of fraud, and counterfeiting that occurs. This amount of counterfeiting and fraud is proportional to the total supply of hard money within a fiat money system, and is a fundamental flaw of any kind of state-issued fiat money.

It is this scalability flaw within all fiat money system that digital currencies exploits to be superior money. This allows for digital currencies to be magnitudes more efficient at being a mode of exchange, and a storage of wealth than any money there is today. Digital currencies have the capacity to scale so much more securely and efficiently then fiat money that they will prove themselves to be more efficient then all fiat money.

Capital Competition

Due to a condition that is similar to undercover interest rate parity, digital currencies will always offer an opportunity for profit over fiat. 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. What gives digital currencies their distinct advantage over fiat is that the networks is that the money supply cannot be inflated at will. This creates an unmailable supply which is nearly impossible to change, unlike all fiat monies.

When comparing whole monetary systems, bitcoin and other digital currencies will always out preform fiat currencies because of how both currencies create their structural value. Fiat money will always be bonded to a state legal system that finds its value in the force of law, not the nature of value. Digital currencies value because the nature of markets and the protection offered by cryptography–people desire cryptocurrencies because of the traits of good money that they exude.

Digital currencies will never have the same legal and economic burdens to service as fiat money does. This means digital currencies will always have a lower systemic transaction cost than any fiat system, which makes them more economically efficient. Sovereign digital capital will always out preform state fiat capital.

Digital currencies are simply better forms of money than state-controlled money.

Conclusion

Funny that he sees that, yet bitcoin is going to destroy his wealth.

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. Bitcoin and other digital currencies have a lower transaction cost and greater security and scalability than 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.

Money and The Means of Production

“Each country has its own ruling class. 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.” -Karl Marx

The means of production are the actual objects that one needs to own in order to be able to produce goods. This could be anything from real land to the machinery that can create textiles. The means of production are investments that will create products, which in turn creates capital for the owner of the means of production so they can pay their workers some portion of that capital. However, in an advanced capitalist society the most prominent means of production is capital alone, and this can be seen with how financial markets now dwarf all other economic markets today.

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.

Everything is for sale, and nothing is scared anymore, including their law.

The State, Capital, and The Means of Production

Money is the central component of a capitalist system. This once was gold, sliver, and other commodity-monies, but as the state grew in power throughout the centuries, it came to regard the freedom of money as ‘dangerous’ and seized all forms of commodity-monies. Ironically, FDR did this to save capitalism, and in doing so he created the conditions state-capitalism. Check out this link for more on bitcoin and the history of money to understand how money has become nothing more than government debt backed by legal violence.

In this last stage of capitalism, the power of the state and capital become one; fused through totalitarian state capitalism by the monopolization of the monetary system. No longer is the separation of money from the state, or the state from money possible–they have fused together with state’s control of the monetary system. Due to the monopoly on the right to violence governments also hold, this gives them the power to ensure that only they can issue money. The state has forced people to give up real commodity monies with intrinsic value, for fiat scrips with no underlying value. This action took place over the course of the last century along with a complex campaigns of psychological warfare against the liberty of money to allow for the state itself to become money.

It is because of this that today gold and silver are little more than investment scams ran by the same banks that peddle the state’s fiat scrips. 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.

Money as Propaganda

11th century Venetian gold ducat

The greatest secret about money is that it is only social–only men can create money, nature cannot. However, nature does create value, and it is this that we are seeking out.

From the very first forms of money, it has always been maintained by statist that it is not the precious metal that has value, but the stamp that is malleated into the gold or silver which has value. This is nothing more than propaganda. It is part of the greater illusion that the state has any bearing on the value of money.

The states original purpose for stamping commodity monies was to act as fair and just regulator in the setting of the weights and measure for coinage. However that was centuries ago, and is little more than a tale to justify government seigniorage. Today the state has anointed itself with the very right to create money and however much it they may choose. Through the complete need for the state to monopolize money, we also see the signature of why money must be monopolized by the state in the first place.

Money is the true sovereign. Money alone can decide the exception to the law.

Money is the final weapon in an advanced capitalist society, as money is the most powerful form of production in an advance technological society. 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. Through using money that is controlled by no state, but the internet itself; we will usher in the hegemony of the digital. This is the bases for a new form of sovereignty and economics in a post-statist world.

Monetary Control = Economic Control = Political Control

The command of money is little more than command of the economy itself. This is why the state must control money, or else it will lose control of all the fuckery they do within the economy. This is why exiting from the fiat economy and using cryptocurrencies is the most power form of protest that one can take. Through using cryptocurrencies we seize the greatest means of production in our society: The monetary system itself.

When less than 100 people owning more wealth than the billions of people in the entire lower half of society, it is clear who owns the monetary system. 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.

Too few have owned too much, at the expense of too many, for too long.

We will change this.

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 using and hodling digital currencies, we are seizing the most powerful means of production in our society, and how the state keeps control of our lives and economy. 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.

Specialization and The Cryptoeconomy

Bitcoin and alternative digital currencies (altcoins) are much more that just simple currencies–they are a means of exchange, and the entry point into the new digital economy: the cryptoeconomy. Their development represents a technological protocol for digital ownership and economic exchange. This has far reaching ramification for both the internet and money as they both evolve to create their own new economic machine totally removed from state command economies and monetary systems.

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. This is allowing for a proliferation of specialized ‘altcoins’ which range from useless to spectacular, each which seeks to create their own specialization within this new digital economy. 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.

Specialization, Money, and Transaction Cost

Adam Smith and David Ricardo

Adam Smith first presented the idea of specialization in Wealth of Nations. David Ricardo later expanded on this idea with his theory of comparative advantage, which is the idea that that nations should specialize in industrial production that they have distinct advantages in. Digital currencies can specialize in the same way, creating their own comparative advantage by working directly within the framework of the internet, rather then limiting themselves with anachronistic limits of state forms of money, and their laws. This, in turn, radicalizes not just money and finance, but anything to do with the internet and economics.

One of the most important economic features of bitcoin and other digital currencies is the near-zero transaction cost they have, which means that in almost all cases over an extended timetable, digital currencies will always have a lower systemic transaction cost than any form of fiat money. 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!) than in the fiat economy, but also opens up a whole new world of investing opportunity that could not exist otherwise.

With digital currencies being native to the internet, unlike fiat money, they are empowered to create a totally new kind of economy which is not based on regulations and permission-seeking, but through creating totally new markets and technological opportunities. There is a plethora of new digital currencies and projects which all are using this same near-zero transaction cost to radicalize pretty much every single area of the contemporary economy through applying this technological advancement of money to their field. 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.

Initial Coin Offerings

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).

ICO are one of the most powerful modes of investing in the cryptoeconomy. Cutting through all of the red tape of investing and assuming the risks and rewards for oneself; there are huge opportunities (and scams!) that are occurring right now in the cryptoeconomy that are going to fundamentally destroy the old economy modes, in exchange for newer and better ones. 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. Through acting as a unit of accounting, people are able to invest directly into ICOs by sending bitcoin directly, and in some cases taking their profits in bitcoin directly too. There are also several great projects being built in the Ethereum ecosystem that are taking this same approach, with profits being paid out in Ether, the currency native to the Ethereum blockchain.

Let’s take a look at just a few of the great projects that are currently being working on in the cryptoeconomy.

Ethereum

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.

I see a lot of ‘bitcoin 2.0’ being developed with ethereum, and a lot of amazing project are being built on top of it creating ‘Dapps’ or decentralized app. These Dapps are the applications which are going to fundamentally restructure the economy. From self-driving cars that pay for themselves and take themselves to the repair shop, to drones that will drop off your tacos once you send some bitcoin, Dapps are going to change the world.

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

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. Overall, Monero looks like a strong privacy-centered digital currency that could one day be the privacy currency.

Augur

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. You can check out more information about it here: https://www.augur.net/

FileCoin

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.

Dual Power

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.) will come to be challenged by a non-state network, and over time, simply because of the lack of onerous regulations, and the well-placed mistrust of the state; they will come to prevail over the state-sanctioned network.

The digital age is presenting the interregnum between centralized state power, and decentralized digital power. Over the course of the next decade, states will find themselves struggling more and more with the spectre of the internet and the new forms of power it has created. As states do everything in their power to try to stomp out these new decentralized networks (particularly in more extreme ways as their power is challenged), they will come to find that they do not have power in this space. They will see the destituent power of cryptosystems, and will only be able to show their powerlessness against the immanence of systems built upon the power of mathematics, rather than the wills of men.

The Destituent Power of Crypto

“There is something that all people, whether they admit it or not, know in their heart of hearts: that things could have been different, that that would have been possible. They could live not only without hunger and also probably without fear, but also freely. And yet, at the same time—and all over the world—the social apparatus has become so hardened that what lies before them as a means of possible fulfillment presents itself as radically impossible” –Theodor Adorno

We will witness the radical impossibility that has been promised since antiquity: a world unified under the banner of true freedom. 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. Through the deactivation of the power structure as we understand it through a totally new strategy of power inoperativity, we break the whole system.

The new digital economic exist outside and beyond the control of any and all forms of government. It does this through deactivating the control states have on the economy through creating a new monetary system. 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. There is nothing they can do other then display their powerlessness against the majesty of cryptography, and their own selfish and fearful need to control everything. Crypto is the bases for the new society that we shall create in the shell of the old.

Destituent Power

“If revolutions and insurrections correspond to constituent power, that is, a violence that establishes and constitutes the new law, in order to think a destituent power we have to imagine completely other strategies, whose definition is the task of the coming politics. 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.” -Giorgio Agamben

The goal is not to create a new form of money–that has already been achieved. The real objective is to render a new kind of law; a new kind of politics. A kind of politics that does not taint itself with the violence of man, or the machinery of the state. There no longer is a need for the law-making violence of the state machine, and we are creating a new world where such crude and barbaric forms of violence can no longer legitimize themselves. We shall vanquished such evil from this world through simply absconding into bits spread all through the globe.

A new epoch is beginning and the first goal is to render both old money and old politics not just worthless; but as a testament of its corruption.

Our power is a destituent one. A power which robs the current laws and politics of any meaning through displaying their total corruption. 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.

We seek to reactivate Law as it was suppose to be, rather then attempting to constituting changes through the corrupt system of today. The laws of the old world are meaningless in this digital space; and now we need to make this is true in the world of flesh and steel as well. 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.

The digital system radically divides itself from the state system of laws through a political praxis of non-violence. Through protecting information with encryption, and widely distributing media against corruption and injustice as a form of truth, we can create a new world.

The legal violence which enacts state laws and creates their power simply cannot exist here: there is no territory in which it can apply itself. This radical division is what fundamentally divides our codified digital laws from contemporary violence made laws. We don’t need the violence of statism to cooperate.

The Digital Commons as an Economic and Political Praxis

Through the power of the internet and the digital commons, we can recreate our systems of government to be the Utopian fantasies they were dreamed to be. We can reactivate the power of being ruled by constitutions–agreements to what we are entitled to as citizens. This can allow for us to be governed by the science and immutability of technology, rather then the finicky wills of men who corrupt with ease for selfish gains. 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. The economic power of digital currencies deposes of state economic system in exchange for a digital one. This is just the very beginning of the deposition of power away from the hands of the state, and back into that of the people. Over the next decade these systems are going to fundamentally challenge the state, and their control on every level of life.

This power deposes because it is an explicit exit from the current, corrupt economic and political system that is pervasive and all-encompassing in our lives. In the digital, the whole multitude of society can exist; with no minders or masters. Here we have chosen to construct all of this for ourselves, without the help of our masters of state, or their capitalist allies who have corrupted our systems of government for private gains.

Towards the Future

We can create a radical new world where the freedom of all is not just a hope, but a reality. The power of technology has drawn us closer then we have ever been before, and now we can see the world as it truly is:

There are untold billions of us living in the most destitute of situations, fighting for the smallest of scraps from Empire. Once we see that there is the greatest of strengths in creating a new form of digital solidarity which can beat back the beast of global fascism, we then might stand a chance for a real future which we are no longer slaves; but truly free to determine the world which we will make.

Bitcoin: The Halvening

In my post understanding the economic functions of bitcoin, I explained in-depth how bitcoin functions as if it were a central bank, and how the supply of ‘bit-coins’ are created. Understanding bitcoin’s supply is important for understanding what we are witnessing today with the huge price increase. This has been caused by a supply-side liquidity crisis that is just getting started. This ‘crisis’ has been caused by the ‘monetary policy’ of bitcoin, and how new bitcoins are created by the mining process. For more details on how bitcoin creates its value, please check out the intrinsic value of bitcoin and bitcoin as a commodity money.

It was decided long ago that bitcoin’s monetary supply would cut in half every 210,000 blocks no matter how much hashing power is being expended. We are feeling the shock of the impending drop in the production supply, which is causing the of bitcoin price to sky-rocket.

Supply-side shock

‘The Halvening’ is the moment that the bitcoin production supply reduces by half. When we go from block 419,999 to 420,000 and the block reward will go from 25 BTC to 12.5 BTC–the production amount is chopped in half.

Similar to how markets will to respond to changes The Fed will make weeks in advance of an actual meeting, this is what we are seeing with bitcoin today. Bitcoiners understand the production supply will change soon, and the market is starting to respond to that. The key difference between The Fed’s policy and bitcoin’s, is we know what is going to happen with the supply of bitcoin, whereas it’s a guessing game with The Fed.

This known reduction of the production supply is creating a liquidity crisis that causing for a deflationary hodling activity to occur. People are less willingness to sell bitcoin now that the halvening is approaching, as the perception of the value of a bitcoin is changing.

Half the production supply

The production supply, the new bitcoins that are mined each day are done mostly by huge multi-million dollar mining operations. They are the ones whose production will be cut in half, while still spending the same amount of real electric energy to mine for bitcoin. After block 420,000 it will cost at least twice as much to produce the same amount of coins previously.

These are the coins that are sold directly to exchanges and institution and provide the most sell-side liquidity to exchanges. With block 420,ooo impending, this is causing for bitcoin to entering into a new price seeking event; as the market knows the supply is about to dry up. This is causing for a new bubble to increase the price of bitcoin to new equilibrium price that accommodates the drop in supply. This is so the same amount of nominal liquidity (fiat value) can be provided with sharp reduction in the available supply of circulating bitcoins. Until block 420,000 is reached, we are going to be in price disequilibrium in a bullish direction.

A Hyperbitcoinization event?

The value of a bitcoin token is changing again, and this time it could be more then just another bubble. Bitcoin is a fundamentally better form of money than any other form of money we have seen before, and it has a higher liquidity preference then cash itself and it will always have a low transaction cost than fiat money.

At some point, the rigged game of old money and finance will be seen for what it is, and people will want to exit.

The global economy is teetering on catastrophe, and once a large financial institution like Deutsche Bank goes down, it is going to drag a large part of the financial industry and world economy with it. And not a goddamn thing will be done to prevent it. As moral hazard has taught us all, the banks are special and will be bailed out at the expense of the general public.

People are tired of the bullshit, lying, cheating, and stealing that is universally accepted by banks and their political allies as ‘business as usual’. We are changing how money works in response to this, and we will rejoice as the banks burn, and the real crisis starts.

Summer 2016 is going to be a hot one!

What Is To Be Done

“Without revolutionary theory there can be no revolutionary movement.”

At the end of the 20th century humanity was given the most powerful tool that the world has ever seen: the internet. In less than 20 years, the internet has evolved from being a slow, complex, obscure piece of technology to connecting billions of people today with just the flick of a button. Despite the fact that we can use the internet to communicate more efficiently, and exchange information with magnitudes more efficiency then just a few decades ago; we still find the shadow of fascism grow larger with each passing day…

Control of our respective economic, political, and social systems have been overtaken by corrupt capitalist and their political stooges, and now they seek to take over the internet itself. It does not matter if you are German, Korean, Argentinian, or American–all of our systems have been corrupted in the same way, with the same methodology, by the same class of people. Corruption reigns supreme, while the basic needs of society as a whole are ignored. Self-determined humans everywhere have been hamstrung by economic corruption, government impotence, and social cowardice to ensure that the wealthy will always win.

This is THE defining feature of ALL so-called democracies around the world. Unless we choose to fight this corruption directly and to strike at the single root which unites them; we will continue to suffer under their exploitation. The single feature which unites them is fiat money; and that is the very structure–the very object–which we seek to destroy. Through the promotion, advocacy, and use of digital currencies we can destroy the contemporary financial system, which is controlled by the 0.1% at the expense of the whole of society.

Politics and Economics are Inseparable

We must understand that there is absolutely no division between economics and politics. It is by the very make up of our political and monetary system that all economic conditions are determined. It is only when we fully recognize that political power is only economy power that we will be able to create the revolutionary struggle against all state monetary systems and their kleptocratic allies.

Never has there been a greater need for true radicalism to emerge to challenge the fascism hidden in the folds of all governments. We must radically divide ourselves from every other supposed ‘political’ group in order to make our struggle clear. Each and every sort of progressive movement throughout the world today finds itself under the constant glare of the fascist machine to ensure it remains complacent and broken. Threatened to be violently crushed back down each time we rises up; the people callow under the glare of the machine like cattle calmed by the hushes of butchers. For the first time in history, there is a real possibility for true international proletarianism, if we choose it.

We can use the internet to as our revolutionary vehicle to organize ourselves, and digital currencies as our method to create economic independence. All that is left is to create the organizational structure that will create a new future, in solidarity will all oppressed people everywhere.

As this new form of power grows to show what it is capable of, a new power structure will form–a polis within the internet itself, which will become the citizenship of the future.

From this base of power we can start to organize against all states, and the corporate machines that control them. As our membership grows, so will our political practice, and our political consciousness. This is how we build a new future outside and beyond the horrors that currently haunt the future which we are marching into.

Beyond The Spectacle

Despite the incredible power of the internet, today we stand stunned and seduced before it; subject to it, rather than subjugating it. We are hypnotized by the taste of the social architecture; the dazzle of infinite distraction. We succumb to the inertia of the impossibility of our task; feeling no more than a hollow glimmer that a different world is possible. Today even the most ‘radical’ solutions are little more than an impotent sigh; a sign of caring imbued with defeat from the start. Not an action of true struggle, but the compromises of slaves who know freedom can never be a reality.

The Left, crushed and broken for decades, has become little more then a false idol to placate the the liberal masses. To offer some illusion of progressiveness is the sole duty of liberalism, while allowing for nothing to change. Even socialist today are little more then apologist for the capitalist system, only wishing for a more ruthless exertion of state control upon capital.

If want to create a new way forward, the only way is to break the bonds of the old system itself: Money.

By break the antiquated money system of old, while cultivation any new one they do not control; we can change everything.

The New Way Forward

Every party today wishes, beg, and cowtows for The Machine of State-Capitalism to change its horrific ways.

Where is the party to which would stand and fight against this Machine? Where is the party that would crush it where it stands and to uncompromisingly disassemble each and every last cog of the machine to make way for a better tomorrow? Where is this party that proclaims to be a true representative of the people? This party is nowhere to be found, which is why we must lead to a new way of life that is beyond parties and politics.

It is this false hope that a ‘party’ can steer the state and use that power for good which is the greatest enemy of our cause. To believe in the legitimacy of a corrupt electoral system only empowers the corrupt, and legitimizes their evils. To truly create change we must go beyond the false political consciousness we have been given, and construct a radical new one.

No Gods of Government, No Masters of Money.

We radically divide ourselves from the liberals, socialist, communist, and libertarians who refuse to work towards a better tomorrow without the state, and against the capitalist machine. They beg and plead to reform this horrible system, and would rather tolerate a corrupt, inept government; then acknowledge the puppet democracy for the false idol it is. It is only when we realize reform is impossible, that we will be free to achieve inevitable:

Revolution!

To Create a Revolutionary Future

We must create our own organization that stands against the evil anachronistic ways of the past, while radically embracing the liberative power that digital technology harnesses. We must make a global technology union for all people that will stand, serve, and protect the rights of each individual against the interlopings of all thieves; be it in the form of banks, the state, or violence itself. This is what will become the citizenship of the new society that is forming in the shell of the old.

Everything we need to change money–which changes everything–is in our hands. The only thing left to do is to build, collaborate, and create the future we must have.

“For the anarchist, freedom is not an abstract philosophical concept, but the vital concrete possibility of every human being to bring to full development all of their powers, capacities and talents with which nature has endowed them, and turn them to social account.” ― Rudolf Rocker

Introduction

Over the last several years I have worked on this body of articles in an attempt to create a cohesive Theory of Bitcoin. Here is my abstract:

The Internet is a sovereign territory that exist outside and above the control of all state governments. Due to the international nature, and economic dependence that all states have on the internet; the internet has now become a spectre that is beyond any of their control. This combine with the imperious nature of bitcoin forms a new kind of money and power that can render the state useless. This power can supplant state institutions, and allow for all people of the world to economically and politically unite in 21st century, but only if we struggle to make it so. Using the internet and bitcoin we can create an international digital sydicate that will allow for the free economic and information exchange of all people around the globe as a single political body.

—

I have divided my writings into three (I, II, III) distinct sections. Part one explores the legal history of money; part two covers the economic functions of bitcoin; and part three covers the radical political, social, and economic ramifications of bitcoin.

Part One

This rather long section is of necessity to understand what exactly money is and how it functions from a legal and historical standpoint. There is a long and complicated legal and economic history of money and we must have some understanding of it in order to see how money is a distinct and separate object from value. We must understand that legal power over a long history has literally striped the intrinsic value from money, and replaced it with a false idol of fiat money. This is a form of theft that is only possible through legal means. This has allowed for all States to steal from their citizenry with great sophistication and guile through their alliance with the bankers. It has been over the course of several generations that money has ever-so-slowly lost its power as an intrinsic vehicle for wealth, and been enshrined in the legalist framework of state-capitalism. It is through the State’s monopolization of the mode of exchange–money itself–which has allowed for the State to divorced fiat money from intrinsic value. This in turn has created the great number of economic issues we face today.

To divorce intrinsic value from money itself is an incredible feat for the state; however, it is not without its problems. The state can only monopolize money through force and ideology, not majesty or science. States will always be unsuccessful with the monopolization of money, and history can testify to that.

This is where understanding the mechanics of bitcoin becomes extremely important. Because of bitcoin’s known, fixed monetary supply, infinite divisibility, and imperious security through cryptography; bitcoin becomes something much more than just money, wealth, or value. Bitcoin creates a totally independent, stateless system of economic and information exchange that is pseudonymous over the internet. This is extraordinarily revolutionary, as it creates the basis for a new economic system built on top of cryptography outside of the mortality and corruption of law. This will usher in an epochal change that happens only a few times each millennial!

Once we understand the mechanics of bitcoin we can see that it is truly digital gold. And just like gold, it will be impossible to eradicate from the world. However, there is one feature that dramatically separates bitcoin from that of other commodity monies: its non-physical nature.

The power of the non-physical nature of bitcoin eludes to what I have taken to calling The Digital Sovereign. This is the real power of the internet to affect and change society from without, as a sovereign force. It is with bitcoin that the internet has an economic mode for itself. This economic mode is what will start to radicalize the internet on a whole. When the internet sees the true power that lies within it to change the world, how it can do it with its own money, there will be nothing to stop it.

Part Two

Section two mainly covers the economic functions of bitcoin. First we will explain the mathematical and cryptographic features that make bitcoin provably better money than any money that exist today. We will go into detailed analysis of the features of good moneys, and how bitcoin exudes and embodies all of those ideals in the most scientific manner. This will allow for us to go into a detailed analysis of current system of fiat monetary exchange as a commodity itself. This commodity is the network that is money. Through treating fiat money in this way, we can directly contrast and analysis it against bitcoin.

It is from this lens that we can drive a wedge between the value of money itself as a network, from the value of the legal force embedded within that money. This is explained in the first section in regards to bonitas intresica, and valors imporium. Once we can see all money as being only a network of exchange, than we can see how that network operates both inside and outside of the hands of governments, and their limited economic control.

When we take various economic theories such as Grehmsham’s Law, Course’s Transaction Theory, and the works of Keynes, Gesell, Hayak, and combine them with the praxis of crypto-anarchism, we are given a radical new understanding of bitcoin. It is once we understand how bitcoin functions economically, and why it is superior to other forms of money, that bitcoin shows itself to be the technological tour-de-force that it is.

Finally, taking Schumpeter’s theory of creative destruction, we can see laid out before us the radical and revolutionary technological power that bitcoin will use to change the world. This is not an opinion, but a fact of economic function. This is given to us by Hayak, who offers us a glimpse into the future with liberated money. In his magnum opus “The Denationalization of Money,” he describes how a world of competitive, non-state currencies would work, and how it can answer the economic and political crises of today.

With the application of understanding bitcoin as a commodity money, we can apply classic banking practices within bitcoin to create a new form of money through transparent fractional banking. This will be the model that will allow bitcoin to become the rails of the financial system, and for bitcoin to build its own debt-based units. This will spell the doom of the contemporary banking and monetary system.

This new form of money is the bridge to the future, and is the core nexus of the ideological development that will be the next epoch of humanity: The Digital Sovereign. It will be the answer to how humans are going to solve all of the monumental and heart-wrenching issues that plague our world today. With the historical and economic ramifications of bitcoin explained from the first two sections, we can now go into the third and most important of the three sections: The political power of bitcoin.

Part Three

Bitcoin is not about money at all… it is about our core values of human-beings and what it means to be free people. Freedom is a condition and identity that is acknowledge through condition alone, and today we are not free, but we can be. Through organizing around the use of bitcoin for ALL of our economic exchange and holding of bitcoin as a form of economic resistance, we can exert true political pressure on a corrupt system through economic means. If just 1% of the world’s population would be militant enough to use bitcoin in this way, as a revolutionary tool to help people organize against the machine, it would be but a week before the system started to seize, and less than a month before it were in cataclysmic turmoil.

This is the power of revolutionary syndicalism on a transglobal scale; we can use the internet and bitcoin to organize ourselves and achieve revolutionary ends. We can organize politically, independent of one another, while having economic solitary together against our respective governments. Using bitcoin as an economic weapon against the corrupt state-capitalist machine to which we all belong, we can realistically create dramatic change in our world. Pulling from the historic traditions of anarchism, we can ultimately organize around the theory of the general strike. This will cause for a complete collapse of the State-capitalism as we know it so we may transition to a new way forward.

This is only possible if we proactively start building towards a better tomorrow now! We must do this through the formation of a revolutionary political union, and advocate from this seemingly radical stance. Through the use of the internet as an ideological tool, we will create a new class consciousness. This class consciousness will fully contain and represent the international proletariate through the ability of all people everywhere to use, interact and organize with the internet itself; and to use bitcoin as the economic vehicle to bring about change.

—

Next Section: Sovereign Violence and Legitimacy of Law

The Revolutionary Vanguard of The Digital Age

“How is the discipline of the proletariat’s revolutionary party maintained? How is it tested? How is it reinforced? First, by the class-consciousness of the proletarian vanguard and by its devotion to the revolution, by its tenacity, self-sacrifice and heroism. Second, by its ability to link up, maintain the closest contact, and—if you wish—merge, in certain measure, with the broadest masses of the working people—primarily with the proletariat, but also with the non-proletarian masses of working people. Third, by the correctness of the political leadership exercised by this vanguard, by the correctness of its political strategy and tactics, provided the broad masses have seen, from their own experience, that they are correct.” -Vladimir Lenin, Left-Wing Communism: An Infantile Disorder (1920)

Vladimir Lenin was the leader of one of the most profound and powerful revolutions that the world has ever seen. Today he has been turned into little more than a goblin of the past by the powers that be. Comprised, defiled, and disposed by the masses due to a century of relentless propaganda against his ideas, and communism itself, most have never read anything of Lenin’s, but will still tell you his ideas were a failure. If we can take the time separate the filth from the facts, we can see that Lenin presented the revolutionary praxis through which the State can be destroyed. Over the course of the 15-years after Lenin released, “What is to be Done?” he build the largest vanguard party in history and destroyed one of the most powerful nation-states that ever existed. The tactic that allowed for Lenin to accomplish this is called vanguardism.

The Digital Vanguard and Proletarian Internationalism

To have a deeper understand of what exactly the vanguard is, we can look to international revolutionary and hero Che Guevara, who implemented Lenin’s ideas to help liberate millions across the globe:

“The vanguard group is ideologically more advanced than the mass; the masses understand the new values, but not sufficiently. While among the vanguard there has been a qualitative change that enables them to make sacrifices in their capacity as an advance guard, the masses see only part of the picture and must be subject to incentives and pressures of a certain intensity… All of this means that for total success a series of mechanisms, of revolutionary institutions, is needed.”

-Che, Man and Socialism in Cuba

What strikes me about this comment is this is the same sort of ideological position that Anonymous and other hacktivist groups have taken without exposing their statist identities. Though the ‘institutionalization’ of the revolutionary values found within digital technology, activist have been able to strip their physical bodies from the struggle, and enshrined them within digital practice. This allows for the entirety of the revolutionary vanguard to exist solely upon digital means alone. What makes this so incredible is that it allows for the fusion of anarchist and communist principals through practice alone. This practice allows for organization around the principals of strong crypto; which blinds the state, and stripped them of their ability to bring violence to revolutionaries.

The second important principal that comes from this digitization of the vanguard is the completeness in which it embraces proletarian internationalism. Through stripping our physical selves from the revolutionary praxis of the internet, we are forced to operate on only a global scale. There is no way to see our nationalities; only our mutual humanity–we can only deduce from our online interactions that the other person is human, and that is it. With the physical protection that is afford to us through this medium, it allows for us to see the full vulnerability of other humans within this system. Though we may not know the physical bodies of those we interact with, we can still see the fundamental properties that make them as flesh and blood as you and I. To see humans first and foremost as humans, and not as nationalities, sexes, races, or labor, is what forces the perspective of proletarian internationalism on to the digital vanguardism. This principal is forced upon from without, unlike communist vanguardism which vulgarizes its own principals in the name of one official power.

To Build a New Way Forward

When we can understand the internet as a revolutionary apparatus to destroy the state and usher in a new epoch based upon digital practices alone, we can see that the first two of Lenin’s principals of the vanguard have already formulated themselves. Heros like Ed Snowden and Julian Assange among many others, have seen the truly revolutionary power of the internet, and have used that power to show the world what a single human can do against the catastrophe of governments. They have set an example that shows the truly revolutionary power of the internet. This is why they have been so ruthless pursued by states, because they show how vulnerable their corrupt system is to our digital power. This power has been know for the better part of a decade, but it has only been with the advent of strong crypto that a single person can stand against the supposed omnipotence of the state; and prove that omnipotence to be little more than smoke and mirrors.

The second of Lenin’s principals (to organize with the broadest swaths of society) has been seen in the Arab Spring, and the failed Occupy uprisings. It proved that the internet can be used to communicate, and organize around revolutionary change. Since 2011 we are seeing more and more direct action being taken by hacktivist groups and individual strikes against various aspects of the state capitalism machine. Each victory in the form of data theft, a site take down against a major corporation, and the advent bitcoin all are displaying the weakness of the political-economic system. However, we also know from the aftermath of these events that the final, and most essential component of Lenin’s theory has not been enacted: Political leadership, strategy, and tactics.

The Need For A Revolutionary Vanguard

To quote Che again, “At the risk of seeming ridiculous, let me say that the true revolutionary is guided by great feelings of love. It is impossible to think of a genuine revolutionary lacking this quality. Perhaps it is one of the great dramas of the leader that he or she must combine a passionate spirit with a cold intelligence and make painful decisions without flinching. Our vanguard revolutionaries must idealize this love of the people, of the most sacred causes, and make it one and indivisible.”

We must know and understand that is through our conviction that people shall always matter more than money, that we can change the world. To know that it is we who will fight against the wicked and corrupt, that it is us that shall liberate the impoverished and smash the chains of the oppressed! We do not do this for our hatred of those who oppress us, but for the love of those that we demand to be given the freedom they are rightfully entitled to. It is only through the revolutionary zeal and infinite capacity of our love for humanity over all else, that we can create a new, and better world.

Today we have a choice: we can continue to work within the system, when all evidence points to the corruption, and impossibility of creating substantial change, or we can take it upon ourselves to start actively organizing against this system. The only way that we will be able to create revolutionary change is through embracing the third and final principal of Lenin’s revolutionary vanguard: through political leadership, strategy, and tactics to help steer the masses towards liberation. The only way that this can be done is through the open organization and promotion of revolutionary tactics against the machine. By using the power of bitcoin, and the censorship-resistant blockchain we can create an alternative economy and society that is fully outside of the hands of the state.