The Global Revolution is Here!

Since my last post Building The Revolution for Fun and Profit the price of Bitcoin has increased almost 100%, Ethereum has gone up 1200%, and Monero has increased 50%.

This is not a fluke.

A new economy is being built on top of cryptocurrencies, and a whole new asset class is being born. One which no state government or banking cartel can stop.

Our new forms of money are fair and transparent, they are available for everyone to use. They are fundamentally better than any form of fiat money and are superior to them in almost every way. Through this new kind of money, we are going to change the world.

What we are witnessing is the creation of an economic base for the coming Revolution. One in which our totalitarian corporate statist nightmare will be annihilate without a drop of blood being shed. We are on the brink of a new global society being born.

Through the destruction of state capitalism and the implementation of crypto-anarchism we can change anything.

Building The Revolution for Fun and Profit

bitcoinBitcoin 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:

  1. Buy bitcoin and maybe a little of some other crytocurrencies like Ethereum or Monero.
  2. Move those funds into cold storage, into a safe location.
  3. Make backups.
  4. Wait and forget about that money.
  5. 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.

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!

The Economic Efficiency of Digital Currencies

capital flows

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

Capital EfficiencyBitcoin 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

mobile banking penetrationMoney markets 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 transport, security, and counterfitting 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 dollar transactions today, and corresponds to the amount of dollars that are being transacted within the global economy. With the increase in the size and scale of the U.S. dollar economy, so does the degree of fraud, and counterfeiting that occurs with U.S. dollars. This amount is proportional to the total supply of hard money, and is a fundamental flaw of any kind of state-issued fiat money. It is this scalability flaw that digital currencies exploits to be magnitudes more efficient at being a mode of exchange, and more importantly, a storage of wealth than any money there is today. Digital currencies have the capacity to scale so much more securely that fiat money that they will prove themselves to be more efficient that all fiat money over the next decade.

Capital Competition

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 supply. This causes for value appreciation as demand outstrips the limited supply. The distinct advantage here is that digital currency networks will never inflate the number of units faster than that which is dictated by the block reward. This creates an unmailable supply which cannot easily be changed, unlike all fiat monies.

When placed next to one another as 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 contemporary legal system that finds its value in the force of law, not the nature of value. Digital currencies on the other had have value because the nature of markets–people desire them because of the traits of good money that they exude.

Digital currencies will never have the same internal 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. Sovereign digital capital will always out preform state fiat capital.

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


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

Marx“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

politicians and bankersMoney 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, own too much, at the expense of too many, for too long.

We are 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 power 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, and usher in a new era of freedom, and liberty for all.

Specialization and The Cryptoeconomy

BitcoinBitcoin 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

smith ricardo

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

ICOUsually 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.


EthereumI wrote a post recently about how bitcoin is the money of the internet and ethereum seeks to be the finance of the internet. 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.


MoneroMonero 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.


AugurAugur 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:


filecoinThere 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

Agamben“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.

Ethereum, Crisis, and Code as Law

The crisis that is currently facing the Etherum community with the upcoming hardfork to recover The DAO funds brings up the fascinating question of what is the role of those who write the code which acts as functional law in the land of cryptocurrencies? The Code may very well be The Law within these systems, but what happens when the rules of such a society starts to break down, and the very core of those laws seems to be threatened? Must the law be maintained no matter what, including the destruction of the society? I think not.

Salus Publica Suprema Lex

This latin phrase came to be one of the highest laws in the Roman Republic. It loosely translates to, “public safety is the highest law,” which includes the guiding principal that necessity does not acknowledge any law. What we uncovered here is the very real political praxis that operates within the Ethereum community, and the cryptocurrency community at large. The political action behind the code can always find itself in the most extreme scenarios, in which it must operation outside and beyond the principals of the code as it was written. We find that at the extremes of the breakdown of the code, there is always the meatspace where the intentions of those who make the code can reactivate it to what it was intended to be.

For the Ethereum community, the DAO hack was not just a challenge to the code that has been written, but to the very foundation of what is to be done. If the NSA or GCHQ had hacked The DAO, or compromised the Ethereum protocol itself, would we sit aside and proclaim, “The code is law, and there is nothing we can do,” or would we choose to fight back?

Direct Action has no code

There was no code, no digital currencies, and no method of digital economic action to resist the corrupt banking and economic machine in 2007. This did not stop Satoshi from his radical dream of create a new digital compact through code, in which we could create a new economic system which the state was banished from entering.

Flash forward 7 years and see what we have now. There is not just one, but hundreds of digital currencies all which pose some degree of threat to the contemporary economic system. Each and every one of these new forms of money is not just code–it is a protocol of direct digital political action.

There is no code for direct action. There is only the principals that guide us in the same way that there are principals that guide the functions of cryptography. Does it serve the function of public safety for what we need it (in this case, is the crypto secure) or has it been compromised? This is the same function that the direct action of a hardfork serves when it is to help preserve the integrity of the system as a whole. There is no code to ensure the system functions as it should–only the will of those who code it.

Crisis as Consensus Building

If the DAO hacker gets to take control of the amount of Ether that is on the line, there is a very real possibility of the whole system of Ethereum being compromised. The DAO hacker can control a significant % of Ether and use that to stake for much more Ether once Caspar has been implemented. More importantly, however, would be the display of callowness from the Ethereum core devs, and their willingness to let their vision be compromised, all because they see the code as the highest law, and not their ability to affect it.

At this point we can choose to move forward with the code as it has acted, or we can usurp the unintended action of the code in the name of the safety of the system. The Law of the code is not what is written, but what is intended by those who operate it and give it real power.

The Ethereum hardfork that will happen tomorrow is simply the reactivation of the code as it was suppose to be. I support these actions because they show the strength, courage, and tenacity that the Ethereum core devs have. They will see their vision of an open financial system birthed into the world, and it is because of their own willingness to demand that. They are allies in our quest to free the world of statist fiat money, and this is just the first of many test of what shall be done when we are face-to-face with what can either destroy us, or make us stronger.

Facing such crises together and choosing to lead us through these times of crisis is what shall allow for us to change the world! The code is not law, but what we choose to support and manifest is!

Here is my salute to the Ethereum core devs! Keep pushing forward the code that will help us change the world, and know that you are supported in your efforts!

What if Mr. Robot is real?



Hello Friend.

You don’t know me but I’ve been watching you. I know you feel like you have no voice. I know you feel trapped. I know you feel controlled. but I’ve been fighting for you. all of you. it’s time to break free from our corporate masters.

You have been a slave to their debt far too long.

Exit their economy and start using bitcoin now.

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!