The Brinkmanship of Crypto

“A specter is haunting the modern world, the specter of crypto anarchy. Computer technology is on the verge of providing the ability for individuals and groups to communicate and interact with each other in a totally anonymous manner. Two persons may exchange messages, conduct business, and negotiate electronic contracts without ever knowing the true name, or legal identity, of the other. Interactions over networks will be untraceable, via extensive rerouting of encrypted packets and tamper-proof boxes which implement cryptographic protocols with nearly perfect assurance against any tampering. Reputations will be of central importance, far more important in dealings than even the credit ratings of today. These developments will alter completely the nature of government regulation, the ability to tax and control economic interactions, the ability to keep information secret, and will even alter the nature of trust and reputation.”
― Peter Ludlow, Crypto Anarchy, Cyberstates, and Pirate Utopias

States believe themselves to be above and beyond the laws and constitutions that created them. They believe they are the law itself, no different from the kings and emperors that came before them. This has driven the world under the leadership of state governments into a dangerous power struggle with their own people. This game of brinkmanship has led to the extreme development and deployment of cryptography as a means to resist tyranny, and will cause for the downfall of states in the coming years as they lose control of the means of communications, exchange, and ultimately their population.

Due to the constant transgressions of all States into a territory to which they have no claim, we have been forced to use the power of encryption to shield ourselves from their glaring eyes. We use encryption to protect the very rights to which we are entitled, but which the state would still deny us. The same aggressive, violent and illegal behavior states display outwardly towards each other, they now present towards their own people. The have pushed us into a brinkmanship that can only end in our mutually assured destruction:

The people, as bound and sworn subjects, and States, as sovereign governments that reign through the power of the Social Contract and constitutions that bind us.

This is how the old social contract is destroyed, and new smarter one is deployed.

Encryption as Resistance to Tyranny

The power struggle for states to control all communications has each state engaged in a civil war against their own citizen for control of all information. States violate civil liberties of their citizens systematically, utilizing violent police actions to respond to our political actions. We are fed propaganda that such actions are for our own safety, and that the state must see all and approve of all to protect against ‘terrorist’ that are little more than a fabrication. We are brainwashed from a young age not to disobey authority or we will be met with the truncheon and broken teeth. Direct physical resistances is impossible and merely gains us broken bones, and lengthy prison sentences. To abscond into bits is our only hope now.

These repressive bodies of armed men under the authority of the state has driven the circumstances which impels the development of cryptosystems. This dangerous game that has all states engaged in brinkmanship against their citizens, violating their right to privacy and interloping into every facet of life for ‘security reasons’. Through these actions, states have caused for the extreme development and use of cryptosystems across the global. States have proven themselves to no longer be trusted, and we must use crypto to protect ourselves from them. People around the globe can now use crypto to negate the economic and political functions of the state, and evade their unjust draconian laws.

Digital currencies are the economic empowerment of cryptosystems that fights against both corrupt bankers, and the corrupt state fiat money system. Over the next several years there will be a florishment of activity from System D, and the global south as they discover what crypto can do for them. This will be at the expense of the contemporary economic and political system, as more and more people choose to exit state economies and political systems, and join the new digital ones.

Economic Resistance Through Digital Currencies

It is inevitable that this new form of technological capital will clash against the old forms industrial capital. Through the creative deconstruction of money as a social ideal, bitcoin recreates capital as access to, and direct ownership of the social network that is money. It renders a new kind of capital that is based upon mathematics, encryption, and technology; which is superior and more efficient that the violent monetary monopolies of state fiat capital.

Crypto provides absolute protection of both ones communications, and now wealth as well. It is from this base of power that we can start to understand the true power at the root of digital currencies.

Bitcoin and cryptocurrencies are new forms of capital that any person can use from anywhere on the planet. We are creating a new world that all may enter without privilege or prejudice accorded by race, economic power, military force, or station of birth.  We are creating a world where anyone, anywhere may express his or her beliefs, no matter how singular, without fear of being coerced into silence or conformity. State legal concepts of property, expression, identity, movement, and context do not apply to us. They are all based on matter, and there is no matter here.

Through the understanding and application of cryptocurrenices and cryptosystems to the modern economic and political machine, we are forging a new future; outside and beyond the controls of states from the past.

Digital Solidarity

There is solidarity to be found in our mutual quest to have transparent, privacy-protected form of wealth. This solidarity is transnational in its nature, and can be found among people in every corner of the globe. We now have a mode of true economic resistance that will allow for us to reject the corrupt beast of government and capitalism, while forging a more egalitarian system for all. There is now an economic system which makes economic exploitation much more difficult. This will create a rising tide for all, at the expense of the contemporary capitalist class. Crypto gives people a way to organize, communicate, and exchange for themselves, without the approval of the state and outside of the banking system. This new form of international money can operate outside the bounds and beyond the limitations of any, and all states. It is truly a manifestation of a digital sovereign; an economic and political power that is beholden only to itself.

People of the world will adopt cryptocurrencies in the coming decades, not from the majesty that is offered by the mathematical security of these systems, but the from the sheer economic efficiency they present against the old monetary system. Digital currencies are too efficient and inexpensive when compared to the expensive, corrupt, inept system of finance, exchange, economics, and banking the world has today–the transaction cost of cryptocurrency systems are just too low compared to fiat ones. Digital currencies can help our society solve the fundamental issue that has always existed between money, and exploitation: the control of money itself.

Hidden from the all-seeing oppressive panopticon of the technological totalitarian state; crypto is the organizational weapon against the bureaucratic state, their police armies of death, and their alliances with corrupt capitalist who poison and permanently destroy vast swaths of the natural world. We can now fight back without needing to subjugate ourselves to the violence that will meet us if we organization in the streets. We must strike at the root of the problem, which is economic in nature, and has manifest itself though the control money by a small corrupt group of politicians and bankers. We must end this exploitation, and the only way is to create and use another system of money which they can have no power over.

Crypto Endgame

There is a total war that is happening against all people right now–a grand civil war that has all states engaged against all people. This war is pervasive, all-seeing, and complete in the most insidious ways. The web of torment and despair we have endure can only be made present by the catastrophe as Angelus Novus sees it. This is about far more than just money and economics–this is about justice, redemption, and the creation of a free future for all.

As people start to see through the illusion of money and how governments use that to control their populations; their will be a slow abandonment of government fiat currencies for cryptocurrencies. Through withdrawing our support of fiat money, the old system will collapse upon itself, and there will be a grand jubilee. States will be forced to acknowledge our economic power, and ask for our help–to which we will say no, and we will watch them burn.

The war by the state against citizens is larger than about simply having privacy, or a right to personal wealth–this is about fascism. The insidious, hidden mode in which intolerance and oppression is allowed to exist through an authoritarian state masters commanded by capitalist. These people in government care more about controlling people through violence, than to resolve the problems that propel their populations to demand justice. We can now create that on our own; without their help and beyond their control.

We are creating a civilization of the Mind in Cyberspace. May it be more humane and fair than the world your governments have made before.

Facts about Bitcoin and the world you should know

Bitcoin’s market capitalization (the total worth of coins in USD) is about 1.64 billion—that’s about the size the yearly GDP of the Belize economy.

ALL forms of currency and assets can be seized by the U.S. government–no law needs to be broken. In 1933 Executive Order 6102 made holding gold illegal, and the U.S. government seized people’s gold under the threat of prison time if they did not. Bitcoin, unlike gold, cannot be seized.

The median age of currencies in circulation today is about 39 years, and about 20% of the 755 currencies that have come into existence in the last 300 years died from hyperinflation. (lots of good info here)

The federal government adds about $40 billion dollars to the economy each month. That’s brand new money that makes your money worth just a little bit less.

Corporate profits and the stock market are at an all-time high, and wage earning are at an all-time low.

Banks operating in the U.S. get to commit fraud and not be punished.

E-commerce sales topped 1 trillion this year.

The average cost of an e-commerce transaction is about 2%

Bitcoin make the same transaction fees about 0.1% (that is a high bitcoin transaction fee)–a 2,000% savings over using traditional e-commerce methods.

Sending a wire internationally can take weeks, can get lost, will be subject to substantial fees, and you will face at least a 1% conversation fee. Also, if the amount is in excess of $50,000 you will have to jump through quite a bit of paperwork. With Bitcoin it takes about 10 minutes. You can also transfer as much money as you would like and there are no hoops to jump through.

The shadow economy is one of the largest economies in the world ($10 Trillion) and none of it is done through banking. It’s all cash and unofficial—to bitcoin and other digital currencies, this is a new market that can be empowered IF bitcoin can get to them.

M-PSEA, a mobile banking program in Kenya captures 30% of all commerce and more than 90% of Kenyans use it.   And Kipochi now directly links bitcoin and M-PESA.

Today, there are more than 25 nations that are facing more than 10% inflation annually.

All of the above needs to be taken into consideration when we consider the future of bitcoin. Bitcoin’s success will not be because of its own greatness, but because of how terrible the fiat banking system is. People don’t need a totally private, cryptographically secure currency–they need a government that does not spy on them. Because people do not have faith in the later, the former is needed.

Keep in mind as well that the guarantee of privacy is just one of the many features that makes bitcoin great. There is also the near friction-less mode of exchange that it offers, in addition to being a digital storage of wealth–features that make it truly revolutionary and completely out-dates the old model of banking.

This has huge implications global south. Why would someone in Zimbabwe trust the government currency after a bout of hyper-inflation? Or Argentina where inflation is about 10.5% per year? We have to keep in mind that global south consist of some of the poorest people in the world, in some of the most corrupt nations in the world. Though it may be several years before anyone even adopts bitcoin in these places, it can offer a powerful mode of wealth protection and storage against corrupt national governments with poor monetary policies.

As we move forward into this brave new world of free money, we have to ask ourselves, have our national governments and their monopoly money out lived their purpose?