If Bitcoin Succeeds It Will Kill Democracy and Plunge Us Back Into Serfdom | by Jared A. Brock | Nov, 2022
Today’s Bitcoiners are tomorrow’s banksters
One year, one Bitcoin, one year of average salary wiped out.
Bitcoin is back to November 2020 prices.
So much for being a “hedge against inflation.”
If you “invested” (read: gambled) on this append-only spreadsheet one year ago today, your money would be worth 27% of last year’s value.
And there’s still plenty more pain to come as Bitcoin makes its slow but steady descent toward zero.
But do you know what?
It doesn’t matter if Bitcoin goes to $0 or all the way to $20 million per coin.
Forget the fact that it’s still being treated as a Ponzi scheme.
Forget its so-called groundbreaking tech that’s actually 30 years old.
We need to talk about the underlying ideology behind Bitcoin. Everything has an underlying ideology. Atomic bombs have an ideology. Social media’s addiction algorithms have an ideology. Automated factories have an ideology. Autonomous drones and AI robot soldiers have an ideology.
The underlying ideology of Bitcoin is so incredibly flawed that if it does somehow magically succeed and take over the global economy, it will destroy democracy and plunge humanity back into serfdom.
Modern fiat currency is objectively horrible.
Corporations own and control the Federal Reserve, and wield this power to create trillions by buying interest-bearing securities from their bankster buddies and then depositing the funds with their bankster buddies, who then loan that money to their corporate buddies so they can use it to buy up assets like your home and the company you work for.
Modern money creation is laden with interest-bearing debt, and because compound interest grows faster than real wealth creation — and banksters will do anything but declare a debt cancellation — the Fed just keeps printing more money, which creates inflation which destroys your real wealth.
Corporate fiat money has an ideology — corporate debt serfdom for the masses.
So you can absolutely see why people are furious and want a new form of money with a new ideology.
Then along comes a coder who takes a bunch of three-decades-old technology (append-only databases) and repurposes it as a monetary ledger called Bitcoin.
If this shiny “new” definitely-not-legal-tender were to replace all fiat currencies on earth, it would have some serious benefits:
- Corrupt corporations couldn’t seize control of the money printer and create interest-bearing trillions out of thin air.
- Because the number of coins is limited to 21 million, there could be far less inflation. The Fed in particular wouldn’t be able to devalue the currency.
- Secure in the knowledge that their savings wouldn’t lose purchasing power, humanity would start making more long-term decisions instead of being so stupidly present-focused.
But everything, including Bitcoin, has costs and benefits.
Whenever a new technology comes along, we need to do a longest-term cost-benefit analysis.
And when you do one on Bitcoin, you realize that the costs far outweigh the benefits.
think about it
Let’s say someone like hyper-libertarian Robert Breedlove owns 100 Bitcoins at an average purchase price of $10,000.
Presumably, he worked a legit job to create real wealth and contributed $1 million in post-tax value to the world. Good for him.
But what happens if the price of Bitcoin suddenly soars to $20 million apiece?
Does Breedlove really “deserve” to be a billionaire twice over?
What new wealth has he created for society simply by holding onto 100 bits of code?
He contributed $1 million worth of real wealth to the world… and suddenly he has the ability to receive $2,000,000,000 in real wealth? How is that in any way fair to all the real wealth creators? It’s just corporateism by another name.
If anything, Bitcoin is deeply anti-meritocratic, allowing the real wealth of society to flow to those who can find a way to hoard and monopolize Bitcoin.
And mark my words, that’s exactly what will happen in a world where Bitcoin is the only currency. Bitcoin monopolizers will do exactly what banksters and the Federal Reserve do: They will retain full control of the Bitcoin money system, just loaning out Bitcoin at compound interest.
But only now, because there will only ever be 21 million Bitcoins and the interest on those Bitcoins is compounding faster than real-world wealth creation, Bitcoin will turn the global economy into a pressure cooker of ruthless competition that will pit brother against brother and father against son in the mad scramble to earn enough Bitcoin to repay debt and interest.
I have a dear friend who is a hardcore Bitcoin maximalist. He owns more than a dozen coins.
And even he admits he doesn’t know how it would be possible to tax people if Bitcoin took over the global economy.
For all the bad rap that taxation gets — and that’s only because governments are controlled by corrupt corporatists — taxation is actually one of the greatest things human beings have ever invented.
In exchange for a portion of our income—ideally charged on a gradient proportional to how much we’ve gained from inclusion in society—we and everyone we know get a vast array of collective benefits—national security, policing, a judiciary, daycares and schools for our kids, healthcare, eldercare for our aging parents, patent protection, property rights, human rights, infrastructure like roads and bridges and internet cables and electrical grids and sewers, and a million other things.
When democracy functions properly, all of these benefits are charged to the commons at cost, without having to enrich shareholders with corporate profits. More importantly, these benefits are available to everyone regardless of income, net worth, age, or physical condition.
When functioning properly, democracy is the most compassionate form of societal organization that has ever existed.
And Bitcoin wants to destroy that once and for all.
Tax evasion is already super easy if you have enough money, but now imagine if money itself is a cryptographically anonymous digital mist. It will be impossible to make everyone pay their democratic share, especially the rich.
The Bitboy answer? “Perfect! no more taxation!”
Under the Bitcoin regime, everyone will have to pay private corporations for literally everything.
Want to drive down your street? Stream some sats to the road owner.
Want to sleep indoors tonight? Stream some sats to the land-lord.
Want to flush your toilet? Stream some sats to the sewer maintainer.
Want to walk through that park? Stream some sats to the owner.
Need a drink of water? Stream some sats to whoever owns the spring.
Without the ability for a community to tax effectively, all assets and services will be privatized/corporatized/monopolized — and this is the true road back to serfdom.
Seriously, friends, think about it.
What happens to people who are sick or injured or handicapped or skillless? Many libertarians say such people should rely on the charity of friends and family, but the reality is that child abuse survivors and drug addicts and war survivors with PTSD often don’t have the relational networks that the rest of us do. What happens to the millions of marginalized people in a society without a social safety net?
They suffer and die.
Without taxation, there is no legislative body to pass democratic laws.
Without taxation, there is no border service to provide national boundary integrity.
Without taxation, there is no judiciary to protect rights and defend justice—aside from whoever can pay the most.
Without taxation, there simply is no government. Everyone becomes a law unto themselves. And we know how anarchy always ends: The strongest seize control.
Not the smartest, wisest, kindest, or most democratic.
The strong rule over the weak.
But maybe that’s the entire point of Bitcoin. Death to the weak.
A quick recap:
- Corporatists seized control of the money supply of democratic nations and plunged the world into corporate subservience and debt peonage.
- Techno-reactionaries swung too far the other way and created a hyper-individualist libertarian coin that will plunge the world into anarcho-corporatist subservience and debt peonage.
Whether it’s corporate fiat or Bitcoin, I have less than zero interest in private money — in fact, it is the antithesis of a truly free society.
Money is a function of community. It should exist to serve all of us, not just those who control it.
Bitcoin theology is a hyper-individualist dog-eat-dog-survival-of-the-fittest-winner-take-all-loser-suffers-and-dies belief structure that will tear apart the fabric of the collective and collaborative society that got us to where we are today.
The current monetary system is awful, but the dystopian alternative offered by anarcho-libertarians simply presents society with a false dichotomy.
I want neither.
I want democracy, and I want democratic money.
That means an end to the corporatist-controlled Federal Reserve.
It means an end to corporate campaign finance, corporate lobbying, and corporate-controlled Congress.
It means you need to stop voting for corporatist parties like the Democrats and Republicans and start voting for third parties who will purge Congress of the elector college in favor of real democracy.
Once we have democracy, a highly accountable and transparent Treasury can create our interest-free money, invest it into the real economy via not-for-profit commons companies to create jobs, then democratically tax it back from whoever benefits from it the most.
Poverty would plummet, debt would disappear, living standards would skyrocket, crime would fall, and society would flourish as inequality dissipates.
Money should reflect the will of the majority.
But Bitboys would hate that.
They want something for nothing.
Today’s Bitbosy are just tomorrow’s banksters.