Money in and of itself is neither good nor bad. Money is simply a means to an end. It is a store of value, whether it’s paper under the mattress or 0s and 1s in a bank account. Bitcoin and U.S. dollars are two different kinds of money.
In the state of California, it costs as much annually to incarcerate a person as the average salary of someone working—in California. In 2010 BP paid $40 billion dollars for the right to spill and clean oil. Wars are paid by raising taxes and printing money.
And you ask…
What makes Bitcoin better than Fiat? Bitcoin is volatile simply because it is not well understood. The people who do understand it are profiting from its volatility, trading it as both a short- and long-term investment. Because the currency is capped and controlled at 21 million, and mining continues to get more difficult, the value of a single coin increases with the growth of users in the system. While the price of a latte nears 0.01 BTC, the cost of rent and breakfast burritos in dollars goes up, and up, and up, and I’m getting a nose bleed.
This isn’t reverse psychology. You don’t have to buy Bitcoin, or toilet paper, or the latest version of the iPhone. You don’t have to buy anything in Bitcoin. You are 100% free to not participate in the Bitcoin economy. And that is exactly what makes it better. You’re free. No one will ever force you to use crypto-currencies. If you’re uncomfortable making the mental leap from paper to QR code, or from Federal Reserve notes to decentralized currencies no one will be offended.
Unlike Bitcoin users—banks, brokers, and governments are highly offended by crypto-currency. Nearly every financial system in the world operates through central banking, under the authority of the government. The people that constitute these institutions earn their livelihood from it. And Bitcoin turns these middlemen into economic waste. Unless you plan on retiring off the growth of your 0.02% interest savings account. With Bitcoin, wallets are stored on hard drives and cell phones; people don’t need banks, or their fees. Without your money in a bank, who is going to track your assets and income? If you enjoy paying taxes, and the literal freedom it buys you, you’re free to claim your earnings in Bitcoin and write a check to the IRS. But whether or not taxes are voluntary is not the question. It is whether or not you have the right to privacy over your money. In Bitcoin you do.
The US dollar was established over 200 years ago, the Yuan 50 years ago, and the Euro less than 30. Throughout history, currency has required the legitimacy and force of the state to establish it as a success. But Bitcoin exists outside of the jurisdiction of the state. Governments may make the use of crypto-currency more challenging; they’ll use fear tactics and villainize it, after pushing it into the “black market.” People may ban or condemn its use, but they can’t destroy the technology. There are no additional fees for moving Bitcoin over imaginary borders. Having a Bitcoin address doesn’t make you Israeli or Palestinian; owning a Bitcoin wallet doesn’t label you Argentinian or German. Money and politics are means to ends. If the means is voluntary we are free to choose our ends, everything else is slavery.
// The end of politics is liberty, and the end of money—prosperity.
// Bitcoin is a means to both.