When the US dollar collapses, the majority will support the elite's new currency, not cryptocurrencies
When the US dollar collapses, the majority will support the elite's new currency, not cryptocurrencies When the US dollar collapses, the majority will support the elite's new currency, not cryptocurrencies

What do people really love bitcoin for? Is the bankers’ sole purpose to convince us that they know what they are doing?

Table of Contents

Introduction

With the advent of decentralized financial ecosystems, people have been given the opportunity to believe that things will be different from now on. The problem is that this may not necessarily turn out to be true. I encourage you to read a translation of an arch-interesting article from Concod’s account on Medium, from which you will learn what the near future of ecosystems based on decentralization might look like…

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In the 1980s, John Barlow believed he could change the world for the better. He created Cyberspace, an online digital utopia that aimed to free global citizens from elite power and control. Delegitimizing any authority of the real world in his manifesto, A Declaration of the Independence of Cyber Space, he declared the Internet a zone free from elite influence: “The governments of the industrial world. Cyberspace is not within your borders. We are creating a world where anyone, anywhere can express their beliefs without fear of being silenced. I declare that this is a social space independent of the tyranny you impose on us.”

However, at the same time, two hackers, Phyber Optic and Acid Phreak, knew that what Barlow was saying was nowhere near reality. As the cyberspace movement grew, governments, megabanks and other institutions were collecting massive amounts of data on citizens without their prior knowledge or consent. To prove the above, the duo hacked into major financial networks, stole Barlow’s credit information and published it online for the rest of the cyberspace movement to see. This revealed that elites have already crushed Barlow’s vision of an online utopia, an isolated digital world free of autocracy.

Right now, in the 21st century, we are about to witness a repeat of history, only in a new guise. Instead of cyberspace, decentralization has become the latest weapon to combat crony capitalism, corporatism and elitism in modern society. The DeFi (decentralized finance) industry, has exploded by 3,400% in the last year and its total market capitalization is now $35 billion (expected to reach $1 trillion by 2022). Uniswap, a decentralized cryptocurrency exchange, just surpassed over $100 billion in cumulative trading volume. With this level of interest, decentralization will challenge the existing The Monetary System in the Battle for Dominance.

But as with Cyberspace, the DeFi movement has underestimated the ability of elites to maintain power and control over monetary policy. They are preparing against the threat of decentralization by using their own systems against it. Ever since the world’s global central bank, the IMF, declared war on non-state cryptocurrencies in 2018 in its report Monetary Policy In the Digital Age, most global superpowers have begun developing, piloting, and even launching CBDCs, central bank digital currencies, using blockchain technology. This has sparked the biggest battle for monetary supremacy since the battle that pound Britain fought against the US dollar over a century ago.

State-backed cryptocurrency systems will be very different from DeFi-based systems. They are centralized and will enhance the existing system by adding new Orwell-style functionality. State systems will monitor everything in real time: our transactions, taxes, behavior, and more. Any manifestation of our non-conformist attitude will be verifiable and traceable. If you think we don’t have privacy today, the next few decades pale in comparison to the time when states will implement these systems.

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We will have to make a choice: remain centralist and support the new state system or join the “decentralist” rebellion. Although the latter offers more freedom and an escape route from financial repression, it is not as easy as everyone abandoning the traditional system. Nevertheless, this is the consensus that crypto proponents have been preaching for years. They assume that centrists will abandon the legacy system and that the owners will simply lay down their arms without a fight. They believe that the masses know about alternative finance, decentralization, blockchain, and that they will sacrifice all the advantages of the old system in the blink of an eye to join the cryptocurrency revolt. This is obviously not true.

Twitter’s financial bubble, FinTwit, has also become an echo chamber where all sorts of cryptocurrency proponents, gold proposers and economists argue amongst themselves about what is the highest form of money. Over time, this has created the illusion that the average Joe cares about and engages with economics, finance and crypto. People who advocate cryptocurrencies need to convert to push cryptocurrencies into the mainstream simply don’t know or care about monetary issues such as why interest rates are at their lowest, where money really comes from, and where it’s going. They think economics is patently boring, ugly and uncool – they are right. It sits at the bottom of a long pile of abandoned topics that no one will ever return to. For long-term, cryptocurrency bulls, it’s a big taboo. Even if They “understand”, they just don’t care. That’s enough.

Rare events leak into the mainstream via the media. The biggest stock market drop in history. The fake Gamestop revolution and the drama that followed. […]. When Bitcoin hits the headlines, for the “centrist” it is the same as local news reporting on an irrelevant issue […]. But for an advocate of “decentralization,” the mainstream of Bitcoin, such coverage will be taken as a signal that the cryptocurrency is about to go mainstream. It’s no coincidence that Bitcoin’s fame only grows when the price goes up – as confirmed by Google Trends data. This shows that Bitcoin only gains popularity when it can make people rich, not because the majority wants to abandon the traditional system and join a movement based on decentralization.

The truth is that society as a whole hates “sound money”. We’ll gobble up the $2,000 stimulus package, fawning over the words of economist Peter Schiff, who tells us “no, that’s wrong.” We don’t want to devour a 400-page book called Basic Economics. Instead, we want to eat hamburgers from McDonald’s and drink coffee from Starbucks, not learn about supply-demand curves and budget deficits.

Last cycle we became more of a meritocracy, so by default we outsourced our economic and financial education to “experts.” We have abdicated financial responsibility. We have become less informed and more subservient to authority that may have a huge conflict of interest with our long-term goals. We don’t challenge them, others, or ourselves. Personal finance is now the responsibility of Wall Street pension funds and the US government. We have adopted MMT (modern monetary theory), a new school of thought with an ideology polar opposite to cryptocurrencies.

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To say that the average gentleman has given up on sound finance and economics is a bit unfair. Not because it’s both a bit rude and inaccurate, but because the very people responsible for managing the economy have no idea what’s going on either. The financial media portrays central bankers and Treasury officials as monetary gods, but in reality they have become just as ignorant. They have lost touch with what is going on deep in the wide international waters of finance, the shadowy layer of banking managed by global banking cartels.

We know this because, despite clear signs of tensions emerging in both the real economy and the monetary system, financial planners do not see the specter of imminent, major crises. “At this point, it appears that the impact of problems in the subprime market on the broader economy and financial markets will be limited,” former Fed Chairman Ben Bernanke said before the events of 2008. “I don’t see a financial crisis in our lifetime,” Janet Yellen said in 2017. And in September 2019, Federal Reserve officials knew the market would be at risk, but Fed Chairman Jerome Powell allowed the system to explode anyway, with repo market rates exceeding 10%.

Since central bankers can no longer define money, they now have one job: to convince you that they still know what they’re doing, so you don’t panic, and the financial aristocracy clings to the old system that is their eternal foundation of growing wealth and rising asset prices. The only weapon they have left is a combination of insincere optimism and linguistic alchemy. As the character played by Ryan Gosling in the movie The Big Short puts it: “Wall Street loves to use misleading terms to make you think that only they can do what they do. Or better yet, to just leave them alone.” This is also true of central bankers. It hides their many failures and shows that they achieve stability by complicating certain issues. Those who have tried to expose their foolishness to the masses have been condemned to media obscurity. Take Jeff Snider, for example, an expert on the deep, dark areas of finance. He simply tells us that most of what central bankers say does not reflect reality. But the mainstream press is not interested in publishing his work.

The longer they perpetuate this fraud, the more people become aware, increasing the chance of a coordinated revolt. The problem is that it has never, literally never happened before. In 1860, automotive pioneer Henry Ford said: “It is good enough that the people of our country do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” […] history shows us that financial revolution remains a pipe dream.

For a society to even come close to initiating a “crypto-revolution,” a crisis of significant magnitude must occur, and the most anticipated – though unforeseen – monetary catastrophe is the collapse of the U.S. dollar. When the “day of reckoning” for the greenback arrives, will the majority turn to cryptocurrencies, or will they trust the older system that has caused so much pain in our finances for decades, that has enriched the lives of a few and left the rest to suffer?

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Based on history, it is likely that we will see the majority in favor of the old system. Because the elites have power over public perception, they will call devolution a threat to national security, a crisis, allowing them to pass legislation to protect the authenticity of the system. Decentralization threatens to remove power from politics by promoting real equality, which is extremely dangerous for the power-hungry individuals we allow to run the country.

By implementing new features of the Orwellian order into the existing system, they will try to ban the integration of all cryptocurrencies and blockchains into it. They will force big tech companies to ban access to certain DeFi systems. They will create functionality that hides the crime of rampant inflation. They won’t care that Bitcoin has a maximum supply of 21 million digital coins. Their new currency will have an unlimitedThe DeFi movement will not be destroyed by governments, but when it comes to destroying the DeFi movement, governments will not be able to do it.

However, when it comes to destroying the DeFi movement, governments won’t be up to it. John Barlow’s 1980s dream of cyberspace has been crushed, but modern, decentralized systems are now truly unstoppable. Ultimately this will lead to a fragmented society, not through civil war, but through gradual civic separation. It will divide our loyalties to the existing system, creating a new kind of identity politics. We already have rich versus poor, Republican versus Democrat, and left versus right. Next we will have a centralist versus decentralist narrative. Centralists will support the traditional order – central banks, MMT, free handouts, and unlimited money printing – while decentralists will retreat to “decentralized” areas like private cities that operate on decentralized protocols.

When DeFi reaches its peak of interest, America will experience another economic crisis. Hard times will call for desperate measures. When the majority must choose a side, there is no contest. Although the decentralization movement will offer people an escape from a financially repressive system, the majority will trade their financial freedom for temporary financial security by choosing a centralized clone of the decentralized system. The elites will convince the masses to turn a blind eye to financial tyranny and embrace financial slavery, while the decentralists will withdraw from the system, waiting for the next round of economic madness, the next economic boom and crash, to see if the centralists still want to live in the old system based on the new Orwellian monetary order.

The above article is a translation of a study by Medium platform user @Concoda zat. When the U.S. Dollar Collapses, the Majority Will Back the Elite’s New Currency, Not Crypto. Link to the original version of the study: here

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