Happy anniversary Bitcoin.From a 1989 article in the The Wall Street Journal, by Victor Niederhoffer, speculator:
Speculators don't only create bubbles (not sure short term speculators make bubbles happen, they might actually smooth them).
The Federal Reserve was created by a US president to separate the money supply from the government.
But they ended up being control freaks very destructive. I'll make another idea more detailed on that, in particular on the Bretton Woods system.
Satoshi in his white paper, published 11 years ago, said:
And 6 months later he said:
"The root problem with conventional currency is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust."
I do not know a single Fiat currency outside of the British Pound that stood the test of time.
And just 4 months after this, Bernanke told US politicians
"The Federal Reserve will not monetize the debt". Because it was temporary apparently.
Today the FED has pumped the stock market to a point where the rich are so rich and the poor so poor than 1/3 of US citizen get in debt just to eat (corporate buybacks did not help).
Europe is not better. Some countries even have negative interest rates and they are looking into "deep negative" rates, like -10% a year.
The IMF has a guide on Enabling Deep Negative Rates to Fight Recessions
www.imf.org
The central banks are debasing currencies. And it's actually hurting the 90%. They keep pushing this pyramid scheme up.
The problem is, a peer to peer system can't even fight those low IQ central authorities, because they are just going to ban it.
They're going to have to end up in jail. The UK drifted to the right, the US drifted right, but also left, actually very far left it's scary.
Those central morons that think they are helping (are they really that stupid? It has to be intentional) won't stop, and won't let people save cash, buy gold.
So maybe citizen voting far left or right is necessary. But do those politicians understand they have to get rid of the central banks (or reduce their powers)?
All I hear is "white man bad, rich people evil, let's stop progress" it's like none of them has a clue what the real issues are.
Bitcoin reached a point where it went into a mania attracting alot of gullible unskilled speculators excited by stories of "Bitcoin millionaires".
The tech reached its saturation point, it can't scale further, and there is very low interest in using it as a viable currency.
I hope it will remain in history as a great prototype and not just a speculative bubble that cause "innocent people" to lose their shirts.
Bitcoin ended up being a ponzi/pyramid scheme, with early adopters making a huge amount of money on the back of late adopters.
But anyway, it possibly opened the way.
Central banks have done so much harm. Over and over. Just like governments trying to prevent traders from trading or forcing prices.
Take the example of oil demand being high on the east coast because it's terribly cold, and demand is very low on the west coast.
When the government forces a price, traders have no incentive to buy cheap on the west and sell high on the east (as price is not moving even with supply and demand varying).
And so on the west coast they warm their swimming pools they don't use, while on the east there is not enough Oil for everyone and people are cold.
I could list so many examples. Over and over same story.
Perhaps we could evolve into having currencies that are not completely controlled by some central authority.
The gullible victims that are dreaming of lambos would really love to see their favorite ponzi scheme be bought by everyone (greater fools).
But I have a better solution: The free market. Let's let currencies not be controlled in such a way, or very minimally, let's let the stock market not be controlled, and let them fluctuate naturally as they should.
Ultimately it does not even matter what currency we use, it's just a number to help make things convenient, to help with trade. As long as it has the basic qualities it's all good.
Central institutions hear about Bitcoin and immediately they want to control it... Risible...
Crypto gambling moonboys don't care of course, but using a crypto will serve no purpose if it is fully controlled by a central bank.
What we really need is to get rid of ultra controlling and manipulative central authorities. Central banks power must be reduced. Governments too.
Their role should be of regulation, administration, resolving conflicts, governing the military (with limitations)...
Not manipulating and spending like degens.
Look around, there are great examples of centralized systems, decentralized ones, and mixed. But I think the best ones are a fusion of both.
Just some examples off the top of my head...
Central powers have to stop sticking their filthy paws everywhere, preventing innovation and causing poverty and generally pain & destruction.
Let people with a financial incentive to do good, participate freely in the economy.
There is no simple workaround. We have to get rid of all controlling central authorities. No alternative. Just like Ron Swanson said.
Satoshi was right. We need to get rid of central institutions.
