)I know how bitcoin is going to change the world and free us from the slavery and grasping demands of greedy government and banks. Every post, page and article with Bitcoin in the title is telling me that.
It's nonstop. Like a stuck gramophone record. Paragraph after paragraph of what it will do and no mention of what it can’t. No system is perfect so there will be shortcomings. Perfection is something to strive for and is the motivator of improvement.
That there are so many crypto currency versions already is proof of that. Everyone thinks they can build a better mousetrap.
Much is made of Bitcoin not being able to lend, so cannot cause debt, which of course plagues most advanced nations today. Banks have lost their way and moved far from their simple origins. To act as middleman in collecting from savers then lending to borrowers for investment in enterprise and job creation.
We would not enjoy the level of comfort and lifestyles we have today without bank loans financing growth. The problem was, regulations governing loans became too lax, and greed fuelled by the introduction of bonus systems took off.
New products to sell to enhance the bonus pot were constantly created leading to the selling of bad mortgage bundles which led to the subprime mortgage scandal, the banking crisis, and the birth of Bitcoin.
)We’re told cryptocurrency will solve all the things the public doesn't like about the present system. The invasion of privacy. The currency manipulation. The transaction costs. I read it will liberate us from government interference and slavery! Because of the internet and blockchain our rulers will be helpless to stop it.
Legislating against the use of currency other than those approved and controlled by national governments will be side stepped by operating from more accommodating countries, courtesy of the world wide web.
I know all of that, and there's much I like about it. Who doesn't fancy the thought of liberation and freedom to do what they like. But its fantasy. Its anarchy, which I’ve seen defined as not believing in rulers or government.
So a free for all in which the strong and selfish will always take from the weak. That has been the base instincts of humans since creation. We are not all born with equal so anarchy is a licence for thugs.
Far better to have rogues that we elect robbing us, because at the end of their term they can be changed. Elected power is better than power taken by force in the vacuum of anarchy.
And what about things the people do like about the way their lives run. I’ve seen no mention of that in anything I've read. People like having schools ,teachers, police doctors and nurses and all the order of a civilised society which have evolved from anarchy.
Oh yes - we’ve done anarchy. We started in that state. Didn’t like it, chose progress instead. Those yearning for anarchy can find places on this planet where it still reigns today! Do we really want to go backwards ? The sensible thing is to carry on improving what we’ve built over thousands of years, not destroy it to start again with lawlessness - Baby and bathwater come to mind ?
Having rubbish collected and lives not blighted by gangs roaming untroubled by law enforcement. All the tools that make life tolerable and provided by government. The alternative to elected government is gang warfare and mob rule with no option of protest or mechanism to effect peaceful change.
I think the government will run their own crypto currency and most citizens being law abiding will opt for that. Yes, their privacy will not be the same as with private cryptos, but they realise if they want order and comfort it must be paid for.
I repeat. Better to have elected robbers doing the robbing because they can be changed. The alternative is warring gangs ruling through fear, intimidation and protection rackets.
The system is flawed. All systems are. But what we have is the least worst.
Government run crypto will be the best of both worlds. The benefits that a modern state provides its citizens and the convenience and competition that the crypto will bring.
The fact that it is a universal currency gives the option when travelling to a foreign country of avoiding currency transaction charges. Transactions should be cheaper where banks are not involved. Greater competition should also keep costs down and banks will have to change their attitude and compete or perish.
Banks with discipline and the right unselfish desire to serve a community have a part to play. This is evident by the fact that citizens of African countries without banks are overjoyed that they can access them thanks to the spread of smart phones.
Natives with no education and little to eat have wireless access unthinkable just a few years ago. More Africans have smart phones than have basic toilet facilities and running water.
But that is about to change. Rapid growth in trade and living standards are predicted as banks prime the pumps of native enterprise with start-up loans. It is the combination of the internet and access to bank loans that will transform the hitherto deprived into a growing market force that will benefit us all.
That is how banks started and what they are best at. They must get back to their roots and the competition of Crypto taking over much of the bank transaction business will see to that.
Despite flying the flag for elected government and reformed banks above, I’m no big fan of either. I’ve had run ins with both. But I am a realist. I couldn’t have started or grown my business without bank loans. It would have taken forever to save the money necessary. Bitcoin doesn’t do loans. Banks do. There is a role for both.