I really like to think seriously.
We believe that the deep essence lies behind the phenomenon we see.
To find out this essence, we enjoy a series of processes to observe, hypothesize, guess, and verify.
Of course, doing this well is another.
I have known cryptography from a relatively long time ago, and I have had a lot of thoughts lately, but I did not have the courage to share this idea with Stimit.
Stimit was a relatively heavy media, such as brunch or media, and had the burden of having to complete the logic to make any claims.
As an additional factor supporting this burden, there has always been uncertainty in the investment of cryptographic money, which could lead to large losses if misjudged.
However, the process of sharing, criticizing, and verifying it is quite important, even though it is an uncertain idea, so I will try to use it as a form of writing with courage.
Cryptography investors have diverse backgrounds of life, investing for their own reasons.
There is a great financial purpose for me to retire, to build assets to protect my family, and to raise money for my business.
I also clarify that these monetary objectives are very large, but on the one hand I am interested in the social role of cryptography.
To be quite serious, I would like to discuss what cryptic currency believes will solve one of human suffering.
Pain is a huge pain in the centralized economic system.
If you live, you might have asked this question.
Normally, people eat and live through their jobs, and the amount of labor given to them is excessive.
It is difficult to raise excess labor, collect monthly wages,
In old age, living as a mortgage will eventually exhaust all the money.
If you can not stand it, or if someone in your family is sick, you are broke in the middle and fall into poverty.
This is a very shabby distribution of wealth compared to the productivity of mankind at present.
Why are ordinary good citizens who live hard to receive such poor treatment?
The most fundamental reason for this is that they issued unlimited de-based currencies.
If someone collects money through labor (workers), but someone prints the money on a printer (central bank), is not it obvious which is going to be disadvantageous?
The closer you are to the warmer printed money, the more wealth you hold, and the farther away you are, the more you disappear.
Eventually wealth flows not to labor but to people who define wealth.
After the end of World War II, in 1944, Bretton Woods, New Hampshire, gathered 44 nations from around the world and concluded an agreement on international finance.
This is an agreement to keep the dollar in the reserve currency and to fix the gold one ounce at $ 35.
The United States, which is the subject of printing dollars, has to fulfill it whenever there is a demand to replace $ 1 ounce with $ 35.
However, the United States has steadily increased the volume of the dollar as the Treasury's spending has become excessive due to the expansion of the armaments caused by the Cold War and the Vietnam War.
The dollar was depreciated due to excessive inflation, and countries around the world suspected of gold reserves in the US demand gold from the United States,
Concerned about the collapse of the world economy, President Nixon dismantled the dollar's gold tax system in 1971, collapsing the Bretton Woods regime.
No longer is the value of the dollar guaranteed by gold, and the dollar is printed frantically.
The graph below shows the monetary base issuance of the dollar. This currency is the first issued, narrow currency, which does not include credit expansion due to reserve requirements.
Looking at the graph before and after 1970, we can see that the issue volume has increased greatly.
Since the collapse of the Bretton Woods regime, the world seemed to operate in its own right by defining credit currencies.
However, at this time, the fathers who worked only for the father on the basis of the four-member family started to make a dual income, and citizens become debt when the consumption becomes weaker.
Banks in Wall Street have collected bad loans that US citizens lost to buy a house, creating derivative products of structured bonds,
It has been given a high credit rating and it has been widely sold to the world.
The resulting incident was a subprime mortgage in 2008, and the global economy was once again in recession.
Since 2008, the US seems to have determined that the US economy is no longer economically strong enough to support de-based currencies,
As the final exit strategy, QE will be implemented. The QE took the dollar out of frustration as the Federal Reserve had to increase the liquidity of the dollar, which was done through three phases of QE1, QE2 and QE3. Looking at the graph above, we can see that the dollar has been issuing franticly at shocking levels. The unrestricted issuance of dollars will also put pressure on other countries, which will also increase the issue of other credit currencies.
What would be the consequences of this crazy issuance of global credit money?
Workers, the most vulnerable economies, are usually paid at a rate, so their purchasing power is significantly weakened, and the cost of buying commodities becomes increasingly burdensome.
Also, it becomes vulnerable to various difficult situations (diseases and accidents), and the debt becomes more and more borrowed.
It is eventually dependent on the system, and it becomes very difficult to escape from the pain of suffering.
The state loses public credit for credit money.
Credit money is a pain in the user, and the length of time to escape from it is the password.
The issue volume can not be controlled by the central entity, and the community decides voluntarily and democratically on matters that are agreed upon.
In addition, since users share the benefits of currency issuance, they are worthy of the situation where the issuer monopolizes existing new currency issuances.
In particular, steam is considered as a more advanced cipher because it is shared by participants contributing to the improvement of steam value.
The interesting question here is, what are the people behind the credit currencies, and how do they think of the newly proposed cipher money? Cryptography is challenging the nation's core interest, currency issuance rights, and countries are turning to innovations, and the semiannual situation is very questionable.
We see that there is a true ruler on the earth (the people we see in the media are not true rulers, they have a term), and it is questionable what these paintings are.
Perhaps, they will have the power to decide whether to go utopia or dystopia into the future of humanity.
They may have thought that the credit given to humanity by human beings is an essential requirement for human growth.
It may have allowed voluntary and democratic money, since humanity's social consensus has reached a certain level.
I will write about these bigger pictures in the next post.
At the conclusion, I summarize this article and I have started to invest in cryptography for financial reasons, but I am also interested in the social purpose of cryptography.
Cryptography is likely to resolve the pain caused by credit money in the future.
This paradigm may be part of a picture designed perhaps by the true rulers of the earth.