Blockchain: the Federalist Papers of Our Time?

The Blockchain and the surrounding white papers are today’s Federalist Papers. For those who don’t recall the Federalist Papers were the articles written by the American Founding fathers that helped outline the American Constitution. The Federalist Papers historically have had a paramount effect on shaping history as we know it. The Blockchain white papers particularly the first on Bitcoin by Satoshi Nakamoto will be the doctrine of the new society.

It seems fitting that once again historic documents are penned by anonymous individuals. It focuses all the attention on the ideas rather than the person. Which is why many assume Satoshi is anonymous that and for personal safety. We must examine intentions for a second. It is the author’s assumption like many that Satoshi did this altruistically. At the time of this writing, Satoshi sits on a sum of several billion dollars, likely more. Not a penny moved since the inception. Any person, not who was not idealist would have cashed that cheque long ago.

The System Strikes Back:

Just as the Catholic Church tried to fight off Martin Luther’s Ninety-Five Theses, so to will governments try with Blockchain, and like the Catholic Church, they will fail. Governments will try to regulate blockchains, cryptocurrencies and eventually all decentralized mechanisms. They will brand users: terrorists, criminals, heretics, enemies of the state. The dying gasps of a crumbling system.

But to say that the nation-state will give up without a fight, would be a naive and enormous mistake. Like a cornered animal it will lash out with everything it has. They will try to ban it, regulate it, make it illegal, try to seize it. They will do anything to stop it. If they could they would be a secret police and enforcement squads. If I sound crazy go look at Venezuela or any other dictatorship from the past seventy years and tell me they wouldn’t. But I live in a democracy. Any government will stifle anything that challenges its power. Ask the people of Catalonia if they are free.

Trying to stop the Unstoppable Force:

In a futile effort, governments will try and stop cryptocurrencies. First, no government will be able to buy an entire supply of a cryptocurrency. Even if they managed to do so it would invalidate the currency as the lack of users using it as a currency invalidates it as a medium of exchange. Thus property seizure becomes an invalid way of threat and fund reclamation for the nation-state. Also, property seizure would result in moving to a different coin, as the supply erodes and becomes compromised. It’s also hard to seize something cryptographically locked. Oh and luck trying to ban any currency. How has that worked out with movies, music, books etc.?

So governments will try to make their own, however, a currency is only useful if it is seen as a legitimate store of value. Gold is only valuable because it is deemed as such. “Intrinsic value” dogmatics will disagree. Fine, it’s only valuable as wiring because we haven’t found something better. Limited supply adds intrinsic value, unlike fiat. Bitcoin has proven money and value can be created by anyone. Not just an arbitrary source like a government. This is a monumental feat that cannot be understated.

The Death of Support structures:

What the Blockchain does is remove third parties who verify trust from the equation. These parties essentially tell someone else if your word is good. They are no longer needed thanks to mathematics, as someone can simply prove that themselves. You don’t need accreditation if you can prove your work is good, or if you have the cash, or if you’ve never missed a payment. These anachronistic institutions will go the way of the horse and buggy.

Wall Street is also doomed when it gets into cryptocurrencies. As Wall Street moves into the space, it will validate the early adopters and delegitimize themselves. The thing they have called a fraud for years, they now invest in, how wrong they were. Any significant capital investment into the space will cause huge amounts of volatility based on speculation; The massive spikes upward will also reduce the buying potential of wall street. Less money will also flow into Wall Street, why buy through them when you can buy direct?

While ignoring the space that has massive potential not only for monetary gains but societal change as well, is sticking ones head proverbially in the sand. Thus Wall Street is at an impasse, becoming a shadow of its former self as soon as it is made public they invested in cryptocurrencies.

So will any major institution survive? With governments and banking behind the times; what remains?
Education? the crumbling laughing stock, as students flee from it like an infested building on fire. While graduates leave chained in debt so heavy, it would make your local mob boss grin.

Any major institution you know, love or hate will likely need reformation thanks to Blockchain. Even the internet will get upgraded thanks to the Blockchain. The creation of the Blockchain has far-reaching implications, larger than perhaps anyone can understand. It will usher in a new era.

The Grand Experiment:

We live in uncertain times that much is obvious. Yet like the few brave souls in 1776 who dared defy the most powerful force on earth. Blockchain has the potential to upend everything we have come to know. Yet no one can say what will become of this grand experiment. I will, however, let you in on a secret dear reader, I lied to you. Yes in the above paragraphs I lied. I did not mention one thing, one thing that may make you uncomfortable.

We have to make a choice.

I briefly mentioned it above and it is very real. I painted the picture where we chose the path of freedom. There is also another, One that not even Orwell himself could comprehend. Another future more sinister and dark, one of utter chaos.

We stand at the precipitous dear reader, a choice. One of control and intervention and one of freedom and liberty. We must decide, do we risk it all and venture forth into undiscovered lands or do we cower in our comfortable cave?

What we do dear reader, is in your hands now.

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