Thank You, Brett!
Your post gave me reason to reflect about money, state and violence.
What is the element that links?
The magical power of money results from its ability to convert one into another.
At the origins of trade, You did not need a third positioning mark like money to determine and express value of something.
One has - another want - exchange.
You need to find exactly that person that has item or service in quality and amount of what You are currently need.
And this person must be willing to release from it.
Very high effort with low chance of finding match in time and space.
One possibility to increase the will of somebody to release from something is violence in form of physical force, e.g. in its variant of enforcement by weapons.
/trust and belief
Onother possibility is trust. If You trust in the situation after Exchange, especially that You are in a better Position, then You will reales in ease.
Trust is a certain variant of belief. It is not-knowing, but assuming that something will be available in a suitable quality without precise specification by the requester. Trust is an assumption in advance and therefore contains an unspecifiable amount of Uncertainty.
Trust can be lost by acting inreliable.
Additionally, dis-belief is sufficient to destroy trust.
No real action is needed, just interpretation of what someone “sees” — or beliefs to see.
There we are: promise.
A promise is a declaration to be willing to realize something in future.
But, predictions are very difficult, especially regarding future.
For building up trust it is crucial to keep promises.
We conclude from kept promises to those which fulfill in future.
You need to guarantee to keep up trust.
And this needs the ability (power) to defend.
Defense is the ability to fight attacks and keep up or re-establish guaranteed status quo.
You can do by physical violence (weapons).
You can do by frightening (nuclear weapons etc.)
Or You can do by establishing and keeping up non physical enforcements like a legal sphere with a working law system inside where You can claim protection and defense.
A state is stating (sic!) a legal environment within its borders, but also beyond it.
In Europe, we extended and opened borders several times in the last decades.
We expanded territory, but also identity down to every day life, introducing and using a shared currency.
From my experience and perspective, the US tries to expand its dominion from US courtyards i.e. into European exchange traded corporations.
But, in fact, it loses influence and power which ruled the Western world after WW II.
/power of blockchain
Blockchain is great for establishing a technology which enforces and guarantees integrity of data. Nothing more, nothing less.
Implementation will be a great achievement.
It will state facts in a post-factual world.
But, in the end it is a book of records that represents state and its change.
It is not “the thing” itself, only one representation of the idea behind.
/usability of crypto-currencies
It is difficult to get benefits in real-world application from this.
Power of Money, as we know it today, results from exchangability and short-term, instant trust.
As Brett Cenkus wrote in his introduction, he holds some Bitcoins which he currently cannot use, because his has no access to the electronical representation of them.
And, if he once recover access, he will need to find someone who exchanges it against something other. The Bitcoins he owns need to represent a value that is estimated higher than the value of the traded good, Brett wants to get in exchange.
There is still a long way to go until crypto-currencies will unveil functionality of a Dollar or Euro bill we are used to utilize these days.
Maybe, Credit Card issuers will give this technology a kick in mid-term future?
Do I belief in fiat-money?
No, not anymore.
I use the well established functionality of money on short and middle-term basis. But, I lost trust on long-term perspective.
Will I change to another representation of money where usability is even more limited than those of todays currency?
Would be interesting to know, what Warren Buffet says about crypto-currencies …
Meanwhile, I enjoy what I can get using established currencies.
Money is the most impacting hacks on life for all time. Be serious: it is a lot of times more powerful than religion…commodus.org
There is a ghost wandering around Germany past years. It started somewhere back in 2007/2008 and met on people that are…up2u.blog
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