Killing Satoshi’s Vision

Every blockchain believer, every visionary, every hodler is eagerly anticipating the day when digital currencies go mainstream.

The $20k heights Bitcoin reached in December 2017 pales in comparison to the day when the dollar gets serious competition, and when every person on earth carries around a hardware wallet. When they can pay for gas, electricity, groceries and anything their heart desires through a digital currency that replaces the deeply flawed fractional banking system that has held the entire world to ransom for centuries. However, while we all have a vision like this, or some kind of variation, we are looking at it the wrong way. The money comes last…

In its infancy, human society exchanged goods and services through a bartering system and, to this day, there remain proponents of this, because it’s arguably fairer and the value of the fruits of our labour are not subjected to external forces such as inflation.

And this is the direction that we need to take with Blockchain… When paper money (or fiat currencies) came into existence, there was already a large, even if undeveloped, economy in existence. For digital currencies to disrupt a fiat run world, it must first create a digital economy.

Before we even approach this economy, we need to make sure it’s done right. Fundraising efforts for blockchain powered, token-based products/services (ICOs) are bastardizing blockchain’s image, with an unregulated market turning into a cesspool of scams and sh*tcoins. Companies need to follow strict compliance procedures before launching ICOs. For example, they need to have a workable product that demonstrates their ability to deliver on the promises they’ve made.

Secondly, for a digital economy to exist, you need to give people access — and this starts with connecting them to the Internet. You simply cannot participate in the exchange of cryptocurrencies without an Internet connection.

Ammbr is one such initiative that has recognized it. The Luxembourg-based decentralized Internet Service Provider has set a goal to connect the unconnected — the estimated 4.1 billion people around the world who don’t have access to the internet, due to infrastructure, affordability and a host of other reasons. They plan to do so by combining mesh networking and blockchain technologies. People operating within the Ammbr mesh network will exchange their cryptocurrency, a native token (AMR) for Wi-Fi connections with their neighbours. Thus far their progress has been promising. Once those who are restricted through their access to the Internet are “liberated”, the sheer volume of participants in the crypto economy will skyrocket. This is because blockchain has the potential to remove the countless barriers that have plagued the development of third-world economies, which the majority of the people living on the other side of the digital divide form part of.

Finally, with the regulation of the crypto market, it will build up its reputation and remove the toxic elements. This will improve participation through digital empowerment, while offering a token-based economy with a vast array of goods and services.

Then, much like the dollar is used as a common unit of exchange in the global marketplace today, a larger, established token such as Bitcoin or Ethereum could become embedded in the digital economy. The value of the tokens used everywhere could based on Bitcoin, but there is little to no red tape or centralized authority to corrupt the system. The state of affairs right now is that Bitcoin’s value is determined by the market in which it trades (supply and demand) and is highly subject to speculation. This volatility can be eliminated when a token-based economy exists and there are products determining its value.

The sooner we realize this the better, because, if the crypto community accepts an unregulated industry that subjects it to speculation, it will be found guilty of all of the same sins that those who allowed a housing bubble, and trading on margin to destroy the global economy. This is diametrically opposed to the Bitcoin vision that Satoshi Nakamoto hoped for.

UPDATE: This is how we’re Reclaiming Satoshi’s vision.