World peace refers to a state where all nations coexist without armed conflicts. Achieving this goal obviously requires individuals to experience tranquility, as disturbed mind often leads to violence.
Another important point to consider is that prosperity will contributes to more peace when combined with holistic education and redistribution of wealth. Economist Edward Peter Stringham found a negative correlation between homicide rates and economic freedom, which suggests that Bitcoin’s inclusive nature will enhance well-being of individuals, as it allows for more people to join financial markets and helps them to improve their level of comfort.
So let us look at how Bitcoin can bring about the change. First of all it is crucial to understand that global sound money will reduce the size and the power of governments. That will result in:
Less propaganda
Educational system in most countries is a machine of indoctrination and is aimed at raising obedient workers. Implementing a holistic approach towards education offers the promise of a new era in arts and philosophy. This transformation will cultivate individuals with heightened sensitivity and nuance, contributing to a more enlightened and empathetic society.
Elevating human awareness beyond nationalistic ideologies is essential in creating a shared vision of a unified human race. The shift towards a deeper understanding of the commonalities between individuals diminishes the inclination to engage in hostile actions against other people.
No involuntary taxation
Involuntary taxation is extortion and Bitcoin provides means to transform this into consensual contributions for specific causes, ensuring transparency and verifiable results. Keeping in mind that monetary inflation is a form of taxation, the direct correlation between human prosperity and the absence of taxation becomes evident.
Moreover, without forced taxation the funding of military–industrial complex become more challenging, reducing the strain on limited resources.
Less bureaucracy
Politicians are put in a privileged position where they can legally extract wealth from citizens by the means of taxation and coercion. Reduction in government size leads to more human resources available for economic growth and technological advancements. It is clear that together with AI, Bitcoin contributes to reduction of bureaucratic apparatus and is freeing more hands to work on, for example, corn fields, which will lead to more prosperity.
It’s worth noting that Bitcoin is a permissionless network. The prospect of financial inclusion without the bureaucratic hurdles is truly transformative and has the potential to alleviate significant hardships. Thanks to technological progress, even individuals with old feature phones can now engage with Bitcoin.
More innovation
Without overbearing regulations, innovation and entrepreneurship can thrive. Reducing barriers to entry for new players and easing burdensome requirements on existing companies is a step towards prosperity and hence more peace.
Geographical arbitrage
Bitcoin enables easy wealth relocation, allowing people to move to more favorable locations amid changing political landscapes. As the popularity of online work grows and nomadic lifestyles become more commonplace, localities will compete against each other by providing better services and less restrictions.
Free market
Unrestricted markets, coupled with a unified currency, promote the smooth exchange of goods and services, mitigating distortions in price signals and removing the need for exchange rate calculations in international business. This reduction in signal distortion aids long-term planning and encourages peaceful cooperation between nations.
The freedom for consensual exchange among individuals can lead to the legalization of prohibited substances. This, in turn, has the potential to diminish organized crime and violence, as the removal of the price premium reduces incentives for harmful activities.
Reduced coercion
When stored securely, bitcoin becomes resistant to government seizure and theft. If someone obtains bitcoin in a peer to peer manner and handles it anonymously, it’s close to impossible to even know that an individual owns any bitcoin in the first place. This dynamic shifts the balance, making traditional governmental methods of extortion obsolete. Individuals gain significant power to resist immoral actions of the government, while maintaining the ability to conduct financial transactions.
Bitcoin presents a challenge for governments and other criminal organizations seeking to employ violence against individuals, as the expected results are likely to fall short of their anticipations, hence bringing more peaceful ways of conflict resolution.
Collaborative international efforts
A future scenario may emerge where internationally supported companies are established with the specific mission of safeguarding the Earth against external threats such as meteors and solar flares. These entities could serve as global initiatives, pooling resources and expertise to address potential existential risks to our planet.
Another benefit of Bitcoin is a reduction of the power of central banks, yielding various outcomes:
No manipulation of price of credit
According to the Austrian business cycle theory, central banks by implementing artificially low interest rates and facilitating fractional reserve banking contribute to malinvestment, ultimately leading to economic recessions. Bitcoin holds the potential to mitigate or even bring an end to the traditional boom and bust cycles, offering a more stable economic foundation.
No bailouts
The reduction in central bank power implies a decreased likelihood of bailouts. This shift discourages reckless corporate behavior and prevents the artificial preservation of inefficient companies. Moreover, the practice of providing monetary handouts to corporations contributes to the Cantillon Effect. This phenomenon ensures that those receiving government handouts first gain the most benefits, as they can enjoy the advantages before the general increase in prices. Without an endless money printer, those type of actions are becoming incredibly costly, bringing back free market competition, that is essential for economic development.
No currency debasement
As mentioned before, inflation is a form of taxation and even with a seemingly modest rate of 3% annually, it results in a significant erosion of purchasing power, amounting to a 25% loss over a decade. It means that you can buy one quarter less things after just ten years. Without a constant erosion of money, individuals can avoid the need to constantly make investment decisions, as their money becomes a reliable store of value. Instead they can shift their focus towards a proper understanding of self-custody and understanding the threats associated with online crime. By comprehending these concerns, individuals can confidently preserve the value of their currency over time. Maintaining a stable store of value becomes the foundation for effective long-term planning, cultivating a sense of peace, and promoting low time preference.
As more individuals adopt better tools for saving, a cascade of positive effects unfolds. Increased free time becomes available, potentially leading to greater investment in one’s healthcare, both mental and physical. The newfound financial security allows for the pursuit of spirituality without fear of instability. This financial flexibility also offers an escape from the traditional nine-to-five rat race, enabling people to relocate to self-sufficient rural locations. This shift contributes to reduction of city density and enhances overall well-being of individuals. Moreover, as we reach a certain level of comfort, there is a noticeable inclination towards helping others and sharing resources through charity work.
Finally, bitcoin mining can enhance the resilience of the electrical grid by incorporating demand response mechanisms, as miners have the ability to swiftly curtail significant electric loads. In addition, by subsidizing the renewable sources of electricity and utilizing flare gases, bitcoin mining reduces the carbon footprint of other industries.
In essence, the “number go up” technology of Bitcoin alone may not be a direct path to a peaceful world. However, when harmonized with a proper education, a spiritual and philosophical awakenings, and the use of tools for self-custody and privacy, Bitcoin is a potent instrument that significantly contributes towards world peace.
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