Bitcoin as foundation

Creating bases for a new civilization

Any architect or engineer knows that the most important thing when starting a new building is to consolidate its foundations well, which means building solid and durable bases. If these bases are not stable and strong, the structure built on top of them won’t be like that either.

Unfortunately, we can not say today’s world economy is built on solid foundations, but rather the contrary.

We have built substantial economic structures for over a hundred years on a swamp of uncertainties and using flexible measurement tools for their execution! Imagine creating a building using a measuring tape that stretches and contracts like a rubber band. Worse still, in recent times, this measurement tape has stretched way more than we expected! Nothing built using it will keep its proportions, and our building will get bigger and bigger with each floor. A wall that should be 2 meters long is now 2.2 meters long and 2.4 meters on the following foundation, and so on, as our measuring tape keeps stretching on and on. Eventually, we will reach a point where our building will collapse under its weight.

This is what is happening with the global economy today. We are trying to organize and structure the world economy as a whole, using absolutely various, flexible, and, generally speaking, constantly expanding standards of monetary measurement. In these conditions, our collective construction as humanity does not have a good destiny, and we see this problem yearly reflected in many economic and financial crises that explode worldwide.

If we follow this path, we run the enormous risk that the modern societies we have been building as humanity will collapse in front of our eyes.

How do we get out of this quagmire?

As said at the beginning of this article, the essential point is to create a solid foundation to be able to build on top of it firmly and safely, and with the sure knowledge that these bases are prepared to withstand the due load and, above all, resist the passage of time.

We need a stable and durable monetary measurement system

The fiat monetary system that dominates today does not offer us this. Nowadays, practically all world trade is carried out using a currency issued and controlled by a single group of power as an exchange resource (measurement standard), which they do not stop expanding and contracting at its discretion and need, causing an enormous distortion in all operations and all markets. The losses caused in the value and supply chains are so significant that they cannot even be roughly measured. Still, those losses are not publicly disclosed, not to expose the terrible deficiencies of the current system.

Global humanity trade urgently needs a homogeneous, transparent, predictable, solid, robust, and above all, politically agnostic trading vehicle.

Logically, different political societies do not trust a monetary system dominated, governed, and controlled by another power group with conflicting and generally antagonistic interests. In this situation, each sector will fight to impose its means of exchange to enjoy the enormous advantages of having the seigniorage over the world’s exchange currency. As long as this dynamic continues, there will be no hope of fair and equitable trade agreements for all the power spaces that need fluid trade to boost their economies.

Bitcoin offers those fundamentals

Given the purely digital nature of Bitcoin monetary units, these can be channeled via the Internet to any corner of the planet, they can also be sent through other electronic means of communication, such as radio waves; or physically by printing certain keys on a durable material; and even orally, dictating 12 or 24 words to the receiver! This characteristic gives Bitcoin the ability to be received in practically any corner of the planet at any time, giving it the property of monetary homogeneity throughout borders required to facilitate remote exchanges between different geographically dispersed economic actors, practically erasing the political frontiers, avoiding the enormous friction caused by the international currency exchange system of today.

Being an open and public protocol (open source software), every detail of Bitcoin operation can be verified at any time, by anyone, and from anywhere. This is why we say that Bitcoin is absolutely transparent in every detail of how it works.

Bitcoin’s monetary policy has been written since its conception, and it is perfectly known how it will evolve more than a century into the future. This provides a level of predictability never seen before in monetary matters; this is another essential characteristic needed for healthy trade development on a global scale.

No data can be written to the Bitcoin database without having done the necessary work to claim that right. This work, carried out by the miners, requires a significant investment in equipment, infrastructure, and especially important use of electrical energy, in a process known as “Proof of Work” (PoW). None of the above can be falsified: The equipment must be designed, tested, and built. The infrastructure to house and refrigerate it must be physically assembled with rigorous quality standards, and the electrical energy necessary for its operation must be generated or purchased from third parties for this purpose. Therefore, even though Bitcoin is a digital monetary system, it has a solid physical root that connects it inevitably with what we all know as “the real world”.

All of this gives Bitcoin those mentioned above solid and robust characteristics. No particular individual or group controls Bitcoin or has the power to expand or reduce its monetary issuance. This was programmed from its inception and cannot be modified by any market actor, no matter how much political or military power it holds. The system is so transparent anyone can audit it without requiring special permission or proof of belonging to any powerful group. Which makes Bitcoin an outstanding politically agnostic monetary system for international trade.

Bitcoin allows us to build the foundations to find a new and vibrant universal civilization based on truth and mutual respect.

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