Be Afraid, be Very Afraid… Why Fiat is Right to Fear Digital Currency

Borderline hysterical rhetoric and argumentative reasoning will not stop digital currency

Mainstream economists know there is a fundamental similarity between fiat and digital currency — a similarity that will prove to be fiat money’s Achilles Heel.

The Similarity between Fiat and Digital Currency

We all do strange things out of fear; we work against our best interests whilst assuming we are preserving them; we genuinely believe our deluded stance to be true and correct by default of the sheer will to survive — even if it contradicts changing social and environmental factors that will likely prove fatal. Denial in the face of inevitability is hardwired into our DNA. Dinosaurs found that out the hard way. Economists are waking up to the same.

Deep down, mainstream economists know the truth: there is a similarity between fiat and digital currency that threatens the diminishment of the utility of the former while promoting greater utility in the latter.

This similarity is easy to identify: both these forms of currency, fiat and digital, require at some level a common consensus of public agreement to be workable — the same collective delusion, if you will: bits of state-backed paper along with numbers on a computer screen and digital currency all require public acceptance that they are exchangeable for goods and services in order for them to be exchangeable for said goods and services.

If you think about it, it is a rocky premise to base money on— almost as rocky as basing it on gold reserves (a stupid system that renders an expanding economy inert by retarding growth and is deflationary as a result).

To be fair, money has (or “has had” might be the more accurate tense) its uses. Cash-money — whether fiat or based on the gold, silver or some other standard — has worked well enough for millennia, in one form or another, because there was no other option, no need to question the premise of trading with an externally imposed unit of exchange: ask yourself, how many pigs and bales of hay would it take to build an iron bridge, a factory, canal or steam engine?

Changing times are why fiat, underpinned by nothing more than collective societal delusion, is in trouble.

Think about it: if fiat loses favour with the very public it is designed to control and exploit, then this very necessary public consensus is compromised. What if as a society we all start to more readily accept an alternative, or set of alternatives, to fiat that monopolistic centralised institutions can no longer control (which many are starting to do in the form of digital currencies )? At that point, governments — who desperately need an unearned income off the backs of manipulating fiat — are in a lot of trouble, as are the banks and their sycophantic economist minions.

Why do you think the countries hitting back hardest against cryptocurrencies and ICOs are (“quasi”; i.e., when it suits their hyper centralised agendas) Communist? Why? Because they also know cryptocurrency works.

It just works a little too well for pseudo-Communist regimes and nervous mainstream economists to stomach, is all.

Pseudo-communist regimes and nervous mainstream economists know digital currency works

What Digital Currency can do that Fiat cannot

The similarity between fiat and digital as regards the collective delusion required to maintain faith in both is the similarity our R&D continues to demonstrate in the absence of any other.

Bits of paper can no more be cryptographically interlinked than pigs and hay bales. Hence, they all risk becoming extinct as legitimately utilitarian currency.

Mainstream economists dismiss this inconvenient reality as they line up to be fossilised in the metaphorical tar pits of economic history (presumably clinging to fistfuls of singed banknotes and oxidized alloy coins).

The Con-Trick of Cash-Money

When seen from the perspective of the potential of digital currencies to decentralise and democratise, it becomes obvious why governments and many legacy banks do not want the concept of digital currency widely understood vis-à-vis their clunky, aging fiat financial modes and models. An article on this subject from the Mises Institute effectively dissects exactly why paper money is a con trick and fiat is merely a tool of the state, orchestrated to the benefit of state actors and the banks; a tool that inevitably forces governments to borrow from banks due to them having taxed their populations into an effective state of negative growth, until their people can pay no more.

Why would we expect anyone caught up in the centuries-old fiat farce to embrace any tool or technology with the promise to liberate individuals, communities and societies from their manipulative interference; a tool that those in power can neither control nor benefit from through their ongoing policy of centralised manipulation, exploitation, and state-mandated control?

Sorry to disappoint them. The metaphorical wool they are attempting to pull over our eyes as regards digital currency is not going to wash. People are waking up from a sluggish, centuries-long slumber to the promise of a digital alternative to fiat money and embracing the autonomy, immutability and socioeconomic freedom this new digital economy is set to deliver.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store