WHY BITCOIN ?
BitcoinReality vs. Central Banks.
The Monetary Evolution for Humanity.
For My Baba´s Soul, All Children, and Humanity in Total Peace.
Part 4:
Discussion:
The urging question arises why a privately owned and obsessively controlling central banking structure coordinated centrally by the BIS, that causes and effects the existence and lives of nearly 8 billion people worldwide, with incalculable and astronomical chain-reaction of monetary, financial, and economical consequences and damages, can operate as a self-appointed and untouchable-immune entity, without fearing any kind of justified civil and criminal prosecution or legal action whatsoever. [ i.e. regarding the Bank for International Settlements: Privileges and immunities according to Art. 4 and 12, “Agreement between the Swiss Federal Council and the Bank for International Settlements to determine the Bank’s legal status in Switzerland”: https://www.bis.org/about/headquart-en.pdf (retrieved on Sept. 10th, 2018).]
As once the chairman of the Midland Bank, Reginald McKenna, told its stockholders in January, 1924:: “I am afraid the ordinary citizen will not like to be told that the banks can, and do create money…And they who control the credit of the nation direct the policy of the Governments and hold in the hollow of their hands the destiny of the people”. [ Quigley, Tragedy and Hope (1966), p. 325.].
Without going into a detailed discussion, let it be said for the sake of understanding the bigger picture of financial power, that the heads of the world´s chief central banks were and have been themselves the technicians and agents of the dominant investment bankers of their own countries, who had raised them up and were perfectly capable of throwing them down: “These formed a system of international cooperation and national dominance which was more private, more powerful, and more secret than that of their agents in central banks. This dominance of investment bankers was based on their control over the flows of credit and investment funds in their own countries and throughout the world. They could dominate the financial and industrial systems of their own countries by their influence over the flow of current funds through bank loans, the discount rate, and the rediscounting of commercial banks; they could dominate governments by their control over current governmental loans and the play of the international exchanges.
Almost all of this power was exercised by the personal influence and prestige of men who had demonstrated their ability in the past to bring off successful financial coups, to keep their word, to remain cool in a crisis, and to share their winning opportunities with their associates.” [Quigley, Tragedy and Hope (1966), p. 327.].
It would be an absolute waste of time, energy, and resources — including legal actions based on international, constitutional, civil, and criminal law — attempting to fight the dominating central banking structures in collusion with the governmentally controlled unsound fiat-inflationary monetary-economical system (“Keynesianism”). Yet, humanity in totality needs to comprehend that the current dominating global central banking cartel with all its seemingly complex, distractive, and controlling tentacles lack any kind of legitimacy whatsoever.
On the contrary, the perfectly and secretly coordinated and implemented decisions and actions by a centralized, self-appointed, and illegitimate structural entity (for the sake of simplicity called the global banking cartel)
[In reference to Andreas M. Antonopoulos in one of his speeches “Escaping the Global Banking Cartel”, https://www.youtube.com/watch?v=LgI0liAee4s&t=2s (retrieved on Dec. 11th, 2018).], has caused pain, suffering, destruction, poverty, and damages beyond words. The next logical and legal question arises: how can the responsible agents and perpetrators of these global central banking structures be made accountable and liable for their committed monetary-economical holocaust? We cannot predict the future. Unless there would be a thorough globally concerted investigation and effective prosecution, the chances of punishing a handful of true owners, controllers, and decision-makers behind the scenes do not look promising. As we have witnessed and learnt from the reality of history:
ordinarily the men, who front as agents and executioners are convicted (or punished with jail or death-penalty), in order to appease the anger and the demands of the naive public.
The Logical and Ethical solution:
As Saifedean Ammous realistically concludes in his book “The Bitcoin Standard” [p. 250.]— in connection with gold and Bitcoin: “In practice, however, the possibility of a global return to sound money and liberal government is extremely unlikely as these concepts are largely alien to the vast majority of politicians and voters worldwide, who have been reared for generations to understand government control of money and morality as necessary for the functioning of any society. Further, even if such a political and monetary transformation were possible, Bitcoin´s diminishing supply growth rate is likely to continue to make it to grow further and acquire a larger monetary role.
In my assessment, a global monetary return to gold might be the most significant threat to Bitcoin, yet it is both unlikely to happen and unlikely to destroy Bitcoin completely”.
Bitcoin with its total and absolute scarcity of of 21 millions coins (to be mined in totality until 2140) and a precisely programmed difficulty adjustment — is the hardest money, beyond the gold standard.
Bitcoin, in connection with the fiat-gateway and the accelerated scaled off-(block) chain payment ecosystems (i.e.: Lightning Network, user-friendly interfaces for mass adoption), will make this exponentially growing debt-based inflationary central banking cartel obsolete in the predictable future.
[See the official data for the global debt in the amount of one quarter of a $ quadrillion https://www.iif.com/publication/global-debt-monitor/global-debt-monitor-july-2018; https://www.zerohedge.com/news/2018-07-10/global-debt-hits-record-247-trillion-iif-issues-warning (retrieved on Sept. 13th, .2018).].
How bad is the situation? Doug Nouland comments the expected global crisis with an understatement: “…The global government finance Bubble period — with its zero rates, Trillions of new ‘money’, and central bank liquidity backstops — has seen the ‘infinite multiplier’ at work on an unprecedented global scale. Liquidity created by the central banks, as well as through massive government debt expansion and leveraged speculation, has circulated freely on a global basis, inflating securities/asset prices, stoking economic expansion and promoting a self-reinforcing perception of endless Liquidity. For the most part, contemporary market Liquidity is not real. It’s primarily a market perception. It’s based on the view that financial flows into markets will remain positive and, on those rare occasions when they’re not, central banks will step in and ensure ‘money’ flows unabated into the financial markets. It’s based on confidence and faith — in contemporary central banking, in market structure, in the derivatives complex, in modern technologies and ingenuity…Importantly, I view speculative Credit as the marginal source of global Liquidity. I believe a historic Bubble in securities and derivatives-related Credit has been pierced. This Bubble was fueled by years of zero/negative rates and Trillions of central bank ‘money’. As we saw this week, bear market rallies tend to be ferocious. And when a short squeeze and unwind of hedges is in play, surging prices will spur hope that the sell-off has run its course and that Liquidity has returned to the markets.
It’s just not going to be that simple. Global markets face serious structural issues years and decades in the making. Hopefully markets can avoid crashes and make necessary adjustments over an extended period of time. For a while now, I’ve feared a scenario where illiquidity becomes a systemic global issue. From closely analyzing previous booms and bust episodes, things often prove even worse than I expect.” [Doug Nouland, in his blog: Weekly Commentary: Thoughts on Liquidity (Sept. 29th, 2018), https://creditbubblebulletin.blogspot.com/2018/12/weekly-commentary-thoughts-on-liquidity.html].
The good news is that there is no need to waste any energy on fighting the old system.
Our evolutionary human space on this planet is too precious to waste any effort in an attempt to blame (criminal) guilt and shame on a handful of greedy, control-obsessive, unscrupulous, merciless, and non-empathic old men or generational inbred families, who have held a tight control on their obviously illusionary network of centralized and infinitely money-issuing structures. The old centralized systems and structures will become obsolete by mass-adopting a totally DEcentralized, hardest, and scarcest money ever created in human history: Bitcoin.
With the exponentially growing and ever accelerating user-friendly mass adoption of Bitcoin as the truly decentralized, open, neutral, and censorship-resistant hardest money with an absolute scarcity ever created in human history, as a store of value, medium of exchange and unit of account, the old controlling central banking structures and the inflationary fiat-money-system will become peacefully obsolete.
Bitcoin´s literal code of ethics and immutability even goes beyond the wildest dreams (=100-reserve requirement; 100% gold-standard etc.) of any Austrian Economist. With its total and absolute scarcity of 21 Million Coins (to be mined in totality until the year 2140) and with its “secret sauce” of difficulty adjustment, Bitcoin will reduce the economic functions of the State (=Government) to a minimum, and, in particular, will permit and enforce the eradication of all central banks and the illegitimate, self-elected, untouchable, and secretly operating Central Bank of all central banks: The Bank for International Settlements.
The global mass adoption would eliminate the need for the the Federal Reserve, the European Central Bank, the Bank of England, the Bank of Japan, and in general any authority, central bank or official, public or governmental body with a monopoly on the issuance of money, and, as a central monetary-planning agency, on the control and management of the banking and financial system of any country.
Caitlin Long´s brilliant comments on Bitcoin vs. fractional-reserve banking shall be quoted here: “…But, when talking about bitcoin, there’s a game-changing twist to this debate about fractional-reserve banking. There is no lender-of-last-resort for bitcoin. For cash, there is a lender-of-last-resort — the Federal Reserve — and it has bailed out the financial system’s uncovered exposures many times before. But bitcoin is different. No more than 21 million bitcoins will ever be created….Nope, bitcoin rehypothecation and chain forks do not mix well, and the simple reason is that the two systems are fundamentally not compatible. One is decentralized, the other is centralized. One is natively-digital, owned directly and allocated to individuals. The other is natively-paper, owned indirectly, commingled at inception and then rehypothecated. One has a ledger that prevents multiple people from owning the same asset, the other creates multiple owners for the same asset on a systemic level.
I’ll leave you with a question to ponder: which is the bigger risk — Wall Street to bitcoin, or bitcoin to Wall Street??”.
While you read and understand Mises’ argument in the context of the state intervention in the field of money and finance, replace gold with Bitcoin´s unique features in your comprehension:
“The reason for using a commodity money is precisely to prevent political influence from affecting directly the value of the monetary unit. Gold is the standard money…primarily because an increase or decrease in the available quantity is independent of the orders issued by political authorities. The distinctive feature of the gold standard is that it makes changes in the quantity of money dependent on the profitability of gold production.”
Bitcoin is the seed and source for monetary, financial, economic, and social freedom.
The only reason my analysis of criminal accountability and liability of the total central banking structures with its destructive-inflationary debt-based fiat-fractional reserve banking is not making us uncomfortable or depressed, is because for the first time in human history now, we can use Bitcoin with all its complementary technologies.
The attributes and essence of Bitcoin reads like a beautiful poem: DEcentralized, peer-to-peer, cryptographically secured, immutable, censorship-resistant, trustless network-consensus, absolutely limited with 21 Millions coins, difficulty-adjusted, transparently trackable on the Bitcoin-Blockchain. With the exponential rate of speed in the satellite-technology of Blockstream, even the dependency on the internet will be a thing of the past in the near future.
With satellite-connected nodes, transactions with Bitcoin and micro-transactions with Satoshis (1 Bitcoin=100 Mio. Satoshis) will be independent of worst-case-scenarios of potential internet-censorship or technical problems (i.e.: lack of infrastructure, bandwidth-issues, attempts of interference). The company first launched Blockstream Satellite in August 2017, which lets bitcoin users transfer bitcoin through leased satellites. Initially, users in Africa, Europe and the Americas were able to utilize the system. At the time, CEO Adam Back said the service was aimed at individuals with limited internet access or who otherwise face issues accessing bitcoin. Dr. Adam Back, CEO of Blockstream, explained in this context: “There are third-party developers that have taken an interest to build local infrastructure using the satellite service, for example connecting it with mesh networks to make bitcoin more accessible in emerging markets.To use the service, users need a small satellite dish — TV satellite receivers work fine — that’s connected by USB to a personal computer or a piece of dedicated computer hardware…Free, open-source software, such as GNU Radio, can be used for managing the connection. Recipients can receive bitcoin data without their [internet service provider] being able to see the transactions…The system is designed to auto-recover from a 24-hour outage in user equipment, by continuous retransmission of recent data as well as live data”.
The one and only peaceful solution to all the centralized monetary-financial-economic enslavement has actually been in plain sight since the birth of Bitcoin, but now with mass-education, evolution of technology, and global mass-adoption, humanity, for the first time in human history, understand the roots and causes of the suffering done to humanity, which is beyond words to describe.
Every human being will eventually hold the private key(s) to their own Bitcoin(s) and/or Satoshis. If everyone on this planet holds a small fraction of one Bitcoin (=Satoshis), the appreciative value of this hardest money, together with the low time-preference (=delay of immediate gratification; saving, working, producing, and investing time and resources for longer time horizons), humanity can thrive and flourish towards a leap in spiritual, social, economical, scientific and technological evolution in our “process of civilization”, which is still beyond our imagination, let alone comprehension.
Our human societies and civilization will experience fundamental new paradigm-shifts within our structures of expenditures, financing, and taxation. In contrast to the current intransparent and repressive system, a pure bitcoin standard with its absolute scarcity and fully trackable currency-issuance on the Bitcoin-blockchain would oblige or rather force states and governments to fully specify their expenditures and the sources of their income, which would prevent them from resorting to the covert financing available in inflation and credit expansion. Moreover, such a system would also preclude private bankers from profiting from a large portion of this “inflationary” tax. Maurice Allais has given an abundantly clear assessment of this point:
“Given that any creation of money exerts the same effects as would a true tax imposed on all whose income is diminished by the rise in prices which inevitably follows the issuance of new money, the profit derived from it, which is actually considerable, should return to the state and thus permit it to reduce the overall amount of its taxes”.
Nevertheless, let us suggest a much more logical, ethical, and transparent option: that the government should relinquish its power to issue money and thus accept an obligation to rely on taxes in order to finance all of its expenditures, which it would be required to do with complete transparency. As a logical consequence, we, as citizens, would directly perceive the entire cost involved and due to this effect be sufficiently motivated to subject all public agencies to the necessary monitoring.
For the first time in human history, a harmonious and peaceful (co-) existence would be possible with a pure bitcoin standard. Therefore a pure bitcoin standard would promote international economic integration and inclusion within a harmonious juridical framework of mutual satisfaction, a framework which would minimize social conflicts, thus encouraging peace and voluntary trade between all nations.
The vision of a borderless and nationless “One Planet” is realistic with the “process of civilization”, but beyond the scope of this reading. Let it only be said that with new evolutionary or disclosed (already existing) technologies in the field of transportation, national borders will become eventually become an obsolete “artefact” of history.
Due to its impossibility to increase its amount or volume as in the case of bitcoin, this new “money-asset” could function as an unconditional human and birth-right to a lifelong and hereditable ownership of monetary-financial wealth, equally divided and given as an irrevocable gift for every human being on this planet. This vision is not a dream anymore: with Bitcoin, we can reach the maturity and evolution of Hoppe´s so called “process of civilization.”
The words “poverty” or “inequality” will be taught to children as part of history.
Guidelines for Your Financial and Investment decisions for Your Future
Here are some fundamental guidelines by Caitlin Long for your financial and investment decisions to consider for your future:
“…Why Existing Financialization Precedents Don’t Apply to Cryptocurrencies:
Cryptocurrencies are equity-based assets, which means they are no one’s liabilities — they are not IOUs, and they have no counterparties. Examples of other equity-based assets are land, physical commodities and personal property.
All other financial assets — with only one exception — are debt-based assets, which means the assets are simultaneously someone else’s liabilities. When you own a debt-based asset, someone owes it to you (and they might default).
The shares in your brokerage account, the deposits in your bank account, and even the dollar bills in your wallet are debt-based assets — IOUs.
In these cases, you own an IOU from someone who owes you the underlying asset. Only financial assets that are issued as paper certificates are equity-based.
If you possess the paper certificates for your stocks or bonds, you own them. If not, you own an IOU — not the actual stocks or bonds, which your broker owns and then owes to you. All forms of fiat money (dollars) and all securities held in brokerage accounts are debt-based assets.
Why does this distinction matter? It’s easy for the traditional financial system to financialize debt-based assets, but it’s not easy to financialize equity-based assets.
There are two reasons why the financial system can easily financialize debt-based assets: (1) the financial system controls whether to allow debt-based assets to be leveraged (since it holds title or a security interest in them), and (2) financial regulators permit leverage in the financial system — the piling of IOU upon IOU upon IOU on top of debt-based assets.
By contrast, financializing equity-based assets is not so simple because the financial system does not hold title to equity-based assets, and therefore does not control them. Owners of an equity-based asset must be willing to give up title to it, or pledge it, before a debt claim can be created on top of it (much less a daisy chain of debt claims created on top of it).
An example is a landowner taking out a mortgage against the land — the land cannot be leveraged unless the landowner agrees to place a mortgage against it. Once that initial mortgage happens, the financial system can then ‘go to town’ by piling multiple debt claims against the mortgage. But until the landowner first agrees to pledge the land, the financial system cannot financialize it.
Ponder this: How willing are cryptocurrency owners to pledge their cryptocurrencies (i.e., give up their private keys) to the financial system, thereby permitting creation of debt claims against them? Many cryptocurrency holders are long-term holders (‘HODLers’ in the parlance).
Will HODLers permit the financialization of cryptocurrencies?…”
[Caitlin Long, Is Financialization A Double-Edged Sword For Bitcoin And Cryptocurrencies? (July 31st, 2018), https://www.forbes.com/sites/caitlinlong/2018/07/31/is-financialization-a-double-edged-sword-for-bitcoin-and-cryptocurrencies/#47ebd1ff2a20.].
In simple words, when it comes to bitcoin: once you own bitcoin(s) or subunits of it — Satoshis -, hold on to your private keys (also called “keychain” to your hardware-wallet) and never let any third party, intermediary, or custodian possess the access to your ownership: “No private keys? No bitcoin!”. Never ever give away your private keys to your bitcoin(s) or satoshis and keep the seed, code, and passphrase to your hardware-wallet totally safe. Make sure that your inheritance-issues are taken good care of, in case you should die.
The Silence of Humanity on the Root-Cause of Human Slavery, Control, and Suffering: The Criminal Nature of the Money Printers. Is Humanity Mature for The Holy Grail of Evolution? Bitcoin.
There is no need to go deep(er) down into the rabbit-hole. Some of us have been there and done that- at least once in a lifetime every human being should do that for the purpose of understanding the reality of the truth. Simply by experiental observation, empirical perception, research, analysis-logical deductions-humans are truly able to enlighten their brains with comprehension in totality, when it comes to the sacrosanct power of the global money cartel:
the literally-politically, juridically, and factually-untouchable Central Banks, jointly and absolutely secretly bundling their obsession with greed and control within the Bank for International Settlements (BIS).
If you wish to read more about the BIS and their criminal track record,
check out my earlier articles with many references and sources of knowledge on: medium.com/@keyvandavani.
It is really astounding that the former and current students of our (compartmentalized) educational system-schools & universities-manage to teach and lecture about the economical, financial, and social symptoms of our “modern” societies and human civilization for years, but not once have we ever been taught or at least inspired with the teachings, research, facts, and logical thinking of Austrian Economists (Menger, von Mises, Hayek, Rothbard, de Soto etc.). How can we, as the strongest advocates and realists of the global Bitcoin-community, expect humanity to understand the one and only essential question “Why Bitcoin?”, let alone to speed up the mass-adoption of Bitcoin on a worldwide scale? After talking to many Bitcoin-educators in Austria and beyond, it has become obvious that the majority of people are simply not interested in buying Bitcoin, because most of them (in the “modern” developed nations) have not felt the financial and economical pain-points yet. Their primary elusive reactions-”What do I need Bitcoin for, when I can buy my coffee with cash or bank-card?”-, their parroted slogans and mantras of ignorance -”Bitcoin is not a currency”, “Blockchain, not Bitcoin”- makes total sense, once we realize that most people have never had the chance to go down into the rabbit-hole of the holy taboo: the centralized creation, inflation, and untouchable control of easy, infinite paper or digital Fiat-money. For reasons you definitely understand, I will not touch upon the question of who controls and finances the dogma and content of our books, teachers, professors, media, and other (governmental) institutions. Let it be just said that it is highly interesting, peculiar and questionable why and how the owners, controllers, agents, and decision-makers of the Bank for International Settlements (BIS) were able to finance the wars and horrendous atrocities of Hitler´s Nazi-Germany- without any kind of punishment or consequences. The systematic laundering of stolen or robbed gold by the BIS is a proven fact. Do you ever remember having been taught in school that the former BIS-General Director, Paul Hechler and other “functionaries”-member of the Nazi party NSDAP-, who were heavily involved in the businesses of BIS and the Reichsbank, were protected by the Swiss government at the end of and after WWII? There remains one logical question: why did the Nuremberg Trials not prosecute those responsible agents, perpetrators, decision-makers, industrialists, technicians, and central bankers- who were responsible for the financing of the massively caused chain reactions of destruction, deaths, torture, suffering…beyond criminality? My very educated history teacher used to tell us in history-class: “It would be too good to be true, if humanity could learn something out of history”. I would add that it depends on our open-mindedness, intelligence and maturity to question and reflect upon everything, including and especially the sources and intentions of “educational” materials on money, finance, and economics. Ask yourself: Why is humanity suffering under so much unimaginable “income-inequality”, even though we have an abundance of wealth and resources? We cannot blame ourselves to a great extent: all of us, the younger and even older generations-for nearly a century-do not know and cannot imagine a life in a society or human civilization based on hard money, for example the gold standard or notes fully backed and redeemable in gold, silver etc. With hard money, individuals and societies in general had been able to save money, make good investments with a low time preference, thrive in every aspect of their lives, and co-exist more peacefully with one another.
Poverty, massive unemployment, recessions, financial crises, boom-and-bust-cycles, malinvestments, fiscal and governmental actions of expropriations, (illegal and/or hidden) taxes, bail-outs of banks, bail-ins of depositors´ money…are all “symptoms” due to the dominating, fascist, dictatorial, and criminal nature of the money-monopoly of the legally untouchable global central banking cartel. A wise man once said: “I seek not know the answer, but to understand the question”?
In this sense, let us, for the first time in human history and evolution, ask ourselves for the sake of our existing and future children and our beloved family of humanity: “Why Bitcoin?” There is absolutely no need to waste any time, energy or resources in fighting against or struggling with the horrendous monetary-financial-corporate-military-industrial-governmental complex. As soon as the critical mass of humanity has reached the level of understanding of the essence of monetary value within the hardest money, ever created in human history, the Bitcoin-maximalists will finally stop their dizzy and misguided “technical and fundamental” analysis (even though excusable under the fiat-regime) on the basis and comparison of fiat-money-value, be it $, € or any other super-inflated fiat-currency, having caused hundreds of trillions of global “debt”. Instead of asking how much a Bitcoin or its subunit, 1 satoshi (1 Bitcoin=100 million satoshis), is worth in $, € or whatever fiat-currency, we will know what inherent (store of) value and purchasing power one satoshi has. Maybe one satoshi will feel like holding a mint of gold…Now, can you imagine the hardest money that can never ever be devalued, but only increase in real existencial and monetary value and power?! In the end, who are the slaves, to be made liable for these infinite debts ad absurdum? Yes, the total DEcentralization and mass-adoption of the absolutely immutable and hardest money with a total scarcity of 21 million Bitcoins and a programmed difficulty adjustment-all set in stone by Satoshi Nakomoto-, is the final test and challenge for humanity. The simplicity of making the rooted power of the criminal money-structures obsolete, controlling every imaginable facette of our global civilization and structures with tentacles shrouded in mystery, will become a shocking laughter for our children to learn in the museums and schools of knowledge…in the very near future.
The tower of Babel..ahm, Basel, is about to collapse like a house of cards…derooted and decentralized in total peace.
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