Corporate Finance, DeFi, Blockchain, Web3 News
Corporate Finance, DeFi, Blockchain News

Bitcoin is the first step in separating money from state

by Ilias Louis Hatzis.

The founding fathers of the United States gave us the separation of church and state. Since, most countries around the world have followed suit. The separation of church and state is the division of religious and political power. It helps prevent abuses and protects people from religious tyranny. It was a radical idea in its time. Today, governments and central banks have absolute power over money. Under the existing arrangement, central banks have the right to create money as debt and charge interest on it, while governments can spend as much as they want, and debase money when they need to. Bitcoin is the first step in separating money from state. It is a radical idea. It is an idea we need to start thinking about, and understand that it just as important as the separation of church and state.

In the last 100 years we’ve seen some of the worst monetary disasters in history, under the control of central banks. Extreme monetary inflations during two world wars and cases of hyperinflation that wiped out the savings of millions of people.

Under the existing central banking arrangement, governments extract wealth from the economy by deficit spending, and banks extract wealth by charging interest on money, as they create it by making loans. The problem we have is that governments have control of our money and we and the next generations are being forced to pay for things that don’t work or agree with. For example, in Greece healthcare doesn’t work, roads are filled with potholes and the public education system does not deliver. Separating money and state, would make governments work harder to earn our taxes. It would push governments to become a lot smarter on how they spend it, ultimately, repositioning taxation as a voluntary, pay-for-performance function.

The problem with fiat currency is the trust that is needed so that it works. The central bank must be trusted not to debase the currency. Governments with huge deficits to finance, often resort to the printing press to pay off creditors, causing inflation. In extreme situations, that get out of complete control, hyperinflation can kick in. In countries like Venezuela we’ve seen one of the worst cases of hyperinflation in modern history, at 10 million percent.

In 2009 Nakamoto wrote: “The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts,” – Satoshi Nakamoto.

Those that followed the Occupy Movement will remember that one of the dominant ideas was to get money out of the political process. If Wall Street couldn’t buy politicians, then it might be possible they reform themselves and become better representatives for the people that voted them in to office.

But removing the money from the political process is one thing, separating government from money is a completely different thing.

Well, when you look at the infrastructure investments that are being poured into Bitcoin at the institutional level, then you’ll understand that we are preparing to make the jump. Plenty of smart money out there, believes Bitcoin is not a fad, but it’s here for the long term.

Only by separating money from state can society rid itself from the waves of inflations and recessions and destabilizing economic periods, which political messiahs use to spread fear and can get power.

Bitcoin can be a stabilizing force for the financial system, The problem is that most big government and big banks don’t see things that way. The problem is that governments and banks understand full well, that if they relinquish their control over money, their power will diminish and they become extremely weak and they would not last very long. People would quickly realize they have other options and pay for competitive goods and services, instead of supporting failing monopolies.

Bitcoin and cryptocurrencies give us freedom and independence from the political power that has a stranglehold over our money and monetary options.

Ilias Louis Hatzis
Ilias Louis Hatzis
Ilias Louis Hatzis is the Founder & CEO at Mercato Blockchain Corporation AG.
He writes the Blockchain Weekly Front Page each Monday.I have no positions or commercial relationships with the companies or people mentioned. I am not receiving compensation for this post.
Subscribe by email to join the 25,000 other Fintech leaders who read our research daily to stay ahead of the curve.
I have no positions or commercial relationships with the companies or people mentioned. I am not receiving compensation for this post.

Finyear & Chaineum

Lisez gratuitement le quotidien Finyear & sa newsletter quotidienne.
Recevez chaque matin par mail la newsletter Finyear, une sélection quotidienne des meilleures infos et expertises en finance digitale, corporate finance & crypto finance.

Read for free The daily newspaper Finyear & its daily newsletter.
Receive the Finyear's newsletter every morning by email, a daily snapshot of the best news and expertise in digital finance, corporate finance & crypto finance.


Chaineum :
Fondée en 2015, Chaineum est un cabinet de conseil en opérations de haut de bilan offrant une expertise de premier plan en matière d’ICO et STO, avec une vision stratégique orientée tant vers le métier de ses clients que sur la technologie blockchain. A ce titre, Chaineum a participé à la mise en œuvre de bonnes pratiques dans le secteur (ICO Charter, Security Token Network).
La division services blockchain de Chaineum, développe la technologie Chaineum Segment, une blockchain privée orientée objets.

About Chaineum:
Founded in 2015, Chaineum is a leading corporate finance advisory firm with a strong expertise in ICO and STO, and a strategic focus on both its clients' business and blockchain technology. As such, Chaineum paved the way in the implementation of certain best practices in this sector (ICO Charter, Security Token Network).
Chaineum's blockchain services division, is developing Chaineum Segment technology, an object-oriented private blockchain.


No Offer, Solicitation, Investment Advice, or Recommendations

This website is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by FINYEAR.
No reference to any specific security constitutes a recommendation to buy, sell or hold that security or any other security.
Nothing on this website shall be considered a solicitation or offer to buy or sell any security, future, option or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction.
Nothing contained on the website constitutes investment advice or offers any opinion with respect to the suitability of any security, and the views expressed on this website should not be taken as advice to buy, sell or hold any security. In preparing the information contained in this website, we have not taken into account the investment needs, objectives and financial circumstances of any particular investor.
This information has no regard to the specific investment objectives, financial situation and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors.
Any views expressed on this website by us were prepared based upon the information available to us at the time such views were written. Changed or additional information could cause such views to change.
All information is subject to possible correction. Information may quickly become unreliable for various reasons, including changes in market conditions or economic circumstances.

Mardi 17 Septembre 2019