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Cryptocurrency VS Power of state

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Avatar for Jigglyspy
Written by   239
11 months ago

Hello dear virtual friends, how are you today? I'm furious right now. Angry at the situation in the country, at this madness from the so-called Government, here we don't know who drinks and who pays! I wrote to you yesterday in an article that they are trying to impose taxes on us, so now they have drafted a law on the possession of digital property ... That made me think about what will happen when cryptocurrencies prevail over state currencies?

The power of a state is based, among other things, on the right to print money and manipulate it in accordance with its interests. The central bank of a state, although officially independent of the state, is in fact an integral part of it and these two entities act in full agreement. These are two systems that are mutually supportive and reflect the power of the state.

With the advent of cryptocurrencies, we have money that is not under the control of the state, but a self-regulating system. We can conclude that money over which the state has no control actually poses a threat to state money, that is, to the state itself. There is even an opinion that these are marginal threats to fiat currencies and that cryptocurrencies cannot threaten state currencies. This may be the case at the moment, but it should be borne in mind that cryptocurrencies have emerged relatively recently and that their history is much shorter than the history of national currencies. Even in a relatively short time, cryptocurrencies have managed to achieve significant success and gain their place in the financial market.

Money used to be worth it because we believed that someone would give us gold for it. After the principle of the gold base has been abandoned, there is no guarantee that someone will give us gold for money, we simply believe that someone else will appreciate the value of money and that we will be able to get some goods or services for that money. Cryptocurrencies, like gold in the post-gold standard era, have no intrinsic value and no one in particular has promised to trade anything for them. There is only the assumption that someone will give us in return the goods or service for the crypto that we own.

The fact is that the world's most popular types of money are those that states explicitly promise to respect and support. For states, such promises are an extremely important instrument of their power. For example, by accepting only dollars as a tax, the United States obliges its hundreds of millions of citizens to conduct their financial transactions in dollars. Because of this, everyone in the world knows they can sell their dollars to someone, even if it was to U.S. citizens.

Yet they all know that by accumulating dollars they gain a certain leverage over the United States. This situation allows the United States to print its own money and thus project its power around the world. The power of printing money also gives states another kind of power: it allows them to maximize their productivity. By increasing the money supply, they can draw more people who are on the margins of the economy into the production process.

But this comes at the cost of a shortage of money because newly printed money goes directly into the pockets of the less powerful, tending to reduce the power of those who own a lot of money. Therefore, artificial money supply constraints, such as the gold standard, are often associated with extremely conservative policies. Restricting the money supply harms productivity but maintains the social hierarchy.

Cryptocurrencies threaten to completely disrupt the system of state currencies. Although they are still in limited use, it is only a matter of time before state currencies give way to cryptocurrencies. We will find out what will happen to the power of the states when the changes take place, and until then we will all be happy to collect them, even if they invent a hundred different taxes on everything we try to earn.

I sincerely hope that by reading this article you have learned some new useful information. Greetings to all @Jigglyspy

The photos used in this article were taken from www.google.com

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Written by   239
11 months ago
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Comments

Great article! The beast which is the state will bring on a full attack on crypto. Money that state governance cannot control breaks the power structure. Governments has never and will never have respect for the people. This has been shown time and time again. The state has a complete disdain for the blockchain and cryptocurrency. Governments are trying to slow the growth and popularity of cryptocurrency. This is until they get their foothold in the market to control it. They "regulate" the crypto and blockchain until somehow they have full control. I hope we can keep them out of the crypto space and away from the blockchain. Government controlled by elites never want to release control over anything. The blockchain is strong but Governments are definitely going to attack it with their full might and power. All taxation is thief 100% of the time. Thanks for this great article.

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11 months ago

calm down.. anger damages beauty.

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11 months ago

hahah <3

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11 months ago

Let us see what comes 11/15. Thanks for the update! and we wo;; be see where we are

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11 months ago

We are waiting, so we will see ...

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11 months ago

I hope that there will never be a real confrontation between the crypt and the state, because it is a battle with no chance of victory, and in that case I will personally be at a loss.

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11 months ago

Many of us will be at a loss, some more, some less ...

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11 months ago

Cryptocurrencies are the future!

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11 months ago

Yes, it is just a question of how long we will be able to survive if they introduce all these laws that announce ...

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11 months ago

This is madness

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11 months ago

Crazy as much as you want :) you just have to stay normal

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11 months ago

The state is looking at all ways to steal money, great article.

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11 months ago

If the state was as it should be, we would not look for ways to make money online, but everyone would have a job and a regular monthly salary. They don't give us a job, and they want to take it from what we earn. You still think this is a state? I think we are all just not the State

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11 months ago

If the state takes 50% of our money from the Internet, for taxes, we have so much left to pay for the Internet. And so, what did we earn and put in our pocket ?!

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11 months ago

Nothing, we work for the state :) but, our time will come, I'm sure of it

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11 months ago

Cryptocurrencies have given us the ability to make money online. But our countries will do their best to drink our blood on a straw.

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11 months ago

The people who run our countries are definitely not normal, and neither are we led by them when we continue to elect and hold them in those places.

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11 months ago

This is so clever move to write this article! That is question and debate we should think about! Thank you!

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11 months ago

I'm glad you liked it. Thank you for the nice comment

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11 months ago

Your articles are so on place! And that rocks!

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11 months ago

I try to strengthen them as best as possible :)

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11 months ago

Yes, I learned something new by reading this article. By the way, in my town there is already a long time ago atm for BTC and LTC.

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11 months ago

Well, that's great news.

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11 months ago

Gdje imate najbliži bankomat za kriptovalute?

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11 months ago

I don't have the closest one, only in Belgrade there is a crypto ATM

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11 months ago

Great information about this article

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11 months ago

tnx :)

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11 months ago

Great information about this article

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11 months ago