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Digital gold or stone money?

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Written by   246
1 week ago

Not all that glitters is gold, nor are stones equal.

A moment ago, I searched for the latest news about Bitcoin Cash in my browser. As you already know, BCH is ignored by crypto news unless they want to highlight some negative aspects.

Usually, you will only find news about BCH framed in the trends dominated by fake bitcoin (BTC - the digital gold) and the newly converted ETH for better or worse.

A few hours ago, the US Federal Reserve, responsible for the monetary policy of the world's current reserve currency, the dollar, raised the interest rate again by 75 points. In other words, it continues the trend of restricting monetary liquidity to stop inflation. 

https://www.cnbc.com/2022/09/21/fed-rate-hike-september-2022-.html

So, if the behavior is consistent, we will also see a stall for the rise of any crypto, including BCH.

Bitcoin is like a Rai Stone.

Earlier, I heard a PodCat pointing out the similarity between the circular stone money of a Micronesian island in Oceania and today's Bitcoin. Fascinating!

I thought it was obvious! Scarce stone money can't be compared to the dollar. Even though, as you know, 90% of it is also digital as bitcoin. 

Suffice it to know that fiat currencies like the dollar are inflationary and subject to issuer intervention. The general trend is that you will need more money over time to buy less.

In contrast, bitcoin, like the wheel-shaped stones called Rai from the island of Yap, is deflationary by having a fixed supply. Therefore, the locals on the island maintained the ability to exchange it.

In that sense, the islanders understood value (in the stone) as a system of credit and clearing accounts, just as we see them reflected in the ledger on the Blockchain.

Bitcoin, in theory, should trend upward in value over time: buy more with less bitcoin.

However, as you may have noticed, the decision of a centralized entity influences people and markets, driving prices up or down.

The connection between the universally accepted unit of account and alternative currency experiments like bitcoin is more than evident.

It is also evident that when the dollar appreciates, as it is now, the crypto market tends to stagnate or decline. If, the current linkage did not exist, this would not happen. 

What is the problem, then?

The distrust in people for mass adoption.

Although, I don't blame them at all!

Fake news abounds orchestrated by the status quo. But on this occasion, I won't talk about it.

Do your own research and find out how they look at us silly faces.

For example, some believe in the recent Ethereum Merge and the move toward a greener and more planet-friendly technology.

I'll be honest with you and reiterative!

I have reasonable doubts.

Right now, the Securities and Exchange Commission (SEC), after the Ethereum merger, is threatening all its operations for considering them a Security and claiming jurisdiction over it for having 45% of the nodes on US soil.

https://www.coinspeaker.com/sec-filing-jurisdiction-ethereum/

You get the game! Satoshi Nakamoto proposed to take the intermediaries out of the playing field through a peer-to-peer system where an immutable code would guarantee you the rules of the game.

You see! Every day they impose distrust in cryptographic projects on us, and they are now more susceptible to being tapped. As Ethereum or any other, that has at the head a Foundation.

Source: Image by Satheesh Sankaran on Pixabay 

Final Thoughts

The news appears to be discouraging everywhere you look. Moreover, these are designed to foster distrust and slow the mass adoption of cryptocurrencies.

It is in our best interest to tread carefully and opt for cryptocurrencies that offer freedom and privacy, where one is in control. 

If you believe in the current system, no way! Follow the narrative and submit to the regulators' innovations, such as the upcoming CDBCs. Remember the motto, have nothing and be happy. 

Now, if you are dissatisfied with what's wrong with the system. Help optimize it with the adequacy of projects that improve it and empower people for their own good.

Perhaps, the solution is to rely on real bitcoin. Just like the people who lived at the beginning of the twentieth century on a tiny island in Oceania did when they adopted stone money.

We need to embrace the next generation of money and rid ourselves of the obsolete one, once and for all.

An original article by @Jnavedan

The thumbnail is from Samuel F. Johanns on Pixabay and edited by me.

Cover image by  Oleksandr Pidvalnyi on Pixabay 

I end by thanking all my colleagues in the community, who add value every day here. As well as all my sponsors for believing in the content I share with you.  

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