Is Crypto Just Fiat Number 2 In Disguise

in LeoFinance2 years ago

Hey Jessavers

As someone who feels they were screwed by the fiat system and having more of my purchasing power robbed from me than those who held assets, those in government, those close to the money printer and those whose countries benefit from the way the debt-based economy works, you can tell where my biases lie.

For years I felt something was not right, I searched for answers, and this eventually leads me down a rabbit hole of history, consumer behaviour, game theory, incentive structures and, of course, economics.

One of the resources that really opened my eyes was this website which centres around the effects of moving off the gold standard. The gold standard was by no means perfect, but it did put the breaks on governments ability to manipulate the money multiplier, something they have unrestricted access to today and even have people calling for more, in the form of MMT.


Having found Bitcoin, I made my way down the rabbit hole to other coins and eventually found my way back into Bitcoin. Since then, I've been called a lot of things.

Bitcoin maxi

This leads me to believe that I am asking the right questions when it stirs up such an unsettling response. I am voicing my opinion on the information I am given and calling things as I see them. Is that so wrong?

Having come from a system where the wool was always pulled over our eyes, I see no reason why I shouldn't be overly critical of any so-called solutions.

Bitcoin trying to establish a monetary peg

When fiat left the gold standard, it was a boom time, and we only saw the after-effects and cracks in the later years. As is the case when you remove yourself from a hard money standard, we saw this with Weimar Germany, The Spanish Empire, The Roman Empire, The British Empire; I don't know how many more times this has to be repeated, but okay.

Bitcoins goal is to try and bring back the monetary peg, to have a way to measure shitfuckery in the system and expose it early on so people can make decisions on where they want to store their wealth and who they trust.

Bitcoin is trying to re-establish the risk-free rate that gold offered back when the monetary system was formed.

I was hopeful; I like the idea, it resonates with me. Then I look a the wider crypto space, and coins are made every day with a new promise. Now that's fine if these coins were a representation of equity that I get; you own a piece of the protocol or business like you would as a stock holder.

I'd get it if these coins were bonds that financed a project to be repaid as the project grows, but most of these tokens are trying to be some money replacement. Even if they don't explicitly state it, that's what people are doing with it and how the founders are profiting from this behaviour.

Crypto is basically private fiat

Many of these coins don't take many resources to make and can be spun up and allocated at will. Sound familiar? The fiat money system is itself a Ponzi scheme, so surely anything with similar attributes or tries to mirror itself on fiat is by definition a Ponzi.

Proof of stake is basically the same inflation attribution system as we have in fiat so how is this different other than who the people are who profit from it?

I get it's hard to see past the promise of more dollars for nothing and we all want something for nothing. I get others have been profiting from this system for years. However, if we perpetuate the same systems in crypto then we are no better than the so-called financial system we wanted to escape.

You don't have to convince me, you don't have to listen to me. All I ask is, that you ask yourself these questions and see if this all sits right with you.

Have your say

What do you good people of HIVE think?

So have at it, my Jessies! If you don't have something to comment, "I am a Jessie."

Let's connect

If you liked this post, sprinkle it with an upvote or esteem, and if you don't already, consider following me @chekohler and subscribe to my fanbase

Safely Store Your CryptoDeposit $100 & Earn $10Earn Interest On Crypto


Posted Using LeoFinance Beta


A lot of these coins are spun as disguised as try crypto currency. They just use the name count but behind the scenes a lot of them are controlled by someone which means they can manipulate the system any time.
Is not that true?

I can't see a coin other than Bitcoin that's not following that route, changing shit all the time how things are issued, who gets tokens, why? It's labelled innovation and sure do with your project as you like but I'm not going to take part in it

I love the collective aspect of crypto; that I may create freelly, then be rewarded for my free creative or co-creative flow, by the collective all contributing small donations... This is a core reason that I love being on Hive. Just honest labour rewarded rightly. Crypto can correct distortions of false 'value', and it can remove the shackles of slavery, structured and used well.

At the same time, I do respect that we - humanity - have a great deal of introspection and ethical ruminating to do, before we can consciously create a better reality, and appropriately flexible systems which profound comfort and nutriment for all.

It's good to be part of the collective who are at least questioning our conventions and norms, and offering or experimenting with solutions - I hope that we continue to evolve, consciously and empathically, in the right direction.

Blessings on your Solstice, everyone!

I am glad to see such a pragmatic response as when money is involved and incentives set up in a certain way we as humans can use all sorts of emotions and mental trickery to justify just about anything

I have nothing against crypto and experimentation have at it but what I don't agree with is this pitching a product without understanding it yet

I am all for questioning the norms and seeing if an idea holds up to strain and critical thinking and ofcourse different uses

I think we have stagnated and bitcoin has birthed a new chance for us to innovate again! I believe in honest money and proof of work and that's why I was drawn to bitcoin

I am not saying I know everything lol you can see from my blog it's me putting out all sorts of ifeas and seeing how people react

I hear you, @chekohler - yes, it's not straightforward for everyone participating in a new platform/ modality to fully comprehend all aspects of it - but it should be important for a core percentage of users to have a solid foundation of 'understanding', which they should be able to filter down to a wider percentage, if they choose to... The modern mind being what it is, the larger portion of human beings have very little interest in delving deep, and will demand convenience first.

I try to be balanced, and at the same time, am unable to comprehend fully how Bitcoin etc work, whilst also subsisting - foraging, chopping wood and painting, etc :-) I have limited 'hard-drive' space for technical language and jargon.

If I know that the foundations and the general approach of the folks involved in a platform are positive - open-minded, open-spirited, fair, solid values, ecologically-minded, decentralised, etc - then I'll gravitate towards that... then if it becomes clear later on that the direction is changing (as with Steemit) then I'll re-navigate to a more appropriate solution.

It feels to me, at this point in human evolution, that it might be unrealistic to expect (or convince) everyone (or large numbers) to be aware of the intricacies or even the structures that they're participating in - look at how folks have lapped up the brainwashing around conventional medicine and jibjabs, without wanting to investigate the real ingredients, dire short and long-term effects, etc - if folks can't get their heads around how their own immune systems work and prefer to have an external authority impose absurd restrictions on their health, you can be sure that they aren't too bothered about their money structures. This is definitely changing, but not sooooo fast! However, your work in opening the conversation is positive and helpful indeed - thank you again!

:-D Blessings!

Absolutely, change is always driven by a stubborn minority that is not willing to compromise, and the rest sort of follow the incentives once they click. change is always done on the fringes of society and I am glad to be able to witness it first hand and take it all in or rather be awake to see it all.

I have a tech and economics background and I fell for the jargon, narratives and complexity theatre that comes with new technology or rather those trying to replicate an elegant solution like bitcoin.

I see a lot of this tech still drawing from fiat money ideology, that we can use clever accounting tricks and cut corners to get a free lunch. The world doesn't work like that, you either spend or conserve energy, trying to avoid that only causes pain but they'll find that out in due time.

I appreciate the analogy, and I do feel the limitations of hard drive space I don't want to have to have a second job of a researcher just to use something. I get that too, I think a case of we've become so good at outsourcing labour, we outsource our food production, outsource our access to information, outsource the control and enforcement of our energy and property, we are so deadly scared of taking personal responsibility we're willing to pay any cost not to do it.

I had a listen to one of your podcasts, I think you're asking the right questions and you're on the right path and you'll find the answers you seek soon enough I am sure. I think that perhaps this mindset may not reward you in the short term but long term I think it will be hugely rewarding, I guess that's the contrarian position, you're vilified until you're not and then seen as some sort of servant lol

Will try to keep up with your episodes when I have a moment

I've been trying to remove some of the noise and produce content of more signal away from the clutter so people who are looking for answers can find them. If you're interested you can find it here

Beautiful, @chekohler - yes, we're all in our own realm of expertise, and doing the divine work to pull us all into harmony and light - and we need to transform all areas of life, for the betterment of all - it's a time of much work! I'm very interested in how we create structures that 'represent' the Truth about energy: the Truth being that we are able to create free energy ourselves, through our consciousness, and this should be reflected in our systems and constructs. We're still mostly working in the fear-tension-pain cycle, which is linked to atrophy and entropy - but we're starting to comprehend - individually and collectively - that we can work also with the harmony-expansion-bliss cycle - and everything turns out very differently! We've only just connected and begun to co-create globally, and it's bound to begin in chaos, panic, friction - but there's also an immense expansive force flowing through us all, which wants to co-create creatively rather than destructively... we're doing it :-D

Indeed that's why we prosper as humans, because we can all specialize in something and then trade with one another creating access to so much more than we could on our own, but the method and rails in which we trade have been corrupted and that's created a lot of downstream issues.

I'm not yet a believer in free energy, there's always a marginal cost, are we getting better at creating it and accessing the potential energy spectrum, absolutely, and I hope we continue. giving people access to cheaper energy in different forms, can bring about so much more possibilities then this centralization of energy we have today.

Where only a few people get to push their ideas and influence into the world.

I think we need to get used to being uncomfortable, no strides were made while sitting cosy, from the wheel to the computer, we faced a problem, we faced uncomfort and uncertainty, and came up with solutions.

When I see the control and hierarchy built in crypto world as well by the creators and the founders of those cryptocurrencies, I start thinking it's the same and maybe we need something better to be created. More democratized ! Really democratized, but not the fake democracy we see now in so many fields.

I'm glad I'm not the only one who is seeing this and feels like it's not solving anything it's just there to enrich a new set of oligarchs

For me Bitcoin is the only one I see that's actually trying if you not buying or mining or rendering a service to be paid in BTC you can't get Bitcoin and having that hard issuance makes it less likely to be corrupt

Yes we can say there's a small percentage holding the coins but it's spreading out more and more each year where crypto and fiat are going the opposite way

It all started from bitcoin anyway. So many tried to copy it, then they tried to compete with it like ethereum. Then they tried to create something else. Then everything moved to proof of stake. Now farming and yields and defi. Those seems only for those who can afford it. Becuase the fees are high and it's not a fact that if I'll buy something that expencive, I will be selling it someday.

All the improvement is great and any project has something good in it, that's why we just have to diversify to reduce the risk. Including social media as well, I mean all that made on the blockchain. It's good to grow in as many of them as possible. In some we may withdraw to use that, in some only accumulate if we belive in the project. That's why I'm trying to build @dcooperation community that will collaborate with more crypto communities, promoting hive at the same time. That's why I create content now in a few platforms. Noice on bitcoin cash, lbry, publish0x and others I would like to find. Of course those where there is something to earn, but not promising ones like voice for example on eos. I don't know if that's working or not. There is a lot of them and it's impossible to follow them all.

I don’t blame people for acting rational and trying to earn something extra I just fundamentally disagree with the way these ecosystems work! I just think if they were serious about change as they preach they would use a money they cannot control like Bitcoin

When a business or service focuses more on the financialisation than anything else the product suffers and it’s all about delivering value to the base shareholders by any means and any cost!

We’ve seen this play out time and time again and slapping blockchain on the same system doesn’t change an thing

I just appreciate honesty and I don’t think there’s a lot of it in the crypto space!

Well I would have to agree with you. Crytpo-currency is essentially a more privatized version of fiat that is no longer only in the government's hand. Of course the people who run the money printer like Tether and cryptos can be just as bad if they engage in similar actions.

Posted Using LeoFinance Beta

Exactly I don’t see why if you confident in your app you don’t just use Bitcoin! To me it’s just prolonging the eventual failure of your service

The fiat money system is itself a Ponzi scheme

I don't exactly understand this part. I guess it has more to do with the currency. Having a currency like the Naira is an outright scam and maybe we could call the US Dollar a Ponzi scheme.

Posted Using LeoFinance Beta

They all are because currencies are backed by nothing before it started with a set convertiablty to gold as in the USD case or a convert into AI liver as is with the pound Sterling now it’s all based on debt so did more money to be created it’s borrowed into the system!

The new money is then used to pay back the previous bond holders, that in itself is a ponzi

Read up on books like planet Ponzi

I didn't know this. I'll check out the book. Hopefully, I'll have the time to read it.

Posted Using LeoFinance Beta

If you don’t have the time to read it check out the YOuTube series the hidden secrets of money by Mike maloney

Thank you, I'll check it out.

Posted Using LeoFinance Beta

I am hardly online to be honest, I connected my account to voting trails, i hardly use HIVE