As Bitcoin Shows Us, the Future Belongs to Decentralization

As Bitcoin Shows Us, the Future Belongs to Decentralization

By ssaurel | In Bitcoin We Trust | 1 Aug 2021


Created a little over twelve years ago by the mysterious Satoshi Nakamoto, Bitcoin remains something of an enigma to the general public. As a result of constant denigration by the powerful at the head of the current system, a majority of people have come to believe that Bitcoin is dangerous.

Governments, central bankers, economists, and many journalists keep saying that Bitcoin is too volatile and that it is used mainly for criminal activities.

Some even go further and call it a scam.

The value of a currency is something totally subjective

These opponents of Bitcoin will tell you that it has no intrinsic value. In fact, seeing its price reach $60K seems to them to be something extremely dangerous. To hear them tell it, Bitcoin is a giant bubble that will end very badly.

Too busy constantly denigrating Bitcoin with fallacious arguments, these people can’t even understand why Bitcoin is so successful. Their fear of a total paradigm shift that challenges all their unfair privileges within the current monetary and financial system prevents them from seeing the truth.

The first thing is that Bitcoin has no intrinsic value as they understand it. But neither do the U.S. dollar or other fiat currencies have any intrinsic value.

Here I return to the subjective conception of value. In economics, this subjective conception of value postulates that to be valuable, an object must be useful and scarce. Furthermore, this theory also recognizes that an object can meet the needs of one individual and not another.

Fiat currencies have value because they are useful to hundreds of millions of people today. Their value is guaranteed by governments. In the case of the U.S. dollar, some will say that its value is guaranteed by the power of the U.S. military.

Unlike the U.S. dollar, Bitcoin is extremely scarce

As far as scarcity is concerned, you will easily agree that these fiat currencies are not really scarce. Indeed, look at the incredible increase of the M2 Money Stock in the last year in the USA:

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More than 20% of the U.S. dollars in circulation have been printed out of thin air in the last twelve months.

This incessant debasement of the circulating supply of fiat currencies has dramatic consequences on the wealth of the majority of the Earth’s inhabitants. All the money produced remains in the hands of a tiny minority as shown by the abysmal drop in the velocity of the M2 Money Stock over the same period:

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Money no longer circulates in the economy and remains in the hands of billionaires whose cumulative wealth increased by more than 850 billion dollars in 2020 in the United States.

This phenomenon is not new since it was already described in the 18th century by the economist Richard Cantillon. His work on the subject gave rise to the theory of the Cantillon Effect, which we are currently experiencing in full.

The problem with the current system is its centralization in the hands of people who cannot be trusted

The problem with the current system is that too much power is put in the hands of a tiny minority of people. I am referring to the central bankers who have the power to create as much fiat money out of thin air as they deem necessary. History has shown us that they cannot be trusted to wield this great power responsibly.

The centralization of the current system creates a total injustice for hundreds of millions of people around the world.

Bitcoin is the answer to this centralization problem. Bitcoin is a decentralized system, P2P money. With Bitcoin, the power of money is put back in the hands of those who should never have lost it: the citizens of the world.

Extremely scarce and already useful to more than a hundred million people, Bitcoin is therefore valuable according to the subjective concept of value I outlined earlier.

Bitcoin proves to us day after day that the future belongs to decentralization.

The dangers of centralization appear on social networking platforms

The dangers of centralization are demonstrated to us every day. Let’s take the example of social networking platforms where a few people have the power to delete people’s accounts forever.

Facebook or Twitter can arbitrarily decide that you will never be allowed to have an account on their platform again.

With these social networking platforms in monopolistic positions, you suddenly lose access to thousands or even millions of people who should have the power to decide whether your content is of interest to them or not.

Centralization gives too much power to those individuals who think they are above the people.

Google and Apple also abuse their power with their app stores

The example of app stores is also eloquent. Google and Apple reign as absolute masters with the Play Store and the App Store.

They can make arbitrary and unfair decisions that jeopardize the businesses of thousands of people. How many mobile app development startups have gone bankrupt due to total banning decisions by Google or Apple?

Far too many!

I myself had big problems in the past with my Google developer account. I invite you to read about my experience in this article: “Google Just Terminated My Google Play Publisher Account In One Hour After 10 Years Of Loyal Service”.

After creating a viral effect around my story, I was able to get my developer account back, but I now live with a sword of Damocles over my head. With the next arbitrary decision from Google, I could lose my Google developer account forever.

The fact that I have been able to develop applications for more than ten years on the platform does not count. In the end, I don’t publish any more applications for fear of having my account permanently closed.

The dangers of centralization again.

All centralized platforms are a danger to the freedom of users

On the YouTube platform, it’s the same problem. Thousands of content creators are banned or suspended every day in a totally arbitrary way. Google’s famous bots go through and ban at all costs. Impossible to discuss with these bots.

Some may be lucky if their YouTube channel is important enough and see their account reinstated.

The lucky ones may even get an apology from Google. Nevertheless, it is not possible to live with this kind of fear all the time.

All these centralized platforms send you the same message as the current monetary and financial system. You must obey our unfair arbitrary rules and decisions whether you like it or not.

Final Thoughts

Bitcoin is incredibly successful because it allows millions of people to take back control of their money. And by doing so, you gain freedom over your life. And that is what people are simply yearning to get. The great value of Bitcoin lies here: in the power that it gives back to its users.

In the future, decentralized platforms will eventually take over the centralized platforms of the tech giants. It’s only a matter of time because the future belongs to decentralized systems. The people want this as the incredible success of Bitcoin shows us.

If you want to know what to invest in for the future, the best thing to do is probably to look at all the solutions and systems that propose to decentralize their domains to give power back to the people.

Just like Bitcoin, these solutions and systems will have a very bright future ahead of them.


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ssaurel
ssaurel

Entrepreneur / Developer / Blogger / Author.


In Bitcoin We Trust
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