The great revolutions, whether in the social, philosophical, economic or governmental field, in the course of history, have always been motivated by an accumulation of uncertainties, crises or instabilities. When a revolt is established, the cause of the revolt being checked, the revolt is ended. When a revolution is established, often because of an initial revolt, when the cause is resolved, the movements for change in society do not stop.
In economic science, these moments have always been generators of debates and new theories from the industrial revolution with Adam Smith to the great depression of 1930 with Keynesian theory.
Each crisis brings about changes in the grand monetarist theory. After the 2008 Subprime Crisis, the instability of the economic system was once again a matter of relevance in academic and political areas.
The State, which until then only supervised the monetary flow, now assumes the control of regulating and managing the mode of use and the correct agents for the distribution and movement of the monetary system. With this, the discussion for the decentralization of means of payments and money supply comes into the agenda and Bitcoin stands out as a new way of making transfers, also serving as a means of exchange without government intermediation and without political borders.
However, as it is a fact of the world economy, there is no way to go back or deny the existence of cryptocurrencies and their, currently, purposeful deregulation.
In crises, which is most evident, when studying and putting side by side the main international financial crises, it is clear that governments, at a given moment, are incapable of quickly predicting and regulating the problems arising from the crisis and stop the causes in time to preserve the greatest number of people, companies and assets. Mainly because crises are initiated by human greed and their response also occurs by humans.
In this sense, determinism, that is, the mathematical relationships of cause and effect of the network of cryptocurrencies, makes crises of human characteristics predictable and easily repairable.
Determinism has as its basic characteristic the point-to-point guarantee of the transmitted data, in addition to regulating the intrinsic speed of the network to better distribute demands based on demand and not on the concept of best effort.
In fact, connection-oriented, deterministic networks ensure data delivery through a process known as a three-way handshake. The transmitter first sends a connection request to the receiver. Then the transmitter sends the data packets. For each received packet, the receiver sends an information (ACK) back saying that the data arrived and allowing the sending of the next packet. At the end of sending all packets it will send a request to terminate the connection to the receiver.
In non-connection-oriented networks, the sender simply sends the data packets waiting for them to arrive at their destination, but it has no way of actually knowing whether the data has arrived or not.
When a network works in a predictable way, it is said to be a deterministic network. On the other hand, if a network works in an unpredictable way, it is called probabilistic, statistical or random.
The internet, by definition, is an unpredictable network, with no guaranteed package delivery. IPv6, unlike IPv4, tries to be semi-deterministic.
A cryptocurrency network, however, is a deterministic network over a non-deterministic network. Better yet, it's a non-fault tolerant network with a 100% delivery rate concept.
If analyzed from this point of view, the current financial system is deterministic in terms of delivering monetary values but, on the human side, it is totally non-deterministic.
That is, if you ask for a loan at the bank, even though you have a good name, are not underpaid and have a steady job, the release of the loan can be canceled simply because the bank manager understands that the citizen can be a huge risk to the financial system .
However, the biggest fraudsters of the financial system or even those who start major financial crises are citizens with a lot, a lot of money, with control and a certain political power, in addition to inspection agents or even counting on the slow response of the government.
Thus, placing humans in the process causes, in the financial system, the same indeterminism, as the internet in a data container: it's to get to the other end, but if you don't, send it back! Too bad that in the financial system this costs a lot!
In this sense, Huawei, at the end of last year, is the first telecommunications technology company to model a deterministic network on the non-deterministic system of the internet network.
Using what? Blockchain technology. That's about the G5 data transmission standard.
It is no coincidence that China has been forcing changes in the world of cryptocurrencies! And in telecommunications!
The cryptocurrency system is the next human technological revolution, as were gunpowder, the compass, electricity, aviation, radio and the internet.
But, with everything that is involved in a revolution, in this case, Adam Smith's fundamentals are very firm and prove to be true: the government, in addition to being incapable of adequately regulating the market, when it interferes, it manages, in many cases, to hinder and enhance even more the crises.
Governments maintain control of currencies over citizens for the sake of preserving people. But it is somewhat incapable, or acting very slowly, to help them in times of crisis. A, normally, when it helps, in the historical sequence, you see recession and tax increases to rebalance the government accounts, causing more suffering to the population that it had protected and, before.
This reality conflicts with the capital relationship, which should bring sustainability and well-being to people.
In the case of cryptocurrencies, knowing how to conduct themselves, the well-being is in the hands of the citizens themselves, without the government laying down rules - of course, taxes must be paid - or the banking system profiting as an intermediary.
The future is not known but, deterministically, he points out that cryptocurrencies and bitcoin, po and excellence, are people's safe-conduct or, at least, the standard that will manage to provide some guarantee in case of real crises!
Let's wait for the procemia crises...they have strengthened some nascent system.