I'm going to do a lot of assuming in this argument. I'm going to do a lot of reaching. I'm not going to provide any evidence for or against my argument because I want you to go find it for yourself instead of taking my word. Ready?
You may have heard me talk before about how centralized finance is the root cause of nearly every problem in civilized society because it creates the ideal conditions for greed and poverty. Today, I will examine the principles behind this position.
Centralized finance allows an economy to be governed and regulated by state and federal agency. This represents the antithesis of free market capitalism. In a free market, producers and consumers are able to mutually agree on trades individually without interference. When a government agency is allowed to regulate this process, you no longer have a free market. Centralized finance operated by a single currency is the only means by which government can achieve such regulation. Without a single unified currency to use as a standard of measurement, government has no means by which to regulate a market based on what it determines to be fair. This is the ideal condition.
When government is allowed, for example, to determine what is a fair service-to-currency exchange rate (minimum wage), it is literally controlling the price of an item for sale on the market: your labor. Without a centralized currency, government could not accomplish this because there would be too many variables to consider. If you worked for a business that produced shovels, it would be difficult, perhaps impossible, for government to determine the value of your labor in shovels without also considering the size of the business, number of workers, average number of shovels produced, market demand for shovels, value of a shovel translated to other items, etc. Determining the value of one item as it pertains to exchange for another is also impossible, because every transaction conducted is unique. One trade may consist of a shovel for 20 pounds of rice, while another trades 10 lbs of corn for two shovels and a third trade may be 15 pounds of rice for 30 pounds of corn. There is no standard because everyone decides for themselves what value is given to an item based on what they want and need.
This system, despite being entirely unregulated by government, is designed so that unfair trades are very difficult to execute. If a man decides that one shovel per week is not a fair trade for his labor, he can go trade his services elsewhere. This system also creates conditions that make it difficult to achieve a monopoly of a certain market because the person or business conducting the fairest trades will get the most customers. So, it becomes imperative for people to provide goods and services of the highest quality at the lowest cost: this is the capitalist spirit of competition. Without a universally accepted currency available in the market, monopolies are no longer practical because there is no singular incentive to sell one’s business. Why would someone who makes shovels take shovels from another business that makes shovels in exchange for their business that makes shovels? They already have shovels. Similarly, why would someone who makes shovels take corn in exchange for their business making shovels when they can just trade shovels for corn or other items that could later be traded for corn while continuing to make shovels?
In this unregulated free market, everyone is valuable. Those who cannot produce goods can provide necessary or desired services in exchange for goods or services. A teacher may accept payment in food and trade some of that for land, materials and laborers to build a house. If that teacher cannot gain enough food for these trades alone, they may cooperate with other people to pool resources and accept an equal share the constructed dwelling (an apartment). Free trade encourages cooperation and reduces the prevalence of materialistic greed. Pretty but useless things become less valuable because there is little, if any, purpose in social posturing. Working together and enacting fair trades produces higher yields for everyone. Generosity becomes more common when there is no practical use in having more than you need. Hoarding wealth of resources is more difficult when everyone must give something valuable to get something valuable and the only point of having is to use or trade for something to use. Greater power is given to the individual when government cannot tell them what they must view as fair.
Currency creates a situation where one person can amass vast quantities of one thing, by trading any number of other things, and use it as leverage to get everything. Power, station, material things: all are within reach of the one who has currency. Hence, the golden rule: “He who has the gold makes the rules.” Take away the “gold standard” and you take the power from the rich.
Now, I know what you’re probably thinking: “We already have currency. The rich will not give this power up easily. How do we take it back?” Well, currency is like any item on the market in that it only has the value we attach to it. Centralized currency, on the other hand, has the value that a governing agency attaches to it. So, we have to adopt a system that circumvents centralized finance altogether. Enter cryptocurrency.
Decentralized digital currency is the penultimate solution to centralized finance, with the ultimate goal being no currency. Anywhere there is currency, there is the potential for abuse. In cryptocurrency, this is uniquely less true. Why? Well, anyone can make it. That should make crypto worthless, but it actually has the opposite effect. You see, it creates an autonomous market of currencies. Again, you end up with a system where people can choose the value of a trade for themselves. You end up with a system where the most successful commodity is the one of the highest quality and lowest cost. If one cryptocurrency becomes the source of abuse of financial power, the community can simply abandon that currency. Now it is worthless and the power is gone. A new currency will rise to take its place, but the abuse of wealth is checked by the ability to instantaneously devalue a currency by simply not using it, just like a person who tries to trade shovels at an unfair price will end up with a ton of worthless shovels and no customers. Anyone can make a shovel. Anyone can make crypto. Be fair or be forgotten.