Why I believe Governments Don’t Adopt Bitcoin as Their Currency: Power vs. Bitcoin
Ample discussion about impoverished nations dealing with hyperinflation and/or lack of opportunity for stable incomes circulated the globe in the early in the early 2010s.
And now this topic has entered the startup scene. High tech startups from cybersecurity & VPNs to blockchain entrepreneurs are interested in the struggles the unbanked citizens of the world face. They are unanimous in their desire for a solution. They think they can be heroes for the impoverished.
Many believe that Bitcoin or other altcoins could save the day. However, the clock went on ticking and it never came to be.
There were reasonably government trials in innovative regions like Zug, Switzerland aka “crypto valley.”
Niklas Nikolajsen, the chief executive and co-founder of Bitcoin Suisse said “This is the first time worldwide that Bitcoins have been accepted as a currency on a state level.”
However, these experiments with cryptocurrency have only been responsible for a fraction of their public revenue.
And it certainly has not planned out for the rest of the world.
So why do cryptocurrency developers remain unsung heroes as they eagerly await partnerships with the government, despite viable use cases?
FIAT money is fuelled by power!
To understand this, the public first needs to understand how the government values money.
Money is more than a legal tender for the government; it is a tool used to facilitate control. Plenty of people around the world feel as if their government steals from them but there is nothing they can do about it for lack of power.
People often lose their wealth under the guise of inflation and the “money illusion,” as economist John Maynard Keynes put it.
Then there are governments who have found even more drastic ways of robbing their citizens, like confiscating their funds for dubious reasons.
Yet citizens remain subservient to the system, because they don’t feel that they have a choice.
But a government can’t interfere through Bitcoin — at least not yet. This could take a government from their power seat and put power back into the hands of common people. However, this contradicts the government agenda.
The government lives on its power.
The alternatives have been discarded.
Bitcoin might be a household name now, but it is not the only viable payment tool that has the capacity to give the power back to the people.
It might be the most accessible currency to use in the modern landscape, however, it is certainly not the only option–and not the first.
Plenty of currencies have had intrinsic value for thousands of year including, shells, rugs, and precious metals like gold, silver and copper. Over time, governments looked for more convenient ways to transport currency, thus they reformed the system with gold-backing paper notes.
However, that practice has long-since been abandoned.
Governments around the world moved to a fiat system whereupon money no longer has intrinsic value; it only holds the symbolic value issued by the governing bodies. In essence, the system is based on import/export and volatile global exchange rates that keep many people dependent on stock market prices. Now your net worth is merely a matter of trust.
And for those keeping up with the recent news surrounding the Bitcoin crash, they might be interested in alternative options.
So why does a system like this exist in the first place?
The government facilitates the fiat system as a means of power — like it or not.
Is hyperinflation really a problem for the government?
Global economists claim that hyperinflation is detrimental to the government and its whole economy.
But this is only partially true.
Retired Economist of the U.S. Agency for International Development, Don Sillers, writes on Quora “Hyperinflation is a classic symptom of unsustainable fiscal policy.”
Sillers goes on to say: “Hyperinflation is easy to avoid as long as governments restrain their spending in line with their expected revenues from taxes and sustainable borrowing. Once they begin to increase their reliance on money creation to cover a substantial share of overall spending, they’re on a slippery slope toward economic chaos.”
The government may come out as the victim, but their citizens are the true victims.
Hyperinflation does not affect the government much differently than normal inflation across time. Inflation only happens faster.
Sure it’s wiser not to milk the cow to death, but the government is still the one who will come out of this victorious.
Since money is practically free, I doubt it impacts the government. It does not matter if the value of their currency takes a daily fifty-percent drop. The printer can keep rolling out the dollars. That is what they are licensed for.
But you can just keep printing Bitcoin like that. Satoshi Nakamoto, the anonymous father of Bitcoin, must have envisioned the problems of inflation. Nakamoto set a protocol for a 21 million limit, which is expected to reach its limit by 2140.
Most governments are not a friends of Bitcoin. They attempt to limit their citizens’ freedom with money. But freedom does not emerge from the oppressor.
I believe that governments are resistant to Bitcoin because it returns the power of money back to their citizens. That is why blockchain and cryptocurrency are among the most disruptive technologies of the last decade. Cryptocurrency disrupts the financial monopoly that governments have built.
Please take warning: the slave master will never free his slaves voluntarily; an oppressor will never give freedom unless it is being fought for and won. The war between Bitcoin and deceptive organizations we call the government has just begun.