Socialism and Bitcoin As Legal Tender In Emerging Countries – June 1, 2021,
Robert T. Kiyosaki was one of the first people I know of to really talk about financial education. Although the entire Richdad brand associated with Robert T. Kiyosaki is Right Leaning, they make it clear that they’re Apolitical, reason being is that Richard Nixon the Republican bailed out Franklin D. Roosevelt’s “New Deal” with his Gold Shock, severing ties between the U.S dollar and Gold, which was done primarily because Minimum Wages and Social Security was a complete and utter failure, that Richard Nixon didn’t want to be held responsible for.
Most politicians are COWARDS, the reason inflation exists is because politicians fear the mob or I should say Politicians fear democracy. Socrates hated democracy because as he points out the majority of people will vote for salesmen/politician that promises them the most pleasure and in a nutshell, this is what socialism is.
I think people who believe that Bitcoin is going to be a positive for emerging countries, many of which are socialist countries will be surprised to learn as to why there was a demand for fiat money in the first place. So-called Conservatives allowed Donald Trump to get away with saying that America had the best economy under Donald Trump when Donald Trump was one of the people telling Jerome Powell to suppress interest rates?
Democracy allows all sorts of charlatans to exist and deflationary money which is what Bitcoin is, requires fiat money to compare itself to. As I like to point out, without the U.S dollar Bitcoin is worthless, Bitcoin’s entire pricing model is dependent on the U.S dollar. People tend to forget that money is merely a convenient form of bartering and the U.S dollar is still valued next to Gold.
In actuality, if someone were to ask me the price of ethereum appears more aligned with market forces than Bitcoin, and the reason I think this is that as an example Non-fungible tokens(NFTs) are linked to the ethereum network which in my view puts ethereum in a much better place long term than Bitcoin because there’s a legit reason via NFTs to use the ethereum network.
If the U.S dollar falls or if the fiat monetary system as we know it falls, Bitcoin has no value, because it’s inefficient in everything it claims to be. If the Fiat system fails, the quick fix is to repatriate Gold, which in simple terms merely means austerity measures or Governments being forced to shrink in size, before the markets and the people believe in the system again.
If Gold is repatriated all debts, all spending will be valued on the current gold price at that time. A centralized digital dollar would give too much responsibility to the Federal Reserve and as is the case in China, people hate dealing with the government, one of the reasons why this fiat system works is because people get their fiat money from Private Retail Banks, meaning that they feel as though the government isn’t spying on them.
Bitcoin isn’t anonymous, you can be traced and tracked and if there was to be a Bitcoin standard, governments would be incentivized to trace ALL Bitcoin transactions and governments could also potentially compare notes. I bring this up because most emerging countries are to some degree socialist and most are democratic-socialists meaning that they’re populists.
People like to attach populism to only the Right Wing, but Populism is democracy and democracy usually revolves around redistribution which ultimately means that Bitcoin as legal tender is going to run into some serious problems if one group has what some deem as too much Bitcoin.
Again I like to remind people that without legal tender laws, money can be anything. There’s no such thing as a perfect money. Now blockchain as a means to create a legally binding contract, that’s a great idea, but contracts shouldn’t be confused with bartering or money.
A market economy requires financial education between all parties involved, the problem with market economies is that some people will intentionally opt for ignorance to potentially push forward their own theft-driven political agenda. Politicians as an example know that without FAIR trade resources were finite, but they’ll still promise voters all sorts of “free” things, knowing that the voters will have to produce more than they’re willing or capable of producing.
So for emerging countries embracing Bitcoin as some sort of savior, be careful.
Interesting times ahead.
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