Nostr

Humans have a natural tendency to seek efficiency and conserve energy where possible. This is often reflected in the way financial regulatory authorities approach their responsibilities. When given the option to perform their duties from the comfort of a desk, they may be inclined to do so, rather than exerting the additional effort required to physically investigate matters on-site.

Fiat currency, with its ability to be expanded through fractional reserve banking, has enabled this comfortable, desk-bound approach to regulation. However, this system has been criticized as a "cheat" created by bureaucrats to circumvent the constraints of sound money, such as gold.

The emergence of digital gold, represented by Bitcoin, is poised to disrupt this dynamic. As a sound digital money standard, Bitcoin has the potential to end the comfort and convenience afforded by fiat currency.

This transition may lead to a gradual return to a more rigorous, hands-on approach to financial regulation, as the inherent limitations of fiat currency are exposed.

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Discussion

f0xr 1y ago

I wouldn't call it financial regulation, I'd call it theft. Physically coercing a population and taking their resources is a dangerous thing. The parasitic bureaucracy isn't going to do it, they're going to hire some goons to take that risk and exert that force. But that's a game with diminishing returns, because the more you take, the harder people resist, the more force it takes to coerce, the more you have to pay the goons. Eventually it's going to cost a dollar in goon wages to extract a dollar in peasant resources, and there's nothing left over for the parasite class.

The ability to issue credit means the parasite class can extract resources like you say, without leaving their desk, simply by skimming off everyone's purchasing power. This has two advantages. One, it has zero cost, since it's not physical force, so spineless bureaucrats don't even have to hire a goon squad to do their dirty work for them. Two, the amount extracted can be much higher, since most people don't understand who's robbing them, how much is being stolen, or how to protect themselves.

If the government sent a SWAT team to each house and physically took half of everyone's belongings, let's just say mortality rates would rise rapidly. But a government can enforce 50% inflation and no heads will roll.

To your point, Bitcoin removes this "point and click coercion" cheat code, which is exactly why the parasite class will fight it tooth and nail as soon as they grasp the reality of their fate.