Introduction:
Previously I wrote a post titled “The Great Rotation,” (The First Newsletter - The Great Rotation) discussing that the theoretical shift of assets from cash to equities should now extend to include crypto. The core issue lies in the fact that cash (or more accurately fiat itself), in my opinion, is already obsolete.
Summary:
● Bitcoin has already answered the question “Do we need governments to have sound money?” The answer is no.
● Does the power of fiat currency lie in its function as a medium of exchange? its use as a store of value? or the unspoken threat of military force?
● Most governments around the world consistently devalue their currencies on purpose, leading to wealth loss for the majority holders.
● There is a need for people to protect themselves from devaluation.
● Cryptocurrencies have emerged as the only sector offering reasonable protection against asset seizure and privacy positioning them as a superior form of money.
I often ask myself what gives fiat/money its qualitative value?
Does the qualitative value of fiat money come from its ability to function as a medium of exchange for goods and services?
Or is it the government’s authority to levy taxes demanding to be paid in fiat, influencing demand and supply for fiat money, thus providing it with an inherent value?
Maby the value stems from the value to collect and hoard art? Maybe even a trained habit from childhood that moment you learn about money and accept it’s use in society is that where its value lies?
Or does its fundamental power stem from the potential threat of military force by the government, ensuring compliance with tax payments or asset claims?
The main benefit of fiat money in my opinion is its convenience. Ultimately the power behind fiat currencies comes from the fact that people use them and when a more convenient or useful alternative emerges, it’s only natural that they will empower those new forms of money.
From Generals to Cryptos—the historical demise of fiat;
If you look into the history books, military force has always been a dominant means of asserting the value of currency. This is something that we all know but almost never talk about. Fiat (or as we call it, money) evolved as a tool for war. This is a topic discussed in detail in **David Graeber’s book regarding the history of debt (the first 5000 years). (**Debt: The First 5000 Years - Wikipedia)
From the Mongolian Empire to the British Empire, if you flip the back of many currencies, you will often find the head of a military general. While this factor has diminished in modern times, traces of violence remain linked to every form of fiat currency. This raises a critical question: Do we desire a future built on such a foundation or should we strive for something new?
Protect yourself at all times.
Here’s the truth: governments worldwide consistently inflate and devalue their currencies, extracting wealth from citizens for various individual and selfish goals. It is important that you “Never look at the intentions, no matter how meaningful, and only focus on the results of their actions.”
I could of used any currency GBP , Nigerian NGN , or Argentina Peso ARS but most must people recognise USD
The continuous devaluation of fiat results in the loss of wealth for the majority, while only a select few are shielded due to their awareness, social connections or access to alternative markets there people are often referred to as the “Elite”.
So let me ask you this: Is this system sustainable? How do you plan to protect yourself? Or like many, do you feel powerless to act?
Along came a blockchain.
Will you consider investing in assets that hedge against inflation? Your initial thoughts might lean toward equities or property. But the government can and will eventually use force to seize these assets from you in one way or another, for one reason or the other in time.
Only one realm offers protection from asset seizure: the cryptocurrency space. This is why, in my view, some cryptocurrencies stand as a superior form of money and, consequently, a more effective means of wealth preservation than any other asset class.
Creating and printing private money has always been either criminalized or only available to the chosen few who are part of the current power structure. The advent of Blockchain technology has temporarily changed that.
Retail banks are still trash
I am not secretive about my distain of modern banking, fiat generally money in the bank is one of the riskiest asset classes you can own at the moment. Inflation is rampant even if the government says it’s falling, the underlying value is falling. If you want to send your money the bank wants to know why? You can’t withdraw your funds over a certain amount without telling the bank why and if they are suspicious they can freeze everything. Some banks have become political, targeting people who don’t vote or act in the way deemed appropriate by the powers that be at the time akin to fascism.
Bitcoin has answered the first question
For people who wish to obtain a higher form of money and wealth, both financially and spiritually, fiat currency does not serve its purpose. Fiat currency is already dead.
Fiat currency is like the computer operating system that constantly ‘upgrades’ itself without your permission and then proceeds to give you downgrades. It leaves you filled with doubts about security, safety, ownership, interference and private property.
Bitcoin asked and answered the question; Do we need governments to create and maintain a ledger for the debt-based fiat currency we call money? The answer is no.
Causevest is asking the next question
Causevest Coin takes things further by asking the question: “Do we need governments to redistribute wealth on our behalf without our direct consent?” We believe the answer is also no.
In conclusion, while fiat in its current form is still convenient, it is a slow sinking ship. New and better forms of money are being created and it is only natural for those to replace fiat over time or suddenly out of the blue.