Decentralizing Credit And Currency – Economics Of Scale

Inverted Pyramid Assets

This post will be an extension onto my last post to extend the discussion on credit systems and the decentralization of credit and currency that blockchain technology now affords us, and how this new development in distributed technology allows economies of scale to develop from the international, to the national, to the regional,  the local, in both digital and physical form… The future of credit and currency is decentralized and competitive

The Theory Of Credit And Money

For a full discussion of the Theory of Credit and Money you should read my previous post, but I will give a detailed recap of the evolution from credit to money and back to credit… We begin with the eternal human necessity of voluntary co-operation and exchange… A part of the exchange with other people we call life is economic exchange, the voluntary exchange of goods, services and property… When humans start exchanging it will be directly, that is by Barter… This barter can take the form of direct exchange or by use of credit ledgers, that is develop credit systems based off of barter, currencies if you will… Because these credit systems rely on trust and familiarity in exchange these credit systems can only scale locally and only to those you know, not to those who you don’t know… Because of the innate human need and want to exchange with people who you don’t know and therefore can’t trust on credit, direct exchange will evolve to indirect exchange, by use of a medium of exchangeThis medium of exchange will be a physical commodity, and historically has varied from shells to feathers to nails to herds of cattle to tobacco to mobile phone minutes, but these commodity currencies can only scale as far as their local or regional scarcity, and so they will be isolated and regional common mediums of exchange… When you need to scale a medium of exchange globally so that you can have national, international and intercontinental trade, this medium needs to be recognized and so present universally in an exploitable form… And history demonstrates at least the last several thousand years, that the widespread use of gold and silver is The Origin of Money

From Money To Credit

This money that becomes the global standard of exchange will claim a natural monopoly or a voluntary socialism, and become so widely used and so scarce in supply compared to all other goods and services, that there will arise the need for an industry to service this increasing scarcity and value of money, The Origin of BankingBanking is a credit derivative layer on top of money (gold and silver) to increase its utility and efficiency in exchange, that works on a centralized ledger and credit system, the double-entry bookkeeping ledgers of banking institutions… As long as this credit derivative layer of trust in bankers holds and the banker engages in Full Reserve Banking, then banks are productive institutions invented to enhance exchange… Due to the inherent corruptibility of man banking will evolve from sound banking to unsound banking and Fractional Reserve Banking, which is basically a licence to print credit and call it money enriching yourself by the defrauding of others… This blatant act of theft and betrayal of trust creates an artificial credit boom that artificially inflates consumption that the underlying savings of the economy cannot sustain, artificially lowering interest rates and inflating the cost of goods and services… This boom will last as long as it takes for the market to figure out the fraud of the banker which will manifest as mass bankruptcies and the extinguishing of debt, triggering a physical bank run when faith in credit and paper vanishes into hyperinflation… Gold and silver as money are the eternal bedrock to which temporary credit boom and busts return, however long they last

From Banking To Central Banking

With gold and silver being an intrinsically scarce and stable monetary base, fractional reserve banking and its debasement and carnage of the exchange economy was a local and very contained practice and aberration within overall increasing prosperity… With the instituting of Central Banking comes a profound change in the monetary base… A Central Bank is now the de facto base money because the State that legislated it into existence did so with monopoly of the monetary supply and Legal Tender Laws, laws that mandate by force the voluntary exchange of goods, services and property in that currency, and the only currency that the Government through its taxmen and prisons will accept in the payment of taxes… We move from a monetary system, to a credit system… Even though they assure you that these paper currencies are fully redeemable in gold the overlying credit is the real base money, and it is onto this centralized issued base currency that the high street banking system continue their fraudulent fractional reserve banking, which takes the Business Cycle of boom and bust NationalFrom free market fractional reserve credit on a decentralized mined gold and silver supply, to fractional reserve banking on a centrally issued Central Bank Fiat currency, with gold “backing”

From Credit To Debt

When looking at Central Banking I come from the angle that it is an institution to rape and plunder the people and that their sole objective is to slowly strip mine wealth from the global populace through their currencies purchasing power and the issue of debt, so a Gold Standard is a shackle on credit expansion… While they can still pump bubbles (The Roaring Twenties is an interesting example), gold is the bedrock to which Great Depressions must plumb to the extent that it forced criminals to hoard the gold of the American people so that it could be revalued upwards 40% against the paper dollars the government gave in “exchange”… Devaluations and currency “shocks” are debasements, as the credit supply of the Central Banks becomes more unhinged from the natural rate of the money supply… The big “shock” comes when they unhinge completely from a gold anchor, and Fiat currency becomes completely free floating… The centralized asset ledgers of Central Banks no longer run a constrained credit system, but an unconstrained credit creation which derives its value no longer from money (gold and silver), but from the goods, services and property exchanged in the currency and recycled through various taxation schemes, income taxes, sales taxes, property taxes, capital gains taxes, inheritance taxes, and the inflation tax, and so on… The only value that backs Fiat currencies is barter exchanged in that credit, and with that credit being unconstrained the Elites can now print into existence the Warfare State and the Welfare State, and unleash the boom bust bubble economy where more and more of society is impoverished as wealth inequality surges to the benefit of owners of the printing presses that effectively own the means of production of everyone else… This is a huge scam the bankers have pulled off here!

Peak Centralization And Hyperinflation

The inherent intractable problem and fatal flaw of Central Banking is that it is centralized and therefore dependent upon others for its survival… You can demonetize gold and silver and manipulate their price downwards thus relegating their importance in the eyes of the population, but you cannot abolish the chains of barter and scarcity… Unconstrained credit is still dependent upon barter and exchange and so will inevitably hyperinflate when confidence is lost in its scarcity… At that point, like every other credit derivative layer in history will vaporize any wealth contained in it, whether savings or pensions or insurances or mortgages or loans… If however you have invested outside fiat money in land, real estate, stockpiled goods, gold and silver, etc, these assets still exist but will need to be repriced… An unconstrained credit system on centralized ledgers (Central Banking) that enforces exchange in its currency (through Legal Tender Laws) can essentially drown out gold and silver as money by effectively outlawing them (through Education, the Media and Legal Tender)… Even though gold is still money it gets drowned in credit, ridiculed as a relic of the past, its price manipulated to keep it out of the sight and mind of a brainwashed populace… But to be clear this only works as long as it takes the credit bubble to blow up… As we are seeing currently despite the very best efforts of the Comex, LBMA and the Bank for International Settlements’ Benoit Gilson, when gold and silver start shooting up in dollar value, you can nearly sense the panic in the mainstream financial media! As the precious metals paper straitjacket starts to fracture then gold and silver become more prominent, increasingly revaluing against Fiat credit

From Credit Back To Money

Gold has been politically debased a Century now… Since 1914 and the shattering of the Classical Gold Standard, gold and silver have been superseded by the coercive legislation of Fiat, credit and fraud… But when trust in fiat, faith and credit evaporates, then gold and silver become money proper again and therefore will have to be revalued to take into account their new monetary role… If the future were a purely physical exchange of precious metals for goods and services, then the value of gold and silver would have to rise to gargantuan levels from here… For just one comparison in the twentieth century during when Central Banking has drowned gold and silver out, the global population has increased from 1 billion people to 7 billion people! Exchanging gold and silver for the goods, services and property of 7 billion people would I hope you acknowledge, send precious metals into the stratosphere! However I think that is unlikely to happen… Why? Because of the inherent limitations of physical exchange of precious metals… This limitation would be increased a hundredfold by the higher valuation of precious metals following the blowing up of Fiat credit, when an ounce of silver or gold might purchase a hundred times more goods and services than today’s absurdly low and manipulated prices… Indeed it was the scarcity of physical precious metals and their increasing value when exchanged in goods and services that created the need for man made credit instruments in the first place, in short the Origin of Banking

From Centralized Credit To Decentralized Credit

If you take the last five hundred years of history as your guide there will exist in an exchange economy of any real complexity of Division of Labour, a balance of money and credit… The inherent problem of centralized ledgers and credit systems is the counter-parties of these systems (banks) are inherently weak and corruptible and when mandated as currency issuers can be used to enslave and impoverish exchanging populations through unconstrained credit (Central Banking)… It was this criminal and inhumane centralized credit system that lead a shadowy programmer and all round genius Satoshi Nakomoto to release a white paper on a proposal for a new decentralized asset ledger and credit system… By the invention of Blockchain Technology and the Bitcoin Protocol, a decentralized asset ledger with a scarce internal credit system (bitcoins), the running of a financial system can now be done without centralized institutions or banks, extensively discussed in my post Distributed Technology And The End Of Counter-parties (Banking and Law)

In fact it is the seeming similarity between Bitcoin and Central Banking that has left numerous economists and so-called monetary experts scratching their heads when trying to distinguish Bitcoin from Central Banking, so I’ll make it as clear as I can… Whereas banking is a centralized asset ledger with unconstrained credit (and boom and bust business cycles), Bitcoin is a decentralized asset ledger with a constrained credit (bitcoins are mined into existence with a maximum cap of 21 million units)… Whereas banks are secretive centralized institutions with controls of ledgers and credit issue, Bitcoin is an open source decentralized protocol that makes every transaction clear on its blockchain, but utilizing a decentralized internet makes the transactions you engage in untraceable… And as Central Banking derives its value from barter (after removing gold backing), Bitcoin also derives its value from barter… The only difference I can see between Bitcoin and Central Banking is that Bitcoin’s credit is constrained, predictable and mined into existence by a decentralized pool of computing power and intrinsically scarceAnd it is this predetermined and predictable scarcity that makes Bitcoin the greatest man made credit instrument ever inventedBitcoin is Digital Gold

Gold Is Money Bitcoin Is Credit

In the decentralized distributed twenty first century, we will have two anchors to the financial system… A physical golden and silver anchor, and a distributed digital credit anchor… Bitcoin is not a derivative of money but of barter, and so both physical and digital anchors will compete directly for value through the exchange of goods, services, and property… While I extensively explained in my post on gold and the blockchain how precious metals and Bitcoin will co-operate and compliment each other, I also concluded that seeing that Bitcoin was an exchange standard for gold AND every other commodity, good, service, or property, that Bitcoin would basically crowd money (gold and silver) out of the market… Bitcoin has near infinite more utility than gold and silver in all three aspects of money, certainly as an unit of account and certainly as a means of exchange, and here is where I might draw the wrath of the gold bugs when I say it will prove to be a better store of value… Whereas an inferior Central Banking system has to relegate the importance and utility of gold and silver by legislation, centralization and manipulation, Bitcoin will relegate the importance and utility of gold as money naturally… More people will choose to exchange in Bitcoin than gold and silver and so the wealth and store of value of Bitcoin will increase at a far higher rate than physical precious metals… Bitcoin will relegate gold and silver by natural monopoly and as a stand alone ledger will also give you the REAL purchasing power of an ounce of gold and silver, both physical and digital media will scale to their respective exchange economies… With a fully functioning and honest credit system in Bitcoin, then gold and silver will become more irrelevant as monetary metals in a dominant credit system, and are freed for their many other utilities and attributes to the human psyche (coins and bars, jewellery, industry, health, and so on) up to and until some time in the distant future credit fails and money will again need to be repriced…

Bitcoin As Digital Anchor

Bitcoin as a decentralized credit system becomes globally scaleable, and mimics gold and silver’s role as global money… I see a lot of blather in my Twitter news wires about banking hijacking the blockchain, about intractable problems that the Bitcoin protocol has and will have going forward and how all this is will spell the death of Bitcoin, bla bla bla, and why I shut this stuff out as best I can… Banking and blockchains are oxymorons, while the Bitcoin furores I see as the growing pains of a continuing monetary experiment… At the end of the day the core developers, programmers, coders, miners, venture capitalists and all the other mind blowing talent and ingenuity working in the Bitcoin space all have a stake and interest in the continuation of Bitcoin… If consensus killed Bitcoin tomorrow then all their hard work and investment and time and all the value of all their bitcoins would collapse to naught, and so consensus will seek to keep Bitcoin alive and functioning… To take the blocksize debate for example, the consensus will fall on whichever solution benefits Bitcoin the most, and then any problems derived from there on will have to be solved by different means, or another layer can be added on top of Bitcoin to resolve a problem Bitcoin cannot solveThink of the Bitcoin protocol as a digital backbone and decentralized asset registry and financial system onto which you can layer any and all applications, and can work with other blockchains and protocols to any economy of scale… As gold and silver were a monetary bedrock for credit instruments such as banking and currencies, Bitcoin is the global standard and bedrock for the twenty first century decentralized financial system…

Back To Basics – The Creation Of Wealth

Before exploring the decentralization of credit further, I need to get back to basics and how wealth is created in the first place and how currency is only a container… To take a simple example let’s say that you and your employer agree for you to do a days work… You agree on an hourly rate of ten pounds and hour, or eighty pounds for an eight hour work day… By working those eight hours you use your human creativity and ingenuity to create and intangible wealth of eighty pounds, that becomes tangible when your satisfied employer puts four twenty pound notes in your hand eight hours laterThe eighty quids worth of value you created out of thin air with your talents, is stored and added to the currency you exchange in… You are very pleased with yourself and so you go out and get drunk liquidating forty pounds of it on the wealth of beer and whiskey that the pub landlord has provided you… The pub landlord will then spend the forty pounds worth of wealth you gave him on paying bartenders and suppliers, buying from the butcher, the baker, the candlestick maker, and so on… This is a simple retelling of Say’s Law, an economic law that holds that a demand for one good will create the demand for another goodIn other words wealth is constantly being created and exchanged in credit or money as a physical or digital expression, and that is what gives the money or credit its market valueEverytime you produce or consume you are either creating wealth for yourself or wealth for others, and why voluntary exchange is a beautiful thing… Now we have that simple principle established that it is all of us that exchange that create the value of currencies, we can concentrate on the critical storage vessel for human ingenuity and wealth, currency


There will be times when money is either too scarce, outlawed or not feasible to be used in exchange, and in those cases you will have money substitutesThese substitutes are derivatives of barter and derive their value from the exchange of goods and services and wealth creation, and will vary widely… In prison for example where money is prohibited, the wealth creation and ingenuity of prisoners within their own economic borders of the walls of the prison, will exchange favours and whatever else in a stable and scarce substitute for money… Tobacco becomes the currency in prison, because it is a scarce resource that everyone is willing to exchange in… Currency has been salt, nails, feathers, cows, shells, mobile phone minutes and myriad other things, and will scale and suit to its exchange localityThe only thing a currency really needs to be successful is scarcity, it has to have scarcity (or the belief in scarcity) otherwise it is worthless to exchange… Exchanging ever increasing wealth creation into a scarce currency will result in deflationary currency and credit, which has profound implications for the inflationary and debased society we are currently forced to exchange in, but near extinct…

Economies of Scale

Imagine a schoolyard with some young boys trading football cards… By exchanging cards even young children get a first glimpse of value and how it is affected by scarcity, some footballers being far harder to get than others, and therefore a premium being built on some players, where it would take four or five other cards for it to be exchanged… These kids without understanding it are rationally exchanging and allocating value in the form of football cards, and this economy scales as far the schoolyard… As currency derives value from the exchange that underpins it a currency can scale as far those willing to accept it, and will scale to the size of its economy and have value independently of any other currencyThese local and regional currencies that have historic precedent everywhere have been suppressed the last century with Legal Tender Laws, but with the collapse of centralized credit will come the birth of decentralized credit and the return of local currencies… These currencies will scale to their respective economies because currencies are only vessels to store human ingenuity, and as long as that currency is scarce (the only reason a currency would be chosen in a free market) will be deflationary and will result in increased standards of material living… A currency storing the wealth of say a thousand exchanging people, as long at it was scarce, would scale the Gross Domestic Product of a thousand people divided by units of currency would give you a value of human ingenuity per unit of currency… A local currency could never compete with a globally scaleable digital currency like Bitcoin, and neither will any of the alternative coins or alternative blockchains, so there is no issue here with too many blockchains or too many currencies because the number of currencies is really irrelevant when looking from the perspective of wealth vesselsThe human ingenuity and value creation of the globe will flow into however many vessels (currencies) as the global economy needs, and will scale globally (in gold, silver, and Bitcoin’s case) and will scale to industries, nations, regions, and even to local currencies in other cases

Programmable Currencies

When Bitcoin as the first blockchain was created, it spawned hundreds (and probably by now thousands) of alternative blockchains and currencies as imitations in many cases and some with some serious improvements and add ons to Bitcoin, however Bitcoin was the first and as such has serious first mover advantage with competing blockchains being crowded out and left in its wake… Bitcoin has the overwhelming majority of the mining power, the coders, the programmers, the venture capital and start up entrepreneurs, in short nearly all of the human ingenuity of the Blockchain Technology space is in Bitcoin, and so Bitcoin dwarfs every other blockchain in value, wealth and scale… Unless Bitcoin dies or gets abandoned because of intractable problems, then these blockchains will never compete with Bitcoin and will scale to the size of their respective user bases… I could go into sidechains here and all sorts of applications and digital currency offshoots that could be built onto the Bitcoin protocol to scale locally, regionally, nationally or by industry but I think this would be over complicating matters and free markets will always seek to simplify and cut down on duplication and waste, so I think the vast majority of local currencies will be based off of the Bitcoin protocol and not money (gold and silver) or a stand alone alternative blockchain, so what form will these local currencies take?

Paper Currencies

We have gold and silver as our first bedrock and backbone, physical money and the base of voluntary exchange… On top we have Bitcoin as a digital backbone, a globally scaleable decentralized and trustless credit system and currency system that will crowd out all the competition and acts another bedrock although by utility and scarcity will also crowd out gold and silver and will be the standard to which everything else will connect to globally and instantly working off either smartphone or laptop… It will be onto first money and then credit, that I envision local currencies functioning, and this will be a physical medium and will take the form of paper banknotes and metal coinage

Life is always a balance, and there are different methods of doing things… Shopping on the internet or transferring large items of property say would suit digital currencies, while there are other times when physical currency would be more intimate and desirable… I definitely wouldn’t call myself and old romantic or deluded reactionary when I say there is a certain utility to paper currency and physical exchange in certain situations, so I envision a future full of paper currencies, but decentralized and localized currencies that scale as far as their locality… While global trade requires digital and globally scaleable currencies, local life and local exchange require the physical and material… The thought of going down the local and getting drunk and paying for my Guinness and whiskey using my i phone strikes me as slightly absurd, and soul-less… Spending money locally requires the local, and paper currencies and coinage… We will have the return of local banking…

The Return Of Local Banking

If you think the idea of local banks is fanciful or the delusions of a mad man, then I would refer you to the last five hundred years of history and of banking, which as a derivative of money, started out local… In my local village in the depths of North Wales, there is a building which until the last few decades was the village bank, so there is historical precedent here and over the West depending how far back you look… Even today in the heavily regulated space of National Fiat Currencies with Legal Tender privilege, you still have attempts at local currencies of which there are a few interesting case studies in the U.K, including the Bristol Pound and the Brixton Pound… Although these currencies are pegged to the British Pound Sterling it does show that if the will exists then local currencies can scale to districts (Brixton) or even cities (Bristol)… And here is where I envision the future of local banking, as issuers of local currency… As I extensively discussed in a previous post, gold (and silver) as money and Bitcoin as credit, are inherently deflationary and change the whole incentive structure of the economy that exchanges in deflationary money and credit, from consumption to production… Scarce currencies will become more valuable over time removing the incentive to take on debt and engage in speculation, and incentivizing production and saving, so I see the overwhelming majority of local banks being issuers of currency only… The question is how this will likely play out?

Fast forward a few years when Bitcoin has killed Banking, and is a stable and globally accepted currency… As we still live (for now) in a financial system priced in dollars, I will express the following values in dollars as a comparable guide… Let’s say the market cap of the Bitcoin credit layer is 21 Trillion Dollars, that is the Gross Domestic Product or value of human ingenuity and wealth using bitcoins as its storage vessel were worth 21 Trillion dollars, when added to and recycled through the Bitcoin maximum cap of 21 Million currency units, would give a bitcoin a value of 1 Million dollars each… One Bitcoin would be equivalent to a million dollarsIt should be clear under this scenario that hardly anything would be priced in bitcoins, but bitcoin can be sub-divided further, in fact can be divided down to eight decimal placesUnder this scenario, everyday transactions would be priced in bits, which is a millionth of a bitcoinWith a bitcoin at a million dollars, one bit would be equivalent to one dollar… So a cup of coffee might cost three bits, a pint of Guinness might cost four bits, and a sandwich might cost five bits… To manifest this unit of digital currency as a physical representation or derivative, you can use paper currencies… Here you can keep history and local traditions intact by simply issuing paper currencies and pegging them to the underlying digital currency, the paper currency a derivative layer and you can call these currencies anything you want… You could call it a pound or a dollar or a franc or a mark or a peso, you can design your currencies to be as colourful and full of detail or as plain and functional as you want, with paper money you can do anything you want… In fact I would expect a whole new online industry to cater for the local currency phenomenon that would specialize in designs, production and counterfeit proof measures to make this paper currency as secure and as usable as possible… And because local currencies would all be derivatives on top of a global digital backbone, they could all be priced in the same unit (bits) and have the same value per currency unit, but they would be identified as pounds, dollars, pesos, marks, francs… All paper currencies with equivalent values could then be interchangeable, and could lead to numerous local currencies scaling regionally… But to be clear, for the introduction of paper currencies you would add an element of risk, that of counter-party risk

Local Banking – A Typical Scenario

There are many reasons for the introduction of local currencies, as a convenient physical medium of exchange, to give a sense of common or shared identity of a people or geographical area, as an attraction for local exchange and tourism… Bitcoin as a globally scaleable decentralized credit system that doesn’t claim legal tender privilege allows human innovation and free markets to operate in the currency space, and makes decentralized localized issue of paper currencies globally scaleable, and will spawn an industry to service it… A typical scenario might involve the community coming together and deciding collectively to accept a local currency or an entrepreneur offering to issue currency on a community’s behalf, the issue of paper currency would be private, and would have to work on trust… You will only trust who you know so the issue of currency will be carried out locally and will scale locally, because you now have counter-party risk… The issuer of currency must be trustworthy, but it would be as simple as setting up a local bank, ordering however many units of paper currency as you thought would scale initially and pegging these currencies to an underlying value, like one bit (the millionth of a bitcoin)… Say you issued paper pounds these customers could deposit a hundred bits in digital currency, and in exchange you issue your one hundred pounds in paper derivatives which could then be exchanged locally by all those who would accept it… The issue would need to be regulated by keeping in reserve an equivalent amount of digital currency for the paper currency units out in circulation, but under local banking only the banker can print himself rich and the scale of his greed and fraud could only be local, which itself is the biggest check on fraud there isWhen banking is nationalized and the printing press thousands of miles away from the reach of the citizens it debases then fraud is easy and unaccountable, but when banking is decentralized and local then the banker is conspicuously weak and dependent upon exchange of people familiar to him, he knows the people he would be ripping off, and more importantly they know him, his family, and where he lives… Trust systems scale best locally, to those you know…

The Banking Premium

The colossal computing power and costs of its running that underpins and maintains the Bitcoin Blockchain, when scaled globally to however many billion people, would become per person minimal… The Bitcoin blockchain when fully scaled will be virtually free to transact onWhen you introduce local currencies as a derivative layer on top, it should be clear you will have additional cost… You now have to pay for bankers, for a physical premises, and the banker will have costs such as the production costs of the paper currency and his own time in reconciling his centralized ledger, so local currency will trade at a premium to digital currency… You will have to pay to use local currency, and it will be a price worth paying for some communities more than others…


A central theme of my writing has been the Centralization vs Decentralization trends of history, and how we are now crossing over from centralized control and centralized institutions, to decentralized governance and distributed voluntary institutions… The internet as a decentralized method of communication, leading to the internet decentralizing trade and global exchange, would inevitably lead to the decentralization of the financial system needed to service decentralized information exchange and trade… Whereas Centralization is a definite point in time as a system can only centralize so far before implosion and collapse, decentralization is not a definite point in time and can always decentralize and distribute further… With the collapse of a centralized financial system will come collapse of Legal Tender Laws that will unleash decentralized and competing currencies… These will take multiple forms from money (gold and silver) to credit (Bitcoin and blockchains) to the return of local banking and local issue of paper currencies that can scale globally…

Money and currency are vessels for the storage of human wealth and ingenuity, and these can take many forms… They can take the form of money in gold and silver, they can take the form digitally like the Fiat system or Bitcoin, and they can take physical form such as Fiat paper currencies… These currencies would all be worthless if people didn’t use them, so these currencies derive their value from the exchange in goods and services and the creation of wealth that is recycled through these units of currency… You create wealth when you get paid and this is added to the value of the currency you exchange in, which makes the currency you choose critically important… When you are compelled to exchange in Fiat currencies, your wealth and ingenuity feeds into a currency that makes you poorer and debases you over time, your wealth creation used to fund wars and welfare schemes and perpetual government over-reach into all aspects of your life, and really is a crime against people… The bankers strip you of your hard work, your wealth, and make you poorer every day of your life because their credit is unconstrained and managed on secretive centralized ledgers in banks and central banks… In short giving your hard work and ingenuity to a criminal financial systems makes your life miserable… When you switch to intrinsically scarce currencies, like gold, silver and bitcoin, the constrained nature of these currencies means that your wealth is redistributed into the currency that manifests in increasing purchasing power and the rise in material living standards that follows, enriching the whole of society at the expense of no-one… These currencies will scale to the value and extent of exchange in them, with gold and silver forming a physical backbone of money, Bitcoin and numerous other blockchains and digital currencies working as a trustless credit layer on top and dwarfing the underlying money (gold and silver) in scale… On top of this trustless credit system that blockchain technology now affords us, will be and explosion in innovation in the production of paper currencies, that will act as a derivative paper layer upon credit and will scale as far as they are used, whether local or regionalThe decentralization of currency and credit will be an exceedingly interesting phenomenon to watch in the coming decade

[Post Script]

Further Developments In The Field Of Local Currencies

Colu Raises $9.6 Million To Promote Blockchain-Based Local Currencies

Bitcoin Donations Gratefully Received:


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