Bitcoin Forum
March 30, 2017, 08:42:04 PM *
News: Latest stable version of Bitcoin Core: 0.14.0  [Torrent]. (New!)
   Home   Help Search Donate Login Register  
Pages: [1]
Author Topic: Soveriegn Debt Crisis and the Arab Spring Coupled with the Debt Ceiling  (Read 733 times)
Offline Offline

Activity: 5

View Profile
July 30, 2011, 03:17:36 AM

What is money except an agreed medium of exchange between two parties. Bitcoin seems to answer a huge question at a critical time in history; why does currency need to be sovereign?
The internet and current computing power means that computing control is really more democratic and universal and need not have government involved with my money if the software and infrastructure is there to allow me to bypass them. This may not be of top concern in a first world country with rule of law and sound banks; however in a country undergoing the Arab Spring where the currency is devaluing with no cheap safe haven bitcoin becomes a timely answer.
In Greece where the default is being delayed as the underlying structural problems are not addressed the chance to decouple from the Euro default and convert to bitcoin would seem a very viable option. Such actions would cause an increase in inflation and interest rates in the EU and indeed globally. In turn a rush to bitcoin could ensue as the hedge against this inflation.
As I write this commentary I am one of the first 35,000 members to bitcoin. The study of internet bubbles and their expedited growth could culminate in bitcoin because it is bigger than music, larger than a social site and more important than search engines; it is the reinvention of money.
As bitcoin is designed to be inherently deflationary it allows the crisis of the debt ceiling as the tipping point to allow the replacement of sovereign currency. Money is an agreed upon medium and is premised on trust. Whether trust really exists, with fractional banking allowing for the financial mess as it exists, is a matter to be measured by the exponential flow of global currencies into the bitcoin.
This process would remove sovereign government's direct ability to tax without consent. This means as well that without economic cooperation from participation with sovereign currency the political power of the central state may be greatly diminished. It would seem difficult for the Peoples' Republic of China to have their Army commit human rights abuses in the absence of being able to pay their soldiers as their currency has devalued to worthlessness. This could have implications globally for armaments, health and education as well as free trade and rule of law.
Please post your comments.
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
Hero Member
Offline Offline

Posts: 1490906524

View Profile Personal Message (Offline)

Reply with quote  #2

Report to moderator
Sr. Member
Offline Offline

Activity: 301

View Profile
October 04, 2011, 08:04:23 PM

Pages: [1]
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!