---------------------------- Original Message ----------------------------
Subject: crypto-currency is not intended to entirely replace fiat
From: AnonyMint
Date: Thu, May 29, 2014 7:48 am
To: "Armstrong Economics" <
armstrongeconomics@gmail.com>
--------------------------------------------------------------------------
http://armstrongeconomics.com/2014/05/27/can-countries-devalue-a-currency-anymore/It is the problem with Bitcoin. People do not understand
money is only an economic language nothing more. The value of any
currency is purely CONFIDENCE. Those who think they can create their own
crypto-currency are living in a dream world.
First they assume that they can take power away from government who has
the capacity to turn off the electricity and send in the tanks. These
people fail to even understand that it is not the currency that is the
problem. It is fiscal mismanagement by government promising huge pensions
and never funding them. Changing the currency will not prevent that
crisis. Those who also think they can conduct business in their
crypto-currency tax free will see how they get wiped out. The IRS files
charges retroactively. They did that to the tax straddles in the 1980s
wiping out people with huge fines and penalties.
Secondly, the value of a currency is purely CONFIDENCE and that is backed
by the TOTAL productive capacity of the people.
...
Those looking for the crypto-currencies fail to grasp the daunting task
and why they are just fools fighting windmills. They would have to
CONVINCE everyone in the world that their new currency is valid. Good
luck. You cannot even get Congress to agree 100% on anything. Even if they
were successful, who would determine the value of the currency? Them or
the free market? You would end up with same system we have today the
floating exchange rate system because people are not robots and we have
mood swings that will be reflected in the value of the currency.
These comments make it painfully obvious that Armstrong does not
understand the global trend underway with the transition from the
Industrial (fixed capital) Age to individual ownership of one's productive
capital in the Knowledge Age. For details on that trend, refer to my prior
writings upthread. Specifically knowledge workers today can produce and
distribute their own work individually without relying on the Theory of
the Firm and finance. The 3D printer is yet another example of this trend
underway.
He is framing the issue with the wrong perspective, thus he entirely
misses the point and thus the correct conclusion.
Crypto-currency doesn't need the entire world's confidence and acceptance.
The sovereign Knowledge Age workers are adopting it. And will use to do
UNTAXABLE(due to perfect anonymity in altcoins that are superior to
Bitcoin) Knowledge Age commerce. Yes the IRS can track ownership in
Bitcoin but they won't be able to for anonymous altcoins.
The rest of humanity will descend into enslavement in a one world reserve
currency and a de facto DEEP STATE that runs the dying fixed capital age
and the concept of the nation-state which raison d'etre was the politics
of finance.
See the one world outcome is the death star of collectivism. Again I refer
him to my seminal article on the Rise of Knowledge:
https://bitcointalk.org/index.php?topic=355212.0Focus on the "Rise of Knowledge" essay and understand why savings must
decay otherwise knowledge doesn't advance.
I expounded on a later blog:
http://unheresy.com/Information%20Is%20Alive.html#Thought_Isn%27t_FungibleArmstrong exhibits complete ignorance of the fact that Satoshi solved the
open Byzantine General's problem, and thus no one controls the value of
the currency. The currency's value is set by the free market and can not
be controlled.
The proof that the currency is valid is created by the value the free
market assigns to it. Bitcoin is valid today at $400+.
Armstrong is stuck in an anarchic idea of government and finance. He is
blinded to the decentralized rise of the sovereign individual in the
Knowledge Age. Thus to his hammer everything looks like a nail. He can
only see everything in terms of government. He can't see the true
revolution going on which government can't do a damn thing to stop.
Let them try to turn off the electricity. Watch how fast the Knowledge Age
workers engineer a solution that bypasses their grid.
Checkmate for the Industrial Age, nation-states, and voting. Those are the
dinosaurs.
When will Armstrong have the epiphany and realize what time it really is?
His model is screaming that I am correct. Yet he is blinded by his old age
and ingrained thought patterns and experience as a hedge fund manager.
He was never a hacker so he doesn't really understand our culture. We are
extremely sovereign.