Tag Archives: blockchain

Bitcoin, Blockchain, and the end of money as we’ve known it

Whether one likes it or not, the end of money as we’ve known it is at hand. From a more or less conventional perspective it may look something like what David G.W. Birch describes in his Forbes article, Payments In The Metaverse Will Be Huge, But They Won’t Be Based On Cryptocurrencies (Or People), but my view is rather different. Still, Birch highlights the three main issues that we both agree are crucial: trust, security and privacy.

I long ago concluded that ALL of our institutions, systems, and structures of western civilization have been thoroughly corrupted by greed and the hunger for power which are reactions to false beliefs and artificial scarcities. I take that as given and try to avoid being distracted by it while trying to keep my attention and energies focused on what I think I can do to change things. What that has meant for me has been to learn everything I could about the money system as it exists — its inherent dysfunctions and dishonesties, and to discover and develop better ways of performing the functions that money is supposed to serve, especially the function of reciprocal exchange of value. The decentralized allocation and control of credit is the key to creating an honest, efficient, and sustainable system of exchange, and there are well established ways of doing that without the need for political fiat monies. Many of these systems, like the WIR Economic Circle Cooperative and the scores of commercial trade (“barter”) exchanges, have been operating successfully for many decades or longer.

What remains to be done are:
1. The optimization of the procedures and protocols used in credit clearing systems like the scores of commercial trade exchanges now operating in many countries around the world, such as the optimizing prescriptions I’ve made in A Model Membership Agreement for a Credit Clearing Service contained in my book, The End of Money and the Future of Civilization, and,
2. The development of effective ways of dealing with interference from governments, banks, and the vested interests that is sure to come when these competing systems become big enough to be perceived as a threat to the status quo.

I consider the wave of cryptocurrencies that has emerged since the launch of Bitcoin to be attempts to address the second of these objectives by providing virtual commodities that are generated outside of the government/banking system and to hopefully provide some degree of anonymity and privacy in value exchange transactions. Those motivations are all well and good but reverting to the use of commodities, either virtual or real, as exchange media takes us back to a more primitive stage in the evolution of the reciprocal exchange process, and unlike real commodities, they have no inherent use value other than their use as media for speculation. Add to that the fact that the primary motivation in the creation of most “cryptocurrencies” or virtual “coins” has been profit seeking by their creators, and what we have now is a milieu that is littered with “shitcoins,” corruption, and fraud. It’s very difficult and time consuming to dig deeply enough to evaluate each new entry into the field, and I see no advantage in doing so.

However, the use of blockchain technology that accompanied the creation of Bitcoin may have a useful role to play in a credit clearing network or private credit currency as a way to create exchangeable “token” vouchers that represent a claim upon real valuable goods and services that the issuer has promised to deliver. Such vouchers would be real currencies.

Questions that need to answered about any currency:

  1. Who is the issuer?
  2. What is the value basis upon which the currency is issued?
  3. In what units is the currency denominated?
  4. Is the issuer, ready, willing and able to redeem the currency?
  5. Is the issuer credit-worthy, reliable, trust-worthy?
  6. Do they have the goods on hand or sufficient service capacity to deliver promptly?
  7. What are the terms of redemption? In what form? When? At what rate in relation to the units specified (face value, discount, etc.?)
  8. In what form does the currency exist? Paper notes, Physical tokens, Digital tokens, Ledger entries?
  9. What other characteristics of the currency contribute or detract from its use as an exchange medium?

If you want a comprehensive overview of my work and my vision, you can get most of it in the presentation I gave last year for the University of Hertfordshire.
https://beyondmoney.net/2021/11/27/transcending-the-present-political-money-system-the-urgent-need-and-the-way-to-do-it/, and if you want a deeper understanding of “the money problem” and its most promising solutions please read my book, The End of Money and the Future of Civilization, which is even more pertinent today than it was when first published.

Fake News, Fake Money, How to Tell the Difference

Why is it so hard these days to tell fact from fiction? Who can be trusted to tell us what’s really going on? Can the New York Times and Washington Post still be believed? And what about money? Can we still trust the dollar, the euro, the pound sterling? What supports national currencies, anyway? Is this Bitcoin thing real or fake money, and should I buy some?

Here’s a compelling presentation by Andreas Antonopoulos, that addresses all of these questions. Antonopoulos is a technologist and entrepreneur and probably the most knowledgeable and insightful expert on bitcoin, blockchain technology and the profound changes that lie just ahead.


Here’s the YouTube link: https://youtu.be/i_wOEL6dprg

Now take a deep dive into the political realities of our time by watching this presentation by CIA officer Kevin Shipp, in which he exposes the Shadow Government and the Deep State. If you question his credibility here is a brief bio from Information Clearing House:

Kevin Shipp, former Central Intelligence Agency (CIA) officer, intelligence and counter terrorism expert, held several high-level positions in the CIA. His assignments included protective agent for the Director of the CIA, counterintelligence investigator searching for moles inside the CIA, overseas counter terrorism operations officer, internal security investigator, assistant team leader for the antiterrorism tactical assault team, chief of training for the CIA federal police force and polygraph examiner. Mr. Shipp was the senior program manager for the Department of State, Diplomatic Security, Anti-Terrorism Assistance global police training program. He is the recipient of two CIA Meritorious Unit Citations, three Exceptional Performance Awards and a Medallion for high risk overseas operations. Website/book: fortheloveoffreedom.net

Here’s the YouTube link: https://youtu.be/rQouKi7xDpM

Is Big Brother coming to the blockchain?

Financial advisor Jim Rickards thinks so. In a recent article titled, The Global Elites’ Secret Plan for Cryptocurrencies, he says,

“…the crypto-hysteria is distracting you from a scary truth no one is talking about. There is every indication that governments, regulators, tax authorities, and the global elite are moving in for the crypto-kill. The future of Bitcoin may be a dystopia in which Big Brother controls what’s called “the blockchain” and decides when and how you can buy or sell anything and everything. Furthermore, cryptocurrency technology could be the very mechanism used by global elites to replace the dollar based financial system.”

Rickards goes on to say “Blockchain does not exist in the ether (despite the name of one cryptocurrency) and it does not reside on Mars. Blockchain depends on critical infrastructure including servers, telecommunications networks, the banking system, and the power grid, all of which are subject to government control,” then lists a number of significant developments involving major banks, governments, and supra-governmental organizations like the IMF, all relating to their plans to legislate and control the use of blockchain technology, including its use in virtual currencies and financial transactions.

Can they really do that? Of course they can. In the mid-1800s, the U.S. government imposed a tax on banknotes issued by private banks driving them out of circulation; in 1933 the government made it illegal for private individual to own gold, requiring them to surrender their gold holdings in exchange for government sanctioned paper money at the arte of $20.67 per ounce of gold.

What will be the popular response to such measures against virtual currencies? Will people docilely comply, or will there arise massive disobedience and flaunting of the law, just as occurred in the 1930s during Prohibition, and has been ongoing more recently in the war against drugs? If there is such an uprising, I think it will be in defense, not of Bitcoin, but of some yet-to-be-created virtual currency that rewards virtuous behavior and contributions to the common good. –t.h.g.





Bitcoin, Blockchain Technology, and Crypto-Currency

There has been lots of chatter lately about bitcoin, blockchain technology, and crypto-currency. Everyone, including me, is trying to wrap their head around it all. This is what I’ve come up with so far:

  1. Bitcoin is a virtual commodity that is created by running some obscure algorithm. The people who get rewarded are the “miners” who burn up enormous amounts of computer time and electricity to create Bitcoin. That makes it akin to mining gold or silver—not a very useful pursuit, and like any commodity, people will prefer to use it as a savings medium or hedge against inflation rather than circulating it as a currency. Bitcoin is NOT the answer to the money problem.
  2. The important thing about blockchain technology is what it can do, what functions it can perform. You hear a lot about “smart contracts” and a secure trail of transactions. It seems to be something that is needed when using digital forms of contracts and transactions conducted over the internet, but provides no new functions compared to what has always been done with paper trails and records, but maybe I’m missing something.
  3. The term “crypto-currency” is ill defined and there is much confusion about the characteristics of such a currency and what it can achieve.
  4. The fundamental principles of reciprocal exchange still hold. The substance of a currency or payment medium is CREDIT. Claims still need to be authenticated and promises need to be guaranteed.

My grand, audacious vision is this:


What they might have is skills, abilities, products, services and credit that is advanced by a circle of people who know them and trust that they are ready, willing, and able to deliver value on demand in the near term.

I have argued that the truly disruptive technology of exchange is a global network of small credit-clearing circles that provide “a means of payment that is locally based and controlled yet globally useful. It makes money and banks, as we’ve known them, obsolete.

My talk in Malaysia in October at the International Forum on Inclusive Wealth (http://ifiw.my/) will be on that topic and will build upon the framework that I laid out in my book chapter, https://beyondmoney.net/excerpts/chapter-17-complete-web-based-trading-platform/. –t.h.g.

#     #     #