Wednesday, September 27, 2017

How Bitcoin Makes Wealth

I have recently been getting into bitcoin and all that entails.  The big thing about bitcoin is that it replaces or enforces trust.  Trust is key to all society and is the root force that creates an economy and wealth.  These days, trust is lacking everywhere - I should know - I have lost my fortune due to people I trusted letting me down.
Criminals use trust to gain access to wealth to steal it from others.  Unfortunately these days we also have rampant crimes in high places causing rip-offs on a unprecedented scale (bank bailouts come to mind). Our fiat money systems that run the world are all based on trust and the debt they create due to breach of that trust is causing a near collapse of the global economy.
Naturally people are running to crypto-currencies to protect themselves from the impending crash.

Why is trust so important?

Trust creates relationships and good relationships promote not only more trust but economic efficiency.  Few people realize that much of the worlds economy is held together by huge trust relationships.  We get our gas, our water, and many other services from large systems of trust that often span the globe.  If trust breaks down, relationships dissolve and economic efficiency falls.  Mankind can do nothing without trusting someone else - we simply can't survive as an isolated individual.

If you are seeing wealth disappear, odds are very good that trust is breaking down and relationships are suffering.

Here are some other related ideas I wanted to share with you:

  • Justice promotes integrity and trust.  Lack of justice creates lack of trust.
  • Integrity is a track record of unbroken trust and promotes more trust.
  • Wealth is created by people working together.
  • Better relationships and more trust promote economic efficiency and thus create more wealth.
  • Wealthy people have more to give and giving to the poor promotes equality.
  • Wealthy people have more they can afford to lose and thus they have less risk or can afford to take greater risks.
  • Less  risk also promotes integrity, trust and investment and thus promotes wealth.
This is why bitcoin cannot be stopped.  Our society desperately needs trust and blockchain systems provide the ability to contract with less trust.  We still have some very difficult security issues to deal with in crypto-currency but if we can solve those issues I see a massive increase in wealth coming despite all the criminals running around these days.  Governments (being a high class of criminal in nature) will oppose this but I don't think they can stop it.  
Blockchain systems may in fact be the impetus to drive us into the millennium - a time of great peace and prosperity and wealth.
Now if we just didn't have that problem with the mark of the beast...

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