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Expulsion of the merchants from the temple by A.N. Mironov

Bankers fear cryptocurrencies while developers don’t understand the problem

Central bankers worldwide can already see the end of their exploitation coming thanks to cryptocurrencies. The head of the Bank for International Settlements (BIS), Agustín Carstens, now wants programmers to stop trying to create money:

In an interview with a Basel-based media outlet on June 30, Agustín Carstens took aim at cryptocurrencies and reiterated his belief that they represent “a bubble, a Ponzi scheme and an environmental disaster,” according to a transcript published by the BIS on Wednesday.

Asked whether he agrees that cryptocurrency has had a positive impact by making young people think about money, Carstens asserted that cryptocurrencies don’t have the core features to be a currency. As such, the BIS head contended that the activities associated with cryptocurrency represents an effort to create money out of nothing.

“Young people should use their many talents and skills for innovation, not reinventing money. It’s a fallacy to think money can be created from nothing,” Carstens said, adding:

“Glance back into the past and you will see that creating gold or money from nothing has been a regular obsession. It never worked. … So my message to young people would be: Stop trying to create money!”

Carstens’ remarks about money not being able to be created from nothing is hilarious when you consider the fact that the central banking system that we have worldwide today has been doing exactly that for centuries — creating money out if thin air, while robbing the people of their wealth via inflation and usury, and keeping them in perpetual debt-slavery. So fuck you Carstens, you fucking hypocrite.

Carstens, like most bankers, probably sees the destruction of the exploitative central banking system coming thanks to cryptocurrencies and is panicking. The BIS sits at the very top of this system of monetary enslavement and controls the global monetary system. Ronald Bernard, a former insider, has recently shared a lot of information about how this perverted central banking system operates.

The fight is far from over however. I mentioned before that the bankers are going to try to co-opt cryptocurrencies and force themselves as middle men to the general public. And if the developers of cryptocurrencies are ignorant about the exact problems that cryptocurrencies should be solving, then chances are that the bankers will have their way yet again.

For example, when Satoshi Nakamoto created Bitcoin, there was a specific set of problems that they were trying to solve — problems that we’ve been struggling with for thousands of years now. I discussed these problems in details in my post “On money, Bitcoin and cryptocurrencies in general”. And it seems that the developers who now have control of the original Bitcoin code don’t understand any of these issues. While the cryptocurrency should be easily accessible to everyone and payments should easily be made, they’ve created a barrier to entry via their “fee market.” Anyone who wants to do a payment on the Bitcoin blockchain potentially faces high transaction fees which will result in keeping many people out because they can’t afford the fees, or, severely limit the amount of transactions that they can afford to make. I recommend watching Rick Falkvinge explain this in a video on YouTube (embedded below).

This is, of course, exactly the type of scenario bankers would like to have, and is exactly what Satoshi Nakamoto wouldn’t want. The reason why Bitcoin was introduced was specifically to make it easy for people to do almost instant, direct (without middle men), international financial transactions at low cost in order to circumvent the exploitative central banking system. The “fee market” isn’t helping with that and in fact is making things worse, so much so in fact, that the exploitative central banking system seems a more attractive alternative to use. Think about that for a moment.

What the “fee market” is actually doing is creating a bottleneck or choke point in the system that makes it difficult for people to adopt it and makes it difficult for the system to grow:

Chaum focused on circumventing the surveillance-capabilities of digital cash; bitcoin’s pseudonymous creator (or creators) Satoshi Nakamoto focused on eliminating the ability of trusted third parties to prevent or reverse transactions—the very capability that allows the kind of financial censorship encouraged by Operation Choke Point. These cryptocurrencies are attempts to create vents and pockets of freedom inside the future cashless world.

Their success has been, at best, dubious. I needn’t tell you about the viability of ecash. If you’ve heard of it, you already know; if you haven’t, that tells you everything already. As for bitcoin, while it has certainly seen greater adoption, the digital currency has been hit with increasing regulation, concentrated on the bitcoin exchanges which trade government currency for bitcoin. This regulatory trend has recreated the very same bottlenecks and choke points that Satoshi Nakamoto sought to circumvent in the first place.

So not only are governments creating bottlenecks and choke points, but the Bitcoin developers who took over from Satoshi Nakamoto have ironically introduced a choke point into the system themselves via the “fee market.” While the banks are creating their own choke points, for example by preventing their customers from buying cryptocurrencies with their credit cards, the Bitcoin developers should have focused on lowering the barriers to entry for Bitcoin, not making them higher.

Fortunately there are developers who have recognized the irony of this and have created a fork of the original Bitcoin code. The original Bitcoin code is now known as “Bitcoin Core” (BTC), while the forked code is known as “Bitcoin Cash” (BCH) and tries to stay close to what Satoshi Nakamoto originally envisioned. I suspect that the decisions that have been made by the Bitcoin Core developers that cripple Bitcoin are actually being made or encouraged by people behind the scenes who are funding the Bitcoin Core developers and whose interests are aligned with the traditional central banking system. It appears that they are slowly managing to co-opt Bitcoin Core.

One of the important things that I’ve learned from these developments is that giving people knowledge and solutions to problems won’t help them much if they aren’t able to understand exactly how to use it and exactly how it will help them solve their problems. In the worst case they might even be so stupid to misuse that knowledge and create even bigger problems, and in fact if we’re not careful “a cashless society could embolden big brother.” Satoshi Nakamoto gave us technology that we can use to solve some important problems, but if we don’t fundamentally understand how and why to use it, we’re going to make the same mistakes again that we’ve made in the past.


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