It’s become really easy to get lost with all the volatility and headlines present in Bitcoin lately. The various altcoins are becoming more and more distracting, albeit ever-useless, and new entrants into the space continue to make us forget the real reason why we are here. Unfortunately, the people behind these schemes simply don’t understand what a crucial time we are living through.
Bitcoin is a fix to the current corrupt system.
Traditionally, governments collect some percentage of goods and services produced and manufactured in their respective economies in the form of taxation (the inescapable evil which everybody hates). The state takes the taxes from productivity, then collects and reinvests this into the country. These investments could be anything, from infrastructure to the military. The original purpose and function of all governments (past and present) and taxation is to protect the people, to protect the country, and to build out the infrastructure. Ideally, there is an alignment of incentives where what is good for the people, is also good for the government. By reinvesting these tax receipts back into the economy, the country grows and is able to modernize its infrastructure, thus allowing everyone to become more productive.
Higher productivity coupled with reinvestment of tax revenue grows an economy and thus grows its overall tax base. A government can collect more taxes the more production grows. Organic growth of an economy disincentivizes the government from raising tax rates.
Today however, our economies are being heavily driven by central banks. Enter “money printer go BRRR!” Our economies are driven by excessive quantitative easing. Rather than funding government spending with tax revenue and keeping a balanced budget, central banks put up new money to buy government debt, thus allowing the government to spend beyond its means. The key issue with a central bank driven economy where the government can have its central bank simply print…