Bitcoin The Stateless Emergence – Bitcoin Magazine: Bitcoin News, Articles, Charts, and Guides

Bitcoin transcends the nation-state and all expectations that come along with being associated with a fiat standard. Let’s talk about what it means to be a state currency so that we can understand Bitcoin’s transcendence.

How Fiat Is The State

Fiat currency, by definition, is a government-issued currency that is not backed by a commodity, such as gold. Governments manage nation-states and control the supply of fiat currency — this can be referred to as M1 supply, which encompasses most physical representations of money.

Now, most of us (speaking from the western point of view as an American), do not currently have all of our money as cash tucked under our mattress, or nestled into a physical wallet which we carry around daily. Most of us use a bank because it is unsafe to carry all wealth as cash that can be taken by force, if you’re one of the lucky few that possess too much cash to carry.

When you agreed to bank that state-issued currency that the government can increase the supply of, therefore devaluing your cash (inflation), you were required to do a couple of things. The first requirement was you needed to be 18 years old (excluding tailored accounts). Why did you need to be 18? Because you need to be legally capable of making bad decisions and sticking your name on them so they can come after you.

Be the first to comment

Leave a Reply

Your email address will not be published.