Cryptography as the hangman of capitalism

There are many different methods of organizing society, such as socialism, communism and capitalism, which have been in vogue in the past. They all have one thing in common, either as a goal or as a side effect – power and control are concentrated in one central point. The system began with the Industrial Revolution 19. and In the 20th century, and the basic idea is a free market economy, competition and private ownership of the means of production. However, pure capitalism does not exist anywhere in the world today, there are various hybrids and neocapitalism is very common, dominated by multinational corporations and large corporations. However, experience has shown that neocapitalism is certainly the most unsustainable and self-destructive of them all.

The system is designed to be based on growth. Growth and higher profit numbers than human values have gone unnoticed. However, according to the law of conservation of energy, growth can always come at the expense of someone or something, in this case at the expense of the environment and humanity itself.

The facts show that humanity has consumed more resources in the last century than in its entire existence. At the same time, various studies show that people’s happiness is at an all-time low. One of the most common problems is stress and depression. In other words, on the one hand, we have burdened our environment, and on the other hand, we are not happy, quite the contrary. Why?

Man is comfortable by nature and is often afraid of ignorance or the future. That is why we have been slaves to capitalism as much as to the system.

This is where the evolution of cryptocurrencies, led by Bitcoin, comes in, which has great potential to radically change today’s situation. Let’s take a closer look at this potential.

1. Economic engine

The variables regulating the economic engine of capitalism are the centrally controlled exchange rate and controlled inflation. According to economic theory, this is necessary to keep money depreciating in a changing economy and thus stimulate consumption. On the other hand, it means that the economic engine is essentially the destruction of the environment.

However, the most common form of cryptocurrency, Bitcoin, is deflationary money. Both its maximum number of units and its occurrence in units are mathematically limited in time and fixed when creating a system with rules. This means that Bitcoin rather limits consumption and automatically creates the right supply / demand balance in the market. In theory, in such a market, people’s own self-fulfillment needs, motivation, acceptability and sense of belonging could become much more important drivers of profit numbers and business growth. Very often we read another story about how a businessman is very rich and secure, but he himself admits that something is still missing. What is this?

2. Decentralization.

The modern banking system is a centrally controlled and managed centralized system. However, it is also a much more vulnerable system than cryptocurrency as a decentralized system. It is enough to break the center and the rest of the hirearm is paralyzed. There is no center point for cryptocurrencies. The information about the values is equally and securely divided into small parts among all users of the system. Users who join the system automatically accept the system rules. This design is much stronger and more dynamic. As long as there are certain prerequisites for the system to function, such as energy, faith and users, it is virtually impossible to paralyze and manipulate the system internally.

3. A real free market economy.

The so-called a liberal free market economy is not really free because it pays off for big corporations. As growth and profit margins are more important, small start-ups are at risk of being bought over before they become competitive or liquidated with various sanctions. Of course, there are some exceptions, but only exceptions. As a result, we are seeing the disappearance of competition in various areas and the concentration of control and power in the hands of large corporations.

Let us imagine a market in which cryptocurrency is used as a means of circulation, the value of which will increase in the long run. Purchasing power is emerging, where consumers first think seriously about whether or not they still need a thing or service, because keeping value in cryptocurrency increases over time. On the other hand, there are traders who regulate the price of their goods according to changes in the value of money until their goods are bought out. In such a market economy, quality becomes more important than quantity, and this also calls for prudent consumption and effectively restricts the credit market. As profits and growth are less important, more competition, choice and the need to control and buy competitors will disappear.

In conclusion, I sincerely believe and hope that the evolution of cryptocurrencies will significantly improve the world we are draining from capitalism today and the environment that is fading under it, laying the foundations for a completely new, perhaps still unknown, happier and more sustainable social order. And we can all successfully contribute to this by using different cryptocurrencies.