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100 sats \ 3 replies \ @Solomonsatoshi 17 Oct \ on: Bitcoin’s False Dichotomy between SoV and MoE - by Roy Sheinfeld, Breez bitcoin
The real problem is that the governments and bankers who gain their power via fiat do not want Bitcoin to be used as a MoE.
The strategy they have adopted to direct a narrative that defines Bitcoin as a speculative commodity has been very successful. To achieve it they have made any MoE transaction liable for CGT- this makes it impractical to use Bitcoin as a MoE for both consumers and businesses. So in most western liberal democracies where you can in theory use Bitcoin as a MoE people don't. At the same time bankers and governments in liberal western democracies have allowed Bitcoin to be traded as a speculative commodity, (with KYC required) and now allowed ETFs- ETFs which are gradually acquiring custody of Bitcoin held on behalf of investors who cannot use those Bitcoin as a MoE. This sets things up nicely for a Bitcoin Order 6102B- Private custody is banned on the pretext of AML and risk to the USD.
If the US imposed such a ban most other liberal western democracies would probably follow suit just as they have in allowing BTC ETFs since the US did and because most western democracies as well as S.Korea and Japan are effectively both monetary and military tribute states to the US.
The fiat power brokers- the bankers who own our elected representatives do not want Bitcoin to threaten their fiat debt slavery monopoly and that momnopoly is based upon the USDs trade payments hegemony- the petrodollar system that is the USAs most powerful remaining strategic asset.
The people might want money that is free but governments and bankers don't.
Nearly all governments currently obstruct use of Bitcoin as a MoE and that is proof enough that they do not respect our freedom above their access to monetary power and leverage.
It is naive to believe Bitcoin will triumph simply because it offers individuals better monetary integrity- few if any people live free of nation states and the demands they impose upon citizens.
Bitcoin might only triumph if enough citizens demand the right to use Bitcoin as a MoE unobstructed.
I think eventually, in the long run, people will demand that they use it and be able to use it. It will go through a legislative or democratic process of some kind. Then when the people want it to be a MoE and want to use it frequently... they will be able to use it legally 100%. It's government by and for the people.
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Problem is we don't have government by and for the people we mostly have government owned by the corporates who sponsor politicians. The banks are prime sponsors and with the governments they sponsor they operate the fiat debt monetary system which gives them and their client governments huge power.
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I think the economic impacts, the economic effects... are too strong with btc. It would be like a country trying to artificially prop up its currency relative to something else that is 'harder money' or less inflationary. They can do it for a while but only for so long. Eventually just people want it. They want to save it, buy it, and I believe transact in it if it's practical.
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