Bitcoin and government activities
Bitcoin is an economic experiment that puts a controversial question. Given that money is the engine of civilization, are they likely to be decentralized? That is if money is so crucial in all aspects of our lives, is it possible that they are not dependent on governmental and banking institutions, that is, about 1% of the population about whom they started to speak in 2009? Is it possible for money to be controlled not by central banks but by citizens/users? Can corruption in monetary policy thus be eliminated by replacing it with a loyal competition?
The results of the experiment have not yet come out either positive or negative. The experiment is still in progress,and it is not known whether the bitcoin will become a currency. This is not the first attempt to “privatize” money, but it is the longest one.
Bitcoin has already eight years on the market,and the largest audience ever that had a coin without governmental validation. Even though the term “ecosystem” is already out of date, it describes very well what is happening on the market. There are several “species” involved (users, businesses, foreign exchange, related technologies) and a broader territory (underground and above ground economy, criminal environment and political environment, activist environment and speculative environment). Check out this URL.
Interestingly, beyond the economic experiment, there is a substrate for a socio-political experiment. Will the masses enjoy more freedom and more responsibility, or less responsibility and limited freedom? Is it really possible to change the way in which societies are governed, from a stratified and opaque to a collaborative and transparent one? How can the bitcoin make this change?
The series of corruption-related articles may seem very well restricted only to ideologies for better functioning of society. Moreover, we want to make money, don’t we? However, all these applications of the blockchain will be put into practice at some point by someone. That one will undoubtedly earn more money from creating protocols than from speculation on the volatile market we are experiencing today.
Fiat money competitors and corruption in monetary policy
All capitalist markets are based (or should be found) on a fair competition where the best offer made to the public wins.Contrary to political rhetoric, power is not in the hands of voters, but in the hands of the financially powerful. Too few people understand the economy. Even if economic principles are relatively simple, they are artificially complicated to exclude citizens’ control.
The fiat money had no competition over time. Bitcoin is at the moment is the fiat money competition.There is no limit to the amounts of money that can be issued by the central banks. Central banks can print astronomical sums anytime, according to their needs. This is how inflation is created – citizens’ money is devalued. I have seen the example of the Zimbabwean dollar (ZD). The government has printed money with unquench. The biggest banknote is one billion dollars,and it’s worth a bus ticket. Moreover, the currency devaluates with each passing hour. So, who might want to be paid in the middle of the month with a few trillions of ZDs, so that by the end of the month they have just a few papers in their wallet from which they can buy ten eggs?Even if the sovereign state has not officially switched to another currency, citizens do not accept ZD, but only US dollars, which devaluate in turn at a much slower pace.
Why would not citizens move to a digital coin? The more bitter the mark will become more prominent, the more governments and central banks will become more aware that there is competition on the market and that they have to give real value to the money emitted by them. Another option would be the ban on the bitcoin, but it is almost impossible to fight the windmills. So, over time, we could see a market competition between cryptomonads and state economies. As for bitcoin, you should check out a software called Bitcoin Trader for more info.
The mere existence of bitcoin and its success on the market can correct government activities.
Managing public money on the blockchain
Public money is almost elusive. Although they represent citizens’ contributions to the development of the country they live in, only a small part is used for this purpose. In general, wages in politics are high, and the higher the corruption in a country, the more the balance of these wages is to the detriment of community development.
Yes, we all want to build infrastructure, health systems,and environmental protection or education systems. No one wants to sit after the eight hours of work at the workplace and manage the construction of the railways or ensure that employees at the airport control tower in town get their salaries. In addition, there is a need for a central head that has all the data on building and development permits. That is why citizens are staffing in politics, where they have to deal with such community problems. They are paid employees who are given access to the public money they have to manage.
This is done opaquely. We can get some prominent figures about citizens’ contributions, we know the gross domestic product and net domestic product, but it is hard to follow the path of public money with some bureaucratic instruments and, especially, in a corrupt state where there is no intention to provide citizens with complete information.
Now, think about the blockchain register. The blockchain register records all transactions made between wallets. A sent 5btc to B. B received 5btc from A and sent 2btc to C. Each transaction is irreversibly recorded in the blockchain, in a pseudo-anonymous form. We do not know the identity of B, but we know that B received 5btc from A and sent 2btc to C. So we know one of the critical data, the amount traded between the parties.
If we replace the A, B and C pseudonyms (represented by alphanumeric public addresses) with the citizens of a city, the transport ministry and the private company providing disinfectants for public hospitals, then we could follow the blockchain from the citizens’ money to the state-run public company. If the malicious aunt X, the aunt of the prime minister’s aunt, who also gets into his 2btc wallet, appears in the equation, we will know that public money was not used as it should and that it is draining into a non-service account public.
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Obviously there is a blood competition between a corrupt state and citizens. As citizens use their own weapons (vote and mass protests), politicians use the weapons they create through a legislative – parliamentary immunity, lack of transparency in administration, tricky language, and tortured registers.
If citizens were to impose transparency on governments, corruption could otherwise be under control. And would not it be great if we were sure that politicians interested in community development led us? For now, we are talking about a utopia, as all states face a lower or higher degree of corruption. However, the instruments exist. We only need to ask for their implementation and be much, much more vocal.