I’ve always considered myself a left-wing progressive type…or, in my opinion, someone who takes pride in putting people’s daily needs ahead of the interests of corporations or the rich.
I grew up in a coastal city with liberal parents, went to progressive schools, and could spit Marxist critiques of anything you throw at me. The equitable distribution of wealth across classes – and the narrowing of the wealth gap – has been at the forefront of my political consciousness as far as I can remember.
Fast forward to learning about Bitcoin and I quickly began to understand the current economic injustice Paper money policies, and how to use government control of the US dollar to “make the rich richer” at the expense of almost everyone else.
When countries are in economic trouble for any reason — from irresponsible use of debt to unexpected challenges like a pandemic — they will print a new currency (also known as expanding the money supply) to pay anyone they see fit, which are usually creditors or capital asset holders, aka Also on behalf of the current wealthy.
In this process, the purchasing power of the average person’s salary decreases. When there is more money in the economy, everything becomes more expensive, especially things that are harder to make more of – like real estate and goods.
Until I started learning about Bitcoin, I didn’t Is that true Understand what was causing Asset prices rise, such as real estate. I just knew it was happening, and it was happening faster than I could keep up.
Younger generations, of course, are disproportionately affected by these policies – even high-income millennials will struggle to own homes in the cities where they are likely to work.
Most millennials will still rent permanently because the price of real estate has far outpaced wages, all of which is killing the American dream.
But fortunately, and uniquely, this particular economic problem may have a relatively simple solution: one that does not depend on the outcome of an election, a disorganized legislature or any other governing body beyond our individual control.
Enter Bitcoin – a digital currency that is designed to be non-inflatable (that is, no one can “print” more of it) and not be controlled by a central administrative body. The network runs on thousands of independent computers without any single primary authority.
Unlike other inflation-resistant assets, such as gold or real estate, bitcoin is incredibly accessible. There is no minimum investment to buy bitcoins and you can store as much or as little as you like on a flash drive in your studio apartment. You don’t even need a bank account to buy bitcoin. Head to your local “Bitcoin ATM” with some cash in hand and boom – you own a rare financial asset that cannot be inflated far. Of course, if you Act You have a bank account, no need to get out of bed. It takes less than a minute to buy bitcoins on any number of mobile exchange apps.
Yay for the “common guy”, right?
A great equivalent to the average working person, Bitcoin immediately felt in line with the values I grew up with…until I was struck by cognitive dissonance to learn that many of my “people” – the most obvious people like Elizabeth Warren and other left-leaning Democrats – seemed to have prejudices. stronger negative Against Bitcoin than those from the right.
Why do Democrats hate Bitcoin? I said to myself.
After doing a little research and talking to some savvy economic friends, what I learned wasn’t all that surprising.
First, from the perspective of direct political theory, ideologically left-leaning people tend to trust a central government to “fairly” distribute wealth rather than trust free market economies. The left is generally pro-government (especially when it comes to finances) and Bitcoin has been deliberately designed to resist government control.
Bitcoin was essentially born out of libertarian ethics – a word many leftists hear skeptically.
It was unfettered “free capitalism”, after all, that led to the subjugation of the working class and the subsequent riots of the era of Standard Oil and US Steel. Without government intervention and the advent of antitrust laws, it is entirely possible that capitalism today looks more like feudalism than the relative financial freedom we enjoy today.
Aside from the skepticism, there is also a practical argument for government control of the currency — one that most bitcoin users don’t like to talk about — that government-controlled currency allows us to avoid or mitigate economic downturns.
It would be difficult to avoid a full-blown pandemic depression, or a complete banking meltdown as happened in 2008, if the government were not able to “rescue” whomever it saw fit with newly minted money.
In theory, this type of printing provides jobs (the most important determinant of quality of life for the majority of the country) and in some cases, new money is distributed directly to working and low-income people as was the case with the Covid-era stimulus checks.
However, when looking deeper into this reality, the lion’s share of the money that was printed during the pandemic did not He moved on to creating jobs or stuffing the wallets of ordinary citizens, but instead he went to save the stock market and the interests of other asset owners.
According to the Washington Post, a fifth of the US stimulus distributed during the pandemic only went to individual citizens, while the majority went to businesses that were not required to show whether they had been affected by the pandemic and were not required to use the money in order to keep people working.
Another clear example of stimulus being used to save the rich rather than the working class was in 2008 when stimulus was used to bail out banks (creditors) that issued predatory loans rather than stimulus to bail out debtors – the ordinary working people who were the victims of such predatory loans in the first place.
All this to say, if anyone wants to claim that government should be able to control the money supply, then they must also be held accountable for how those dollars are distributed. Unfortunately, neither side of the trail has a proven track record in this regard.
When you look at the history of money – all the way back to ancient Rome – for centuries, government control of currency has always been used to widen the wealth gap, not narrow it.
Roman emperors often devalued silver coins by adding more bronze or tin in order to increase the money supply – windfall gains were often spent on wars of conquest and grandiose architectural projects. Likewise, Henry VIII was famous for lowering gold bullion with copper to enhance his personal lifestyle and to finance sieges throughout Europe.
The history of currency devaluation is very clearly related to irresponsible spending by governments at the expense of civilians, with very few, if any, examples to the contrary.
This saddens me. I actually You want To live in a world where wealth can be distributed fairly by a trustworthy government. But I understand more and more why many think that hope is naive. It is because of an observable history of thousands of years of governments using devaluation for the benefit of the few rather than the many.
If there’s anything I’ve learned from hanging out with Bitcoiners, it’s that millennials, many of whom are progressive voters in general, are joining this group after learning how current monetary policy is rapidly destroying our chances of accumulating wealth.
I recently heard a friend say at a Bitcoin meetup, “I’m a vegan environmental activist — and suddenly I found myself agreeing with Ted Cruz on Elizabeth Warren.”
Until we see legal monetary policy that actually works for us (which I don’t have), I want to store my money in an inflation-safe asset that I can easily afford, maintain, and maintain.
In other words, I’m buying bitcoin.
This is a guest post by Isabel Fuchsin Duke. The opinions expressed are their own and do not necessarily reflect the opinions of BTC Inc. or Bitcoin Magazine.