How Bitcoin Undermines the “Currency Wars”
A Reuters news article reported that China’s currency fell. The falling yuan has affected “exchange rates” between the dollar and other monies, possibly igniting a “currency war.” These export-hiking battles result from government’s control over money creation. The article hinted that the Chinese purposely deflate currency to alter trade rates to their advantage. Other currencies also rise and fall in value as governments arbitrarily manage minting it and engage in economic disputes; this manipulation of the currency determines economic growth within their relative geographies as well, which is why they relish the power.
Also Read: China’s Bleeding Stock Market
Reuters opened with China’s False Promise:
The devaluation sparked fears of a global “currency war” and accusations that Beijing was unfairly supporting its exporters, but the central bank on Wednesday sought to reassure financial markets that it was not embarking on a steady depreciation.
The problem with currency-printing is glaringly obvious; central authorities have too much power over money. When they exercise dominion over currency supply, it means people who use it must place total trust and faith in governments. They have to believe government will not create currency bubbles, or cause economic catastrophes. Not a smart move. Horrible idea. Why should anyone trust people who cannot spend money responsibly? Why should they trust politicians who battle other politicians for control of money value? Why trust murdering warlords? This is an insane proposition. The notion of a currency war dictated by government monetary control is the same as toying with the lives of innocent people. If a nation-State makes the wrong economic decision, people die. They starve to death. There is no need to trust untrustworthy and dangerous bureaucrats with responsibility. They are irresponsible children.
The only “currency war” that should exist is currency competition, which is where cryptocurrency comes in. Crypto-money stops government instigated currency wars, stops artificial control, stops monetary games of thrones, stops the centralized honeypot of sociopathic money-printing tyrants.
Bitcoin cannot be used to foment a currency war because it is not centralized; individuals are in control of their own money, keys, and wallets. People do not have to worry about government’s making a mistake and causing the economy to crumble. Of course, there is fear that without quantitative easing an economy may not function properly and people may starve. Competing cryptocurrencies solves this problem. If one cryptocurrency gets hoarded or becomes ineffective within society, people are free to use other crypto-monies, and thus swap the value, and keep society running. The solutions are built into competitive cryptocurrencies and the free market that borne them. It is only governments poor and unscrupulous money management that destroys economies and kills people.
Governments use brute force and guns to run society. The same brute force is what they use to deflate or inflate currency and effect economics. The Chinese control their society with compulsion, and thus they control the yuan. They are using it as a tool for political control, whether they admit it or not. People have to stop relying on centralized trust to run society. Luckily, the rise and adoption of Bitcoin is what will help put the dark ages of monetary control behind humanity. Do not trust governments. Trust private keys. Trust the self.
Do you think Bitcoin can end the Currency Wars?
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