Gold invites violence while fiat funds violence. Capitalism encourages and rewards peaceful agreements. In fact, capitalist economies are statistically less likely to go to war with one another. It is no surprise that we are currently living in the most peaceful time in history right now and that is largely due to a globalized world where economies are simultaneously dependent on each other’s success. It is much more beneficial to work with a country than to go to war with them if doing business with them makes you rich. Additionally, countries are less likely to go to war with one another if they are forced to give up their natural wealth or sound money.
“Trade between peoples creates peaceful coexistence by giving them a vested interested in each other’s prosperity. When communities use different kinds of unsound money, trade becomes more complicated , as prices vary along with the variation in the value of the currencies, making the terms of trade unpredictable, and making it often counterproductive to plan economic activity across borders….Conflict is by its very nature destructive, and in most cases, intelligent and future-oriented people understand that there are no winners in violent conflict, because the winners will likely suffer more losses than if they had just abstained from taking part in the conflict in the first place. Civilized societies function on the premise that people respect on another’s wills, and if there are conflicts, they attempt a peaceful resolution.” (Ammous, 2018)
Henry Ford understood this dilemma quite well. In the early 20th century, he and Thomas Edison went out in a bold attempt to replace gold with units of power. The goal was simple: Replacing gold with energy would essentially put a full-stop to wars.
The cause of all wars is gold. If you displace gold as the basis of currency and substitute in its place the world’s most imperishable and incorruptible natural wealth-energy, you will effectively end wars. “The essential evil of gold in its relation to war is the fact that it can be controlled. If you break the control, you stop war. And the simplest way to break the control of these international bankers, the way to end their exploitation of humanity forever, is to remove gold as a basis for the currency of the world.” (New York Times, 1921) It is simple-Decapitating central control banking by decapitalizing them. What Ford set to do, Bitcoin accomplished.
Additionally, if the US and other countries alike, do not accelerate change in this once in a generation opportunity to protect digital property, it can effectively lose its global influence and likely dominance as other countries quickly move away from the weaker performing currencies and into harder forms of money. Contradictive to what the experts say, governments will not choose what the hardest form of money is. Society will.
As of now, millions of people are beginning to dump their savings and put it into harder, non-manipulative assets that are not debased by unelected central planning figures and politicians. Bitcoin is uncensorable, unconfiscatable, indestructible wealth and its global adoption is growing faster than the internet did in 1997. The world is witnessing people exit the current monetary system, forfeit their dollars for Bitcoin faster than central bankers can get away with printing currency. Businesses are catching on. Banks are catching up. Countries like El Salvador have embraced freedom and individual sovereignty and is already years ahead as their country’s legal tender is now back by renewable volcanic energy. Central Banks will be forced to deal with this or face extinction.
Governments face a similar existential crisis. Bitcoin will drastically stop conflict since funding of wars with fiat currency is not possible under the Bitcoin network.
Historically speaking, empires lose their influence when they begin to debase their currency. Currently, nations are dumping the dollar and using other forms of payment and going around the USD system to exchange goods with one another. Currencies under the administrative influence of central control are immediately set up for failure as a handful of individuals are responsible for the purchasing power of a given currency. This intermediary is costly, corrupted, and over any significant period of time has a 100% failure rate. If there is corruption in the base layer of money, there will be corruption everywhere else.
The reason countries are dumping the dollar is because the value of their private property is being manipulated and debased under a fiat currency where 40% of its supply was printed in the last 18 months. The war in Afghanistan cost US tax payers $2 Trillion. That is roughly $300 million every day for 20 years. Fiat money has the capability to fund endless wars since central banks have the ability to create endless amount of currency.
Typically, when trust in a fiat currency is lost there is a rush to more sound money or stronger money: i.e. gold. However, since gold is violent by nature and typically under the control of the few, it can be difficult to exchange one for the other. The 21st century has instead delivered a portal gun for other countries and people to teleport out of flaming pile of weakened fiat currency and allows them to transfer its purchasing power to the Bitcoin network.
That being said, if the US and the rest of world wants an opportunity to achieve the type of peace they claim they want, then the adoption of the Bitcoin network is an absolute critical move towards that goal.