May 14, 2018
Decentralization: Decentralization is the process by which the activities of an organization, particularly those regarding planning and decision-making, are distributed or delegated away from a central, authoritative location or group. Concepts of decentralization have been applied to group dynamics and management science in private businesses and organizations, political science, law and public administration, economics and technology.
The process of decentralizing the current monetary system is something that will take multiple years, we need to educate people, and need to adapt as much as possible. The governments and banks won’t let us change the whole world without a hitch, but together we are and will be the strongest.
Someone shared the following sentence with me about cryptocurrency the other day: “fuck the technology, i want to make profit” this is a very blatant statement. See, wanting to make “profit” or “money” is not something you need to be ashamed of, it is completely normal considering the modern financial system. However, while being in the process of making profit with this new technology, this person will end up converting this decentralized virtual money to physical centralized cash, known as fiat money.
“I think the internet is going to be one of the major forces for reducing the role of government. The one thing that’s missing but that will soon be developed, is a reliable e-cash.” – Nine years later, Bitcoin was born. – by Professor Milton Friedman, 1999
Converting cryptocurrency to dollars, euros or yen will only slow down the advancement of the decentralizing process we have been working so hard on ever since 2009 and before. Slowing down this process is one thing, but saying that you don’t care about the technology which is bringing us more freedom is even worse, and that goes for a lot of things. It is a healthy process to understand the things you work on and for everyday, especially when we are talking about money, whether it is cryptocurrency or fiat, knowing how money works is important, because you will spend a large portion of your life working towards it.
“I want people to understand money first, before they dedicate their whole life to it”
Decentralization will also improve a lot of financial situations such as, getting rid of the illusion called “owning money” you don’t own your money, the bank does. The account balance on your bank account is known as a demand deposit. Under our Fractional Reserve Banking (FRB) system, your deposits are used by the banks to leverage lending. What most people think of as their account balance is actually something very different. Many people mistakenly believe that their account balance shows how much they own. This isn’t the case. Instead, it shows what the bank owes you. You merely hold a claim on cash. Knowing this will help you understand that bank deposits are actually loans. Once our entire financial system is decentralized with cryptocurrencies, you will actually have ownership of the money you have.
“Governments get their power through central banking and control of the money supply, and cryptocurrency takes that away from them”
In short: decentralization is improving this world, step by step, you either slow down the advancement by working with something centralized, or make it stronger through adaptation to decentralization, it is dependent on the people, fight for freedom, a free financial system: The Modern Financial Slavery System
- Monetary System: A monetary system is the set of institutions by which a government provides money in a country’s economy. Modern monetary systems usually consist of the national treasury, the mint, the central banks and commercial banks.
- Cryptocurrency: A cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
- Fiat Money: Fiat money is currency that a government has declared to be legal tender, but it is not backed by a physical commodity. The value of fiat money is derived from the relationship between supply and demand rather than the value of the material that the money is made of. Historically, most currencies were based on physical commodities such as gold or silver, but fiat money is based solely on the faith and credit of the economy.