Blockchain: open source money

“Blockchains are just distributed transaction processing engines. The technology allows you to store data in a variety of places while tracking the relationship between different parts of that data. Most people who try to explain blockchains like to compare them to a book. A transaction such as a currency change or addition new device to the network, it is recorded in a chain, and anyone can track what happened. That’s why law enforcement is so fond of Bitcoin – digital footprints are easy to trace. Fortune Technology, Stacey Higginbotham, May 29, 2015

What if we lived in a world where global access to money was available to everyone? Money can bring the globe closer to the speed of digital technology as a decentralized and cooperative peer-to-peer process – a top-down banking system is not needed. Trust relationships occur automatically through digitally signed transactions without permission, destroying the inevitability of poverty. Will this be a huge step for humanity?

Such is the utopian dream of technology developers. The next generation of computer networks is preparing to surround the world for the greater good. Welcome to the supposed blockchain (financial) transformation of the world.

Ignore it at your own risk.

My article for May 2016, Power behind the throne, discusses the mostly imperfect but steady progress towards a cashless society using blockchain technology, and has thoughts on who actually wins. This could end in a giant leap for the banking industry, which will gain omnipotent control over our financial operations. Article by Bloomberg, Inside a secret meeting where Wall Street checked digital money, May 2, 2016, representatives of Nasdaq, Citigroup Inc., Visa Inc., Fidelity, Fiserv Inc., Pfizer Inc. attended. and others.

Enter 2017 and a documentary that is created for inspiration and admiration: The Blockchain and Us. Some say 2017 will be the year when this technology enters the mainstream; others say it’s just too risky.

The feature film presents “leaders” from around the world praising the value of open source money, grassroots and cultural bottom-up game changes initiated by bitcoins in 2008. Blockchain technology and its potential impact are comparable to how the introduction of the aircraft has changed society; It is said that the structure of the financial services industry in 20 years is 100% transformed into digital. It is also expected that blockchain technology:

  • Affect each industry as a “valuable” platform with military-level cryptology

  • Create a generational change in technology, an opportunity capable of “bringing people out of poverty”

  • Post what they called “smart” contracts

  • Make a profound shift in how the Internet can be used to create new forms of value and new ways to deal with value

  • Create new jobs through automation

Here you are … Blockchain and us. However, people like me cannot see commensurate personal gain. Give the meager financial privacy left to us to the Goliath banking industry? It seems to me we may have no choice, since “little” people seem to be a unit of income, just for travel.

However, using cash and paying as you go has obvious and perhaps less obvious benefits:

  • Choice

  • Confidentiality of transactions

  • No bank interest (overdraft, credit cards, loans, lines of credit, etc.)

  • Possible 5% discount on request

  • The fiscal responsibility that the use of credit has destroyed

  • Restraining the instant gratification of thinking is easy to encourage

  • More personal time, if you keep up with debt, means working harder / faster

I think life in the material world makes it easy to forget that the full definition of wealth involves more than just accumulation. The intangible riches of personal well-being and peace of mind are priceless until they are overlooked and underestimated. Instead of a utopian dream, imagine: we no longer make unnecessary purchases, with money we don’t have to impress people who don’t really care about us. If more people made a habit of using cash, we could strengthen our own money management skills towards creating real wealth, as well as send a message to those who own gold.