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Escaping Modern Slavery: A Bitcoin Synopsis

According to encyclopedia Britannica, slavery is a “condition in which one human being was owned by another”. However, this definition lacks accuracy in two major positions: (i) firstly, in the assumption that slavery is now a thing from the past, given the past tense used in the definition; (ii) secondly, in the lack of clarity as to the aspect of the “human ownership”, which in practice is similar to the state’s ownership of prisoners sanctioned a life sentence with hard labor - with a double line under “hard labor” - whereby the state would enjoy a self-imposed privilege of using the prisoners’ labor, throughout their remaining life time, for free. Therefore, for accuracy purposes, slavery can be redefined as a condition in which human beings’ labors are used by others for free. Whereby the usage of the present tense, along with the plural form, infers the proposition that slavery is still applicable nowadays, on a collective scale; in particular, each time fiat money is put in use by the state. Now let’s see why this proposition is true, and have always been, since the emergence of fiat money.

Back to encyclopedia Britannica, fiat money is defined therein as a “term, usually reserved for legal-tender paper money or coins, that have face values far exceeding their commodity values, and are not redeemable in gold or silver.” This means that fiat money has no intrinsic value more than the paper and the ink used in its production, but when used by the first owner (aka the state or the government) it would suddenly acquire value, literally out of nothing, represented by whatever figure had been printed on the face of the paper money; a face value imposed, on all citizens transacting with this paper money, by the power of legal-tender laws (laws enforcing the acceptance of the paper money if offered in the payment of debt). This also mean, if we contemplated the matter through the veil of usual practice, that the state/government, by the use of fiat money in the economy, would be exploiting the labor of all parties involved for free; hence, following the slavery notion redefined above, indirectly using said parties as slaves.

Going deeper into the rabbit hole of this modern slavery system, one would reach the real implications thereof: starting with the inflation in prices throughout the economy, as a result of the inflated amounts of fiat money in circulation; and passing through almost all economic crises - currency and banking crises in particular - besides the everlasting economic cycles of (false) growth and recession. Which implications, are proven by their direct correlation with the beginning of the modern slavery fiat monetary system in 1971, in the aftermath of the infamous “Nixon shock”, announcing the end of the golden era of the previous gold-backed monetary systems.

After 37 years of total economic chaos and hundreds of economic crises suffered by all nations worldwide, with no practical mean whatsoever capable of restoring gold’s rightful place into the backbone of the monetary system, as the only solution for said crises; emerges Bitcoin in year 2008 as a feasible replacement of gold and a highly promising solution for the same, enabled by an inimitable digital autonomous nature endowing Bitcoin with the all traits required to truly become gold, but in a digital form.

Venturing into the technical features of the Bitcoin monetary system (falling out of this article scope, and requiring personal effort to thoroughly understand its ingenuity), one would come into the realization that Bitcoin does not only possess all gold’s traits, namely: scarcity, durability, divisibility and intrinsic value; but also none of its weak points, namely: the ability to be transacted over vast distances. Therefore, making of Bitcoin the new enhanced version of gold in replacement of its older version, which became practically obsolete as a universal reserve currency by 1971 onward.

Last but not least, given that: (i) Bitcoin’s intrinsic value, justly acquired by the cost involved in its production (related to the ingenious difficulty adjustment mechanism, a unique technical feature of the Bitcoin system); (ii) the fact that said production is totally decentralized, broadly distributed among Bitcoin producers (known as miners) located all over the world, and most importantly monitored by an autonomous monetary policy (embedded with the system, and enabled by said difficulty adjustment mechanism); and (iii) the absolute scarcity of Bitcoin, capped by 21 millions units, to be produced over the range of dozens of years, approximately until year 2140; makes of Bitcoin the System a non-inflationary, crises-free and slavery-free international monetary system; and of Bitcoin the Currency, a transnational transactional currency replacing national currencies (or circulating alongside the latter), and/or an international reserve currency inheriting gold’s former role, during the golden economic era of the gold-backed currency systems.


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