If you believe conspiracy theories, then you already know that elites hate bitcoin.
Bitcoin disrupts the trillion-dollar global banking system. It frees individuals from state-run currency systems. It gives individuals freedom that governments could never have anticipated. And now that the force, might and strength of Bitcoin has become a global phenomenon, it tees itself up for a lot of outside punishment, scrutiny and accusations.
Let's cover is three main talking points of interest regarding Bitcoin's war with the elites:
- Income Tax and Crypto
- Georgism endgame
Descartablet outlined several reasons why elites and statists are waging a war against bitcoin, including all of the following:
Debased Currencies, Debt, and Inflation Leave Elites in Control
“Debasing/debt is just a way to extract money from the suckers that think they will retire with fiat-related savings and pension funds.”
Governments are debasing their currencies around the world. Some countries have already sold huge portions of their gold reserves. No major fiat currency is backed by the gold standard, at least not since 1971 in the United States.
Descartablet argues that today’s “suckers” think of their wealth in dollars. They assume inflation will be under control for the rest of their lives and pay no mind to the notion that their money could be devalued despite warning signs plastered everywhere on the Internet.
Elites, meanwhile, accumulate assets. They consider fiat just a means – not an end. That’s why they’re okay with pro-inflation policies like quantitative easing (QE).
Sure, individuals can buy real estate to avoid the threat of debased fiat currencies. Descartablet, however, sees real estate as too risky due to tax issues (linked to Georgism below).
Bitcoin counters this inflationary system of debased currencies.
“If crypto wins the war the states will not be able to debase their fiat currency anymore as every penny printed will create inflation.”
Elites Prefer Taxes on Income Because They’re Less Affected
“Elites hate taxes on wealth and prefer taxes on income/spending as they are already rich. They lobbied for centuries to design the tax system for their convenience. They still need nation states but they don't want to pay for them.”
Today, elites generate income through property and assets. Capital gains taxes are generally lower than income taxes. And don’t forget how easy it is for the wealthy to launder money into tax havens around the world, which is another reason why a blockchain-based financial monetary system might suit the world better than not having it.
Crypto counters this system. It gives ordinary people the ability to hide their money:
“Crypto poses a risk to this goal as society will be able to hide complete layers of economic activity from the eyes of the tax collectors.”
If Crypto Succeeds, States Will Implement “Georgism” and Tax Natural Resources to Keep States Afloat
If crypto starts to succeed and ordinary people can lower their income tax burden, then governments will implement an economic system called Georgism, where natural resources are taxed but income is not. There is a lot to learn and digest on this front, but here is how he put it.
Descartablet explains how crypto and Georgism are intertwined by saying the following:
“If crypto wins this war, statists will find it hard to fund the nation states services using debasing or taxing income so they will resort to something different, and if you think a little bit, very fair: Tax natural resources.”
Under this system, a company like Coca-Cola would pass these taxes onto consumers. When you buy a can of Coke, you’ll pay taxes on the land usage of the Coca-Cola plant, the water usage, the waste management, and more. Talk about being at the upper echelon of the pyramid scheme.
Goods and services reflect their natural resource usage. Prices of services drop for consumers. Real estate prices also drop. Elites and statists lose control and individuals gain control.
Final Word: Bitcoin Threatens the Existence of Elites and Statists
Ultimately, the points above boil down to a simple conclusion: people who are currently wealthy and powerful want to stay wealthy and powerful, no questions asked and almost no obstacle is too tough to overcome. Bitcoin, however, prevents that from happening and opens up the door to a whole new world of possibilities and opportunities.
For that reason, elites and statists have launched a war against bitcoin and is very evident given the coordinated mainstream media coverage and so forth.
If their war is successful, bitcoin will fail. Bitcoin will become a symbol of the past – like the global ‘Esperanto’ language in the early 20th century.
But if their war is unsuccessful, bitcoin will not only succeed – it will create a new economic future where today’s elites and statists are no longer in control. This is at the forefront in the fight for the future of finance. Bitcoin's programmable money dreams lie in the shadows, awaiting to be unearthed and polished off, ready for primetime.
And what better time to bring up the fact that we just entered the ripe zone of the bitcoin reward halving set to take place in May 2020. As one analyst put it, Bitcoin's peak outperformance has started to catch fire roughly 90-240 days before the past halving events of 2012 and 2016 – and we just entered that timeframe. This makes the global elite's war on bitcoin just that much more entertaining to see how much influence and power they can produce to impact the price of bitcoin moving forward.
One thing remains clear, be sure to take out the whenlambo-memes.gifs and get your popcorn ready. The spotlight bitcoin has casted has always came with its fair share of double-edged sword takes, but this time around the fireworks are expected to shine brighter and bigger, no matter what way we go up (or even down) the charts.
You can read the full post from Descartablet here.
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