Joshua Henslee talks about the debt-based money system and how ‘crypto’ sold out

A topic of great interest to many in the digital currency industry is how the debt-based monetary system works and how Bitcoin can change it. In a recent video, BSV developer Joshua Henslee talked about it extensively.

Thoughts on the monetary system based on debt and on debt in general

Henslee provides a high-level overview of the Federal Reserve, central banks, and how the debt-based monetary system works. Explain how for most people, this system is something like contract bondage; most people accumulate debts and work all their lives to pay them with interest. He points out that he is not saying that debt is wrong, but is simply saying that this system leads most people to a life of debt repayment, which compares to future claims in their time.

Henslee discusses some famous quotes about central banking, including “Let me issue and control a nation’s money, and I don’t care who makes its laws.” by Mayer Amschel Rothschild. In his view, Rothschild knew that central banks could do whatever they wanted, including inflating the money supply, and that the majority of the public would remain alienated. That said, he says he has noticed that more people are waking up and becoming aware of this system. For example, you hear a lot of ordinary people talking about inflation. People are becoming aware of how this system works.

Going deeper, Henslee observes how most people who take out loans don’t take inflation into account. Interest is an element of loan repayment, but the dollars that people earn are also being constantly devalued, making it harder to pay off debt in many cases. Satoshi Nakamoto himself spoke about how central banks have historically degraded fiat currencies through inflation in their first public publication on Bitcoin.

It covets both systems and the many sides of debt

The few who could understand the system will be so interested in its benefits or depend so much on its favors that there will be no opposition of that kind, while on the other hand the great body of people, mentally incapable of understanding the tremendous advantage. that capital derives from the system, it will bear its burdens without complaint, and perhaps without even suspecting that the system is contrary to its interests. – Mayer Amschel Rothschild

While this quote explains how our current financial system works, Henslee points out that it applies perfectly to the current situation in so-called “cryptography.” Those who understand how the system works (essentially like a pyramid scheme) are so intoxicated by the wealth and benefits it has brought them that they will not fight. At the same time, the masses remain ignorant, buying various currencies in hopes of some financial relief or easy riches.

Henslee briefly deviates from how banking is supposed to work. Banks are supposed to lend money to value creators (entrepreneurs) at higher interest rates than they pay depositors. However, they were unable to resist the urge to take a greater risk by operating in a fractional reserve system in search of greater profits. Once again, Henslee points out that this is how many operations in the digital currency industry work. They even created their own money printer (Tether) to feed their greedy ambitions. It is also the mentality of many space speculators; double-digit annual returns aren’t good enough – they want 100x bombs on their coins quickly.

Concluding this section, Henslee points out that non-participation in these systems is the third option. While debt can be used to enslave, and it can also be used to make money by those who know how to use it to buy assets, you can also choose not to participate in the debt-based system and be released.

Bitcoin was supposed to be cash

Henslee opens this segment by pointing out that the title of the Bitcoin White Paper clearly indicates that this is a peer-to-peer ATM system. “Money is an asset,” he recalls.

However, neither Bitcoin nor other digital currencies behave like cash today. Henslee discusses how Coinbase recently used BTC as collateral to take out a loan from Goldman Sachs. He considers this pathetic, given that Bitcoin was supposed to compete with the fiat money system.

“The full circle has arrived,” he says, clearly exasperated by the situation.

In Henslee’s mind, this kind of thing is happening because BTC has failed as cash and also because there is no real liquidity in the markets. Lending real dollars against Bitcoin is a way to get money out of the system, and this could be the new tactic used by those looking for fiat currency in exchange for essentially worthless tokens. Notice that if BTC were expendable as money, there would be no need to do so. The other possibility, he speculates, is that Coinbase (NASDAQ: COIN) is out of money, which is worrying in itself.

Finally, Henslee returns to Mayer Amschel Rothschild’s previous quote. “People are just giving in to the old system,” he says, noting that Coinbase, a company that is supposed to challenge banks and the financial system, is now doing business with one of the main architects of the 2008 financial crisis. since BTC maximalists often talk about how Bitcoin was created as a solution to that crisis.

Fortunately, Bitcoin is alive and well in the form of Bitcoin SV, so there is still hope for change.

Don’t miss the first BSV Global Blockchain convention at the Grand Hyatt in Dubai from May 24-26. Book your tickets today!

New to Bitcoin? Check out CoinGeek’s Bitcoin for beginners section, the ultimate resource guide for more information on Bitcoin, as Satoshi Nakamoto originally had it, and blockchain.

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