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Bitcoin breaks that up – political fragmentation versus decentralized collectivity

Bitcoin breaks that up – political fragmentation versus decentralized collectivity, Crypto Trading News

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The Greek polis a city-state is viewed by most historians as the prototype of the modern structure in Western society. As a closed city-state, each polis would have its own political system, its own economy, its own military, local political weight, and its own relationships with its neighbors.

Most of the Greek city-states such as Athens, Mycenae and Sparta were practically always at war with one another, and this later gave rise to the broken political landscape of ancient Greece.

The incessant internal bickering, fierce rivalry, growing warmongering, and harsher rhetoric directed against both opponents and so-called allies we see on the sociopolitical spectrum today resembles many of these premodern conditions.

With the United States becoming increasingly divided through interracial and bipartisan clashes and the European Union bordering on authoritarianism, it is becoming clear that new instruments of social governance and elite influence are needed to prevent the world from sliding into conflict on a global scale .

The advent of such a populous means of social governance might be tempting, as decentralized currencies are proving to be one of the most powerful disruptive forces that both governments and their financial vassals fear.

In 2021 we saw how Bitcoin has started to sway the political sphere and influence the narrative more than WikiLeaks. The strong resistanceBitcoin is encountering from all levels of government is evidence of its growing power.

Digitization as a way to real democratization

While crypto is an asset class that is in the context of a larger macroeconomic process posed by the threat of real inflation, Hyperdigitization and general social disorientation is driven, gaining the most attention, less attention paid to political processes is expected to increase in the coming years. The more Bitcoin and permissionless networks take root, the more influence and attention libertarian principles like decentralization will gain.

The Republic of El Salvador, a tiny nation in Central America, proved to be the state with the most political will and vision when it announced the introduction of Bitcoin as legal tender in September 2021. President Nayib Bukele later announced American Bitcoin and on the Latin Blockchain Conference with his plans to build Bitcoin City in the eastern part of the country of La Union.

Bitcoin City is likely to become a tax haven for wealthy crypto investors as it will be tax free up to 10% VAT. The construction of Bitcoin City is said to be funded by Bitcoin bonds issued on Blockstream worth $ 1 billion.

Bitcoin is a major innovation in terms of the rationalization of power, providing opportunities for countries and communities on the periphery to assert sovereignty, reinvent their economies, and engage in new forms of local wealth generation. Game theory suggests that smaller developing countries will be the first to shape this new paradigm, as they recognize its potential for stimulating economies. Larger institutions and economies will be forced to join as Bitcoin begins to erode the status quo.

Back to the polis

While Bitcoin plays a central role in the decentralization arena as the epitome of virtue and role model, alongside Bitcoin there is room for innovations that enable more use and scalability of localized applications.

The Lightning Network is a well-known example of improving the Bitcoin network as a layer 2 payment solution. It should enable fast transactions between the participating nodes and should solve the scalability problem. Projects like stacks are also gaining in importance. Stacks is designed as a blockchain, which through its Consensus mechanism connected to Bitcoin, takes advantage of the security and attractiveness of the Bitcoin network and also opens up new possibilities for DApp provision.

One could say that the largely fragmented blockchain network space resembles the political landscape of ancient Greece with its many polis city-states. It seems that modern society is beginning to imitate this structure in its method of applying decentralized technologies.

The latest trend towards CityCoins takes up the demand for self-sovereignty in economic terms. The concept of a CityCoin includes the issue of Cryptocurrenciesthat allow their owners to support their favorite city while generating returns in Bitcoin and Stacks tokens. Right now, Miami, Austin, and New York City appear to be supporting their own city-based cryptocurrencies, made possible by the Stacks protocol that powers CityCoins.

MiamiCoin (MIA) is the first CityCoin to hit the market in August, grossing approximately $ 21.3 million, proving to be a financial hit and encouraging other cities to jump on the trend. Next up was NewYorkCityCoin (NYC Coin), with official mining starting on November 10, 2021. NYCCoin also rewards users through the Stacks protocol and will likely be backed by Austin Coin soon.

Satoshi Nakamoto designed a network that could be limitless, and although they had referred to sidechains and other such projects that would be integrative with Bitcoin, some might say that CityCoins deviate from Satoshi’s original purpose. It could also be argued that these projects help push various jurisdictions forward in order to have a crypto-based economy Bitcoin to pass as the main level.

Not to their liking

While Blockstream CEO Samson Mow stated that the founding of Bitcoin City will make El Salvador the financial center of the world, most politicians were less enthusiastic about Bitcoin’s growing influence on the global scene.

Hillary Clinton was tough on the introduction of Bitcoin and undermining the dwindling dominance of the US dollar on the global economic scene. Clinton said

“What looks like a very interesting and somewhat exotic attempt to literally mine new coins in order to trade them has the potential to undermine currencies, undermine the dollar’s role as a reserve currency, destabilize nations, perhaps starting with small ones.” but much bigger. “

The politician insisted on weaving in the proverbs and phantoms that haunt her party’s geopolitical line, adding:

“We’re not just looking at countries like China or Russia that manipulate technologies of all kinds to their advantage. We are looking for non-state actors either jointly with states or alone Destabilize countries, destabilize the dollar as a reserve currency. “

El Salvador’s Ambassador to the United States, Milena Mayorga, showed that smaller countries have the wisdom to hold their societies on course for the future when she responded to the numerous comments following President Bukele’s announcement of Bitcoin City. Mayorga said

“We have to have the conversation, but we’re an independent country, so [the US has] to accept our movement and to understand that we want to bring ourselves to another level and with a system of definitions. “

Blinded by the fear of change

Let’s start with these recent comments from the President of the European Central Bank, Christine Lagarde.

Christine Lagarde talks about #Bitcoin

– Dennis Parker (@Xentagz) November 27, 2021

The term gerontocracy begins to show its relevance on the world political stage, where innovation and urgently needed change are neglected in favor of persisting old feuds and courses that are no longer sustainable in the context of progress.

Crypto doesn’t fragment the economy like Hillary Clinton believes – IInstead, it offers a more democratic approach to the governance of a system that is both frozen and not inefficient in the face of modern demands and possibilities.

We are on the brink of changes as significant as when the world deviated from the gold standard or when the Bretton Woods system was reached after World War II. The changes ahead will affect the lifeblood of the global political system Finances the only and most important leverage that the political elites do not want to do without. Times are changing.

Ben Caselin is Head of Research and Strategy at AAX, the first crypto exchange powered by the London Stock Exchange Group’s LSEG technology. With a background in creative arts, social research and fintech, Ben develops insights into Bitcoin and decentralized finance and gives the strategic direction at AAX. He is also a working member of Global Digital Finance (GDF), a leading industry body dedicated to accelerating and adopting digital finance.

Featured image: Shutterstock / GrandeDuc

Bitcoin Fractures This – Political Fragmentation Versus Decentralized Collectivity first appeared on The Daily Hodl.


Source: Crypto News Deutsch

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