Culture

A Nation of Individuals?

Published

1 month ago

November 14, 2024

It is the prospect of the sovereign individual that seems to most trouble the nation-state today. This odd threat perception has been the outgrowth of a political genealogy that, in the generations since the American Revolution, has increasingly come to equate the state with society while constellating the individual as the enemy of both. This equation would have been profoundly disconcerting to the founders of the American republic, who called forth a new national project precisely to preclude the abuses of an entrenched and predatory overclass—an aristocracy—that deemed itself the rightful custodian, in perpetuity, of the fate and best interests of a people. The political question animating America’s founders was, therefore: How can a people self-govern without creating a hereditary class of governors? How can sufficient tension, if not conflict, remain between state and society that the rule of law is preserved without becoming a prison?

The founders devised an ingenious solution to this problem based on a revolutionary premise: That the rights of the individual, not those of the state, are fundamental for a free society.[1] In other words, people have rights; governments do not have rights. Governments have powers, but only those powers that are explicitly delegated to them by the people they represent. Put more precisely, the people have the totality of enumerated and unenumerated rights, while the state has only those powers explicitly enumerated. Any actions taken by agents of the state outside of their enumerated powers are a usurpation of the people’s rights. The people must safeguard these explicit limits and can take the enumerated powers of the state back at any time.

In other words, the American founders reversed the dominant political assumptions in their cultural world: It was not the people who had to prove that they were deserving of rights, that they were innocent before the law, or that they had cleared themselves of inherited obligations to the state. Rather, it was the state that bore the burden of proof: That it was worthy of trust; that it had the power to take a particular action; that any person or entity was guilty under the law; or that its war powers should be exercised with the people’s blood and treasure. Concretely, this meant that during the era of the US Constitutional Convention, when the debate between the Federalists and Anti-Federalists raged, a formative consensus emerged that the American state would have no power of its own, no money of its own, and no army of its own. The American Constitution stipulated that all of these things would be effectively on loan from the people, in whom true sovereignty resided.

But things have changed profoundly since the Constitution was ratified. Not only did America establish a standing army quickly thereafter; that army has been engaged in almost unceasing warfare—over a hundred conflicts both foreign and domestic, declared and undeclared—since that time. While most Americans today would likely be familiar with the large-scale conflicts in which their nation has participated—the Revolutionary War, the Civil War, and two world wars, for example—they probably would be surprised by the majority of the wars in which the United States has been involved. During the nineteenth century, those wars were fought mostly against American Indian tribes as part of the push to colonize the West, while during the twentieth century they were waged predominantly against socialist and communist movements around the world. Twenty-first-century conflicts, in turn, have been prosecuted under the banner of the war on terror and, more recently, the containment of adversary nations. Although the Constitution grants Congress the sole power to declare war, in practice, Congress has only declared war in a few major conflicts: The War of 1812, wars against Mexico and Spain, and wars against particular belligerents in the First and Second World Wars. The rest have been waged through some form of unilateral executive action, whether by presidential decree or by the determination of military officers.

Just as the US government now seems to have its own army, it seems to have its own money. In 1913, Congress passed the Sixteenth Amendment, giving it the right to levy permanent income taxes on the American people; estate taxes, gift taxes, capital gains taxes, and corporate taxes followed soon thereafter, while other permanent forms of taxation have been introduced in the decades since. This money has since come to be widely referred to as “government revenue” rather than “the people’s money.” But the federal government does not confine its spending to the people’s money; rather, it borrows extensively, supporting a ballooning administrative state whose agencies are so numerous and ill-defined that there is no authoritative reference for exactly how many there are. The Federal Register, the Online Federal Register, the US Government Manual, the Sourcebook of United States Executive Agencies, the Unified Agenda of Federal Regulatory and Deregulatory Actions, FOIA.gov, and USA.gov all list widely differing numbers and definitions of agencies.[2],[3] These agencies function as both rulemaking and rule-enforcing bodies, collapsing all three branches of government (legislative, executive, and judicial) into one in their own operations. This eliminates the checks and balances that the authors of the Constitution put in place to constrain the power of the state, subjecting the American people to a growing thicket of laws that they have had no part in making and have no electoral capacity to alter or repeal. As a result, an illusion is created that the government has its own power.

But while military conflict, taxation, and bureaucratic rule are all visible manifestations of the power of the state, they are underpinned by a platform that seems so normal and ubiquitous today that it largely goes unnoticed: A financial system in which central banks issue and manage the supply and price of unredeemable fiat currencies. These currencies serve as the base money that commercial banks, in turn, use as reserve assets to make loans. Commercial banks and central banks around the world form a network of financial intermediaries who share with each other information about every transaction that passes through their networks—which is also shared with the military, intelligence, and policing agencies of governments and intergovernmental organizations worldwide. Government’s gaze into the economic activity of every person and organization anywhere in the world is effectively unconstrained by any privacy laws or constitutional provisions regarding search and seizure of assets. This alliance between banking power and policing power took hold during the early twentieth century in what can be called the Banker Revolution—a revolution so successful that few are even aware it happened.

The Satoshi Papers, a project by The Texas Bitcoin Foundation and edited by Natalie Smolenski, will be available for pre-order on November 19th in paper back and limited Library edition.

[1] Thomas Jefferson’s original draft of the Declaration of Independence read “We hold these truths to be sacred & undeniable; that all men are created equal & independent [emphasis added], that from that equal creation they derive rights inherent & inalienable, among which are the preservation of life, & liberty, & the pursuit of happiness.” See Thomas Jefferson, “Image 1 of Thomas Jefferson, June 1776, Rough Draft of the Declaration of Independence,” Library of Congress, https://www.loc.gov/resource/mtj1.001_0545_0548/?sp=1.

[2] Clyde Wayne Crews, “How Many Federal Agencies Exist?” Forbes, July 5, 2017, https://www.forbes.com/sites/waynecrews/2017/07/05/how-many-federal-agencies-exist-we-cant-drain-the-swamp-until-we-know/?sh=535830391aa2.

[3] Molly Fischer, “What Is a Federal Agency?” Federal Agency Directory, Louisiana State University Libraries, March 28, 2011, https://web.archive.org/web/20130518150541/http://www.lib.lsu.edu/gov/fedagencydef.pdf.

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Culture

Why Bitcoin is the Most Islamic Money

Published

2 weeks ago

December 10, 2024

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The Islamic conceptualisation of finance is built around a set of core principles which give primacy to honesty, fairness and accountability in trade and transactions. As such, Islamic finance seeks uphold justice, transparency, and shared prosperity in economic systems. Arguably, fiat currency achieves the exact opposite of these principles, since it introduces uncertainty, speculation and inequities that punish the poor, who earn and spend fiat, and favours the rich who invest in assets that benefit from inflation. In this backdrop, Bitcoin emerges as a solution that aligns remarkably well with Islamic finance principles. This article explores why Bitcoin, with its decentralization, transparency, and scarcity, represents the most Islamic form of money, offering transformative potential for the Muslim world.

The foundational principles of Islamic finance include:

1. Prohibition of Riba (Usury):

Interest-based lending, where money generates money without productive activity, is strictly forbidden in Islam. Riba fosters exploitation, concentrates wealth, and undermines social equity.

2. Prohibition of Gharar (Uncertainty):

Transactions should be free from undue speculation or ambiguity. Clear terms and honest practices are paramount.

3. Asset-Backed Economy

Trade and transactions should involve tangible assets or productive activities. Wealth must be earned through legitimate means, not through gambling or speculative bubbles.

Islamic finance emphasizes equity-based partnerships where profit and loss are shared, ensuring mutual benefit and fairness in all financial dealings.

5. Justice and Equity:

Wealth distribution should serve societal needs, promoting fairness and reducing economic disparities.

One could very credibly argue that the current fiat-based monetary system flagrantly violates these tenets. Central banks set interest rates that underpin the entire fiat system, institutionalizing usury. Money created out of debt inherently generates unearned profits for lenders while indebting others, fostering exploitation and inequality. The fiat system disproportionately benefits those closest to the source of money creation (e.g., banks, governments) at the expense of ordinary people. This “Cantillon Effect” exacerbates wealth inequality, violating Islamic values of equity and justice.

Fiat currencies are prone to inflation and devaluation due to their unlimited supply. This creates uncertainty and speculative behaviour, further destabilizing economies and harming the most vulnerable. Unlike gold or tangible assets, fiat money is not backed by any physical commodity. It is merely a promise of value, eroding trust and violating Islam’s emphasis on tangible, asset-backed wealth. Centralized control of money by a few institutions undermines accountability, fosters corruption, and allows governments to manipulate currencies to serve political agendas, often to the detriment of their citizens. These systemic flaws have led to financial crises, inequality, and the erosion of societal trust.

Bitcoin, the world’s first decentralized digital currency, aligns closely with the ethical and economic teachings of Islam. Bitcoin operates without interest-based mechanisms. Its decentralized nature ensures that no central authority can create money out of thin air or profit unjustly through usury. Every Bitcoin transaction is recorded on an immutable public ledger, the blockchain. This ensures honesty and accountability, eliminating the uncertainty associated with opaque fiat systems.

Bitcoin’s supply is capped at 21 million coins, making it a deflationary asset. Its scarcity mirrors the attributes of gold, historically accepted as sound money in Islamic societies. Unlike fiat money, Bitcoin is not controlled by any government or institution. Its decentralized network empowers individuals and fosters equity, aligning with Islam’s emphasis on justice and fairness.

Bitcoin is not a speculative promise; it is earned through “proof-of-work,” which requires significant energy and computational effort. This tangible cost of production imbues it with intrinsic value, resonating with Islamic financial principles. Bitcoin allows anyone with an internet connection to participate in the global economy. This inclusivity aligns with Islam’s vision of reducing economic barriers and promoting universal access to financial resources. Through its adherence to these principles, Bitcoin offers a viable alternative to the exploitative fiat system, paving the way for a more just and equitable financial future.

Adopting Bitcoin on a wide scale could revolutionize the Muslim world, unlocking unprecedented economic opportunities. Many Muslim-majority countries suffer from chronic inflation, eroding the value of their fiat currencies and impoverishing their citizens. Bitcoin’s deflationary nature provides a hedge against inflation, preserving wealth over time. Millions of Muslims remain unbanked due to lack of access to traditional financial services. Bitcoin’s decentralized system allows individuals to store and transfer wealth securely without relying on banks, fostering economic empowerment. Muslim-majority countries are among the largest recipients of remittances. Bitcoin enables faster, cheaper, and more secure cross-border transactions, reducing reliance on costly intermediaries.

By decentralizing money creation and eliminating the privileges of central banks, Bitcoin ensures a fairer distribution of wealth, addressing economic disparities that plague many Islamic societies. Bitcoin’s transparent system facilitates the development of Shariah-compliant financial products and services, promoting ethical investment opportunities in line with Islamic values. Bitcoin enables nations to reduce their dependence on the US dollar and other foreign currencies, strengthening their economic sovereignty and resilience. By enabling trustless, borderless transactions, Bitcoin fosters trade within the global Muslim community, encouraging innovation and economic integration across nations.

Bitcoin is more than just a technological innovation; it is a financial system rooted in justice, transparency, and equity—values deeply embedded in Islamic teachings. As the Muslim world grapples with the challenges of fiat-based economies, Bitcoin offers a path toward economic independence, financial inclusion, and societal prosperity. By embracing Bitcoin, the Muslim world can align its financial systems with the timeless principles of Islam, paving the way for a fairer and more sustainable future.

This is a guest post by Ghaffar Hussain. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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2024 Election

Bitcoin is Neither Racist, Xenophobic, nor Misogynistic: A Response to Ideological Stereotyping

Published

4 weeks ago

November 27, 2024

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Just hours after the U.S. election results were announced, I received messages from friends filled with striking assumptions. Some congratulated me, mockingly saying, “Congrats, your side won for Bitcoin.” Others expressed disapproval with remarks like, “It’s pathetic!” and “I’m shocked that Americans just voted for Hitler.” One friend said, “You were lucky to find safety in the U.S. as a refugee under Biden’s administration. Refugees and asylum seekers will now face a harder time here, but, hey, it’s still good for your Bitcoin.” Many of these friends work in high-level corporate jobs or are university students.

As a Green Card holder, I was not eligible to vote, but I recognize their huge disappointment in seeing their preferred candidate lose. Their frustrations were directed at me because they know I support Bitcoin and work in the space. I understand that making me a scapegoat says less about me and more about their limited understanding of what Bitcoin’s value represents.

I’m aware that in this highly polarized political landscape, ideological stereotyping becomes evident—not only during election season but also in spaces where innovative thinking should be encouraged. A prime example of this ideological bias occurred during the Ohio State University commencement, where Chris Pan’s speech on Bitcoin was largely booed by students attending their graduation ceremony. I admire the courage it took to stand firm in front of over 60,000 people and continue his speech. My guess is that most of these graduating students have never experienced hyperinflation or grown up under authoritarian regimes, which likely triggered an “auto-reject”’ response to concepts beyond their personal experience.

I’ve encountered similar resistance in my own unfinished academic journey; during my time at Georgetown, I had several unproductive conversations with professors and students who viewed Bitcoin as a far-right tool. Once a professor told me, “Win, just because cryptocurrency (he didn’t use the term Bitcoin) helped you and your people in your home country doesn’t make it a great tool—most people end up getting scammed in America and many parts of the world. I urge you to learn more about it.” The power dynamics in academic settings often discourage open-minded discourse, which is why I eventually refrained from discussing Bitcoin with my professors.

I’ve learned to understand that freedom of expression is a core American value. Yet, I’ve observed that certain demographics or communities label anyone they disagree with as ‘racist.’ In more extreme cases, this reaction can escalate to using influence to have people fired, expelled from school, or subjected to coordinated cyberbullying. I’m not claiming that racism doesn’t exist in American society or elsewhere; I strongly believe both overt and subtle forms of racism still persist and are well alive today.

Although bias and inequality remain widespread, Bitcoin operates on entirely different principles. Bitcoin is borderless, leaderless, and accepting of any nationality or skin color all while without requiring any form of ID to participate. People in war-torn countries convert their savings into Bitcoin to cross borders safely, human rights defenders receive donations in Bitcoin, and women living under the Taliban get paid through the Bitcoin network.

Bitcoin is not racist because it is a tool of empowerment for anyone who is willing to participate. Bitcoin is not Xenophobic because it gives those forced to flee their homes the power to carry their hard-earned economic energy across borders and participate in another economy when every other option is closed. For activists, often branded as ‘criminals’ by authoritarian regimes, it supports them through frozen bank accounts and blocked resources. For women, enduring life under misogynistic rule, Bitcoin offers a rare chance for financial independence.

Going back to the U.S. election context, Bitcoin not only levels the playing field for people in the world’s most forgotten places and darkest corners, but it also opens new avenues for U.S. presidential candidates to engage with this growing community. President-elect Donald Trump has made bold promises regarding Bitcoin, signaling a favorable policy. In contrast, Democratic candidate Vice President Kamala Harris’s campaign reportedly declined to support the Bitcoin community. Grant McCarty, co-founder of the Bitcoin Policy Institute, stated, “Can confirm that the Harris campaign was offered MILLIONS of dollars from companies, PACs, and individuals who were looking for her to simply take meetings with key crypto stakeholders and put together a defined crypto policy plan. The campaign never took the industry seriously.” I believe this is something most people may be unaware of, and confirmation bias often leads to the assumption that all Bitcoin supporters back every policy of the other side, including potential drastic changes to America’s humanitarian commitments such as refugee resettlement and asylum programs, anti-trafficking and protection of vulnerable populations, and foreign aid and disaster relief.

Most people around the world lack a stable economic infrastructure or access to long-term mortgages; they live and earn with currencies more volatile than crypto gambling and, in some cases, holding their own fiat currency is as dangerous as casino chips, or worse.

The Fiat experiment has failed the global majority. I believe that Bitcoin and Bitcoin advocates deserve to be evaluated on their merits and work on global impact, rather than through the binary lens of political bias, misappropriated terms, or factually flawed yet socially accepted diminutive categorizing, which allows them to opt out of learning and evaluating assumptions.

This is a guest post by Win Ko Ko Aung. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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Bitcoin Onboarding

JIPPI IS POKÉMON GO FOR BITCOIN

Published

1 month ago

November 21, 2024

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Today’s modern Bitcoin exchanges have drastically improved access to Bitcoin ownership in 2024. Gone are the days of janky peer-to-peer (P2P) trade forums and questionably secure early exchanges like Mt Gox. Instead, a legion of Bitcoin on-ramps focused on superior security and user experience (UX) has made purchasing your first Bitcoin a breeze. Many of these services have even embarked on education-focused initiatives to encourage greater adoption during Bitcoin’s most recent bear market. In November 2023 Swan launched Welcome to Bitcoin, their free introductory 1 hour course about Bitcoin. In December 2023, Cash App released BREAD, a free, limited-edition magazine that uses design to tell stories and educate readers about Bitcoin in a relatable and accessible way.

What these initiatives show is that Bitcoin adoption is approaching a turning point. These two major Bitcoin exchanges, along with the industry as a whole, are discovering that easy access to a smash buy button does not guarantee purchase. Numerous barriers to entry still exist for nocoiners, which provide significant constraints to understanding Bitcoin, and thus throttle Bitcoin’s growth and adoption. As we approach a steeper incline in Bitcoin’s bell curve, throwing novices into exchange apps without sufficient education and cultivation is no longer a strategy for success.

What once was a far simpler task of energizing early adopters and cypherpunks around Bitcoin’s clear value proposition, is evolving into a more complex and convoluted process of orange-pilling the early majority of future Bitcoin holders. This, we hope, will then lead to widespread Bitcoin mass adoption as society en masse chooses to store its time and energy in the best money ever created. For this hyperbitcoinization to occur, more people need to understand the intricacies of Bitcoin. This is easier said than done because Bitcoin still has an education problem:

An Economist Intelligence Unit study reported that 51% of people said a lack of knowledge is the main barrier to Bitcoin ownership.

A YouGov survey found that 98% of novices don’t understand basic Bitcoin concepts.

A nationwide survey from the Yale Center discovered that 69% of young people find learning boring.

This research outlines the struggle of onboarding and educating the next generation of Bitcoiners, most notably younger generations who have been shown to possess a limited attention span of 8 seconds. For inspiration to help solve this problem, we can look at one of the most popular mobile games of all time… Pokémon GO.

Pokémon GO was and remains to be, a global phenomenon. This beloved app caught the attention of Gen-Z, millennials, and Gen-X alike, boasting record-breaking engagement stats:

In 2016, the game peaked at 232 million active players.

Pokémon GO has grossed over $6 billion in revenue.

In 2024, 24% of 18–34-year-olds in the US are playing Pokémon GO, while 49% of 35–54 year-olds are playing.

We at Jippi believe that the success of this award-winning game can illuminate the path forward for Bitcoin adoption. So we have set upon the electrifying task of building Tribe Clash–the world’s first Pokémon GO-inspired Bitcoin education game. The rules are simple, create or join a Tribe and battle for dominance over a city with your friends by catching a Bitcoin-themed Beast in every Territory.

Each week Jippi will release a new Territory to be claimed. A Tribe member will explore that Territory with their phone, where they will discover a Bitcoin Beast to catch. If they successfully answer all Bitcoin quiz questions correctly the fastest, they will then catch that beast. The Tribe with the most Territories and Bitcoin Beasts at the end of the game will win $30k worth of Bitcoin to be dispersed equally to each Tribe member.

Our vision is for Jippi to become the largest, most popular platform for beginners to gather, educate, and accumulate Bitcoin. We see Jippi as the most accessible on-ramp into the industry, where we can educate a whole new generation of Bitcoiners from novices to experts by lowering the barrier to entry.

You can support the development of Tribe Clash by contributing to our crowdfunding campaign on Timestamp. Timestamp enables investors of all backgrounds to support Bitcoin-only companies and make an impact. Our campaign is open to both the general public and accredited investors, so we would love for you to join us on this journey.

This is a guest post by Oliver Porter. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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