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Bitcoin Is Cash For The Internet

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Bitcoin is much more than a typical online payment system. After all, we have plenty of those: PayPal, Venmo, and the like. Bitcoin and other privately used cryptocurrencies are cash for the internet.

Paper cash is an almost perfect way to pay someone. You don’t need an account. It doesn’t care who you are or what you’re buying. It’s a bearer instrument. I hand you a dollar. Now you have the dollar and I don’t. It’s instant and no one can interfere with the transaction. There is no trusting someone else to make sure the dollar gets to you. And best of all, it’s private. There is no record of that transaction whatsoever. It’s so private that there is an old joke in the cryptocurrency community: If cash were to be invented today, it would be illegal.

For all its benefits, however, paper cash is useless online. To pay someone over the internet, we have come to rely on a system of intermediaries to keep money moving. We put our money in a bank, direct that bank to send money to a company like PayPal, ask PayPal to send the money to another user’s PayPal account, they then finally have to withdraw from PayPal to a bank account from which they could choose to withdraw cash.

Every step in this process is recorded in detail by each involved company and ultimately reported to the government. And we have to rely on the companies to voluntarily execute our transaction, something which history has shown should not be taken for granted.

Unfortunately paper cash is dying as people opt for the convenience of tools like Venmo. Even face-to-face transactions for coffee that would have once been handled with paper cash are now intermediated, that is, recorded, reported, and executed under the rules set by corporations and the government.

The fact that commerce now flows through a relatively small set of intermediaries provides a convenient access point for authoritarians to place pressure needed to control what a populace can and can’t do. This risk might seem remote to those of us in stable democracies, but the reality is that states control financial systems and not all states uphold values of free expression and association.

Bitcoin and other cryptocurrencies offer a solution. They operate in a manner much more similar to cash. They are bearer instruments that can be used privately without an account. They are cash for the internet. And they break the control of intermediaries over our financial lives.

There are of course valid reasons why governments might want to monitor the flow of money and place restrictions on certain transactions. But we have increasingly seen a rise in governments succumbing to the temptation to weaponize their control of intermediaries to contain political dissent. This is the great flaw of regulation through intermediated finance.

When protests erupted in Belarus over a rigged election, the government swiftly cracked down, including through financial punishments. Protestors faced heavy fines, and employers were pressured to fire dissenting employees.

In response, the non-profit BYSOL, based in Belgium, provided financial aid to protestors. However, as the protests were deemed illegal, traditional financial intermediaries, complying with the law, seized protester funds and froze their accounts. Electronic transfers were monitored, and cash was confiscated at the border. BYSOL turned to Bitcoin, allowing protesters to receive funds in personal wallets and make small swaps with locals, evading this net of state mandated financial surveillance.

In Russia, Putin’s opposition was labeled an extremist group, making donations illegal. As in any country, financial intermediaries had no real choice but to comply with the law. These intermediaries had been effectively weaponized to police political activity. Alexei Navalny’s Anti Corruption Foundation turned to cryptocurrency, supercharged with the privacy enhancements provided by tools such as Wasabi Wallet, to survive. Russian citizens could continue putting money behind their opposition to Putin with this powerful new capability.

In Myanmar, the Junta implemented strict Know Your Customer rules and cracked down on physical cash, forcing all economic activities into a surveilled system prone to arbitrary account freezes. In Iran, new rules have been proposed to automatically deduct fines from the bank accounts of women who defy laws mandating a Hijab.

Even in the U.S., this issue could arise. The recent overturning of Roe v. Wade endangers abortion access. If funding abortion services becomes illegal, payment providers might be forced to comply with the law or provide evidence to law enforcement. Many abortion pill websites use services like PayPal and Stripe for payments, and if these services are cut off, cryptocurrency could become a crucial alternative. Similar financial threats to access exist for all hot-button issues. It’s hard to control people but it’s easy to control intermediaries.

Moving beyond direct legal control of intermediaries, it’s also important to consider another flaw in the intermediated financial system. These are private companies that have their own considerations and values. Many of them are publicly traded. This makes them susceptible to the whims of public opinion.

Why would a company like PayPal take on the reputational risk of processing payments to industries that some find unsavory, even if they are legal? There are endless cases of adult creators being kicked off platforms, or marijuana businesses, or outspoken political voices. At the end of the day, it’s a lot easier for them to just kick those people out so they can focus on their core business. If every company makes that same calculation those businesses are effectively killed even if they followed the rules.

Meanwhile cash, both paper and now cryptocurrency, are neutral systems that are immune from the whims of not only authoritarians, but the mob as well. Cryptocurrencies are cash for the internet. You don’t need an account, just a computer and internet access. They can’t have an opinion on what you’re doing. They don’t spy on you. And no one can interfere with your ability to transact with them. They are essential tools for protecting our ability to exist as free people in the digital era and are a check on authoritarianism made so much easier by a centrally intermediated internet. 

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



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“PickleBit”: Proof of Workforce, Fold, and Pickle Pop Partner on Pickleball Tournament, Offer Bitcoin Prize Pool

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The Santa Monica-based non-profit Proof of Workforce Foundation has partnered with Bitcoin financial services company Fold and Pickle Pop to organize a Bitcoin-themed Pickleball tournament, offering a $5,000 prize pool for entrants and winners.

The tournament is slated to be held on October 18 in Santa Monica, California during the Peer to Pier Bitcoin Festival. Featuring both a semi-pro and amateur division, the winner of each division will receive their payouts in bitcoin. Entrants will also have the opportunity to win Bitcoin hardware wallet devices provided by CoinKite.

“This will be an incredible event, bringing together two talented and high growth communities, Bitcoiners and Pickleballers, to support creative re-use of commercial space on the 3rd street promenade”, said Proof of Workforce Founder and Santa Monica firefighter Dom Bei.

Earlier this year, Bei’s Foundation partnered with the City of Santa Monica to launch the Santa Monica Bitcoin Office, making it the first U.S. city to do so.

“The Santa Monica Bitcoin Office is already bringing communities and revenue opportunities to key areas of our economic revitalization strategy, and has done so at zero cost to the city”, said City of Santa Monica Vice Mayor Lana Negrete. “This is exciting and an example of collaborative and innovative ideas to reimagine retail on 3rd Street.”

Brian Harrington, Senior Marketing Manager at Fold, added:

“I’ve loved seeing the Bitcoin community grow in Southern California over the years and what the city of Santa Monica is doing with it is amazing.”

Participants can register for the tournament on the PickleBit tournament website, where they will also receive bitcoin rewards for signing up and playing in the tournament.



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Un Ode de l’Provocateur du Bitcoin

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Out of the ashes emerged a snarling rodent dubbed Max Punk.

Open conflict, Whales besting Bored-Apes, the social layer manifest.

Bitcoin leaders sent to prison, then freed by massive strike waves.

HODL’ers fighting in the streets, power cuts, three-day work weeks, Maxi’s battling for Hashrates, governments brought down, Central Banks crying.

The Banksters powerless.

The Orange-Pilled class – loud, stacked and toxic.

L’ Provocateur don’t stand downwind from sh%#tcoins.

Max Punk smells of victory not of FOMO.

An Orange sky at night traverses’ seas of fiat to El Salvador dreams, not NFT nightmares.

Un Bukele ami très explosif.

Promoting Bitcoin thru absurdist and provocative actions,

a means of enacting monetary change.

Proof of ‘work[ers]’ never strike.

God won’t save the dollar, the regime.

Fiat makes you a moron, a potential Elon-bomb.

L’ Provocateur don’t stand downwind from sh%#tcoins.

Max Punk smells of victory not of FOMO.

An Orange sky at night traverses’ seas of fiat to El Salvador dreams, not NFT nightmares.

Un Bukele ami très explosif.

Orange shoes and garb only taunts the volcanos.

Consuming sats, not the FUD.

And there ain’t no future ‘cept with Bitcoin.

…In your dreaming Laser eyes!

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



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Bitcoiners and Wobblies: Labor Day Edition

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Recently, I’ve been reading about the foundations of the American Labor Movement. Specifically, the birth of the Industrial Workers of the World and a group called the Wobblies, a nickname given to IWW Members. At its peak, the IWW had over 150,000 members in 1917, with global memberships and significant power and influence. While the IWW was a socialist leaning organization in theory, many of its core values were intertwined into the DNA of the American Labor movement, and was undeniably pivotal to the development of organized labor and a strong working class following the industrial revolution. The parallels between some of the IWW’s origins and ideologies and Bitcoin are significant, and shall be demonstrated with quotes rather than boring you to death with in depth history.

All quotes are attributed to the book “Wobblies: A Graphic History of The Industrial Workers of the World (Buhle/Schulman.

Origins and Genesis

“No one can say exactly where the inspiration for the IWW came from. The origins are too numerous both in the U.S. and abroad…”

Similarly, the nickname of the Wobblies, has no clear origin. Naturally, some of the mythology around Bitcoin comes to mind, and while Bitcoin’s origins are clearly documented via white paper and email communications, its creator or creators is or are shrouded in mystery. As Bitcoin caught gained popularity, its growth was decentralized and organic. In another parallel, while the IWW and American Labor Movement had prior inspirations, it was a pioneer in the sense of organizing labor across ethnic, gender, religious and other demographic differences.

“After the Civil War, massive industry grew up faster than anyone could have imagined, with previously unthinkable wealth accruing to the bankers but with millions of desperately poor working people, employed at low wages or unemployed in the frequent economic recessions”

From the financial crisis, to post-covid wealth accumulation within the ranks of billionaires, to a current AI, robotics and self-automation boom underway, this story is all too familiar. However, recessions have been all but outlawed, replaced by government intervention, currently placing systems as large as Pensions and Social Security on the equivilant of government welfare and dependence.

Wobblies and Bitcoiners

“The Wobbly, male or female, Asian or Occidental, black, brown, red or white, was only an ordinary human being in physique”

We feel the same about Bitcoiners. We have all met some of the most inspiring people in our lives in this space. It is both the character, grit and determination that allows individuals to discover and understand Bitcoin, as well as the character building journey a Bitcoiner must take to fully grasp Bitcoin and share it with a world that rounds out what many of us believe is the most talented and motivated communities in the world.

“Their story was collaborative, collective, not reliant on any one hero or heroine-as heroic (or tragic) as individual Wobblies lives might be.”

Kill your heroes. Death to Ego. Bitcoin doesn’t need any of us.

Solidarity: A movement greater than the individual

“The world of the Wobblies was one realized in its best moments by solidarity across race, ethnic, gender and nationality lines”

The beauty of Bitcoin is it requires no trust between those who transact with each other. And in doing such, Bitcoin allows humans to deconstruct the daily head to toe analysis we perform on each other daily; an analysis that instinctually calls out our differences, with roots in paranoia and fear. While blind solidarity amongst Bitcoiners is the antithesis of “dont trust, verify,” there is a strong natural bond between Bitcoiners. I believe the future of Bitcoin, when facing its largest tests ahead, will very much depend upon a deepened solidarity between those who subscribe to Bitcoin’s Genesis, core values, and blind commitment to being honest, true and trustless.

AFL vs. Knights of Labor

“The earliest mass movement for an eight hour workday during 1885-86, highlighted the different roles of two kinds of labor movements. The American Federation of Labor, founded in 1883, sought to organize skilled workers (almost entirely white and male) only…whereas the Knights of Labor, founded in 1869 as a secret society..extended its membership to almost all workers (except Chinese), including African-Americans and women.”

The AFL and its exclusive country club brand of membership outlasted the ultimate demise of the Knights of Labor and still exists today as the AFL-CIO. In reading about the different philosophies of the AFL and Knights of Labor it brings up parallels within the Bitcoin community, frequently heard criticisms of Bitcoin Maxi’s, as well as Bitcoin v. Crypto. I leave you the reader to draw your own thoughts here, as parallels are in their nature loose affiliations at best.

The Movement

“In the industrially advanced United States, the working class had been prepared ready to assume control of society and to replace “politics” and the “State” with a government of direct rule. As Marx had pointed out about the Paris Commune (and Lenin would repeat for the Soviets), the existing government apparatus could not be infiltrated and taken over piece-meal; it had to be dissolved and repalced by a truly democratic, modern form of government”

There are two camps of thought in Bitcoin, one that calls for a full collapse of the current financial system, and migration to a Bitcoin Standard, and another that insists Bitcoin can co-exist with and even surpass the current financial system without the latters’ collapse. While money is not identical to government in this parallel, the amount in which money is entrenched in the legacy financial system, is prodigious, and this always sparks interesting debate between Bitcoiners.

“For the IWW..the familiar problem of the socialist movement being notoriously small in the US could be solved in a new way. ‘Educating’ workers into becoming socialists, through newspapers, speeches and election campaigns, was too passive and not very successful. Workers needed to educate themselves, in and through their own actions and self-organization.”

Some opposing parallels here. Immediately, I think of a core value of Bitcoiners, which is that, no one can walk this path for you. Proof of Work can not be sidestepped or bypassed. No individual or group can cheat the quest for knowledge, both about Bitcoin and the system it sits poised to replace. The Bitcoin journeys of individuals and membership-based orgs, absent continuous learning and education, often end up in loss or disappointment. Those who do the work, find that their knowledge of money blossoms, and few if any have ever turned back after coming to deeply understand Bitcoin.

Simultaneously, my mind shifts to the oligarchy’s attempts at no less than a 10 year negative media blitz on all things Bitcoin. It slowed the train but it did not work. The other day, I randomly asked people at the 3rd Street promenade in Santa Monica, to share their thoughts on Bitcoin. Overwhelmingly positive, and having some foundation in accuracy. The movement to dissuade people from finding Bitcoin was a delay of the inevitable at best. Because nothing can stop an idea whose time has come.

Conclusions

On this labor day, I gaze upon the deeply polarized two party political system of the dominant world power today. And as I see labor unions align with one party, at the expense of creating division within their ranks, I see a labor movement that has drifted from its original foundation. While the IWW rose and fell, its pinnacle represented an unwavering movement, a solidarity and commitment to the worker above everything else. And there is power in that. I see parallels today in Bitcoin.

The core principles of Bitcoin transcend our differences and are worth fighting for. At Proof of Workforce, our method of fighting for these values is through education-based Bitcoin adoption for workers, unions, pension funds and municipalities. And in doing so, we are sharing not just bitcoin the asset, or Bitcoin the Network, we are communicating the Genesis of Bitcoin and its values, so that they may not be lost in the progression of time.

Finally, Bitcoin is a natural evolution of the labor movement, sharing many similarities and parallels. However, unlike the labor movement, the worker can rely on Bitcoin, absent any allegiance to any political party, leader or oligarchy. And in this sense, Bitcoin and its system of values stands to be adopted by unions all over the world. And in doing so, unions around the world can become re-aligned to their Genesis Story. A story where solidarity comes above all, a story where workers come together to hold onto the very productive property dependent upon their labor. A story where, as many workers stand to be phased out of relevance due to automation and AI, the unions representing them look forward and claim ownership of the most accessible and promising productive property available to them today; Bitcoin.

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



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