Bitcoin Threat

THE extraordinary instability of Bitcoin and other krytovelutes has become a threat not only to the international financial system, but also to political order. The technology of "blockchain" on which these cryptovalutes are based promises a better and safer payment method than anything that has been tried before, and some believe that these cryptovalus will replace electronic waves in traditional bank accounts, just as electronic transfers replaced paper money, which followed gold and silver.

But others are fairly suspicious that this new technology can be manipulated and abused. Money is part of the social factory. For most of the history of human civilization, it has provided a basis for trust between people and governments, and between individuals through exchange. It's almost always been an expression of sovereignty, and private currency has been very rare.

In the case of metal money, coins usually carried symbols of state identity, one of the earliest examples was the owl that symbolized the city of Athens. Usually, though, there was a bit of confusion about whether the emblems of coins threatened sovereignty or divinity. Whose head is in that coin? Is it of Philip II of Macedonia or of Alexander the Great or of Hercules? Later, Roman emperors would take advantage of this ambition by printing coins with their own inadequacy. And even today, British coins have printed words linking the monarchy to God.

In any case, there is a clear pattern throughout history: bad states produce bad money, and bad money leads to failed states. During inflation periods or hyperinflation, the radical devalvation of the waves would destroy the base of political order. For example, the Thirty Years ' War in Central Europe during the seventeenth century was fed up in much of the social desigration that followed a period of financial instability.

Similarly, during the French Revolution, speculations with paper exchanges accelerated the seizure of international property by the aristocrats and the church and mini legitimacy of the Jacobs. In the 20th century, periods of inflammation during and after two world wars destroyed Europe's political institutions and sparked the flames of radicalism. In fact, Vladimir Lenin thought of the monetary press as the most simple <x0).

Besides being one of the main factors behind the deintegration of states, bad money has also been a key feature of interstate conflicts. For warring states, the creation or exploitation of monetary troubles historically has been a bad way to destroy the oponents. Even in times of peace, some countries have reacted to worsening relations by sowing false money to cause trouble beyond their borders.

The best - known example of such a monetary battle is Germany's Nazi scheme to print Allied power banknotes during World War II. These counterfeit banknotes could naturally be used to buy cheap resorts or to pay for spies. But Germany also predicted using long-range bombers to launch these banknotes in Britain. Just imagine the demoralization and chaos that would have followed. Anyone with a large amount of money would automatically be suspected, and public confidence would soon be shattered. Throwing money could be more devastating than throwing bombs.

Money is even easier to manipulate when it is international. In modern wind, fraudulent states like North Korea have regularly forged banknotes, especially those in the United States. And electronic cross-border transfers between banks are often made for evil and criminal purposes. So far, however, there has not yet been any devastating global attacks outside the realm of cinematic fantasy.

Of course, there have been long political efforts to undermine or replace the dollar as the global dominant currency. The most attractive alternative so far seems to have been gold. The Russian theorists of “Eurasian” have often taken on traditional Russian iconography for use of precious metals. In 2001, then Malaysian Prime Minister Mahathir Mohamad tried to notify us of the US-based “the golden cypher “as a response to the US-based currency system. And in 2005, Al Qaeda's head of security, Saif al-Adl, proposed that gold be used to bring down the dollar.

Bitcoin looks like a version of 20th century gold, and its creators have taken this analogy. It's been produced either by effort. And just like the price of gold that once reflected the human need to extract it from land to faraway places, to create new Bitcoias requires a large quantity of computer power, guided by cheap energy in those remote areas of Asia and Iceland.

But Bitcoin's growth represents a change in the way society perceives fundamental values. While premodern metal waves served as a basis for work value theory when goods and services are worth the amount of work man does for them the technology of RHBlockchain) sets the value on a combination of computer power and energy purchased, none of which is human.

At the same time, cryptovatluts like Bitcoin have made it impossible to see the gap between state crime and private sector criminality. North Korea is suspected of continuing its efforts to make monetary manipulation by digging and creating Bitcoin, which has led China and South Korea to begin halting exchanges with Bitcoia. Large platforms of cryptova peaces such as Coincheck in Japan have also banned trade with them.

And we've already reached the point where an destruction of Bitcoin would have serious global implications. How much financial institutions are exposed to these cryptovalus is unclear, and maybe this will be known to a financial disaster. That reminds you of 2007 and 2008.

Just as no one can say if a news report is newscast, it also cannot immediately detect the currency of new monetary forms. Until a currency is made authentic by the government, it is impossible to believe fully. But that does not mean that it cannot become a dangerous game for the naive, or a weapon for mass financial destruction, and for political wars worldwide.