Bitcoin is taking the financial world by storm. The revolutionary new concept for currency is drawing interest, criticism, praise and pessimism. One thing Bitcoin is not lacking, however, is publicity. Bitcoin was launched in 2009 after the idea was dreamed up in a 2008 paper. Bitcoin has since added a new layer to the currency world by operating as a totally unregulated digital currency. Bitcoin success is not without good measure, but where will this road of digital currency lead? When analyzed from a big-picture bird’s eye view, bitcoin appears to be the embodiment of one of the final steps on the road from constitutional money to a financial money-go-round of computerized control.
Due to the decentralized nature of digital currency, along with the fact that it uses cryptology to mitigate the risk of double-spending, it is known as a cryptocurrency. The revolutionary payment vehicle has received quite a bit of negative press due to its connection recently in an FBI bust of an online service which specialized in facilitating criminal activity connected to illegal drugs. The bust of the service known as Silk Road has served as a source of much of the recent negative chatter in connection with the cryptocurrency. The results of the Silk Road affair meant that the FBI ended up seizing 1.5% of all bitcoins in circulation.
There may be legitimate reasons to be wary of what the increased use of bitcoin and similar currencies might imply. The fact that they have been found in connection to criminal activity, however, seems to try to render the currency guilty by association. It is not as though criminal activity was somehow non-existent prior to the days of digital unregulated currencies. A more legitimate concern might arise when considering the direction in which bitcoin and similar currency models are leading the global economic system. Has bitcoin enticed us further from the perceived security in constitutional money to a point of considering an economic system which could pave the way for total computerized control?
Despite the negative publicity Silk Road has brought upon the currency, regulators are taking an increasingly favorable position when considering accepting it as a legitimate alternative payment method. Germany has already taken the step to legitimize the currency, allowing the country to tax bitcoin transactions. China has also showed significant interest in the groundbreaking new payment method. Speculators have been attracted to the potential possessed by bitcoin which has led to some volatility and price swings.
It seems that with the advent of these new digital currencies, the historical road that led us here might provide insight as to the direction that the global economy might be headed in. ARTICLE I, SECTION 10, CLAUSE 1 of a document that has become increasingly unpopular (the Constitution) says, “No State shall…coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts…” Although the Constitution existed, the first and second Bank of the United States, southern civil war scrip money, the greenback and others introduced different forms of payment for debts. The 1913 Federal Reserve Act however, was arguably the most significant change in the system of currency, credit, and “legal tender” since the Constitution.
In 1992 a book was written by high-ranking government liaison Gary H. Kah called “En Route to Global Occupation.” In this book Mr. Kah speaks on different facets of what he believed to be a political movement around the world working together in an unprecedented fashion to achieve the goal of uniting the nations of the world under a New World Order. The book reads like an Orwellian novel with a non-fiction foundation. In this book Kah opens immediately with a chapter titled “Global Economics.” In this chapter he details an experience he had while traveling overseas. He recounts a conversation he had in which he claims to have seen and toured a facility that had been contracted by the US Treasury to build printing presses that would print a new US currency.
His eventual analysis rests with his detailing the revolutionary plan to transition to the debit card in an effort to internationalize and globally integrate the financial system using a “one world card.” This scenario seems laughable considering the present point in time. With the presence of the Bank of International Settlements (BIS) along with the level of financial integration of the worlds Central Banks, a global monetary system is already in place; but cash and other methods of transaction still provide some level of freedom and privacy that the footprints of credit cards and digital payments do not. Bitcoin and digital currency seem here to stay, but are they taking us from constitutional money to a New World Order of complete computerized financial control? Time will shed light on what can only be speculated upon today.
By Daniel Worku