This is an opinion editorial by Heritage Falodun, a Nigeria-based bitcoin analyst and computer scientist.
I believe humanity deserves a detailed elucidation of the compounding concerns facing our economies today. Solutions to global trade problems will not suffice if engaging in cross-border trade, promoting social progress, multilateralism, influencing bilateral exposure and enabling upward prosperity is not of utmost importance to existence. human.
The freedom to implement and foster free, timely and unbiased trade on individual, community, provincial and national capacity in a transparent approach, regardless of the entities involved, will be the first step towards achieving a trade mechanism global, friendly, efficient and competitive. .
All this while keeping in mind that liberating innovation capable of solving and breaking down global trade barriers can be nothing less than a solution enabling instant and seamless cross-border transactions. This will fuel freedom from the oppressive restrictions imposed by authorities on people’s way of life, behavior and economic prowess in the global marketplace. The ease of building sustainable import and export rails is best achieved by materializing free and fully decentralized trade technologies and tools against protectionism. We live under an archaic, centralized trade policy notorious for harming the people it is meant to protect, by slowing economic growth and increasing inflation on a global scale. This is a problem that has become even more evident after COVID-19 before the Russian-Ukrainian conflict, and of course more so now.
The traction displayed in the international trading system has built up over decades, reflecting the actions, policies and positions of the various global unions. Many people fear that not everyone is playing by the agreed multilateral rules. High levels of state support and protection remain in key sectors, while new multilateral regulation is not keeping pace with today’s business realities. These are just a few issues facing today’s economy.
The question before us is: “How do we deal with and resolve these trade barriers created, planned, organized and supported by human errors disguised as rules of governance?”
We must actively reclassify economies and allow the integration of a monetary structure free from flaws and human incompetence. There has never been a better time for positive transmogrification towards the globalization of trade and transaction techniques than now. It is imperative to emphasize the education of what money was, what money is and what money should be, as it is the cornerstone that sustains all activity commercial. The more impeccable money becomes, the easier it is to achieve a sustainable economy accompanied by an infallible trading mechanism. Money has taken on many structures throughout human history. Gold and cowries were used as money in the 14th century but could not meet all the characteristics and functions of what money should be. Gold and cowries were rare but supply capitalization was not limited while ease of use was not achievable due to the weight of these products. More gold and shells were easily discovered leading to a level of market saturation.
As a means of correcting and resolving the demerits of those old commodities known as money. Money was developed and turned into gold coins, fiat notes, bank account securities and credit cards. Sounds interesting and innovative, right? Feeding your curiosity, this improvement was able to eliminate some of the previous issues such as ease of use, but they weren’t able to fix the unlimited supply issue. The unchecked and consistent production of money (fiat) remains persistent as everyone hangs in the air of trust with third parties called banks. Not surprisingly, banks remain subject to federal regulation. Pathetically, this new form of currency serves as a gateway to new business issues. Some examples of these are “money non-uniformity”, lengthy settlement procedures and strict regulations amid under-collateralization in some jurisdictions.
These problems remain evident and glaring after the transition from cash to fiat, hence the need to cushion the effects. Part of the approach to remedying this setback despite the acclaimed optimization of money for easy use required the existing monetary body known as the “Society for Worldwide Interbank Financial Telecommunications”, or SWIFT. SWIFT solves part of this problem by facilitating cross-border money transfers in a way that can be described as fast under structured messaging, but not exactly instantaneous as transactions should be.
This incomplete solution also brings considerations of compliance with the centralized economic regulations governing each jurisdiction. Mainly, the blatant refusal of the World Economic Forum (WEF) to allow the decentralization of money is orchestrated by greed. I do not agree, it is because of the inability of experts to understand the concept of decentralization of money and democratization of professions. Denial of the WEF is an economic concept focused on maintaining the power-drunk dependencies of governments – spicing up trade and investment with local monetary barriers to slow the flow of goods and services between nations.
Some of the consequences of the fragmented global economy and the autonomy of central banks from a constant and growing supply of local currencies are indelible and evident in our society:
- Falling wages and the purchasing power of currencies in high-income and low-income economies.
- Dealing with the trade-offs between the risk of debt crisis and securing food and fuel in countries with developing economies.
- Worsening food insecurity over time, particularly in the Middle East, North Africa, Sub-Saharan Africa and South Asia.
- The highest inflation rates in history affect many countries without excluding the world trading powers of each continent.
Let me ask “Can the root cause of these challenges be addressed in order to revolutionize the contexts of money to foster unblemished global exchanges? »
Quick answer – yes it is possible, let money be money and all business issues will become obsolete.
To solve the business problems, since the root cause is attached to all these old incompetent funds, a monetary innovation called Bitcoin was created to remedy the flaws of today. Many features it has such as limited supply, immutability, transparency, ease of use, censorship resistance, severability, fungibility, and portability. The juicy and most effective part of it is its ability to dump trust through a decentralized peer-to-peer exchange mechanism backed by mathematical calculations rather than physical properties like gold or cowries. The characteristics of sound money are durability, portability, divisibility, uniformity, limited supply and acceptability. Bitcoin owns everything. I noticed “Satoshi knew betterwhen he created Bitcoin in 2009 as a sound currency in response to the 2008 financial crisis. Trade must be done with money that the corrupt cannot abuse or influence. Global and local exchanges must be carried out with money whose purchasing power is determined by the markets, independent of governments and political parties. Satoshi Nakamoto said, “The fundamental problem with conventional money is all the trust needed to make it work. You have to trust the central bank not to depreciate the currency, but the history of fiat currencies is full of breaches of that trust..” Truth be told, the ball is now in everyone’s court to determine and accept this innovation as a solution to long-standing business problems.
I had the pleasure of interviewing Nikolai Tjongarero also known as “Okin”, who is a business tycoon and bitcoin advocate in Namibia. I wanted to know, despite the central bank of Namibia’s public statement that bitcoin is an acceptable payment option, is the government implementing policies to enable it as an official currency for import purposes and export? He said “Nope.” After a long brainstorming session, I concluded that policymakers in countries that have not yet moved away from import substitution policies and direct government controls should implement structural adjustments quickly to restore growth. , to promote rapid exchanges and to regain their solvency. These countries can grow by changing bitcoin in politics, achieving open and free trade by using and embracing global currency as a medium of exchange, unit of account, and store of value. Bitcoin is the global currency of an interconnected world. Using and embracing money that doesn’t care about religion, country, race, or creed is the first step toward addressing trade biases. Interestingly, the only method against the madness of this content is to understand, digest and implement the message rather than attacking the messenger.
This is a guest post by Heritage Falodun. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.