2008 taught us nothing
We’ve experienced one of the most exciting shakes in history (and some of us have grown up), ranging from the events of 2008 to 2008 when the tools of our “innovation” in financing proved that swords we read. Like the Romans of the Old Testament, we have brought our own home upon us through the means of mere greed and lust. And with that almost the whole world.
Since that incident, unfortunately, we have not learned.
What the US regulator, with the help of the Federal Reserve, did in response to this catastrophe of our own design was to provide a bailout to the most affected organizations at the height of the global financial crisis through the Emergency Financial Stability Act (EESA). This collateral was a ploy to offer immediate value through bail and to offer future value in exchange for reducing the purchasing power of the currency. By accepting debts (or a promise to repay the loan at a later date in exchange for monetary value), these entities who had mismanaged them financially were allowed to remain. Now, yes, doing so gave some people a chance to make a living and avoid defeat, but for many there was no such relief.
It can also be considered: that debt is a debt that was decided by some, but understood by many. By “many”, I am referring to the entire population of the United States. When we look at national debt, it is a representation of the sum of the parts; It is not divided so that, “Well, this debt is for the people who have to cover it, it’s not my responsibility.” At that moment, we all carried that .n on our shoulders. It was decided to bailout from the second. It has become all our problems – from every child to every senior citizen.
At the same time, Bailout did another job. It showed banks and corporations that the U.S. government was willing to impose liabilities on the labor force (citizens) through “job providers” and national debt, and could take to the streets.
Imagine you are doing a job and that job is very competitive. You make a good living by it, but it is so competitive that you have to work to make sure you are at the top of the competition – working to better understand your art, learning to be more efficient and more efficient with your time. You are working towards becoming the best you can be to prove to the market that your labor is valuable.
Now, let’s imagine that one day a person enters your office or store and informs you that your salary is now guaranteed every month, you don’t have to worry about paying for yourself and your family. What will happen to your mind? You rest. You don’t have to try so hard because you no longer have to worry about being the best to maintain your income. Now there’s no pressure to be the best at justifying your price for your services – that’s for sure! What will be the ethics of your work? Do you try so hard? Now, with the exception of a few people in society who manage to be the best regardless of compensation (which is very, very low), you don’t try that much. Why?
You are encouraged to do the opposite. When rewards are guaranteed regardless of the result, you are encouraged to do as little as possible because it is effective. This is what makes it most understandable! Why do more when you are equally compensated for the amount of effort you put in?
After that little scene, consider being a company in the same position. Let’s just say that companies are still motivated to try to be the best regardless of income guarantee. There is still something missing that helps people move forward: fear.
If a company no longer has to fear that their decision could lead to company failure and loss of livelihood for their employees, what are the possible consequences? My oh so polite opinion: the company starts to make stupid and reckless decisions. Risk management goes out the window. No more risk!
Although the current company is not in fear because of its guaranteed backstop by the government, it is also not innovating. And yet their unprotected non-failing market position prevents new upstart companies from disrupting their position. In a world where these zombie corporations are not kept on life support, a new company will be able to gain market share as they develop products that are cheaper and more efficiently produced than those currently dominating the market. This is accomplished by the new thought that the present masters were unable to realize, otherwise the powerful would already do so. This is a process known as creative destruction, a process known in nature as Darwinism, natural selection or the life cycle.
It is a process by which forest fires can burn a forest and remove underbrushes, allowing a specific species of plant that needs heat to awaken its seeds from dormancy. And so a few years after the fire died and was destroyed, there is another beautiful, rich forest. This is a natural process.
This cycle of destructive renewal is the equivalent of rising from the peasant’s ditch and becoming king. But that new king will eventually be overthrown by the next ascending rule. It is a guarantee of natural life: disruption and chaos. The order leads to chaos, and from that chaos comes a new order. That new order will be interrupted by a new chaos and the cycle will repeat.
Would Facebook or Twitter exist today if AOL or MySpace were paid for free to maintain its dominance in the early days of the Internet?
These zombie corporations have become a big drain for our economy and society. When many are allowed to exist, life itself comes to a standstill. Remember the days when new smartphones were all the craze because the next model actually did something new? When was the last product revolutionary in our market that created excitement and demand? Tablets are not counted, they are just repeats of touchscreen phones. And don’t you dare come to me with the advice of the latest smartphone “bEcAuSe Of iTz CaMeRa”.
This lack of innovation is a signal that zombie companies are suppressing and disrupting our market, a signal that is being ignored with an alarming intensity. Daniel DiMartino added an angle to his discussion with Michael Ippolito of Booth Blockworks that I have not considered before: since these companies are placed on life support, our labor market is also being denied companies that will provide employment. This is relevant because, as I mentioned, disruptors enter the market and provide a new way of working.
These disruptors provide jobs, although jobs that may be considered somewhat more risky, are a source of new employment that is not provided by the existing environment. Even when disruptors are interfering, the established power structure is still conducting business as usual. There is no rush to lose a job if incumbents are allowed to slide into irrelevance (despite so much anti-change, anti-innovation intimidators prefer to push). These works simply do not disappear into the fog. The technological revolution takes time. It provides a healthy transition to employment with the evolution of technological advancement.
If we as a species are not challenged, not allowed to innovate or develop and create new ways, then we become stagnant and begin to rot. But it’s not just our corporation. This epidemic has engulfed every aspect of our society around the world.
This is where the Bitcoin network and Bitcoin resources come in handy to disrupt this relationship. What would have happened in 2008 if Bitcoin had been involved in public policy financing? Banks that mismanaged their customers’ funds could not be saved without recourse. Normally clients who trusted these companies with their hard-earned assets would have lost their funds or the bank would have had to pay the price to facilitate the withdrawal of all clients’ funds from their products, effectively killing the business bitcoin , No bail was possible. If you violate your customer’s trust by causing harm to your customer, you will have to pay for it. It just seems fair.
Now what if those bankers are held accountable for mismanaging their customers ’funds? If this happens, it will be the best result. But it did not happen. And now we live in a society where this activity is encouraged because the precedent has been established: if you act foolishly with your money, the taxpayers will catch the bill and you don’t have to worry.
Why is it urgent? Well, which taxpayers pay the most for this bill? Who is paying taxes now or who will pay taxes in the future? This price must be paid by our children and the children of our children. Since the national debt is accumulated, there must be a vehicle to maintain the balance of that debt. Whether it is through restructuring of the country’s revenue or default. We cannot go on like this forever. And this is an important aspect: who will leave the most? We are witnessing a division starting from the millennial generation; They are shutting down family structures in a way that America has never seen before.
The cost of having a family is leading an entire generation to stop reproducing at a later time or indefinitely. When this happens, not only do we have a generation that is resisting the normal rules of life – grow up, find mates, reproduce and continue to propagate species – but it is also a huge loss to race and civilization. When the population becomes negative, there are fewer children than in previous generations. It also means fewer workers for workers and fewer buyers in the economy.
Even larger scale than this metric? The more children are born every day with the freedom we are given here in America, the greater the possibilities for an unlimited future, allowing species and society to move forward in ways that none of us can even imagine. Every soul that is able to lean towards their passion is the opportunity of a new method in a technology or method that no one else in history has ever tried before.
The way forward
Bitcoiners are the last hopefuls in the world, it would seem. This is the best part of the Bitcoin community – we refuse to stand on nihilism and acknowledge that the world is doomed. If you don’t want to work to make our world a better place for the future, that’s fine. We will fix the world one way or another, but we don’t really want to shoulder this burden. If we are to effectively deliver a better future, we need to not only solve our current problems, we need to develop our young people with our knowledge and experience so that they can start from a better position than we are. From a highly convenient point of view, a better understanding of the landscape can be achieved and a more accurate map can be created. The better the map, the better the way forward.
This process is how we as human beings move forward. We force our children to chase after their dreams. We need to fix our money so that we can prevent these psychopaths from stealing the future from these children. Once we fix the money, we can start fixing our school. This is why I will look at further education.
This is a guest post by Mike Hobart. The opinions expressed are entirely their own and BTC, Inc. Bitcoin Magazine.