Bitcoin, Economics and South Africa.
It’s an arena where men in suits beguile with puzzling terminology.
Economics is mind numbingly boring to most, but it’s a subject that should be better understood. After all, money does make the world go round.
When you start investigating closely you gain inevitable insight.
Mainstream economics says that currency should be issued centrally. Only a government can be trusted with issuance and distribution of money.
However, is that really the case? Does money need to be centrally issued? Does it have to involve a single point of control? It turns out the answer might not always be “yes”.
It is because of this that the Rand is loosing so much value constantly and people are getting poorer.
Pravin Gordhan #BudgetSpeech Old age and disability grant to increase R1270-00 to R1350-00
— Sunday Times (@SundayTimesZA) February 26, 2014
I might not be the minister of finance or be qualified to comment on the ’14 SA Budget, but how is R1270 going to R1350 an ‘increase’ when the amount of money received went up by roughly 6% and the buying power of said ‘money’ has gone down by roughly 6%, when you take inflation into account?
Perhaps a people’s money is better managed by the people. The temptation to prop up one’s own economy with easy money is just too great. This in turn drives prices up, and devalues the real value of the Rand.
The solution comes in the world’s first great digital currency: Bitcoin. A technology that questions all previous frameworks. A currency that can not be inflated or controlled, but is rather a tool where control is given to the holder and as a collective decisions are made with no 3rd party interference.