Blockchain Magic - Thoughts on the Power of Blockchain


The following thoughts were inspired by Bitcoin Billionaires by Ben Mezrich, Balaji Srinivason's converstaion with Justin Kan, and Naval Ravikant's conversation with Joe Rogan to name a few of the many catalysts for this essay.

The capacities of Bitcoin extend far beyond a currency, store of value, or tradable token. The real power behind this anonymously-introduced innovation is the blockchain, which tracks every coin that is mined or exchanged. The blockchain’s myriad possible use cases from taxes to voting make it a tool that society must choose to use for good. To stagnate on our current anachronistic systems is to admit defeat to that country or state that is willing to take the leap to decentralization through blockchain technology.

In 2013, just four years after its inception, the price of a Bitcoin reached a new milestone of $1,000 per coin. This run-up was not caused by an update to the features of Bitcoin or the blockchain but by a prime exemplar of the horrors of a centralized financial system.

When the current banking system is governed by a moral and efficient state, it can work well; unfortunately, this was not the case for the government of Cyprus in 2013. Upon realizing that they had run their country into an exorbitant amount of debt, the Cypriot government decided to rob its citizens directly from their bank accounts. It is almost unfathomable to most. But on that lamentable day, for all too many citizens of Cyprus, it was a gut-wrenching reality: everything or nearly everything: gone.

If the battle between capitalism and communism was the fight of the twentieth century, the battle between centralization and decentralization will be the fight of the twenty-first. This war will rage not only on external and internal government levels but also in corporations and businesses across the world. Which companies will understand that to decentralize is to maintain market share? Over the past decade, the tech behemoths have been in the crosshairs incessantly for their alleged monopolistic actions and iron fists over user-generated content. The answer to these constant hearings and calls for break-ups could be to decentralize: use the blockchain to avoid all ambiguity of control.

The same applies for countries: which nations will adopt the blockchain powers instead of shying away in fear of change? The USA’s adoption of capitalism won it the twentieth century. However, capitalism is known universally now as the almost undisputed path to economic growth and national prosperity, as demonstrated by China over the past thirty years. The battle now will be to adopt the cryptocurrency model of decentralization on a national level.

Blockchain’s current abilities are almost as unknown as their creator; we have only seen the beginning of this incipient technology. Our factual and technical ignorances engulf what remains to be uncovered, but decentralization through blockchain must be sought in governments and corporations because to decentralize is to delegate work, leaving no one with excessive power and all with a sense of purpose. Those countries and companies that can push beyond the preconceived way of the world and uncover something truly great will win the battle for the twenty-first century.

- Charlie, June 2021