Hey, there everyone. Welcome to another
episode of PIVX Class. Today we’ve got another
“Why Crypto” topic. That’s when we get
into the reasons for choosing to invest
into cryptocurrency. Today, in particular,
we’re talking about how cryptocurrencies separates
control of currency from the State. This can be a tricky subject,
but I’ll do my best. Let’s just get started and
you’ll see what I mean. To begin with there are some distinctions
within crypto to be made here. Most cryptocurrencies have nothing to
do with any particular government. A few of them however do and these may effectively
be State-run currencies. Then there are currencies
with bank affiliations. Many crypto projects out there seek
to strip a lot of power from banks, so crypto affiliated with a bank may not do exactly what you
think other cryptos would. When I talk about how cryptos
separate currency control from State, I am not really including
these two situations. Lastly, there are some cryptos
like PIVX that are DAOs, aka Decentralized
Autonomous Organizations, that have votes to decide
on their trajectory. Others are held by
a group or company that chooses how the
coin will develop. I’m including both of these as
being independent of governance, but it is safe to assume
that these two groups will handle their coins
very differently. Just be aware of that when
we’re thinking of this topic. Okay. Now that that’s all out of
the way we can get to it. First off, let’s talk about why money
should be separated from the State. You may disagree, but
there’s a case to be made for the conflict of
interest that exists with a country controlling everything
about the currency it uses. When a nation that
controls its money wants something that
it can’t afford, it currently does
one of two things: It borrows money,
or it prints money. Printing money has the
nasty side effect of lowering the value
of that currency, so many nations choose to not do too
much of that instead choose debt. Inevitably, though,
they gain too much debt and have to print the
money to pay it. This devalues the money. This is a conflict of interest. They use the money very
similarly as you do but get to set all
the rules for it. If they are users of the money
just like everybody else, why exactly do they get
to choose its fate and the fate of the amount
that you hold of it? If the State didn’t
control the money, it would force them to treat
money more like you do. When you want something you
simply don’t have the money for, you can’t just
wiggle around that. The State will have to accept that they can’t have this
thing that they want. This truly is troublesome
in the short-term, but better in the long-term. Maybe you don’t get a
road repaved this year, but you won’t have to worry
about some national debt preventing you from paying for
any services in 50 years. Or alternatively, the State
printing tons of money to cover their debt and ruining all
your savings and pension plans. There are other
interesting reasons to separate currency
from State as well, one of which being that
blockchain transactions are reviewable by
everyday people. Currently, to see how a government
agency is spending their budget, you have to have them audited
which is easier said than done. It may not even be
possible in some nations. Or if it is possible, you as a Regular Joe might
not be able to look at them. With cryptocurrency, you can track which addresses
their funding goes to. If they send money to any
address that is not explained, you immediately know they are doing
something they shouldn’t be. This effectively helps fight against
corruption in government spending. And there isn’t much
they can do about it without blatantly showing they
seek to misspend public funds. While many within crypto support privacy, myself included, it is hard to argue
that you should have privacy when spending
money that is not yours. Just to clarify, I don’t think
every politician is corrupt, but if you remove temptation
from someone’s path, it is very easy
to stay virtuous. Okay. Do me a favor. Open mind on this one. Remember WikiLeaks? You may feel one way or
another about WikiLeaks leaking all of
that information. What the governments did
to try and shut him down when they couldn’t get at him
was to attack his funding. They pressured payment processors to
not allow funds to be sent to him. I don’t want to
get into whether he’s innocent or guilty
by legal standards, because that’s an
endless argument, but he was ultimately
a whistle blower. He saw what he perceived as injustice
and did something about it. Had it not been for crypto, he would have been halted in his
tracks by that attack on his funding. There is little to nothing
a government can do to shut down cryptocurrency
transactions in this instance. What my example here is to get you to
think about is what if it was you? Not just in this
exact situation, but think about in how many
instances someone could be 100% victimized by
their government having complete access
to their funds. It’s not exactly a
pleasant thought. It can frequently get into
the realm of paranoia, but paranoia goes
both ways in crypto. You’ve probably heard that crypto
helps criminals remain anonymous. Given everything I just
talked about, let’s be real. It definitely can. If it can protect you
from the government, it can protect them too. But why should you be victimized by
actions meant to harm criminals? It’s like cutting off your arm
because you have an infected finger. Criminals are such a small
minority of people, but it seems we would hurt any
number of regular citizens to slow them down
even slightly. Even if you completely
stopped cryptocurrency, it wouldn’t affect
them that much, because in the end, the currency they use
the most is still to this day
regular physical cash. This is the paranoia
I’m referring to. It is easy to take drastic action
for the small outlier problems, but what you need to do is
evaluate where the balance is. You can’t ignore
criminal behavior, but you can’t throw away all your
freedoms to fight it either. Similarly, you must
choose the balance between individual
rights and State needs. I’m not going to tell you what
this should look like exactly. I’m not even really
sure myself. But personally, I do believe
that the conflict of interest exists and needs
to be addressed. If you disagree, definitely
challenge me in the comments below. I can’t guarantee everyone
will be super polite, but I love a good debate
and I’ll be nice. I promise. That’s it. The last few segments there
get a little bit subjective. What I really want to do is just get
you thinking about what you value. Separating currency from State can make those
situations a reality, but it’s up to you to decide if
that is the right thing to do. I really don’t want to
tell you what to think. But enough of my blabbering. You’ve listened to enough of
it so we’ll call it a day. Thank you for tuning in. And as always, I love
having you here, and I will see you in
the next PIVX Class.