Politics Of

Crypto

In this section, we will be discussing about the political impact of Crypto and how it came to be. Cryptocurrencies are very much inspired by political roots namely crypto-anarchists, Cypherpunks, hackers wanting to dismantle nation states and any related angencies.

Cypherpunk & Cryptoanarchy

Anonymity online to exchange messages , conduct business without ever knowing the legal identity of the other. Everyone’s legal right to privacy online using encryption.

A measure to disrupt the world economy and having a measure of control over central banks that are controlled by the government and greedy Wall Street brokers after the financial collapse in 2008. Giving power back to the people.

Money is technology. With the implementation of BitCoins technology, many cypherpunks took its blueprint and made more alternative cryptocurrencies such as Ethererum and Litecoin that answers to some of BitCoins probelms most notably transfer speed. Soon people were using crypto as money for transactions.

Timeline & Future

2008

2008 was one of the worst years financially as the world went into recession due to excessive cheap credit and lax lending standards that fueled the housing bubble. When the bubble burst, banks were holding trillions of dollars worth of meaningless mortgages causing the financial sector to crash . The value of traditional money began to decrease and the public trust of banks and financial institutions began to waiver. The flaws of of the existing system caused people to look for a better answer, to adopt a decentralised alternative.

2009

Fueled by the effects and causation of the 2008 financial crash, Satoshi Nakamoto released Bitcoin to the public striving to show the world that a currency with no reliance to any financial institution is possible. Bitcoin was building back trust within the population with encryption, anonymity and privacy. The first Crypto exchange, New Liberty Standard is established allowing the public to buy and sell Bitcoin. 1 USD = 1309.03 BTC

2010

First transaction and valuation of Bitcoin was for 2 pizzas for 10000 Bitcoin. It was instrumental as now BTC had some monetary value. 10000 BTC would have a valuation of 276 million in April 2023.

2017

Bitcoin reaches a market value of 10,000 per per bitcoin. Many financial institutions and banks were taking notice of the growth and want a piece of the pie. This causes a fin-tech boom where there were more users of blockchain technology then ever before.

2023

El-Salvador is the first country to use Bitcoin as legal tender. However due to its volatility, is it really practical? The United Kingdom is also planning to build infrastructure using blockchain for their new “digital pound” concept leveraging low transfer fees and fast peer to peer transaction as the main selling point. This pound however will be tied to the fiat currencies valuation at the moment making it essentially a stable coin. A cashless future could be the making but banks are still skeptical at the idea of using Bitcoin as legal tender thus innovating own technologies that would bring them more control.

Krypto Klimate