In “Flipside of the Coin Bites” I asserted the claim that Bitcoin, like any other finite currency system, was inherently flawed because it:
- Sells out the future by making currency an investment
- Can fluctuate wildly enough to destroy savings
- Creates an atmosphere of competition for money
- Holds no indication of a faith projection point
- No clear accountability in the event of problems
However, what if a Bitcoin-style system became the currency of an entire nation? For this example let’s use North Korea because of its solitude. We will call it KimCoin. If the calculation inputs were replaced so that the currency value was derived from movement of resource values of the country as a whole instead of investment choices of individuals AND an automated buying power “arbitrage” were added to the features of the virtual, electronically tracked money, KimCoin would not only achieve stability for itself but also contribute to the ongoing stability of the North Korean economy. In this way it would become a forerunner of the International Value Market component’s valuation standards as suggested in my Utopian Capitalism philosophy for a nation.
In essence, what we task the Federal Reserve with now using interest rates would be triggered by an algorithm based on the wisdom of all the years the Federal Reserve has done so to date. (It’s public record. Presumably North Korean economists would look it up and make sense of it their way.)
it could actually become a software-only version of what the Federal Reserve might benefit from as it transitions from limiting the availability of currency to inspiring it and then on again to the wider perspective of wealth pool management.
If the North Korean government were then to issue KimCoins every month to cover the costs of a struggle-free life for each and every citizen as well as issue enough KimCoins to itself to support the creation of new industries and to pay debt owed within the state itself this closed ecosystem of infinite currency could make North Korea the world’s first Utopian Capitalist nation!
Utopian Capitalism is my term for the perfection of the vision of the former USSR. In that system, well-intentioned men attempted to create a struggle-free life for every citizen – with a flaw. When the state owns industries, when shoes and clothing come in only shades of grey, and when there is no motivation to work to achieve a personal level of wealth it results in a bored, pissed-off population.
Utopian Capitalism leaves artistry in place, does not state own any industry (although the state jump-starts new industry and expansions to existing industry when needed), and does not specify to the public how to avoid struggle. Citizens are merely given the financial means to do so. The artistry of how is their business. This also alleviates the bottom rungs of Mazlow’s Hierarchy of Needs. Leaving every citizen at a new psychological starting point at which they are seeking to find fulfillment in their life and to understand their place in society.
In our present-day systems of finite currency, the gulf between haves and have-nots has so widened that the people who find themselves consistently battling the bottom rungs of the Hierarchy feel they have no way of every achieving the higher rungs. As a result, when people who are consistently exemplifying those rungs of psychological growth become visible in their lives they cause resentment and even outrage. This disconnect fractures populations and results in the 99% screaming at the 1% but not really knowing why they are vilifying what many of them would like to become someday – rich.
To eliminate the people and leave currency stability to computer software might make sense. After all, it’s a simple chore to keep something level. No need for complex calculations at all. Figuring out how nations trade in value will still require bankers to decipher. Might the World Bank then even issue and administrate the transparent code that can be customized to the needs of each nation and then allowed to run on its own? Maybe. Hopefully, a leader will take a chance on infinite stable currency soon.
To understand the benefits, read my book “Improved Liberty“.