Bitcoin was invented as an attempt to issue equitable money that would be created by the people, controlled by the people, to benefit the people. The question is, was this goal accomplished, or can be accomplished by some other decentralized cryptocurrency?
With over a decade after the invention of bitcoin, we see that instead of being created by the people, bitcoin is created by a few massive mining farms using megawatts of electricity. This process is now more centralized than creation of fiat money by the worldwide banking cartel. It is primarily held and controlled by the crypto whales, and mostly benefits the speculators. Even more surprising is that so far no other cryptocurrency produced usable money, never mind equitable money. So the answer to the stated question is a resounding no.
The reason why decentralized cryptocurrencies failed is because cryptocurrencies, like bitcoin, are a “property” that have speculative value, while business operations are based on "securities". And there are no decentralized means for creating securities. Inability to support business operations means that decentralized cryptocurrencies will never be able to function as money.
Given that the decentralized cryptocurrencies have failed and we know what has gone wrong, it is now possible to formulate the requirements for creation of equitable money.
Since a corporation is required to issue securities, this corporation should have a decentralized control like a credit union. Such a corporate structure would be able to issue money created by the people, controlled by the people, to benefit the people.
Most business transactions cannot be performed without a legal framework supported by some form of dispute resolution, and an ability to reverse transactions due to error, fraud, etc. To support dispute resolution, transactions have to be reversible in whole or in part.
What remains is to determine the type of a security needed to issue money. The answer lies in the relationship between money and goods, in which goods are the wealth, while money is a claim on wealth. In other words, money is a security that acknowledges a debt owed. To improve this process, issuance of money should be recorded on a blockchain such that the outstanding debt is equal to all the money in circulation. This would also demonstrate that the money supply is fully backed by the full faith and credit of the borrowers. Moreover, this type of money would be fundamentally different from the fiat money we have, because the proposed monetary system will be based on deflation instead of inflation. This is because the proposed system will accumulate the value of the interest payments within a supply of a fully backed currency.
As a result, this type of money would be based on diametrically opposite principles to the current system, such as deflation instead of inflation, public control and transparency for common good instead of secrets for private gains, it would be able to function within the current monetary system and will be able to compete against the fiat money. It would be a real revolution against the establishment, and it is already under way. It is called the Axio Monetary System.
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