CEO and founder of Gab, Andrew Torba, recently posted a blog explaining the value of the cryptocurrency Bitcoin. He explains how he was blacklisted from major banks and has only been able to trade using Bitcoin, which he has dubbed “free speech money”.
Although Bitcoin has helped Gab stay online, it has some serious flaws you need to be aware of. If you are unfamiliar with the substantial flaws of centralized banking, legalized usury, and Fractional Reserved Lending, I encourage you to go through this series by Positive Money and watch the documentary The Money Masters before continuing.
Only when you see the evils of fiat currencies (USD, EUR, GBP) will you appreciate what cryptocurrencies are seeking to achieve.
Bitcoin is not the current solution to replace fiat currencies, and here are 5 reasons why:
5 Massive Problems With Bitcoin
Why do you think there are so many different cryptocurrencies, or “altcoins”, as they are called? Just take a look at the number here. The reason is that Bitcoin has foundational problems that other coins have tried to address. These 5 massive problems below mean that Bitcoin will eventually completely die out and you need to be aware of every single one.
- Bitcoin Is Surveillance Money
When you open a fiat bank account, you have to hand over your most personal information- your ID, date of birth, address, etc (notice how the bank does not give you any details about their CEO’s so you can hold them accountable). This means that it is impossible to spend fiat electronically without the bank or government knowing what you are doing and which locations you frequent. Unless you deal only in cash there is no way around this.
Bitcoin was an attempt to create an electronic person-to-person exchange of value with no need for private centralized banks that get special favors and bailouts from corrupt governments. Bitcoin was supposed to be digital cash. You can read about the intent of Bitcoin from the original white paper published by a peunonomus person or group called Satoshi Nakarnoto in 2008: ‘Bitcoin: A Peer-to-Peer Electronic Cash System’
However, Bitcoin is not free speech money, it is surveillance money. This is because the ledger (transactions) or the blockchain is completely public. Anyone can see all the transactions that are happening and what you have sent and received.
Anyone can go to this public Bitcoin Block Ledger and see how many Bitcoins a particular wallet has. For example, when TheoNerds purchased Gab Pro with Bitcoin, we were able to track that transaction and noticed that they had not spent the Bitcoin since we gave it to them.
If this data is ever connected to your location or shopping habits, such metadata could be used to identify you, leaving you in a position no safer than if you had simply used fiat currencies that are directly connected to your address and personal identity.
Most people obtain Bitcoin today through a middle man exchange such as Binance or Coinbase, which require you to upload documents that personally identify you. This means that your pseudo-anonymous wallet ID (or Bitcoin address) is then directly traceable back to you.
This all means that Bitcoin is a liability as it exposes the quantity of your assets which could make you a target for criminals, or cause vendors to charge you premiums for services or goods. It also leaves you open to nefarious organizations or governments who want to track your spending habits.
- Bitcoin Has Large Processing Fees
You will notice that if you acquire some Bitcoin, you will simply lose an enormous amount of it by transferring it. This means that Bitcoin is impractical for small purchases like buying eggs from your local farmer.
Ethereum seeks to combat this with low transaction fees, however, it suffers from the same exposed ledger as Bitcoin.
The processing fees and time will eventually become larger and larger as fewer Bitcoins enter and transverse the blockchain.
Bitcoin will be used to only transfer large amounts of capital and will not be a cryptocurrency that can be used for everyday use.
- Bitcoin Is Monopolised By Chinese Mining Farms
With the prevalence of large mining farms that use expensive and specialized computing hardware (ASIC), Bitcoin is practically impossible to mine with consumer hardware. This also means that the decentralized nature of Bitcoin can be monopolized by large mining pools which could, in turn, control the major flow of Bitcoins or greatly increase transaction fees.
This gives exchanges such as Binance leverage over individuals who want to participate in the Bitcoin economy where they have to forfeit their anonymity while paying service charges to receive any Bitcoin.
China has recently cracked down on Bitcoin mining, and the impact of this on the global Bitcoin economy is yet to be seen.
- Bitcoin Has A Limited Supply
There is a limited supply of Bitcoin. This might seem like an advantage as it does not suffer from arbitrary inflation like the Fractional Reserve system of private central banking. However, even with a limited supply of Shekel in the Old Testament, a 50 year Jubilee (Leviticus 25) was used to reset the economy and destroy monopolies with an additional economic feature of a 7-year release of debts (Deuteronomy 15).
Bitcoin is in danger of dying because there will come a time when there remains no incentive for miners to obtain Bitcoin as there is none left to discover on the Blockchain.
Without planned economic resets or new coins in the economy, the threat of monopolies and hyperinflation of Bitcoins is inevitable.
- Bitcoin Is Not Fungible
Fungibility is the term used in currencies to mean that there is value equality between equal amounts of currency.
Bitcoin does not solve this problem as there are two types of Bitcoin in the economy: virgin or “clean” Bitcoins and criminal or “dirty” Bitcoins.
Let’s say you provide a service and are paid in Bitcoin. You then transfer this newly acquired Bitcoin to an exchange where you hope to trade it for a currency you can buy groceries with. All of a sudden, your exchange account is closed and all your Bitcoin your transferred is held by the exchange indefinitely with the government now knocking on your door.
Since the Bitcoin ledger is 100% transparent, an AI was able to determine that the Bitcoins you acquired for providing an honest service were at one time used in illegal activity that had nothing to do with you. Without knowledge, you had received “dirty” Bitcoins and as a result, your accounts were closed. This could also be the reasoning of governments who wish to close exchanges for money laundering.
This is why virgin Bitcoins or freshly mined Bitcoins sell between 10-20% higher than other Bitcoins. Meaning that Bitcoin is not fungible and is a liability.
The Death Of Bitcoin
Unfortunately, Bitcoin has failed in its original ideal as being peer-to-peer digital cash. In reality, it is dominated by mining monopolies, who profit from middlemen exchanges that demand your most personally identifiable information while lacking fungibility and therefore incur security risks.
All this means that Bitcoin is not going to last, and once people realize that it’s only a slightly improved version of fiat currencies, they will jump ship.
The Future Of Crypto In The Face Of Technocracy
Technocracy is a resource-based economic system that uses energy credits as its accounting system. This philosophy of economics is the leading force behind globalism today and the green/climate change extremism/alarmism we see being pushed on the back of the created Covid-19 fiasco.
You must recognize that the fiat system is designed to crash and crash it will. This is why there is a global push by elites to secure land and energy-producing resources. Expect to see supply and manufacturing shortages as the economy continues to plummet into the abyss.
A cryptocurrency or token that expires and is subject to arbitrary scientific speculations of energy usage and resource production will most likely be the means of exchange in the final and global kingdom on earth spoken of in Daniel 7:23-28.
The money in your bank account is simply devaluing every day by existing in the current fiat system and will inevitably become worthless in the face of a coming Great Reset. The goal is for energy production to become the new economy within a neo-feudal global government that utilizes technology and social credit systems to control individuals. China is the world’s first Technocratic state.
The reason that Bitcoin is still around is because of its privacy vulnerabilities. The Intelligence communities surely love its open ledger and can monitor it as closely as any fiat currency with machine learning. In fact, in 1997, NSA members wrote an essay titled: “How To Make A Mint: The Cryptography of Anonymous Electronic Cash” and could have very well influenced the development of Bitcoin. It, therefore, provides no threat to the coming new economic order.
The elimination of privacy with the implementation of mass surveillance is key to establishing a technocracy.
Decentralized Private Property Is Biblical
The right to private property is inseparable from the right to privacy.
Remove the ability to own anything and you remove your ability for privacy. Remove the ability for privacy and you remove the ability to possess anything.
This is why the battle for internet privacy is in fact your battle to own anything on the internet.
“Thou shall not steal” (Exodus 20:15) assumes a universal right to property, and therefore privacy.
Recognizing that the earth indeed belongs to God (Psalm 24:1) and humanity is simply a steward of the resources He has entrusted to us (1 Peter 4:9-11), we all have the right as the sons of Adam to possess private property and leave an inheritance for our children (Proverbs 13:22).
How To Secure Your Assets
Monero (XMR) is the only fully private cryptocurrency. It is, therefore, in my opinion, the only cryptocurrency that has any legs to stand against the coming clampdown on exchanges and crypto. Its privacy also makes it fully fungible and achieves what was the original goal of Bitcoin: a decentralized, per-to-per digital cash system.
To learn more about Monero, I recommend reading this book. If you have any questions about setting up wallets or mining Monero, I’ll do my best to answer them in the comments section at the end of this article.
I have personally been making the transition of my emergency savings into Monero and would recommend that you consider doing the same.
The current fiat monetary system is also worshipped by many, by exiting it you are in fact devaluing this idol in the minds of its beholders. By exiting or reducing your contact with this Anti-Christ system, you are, in reality, weakening it and protesting against its unlawful use of Fractional Reserve Lending; the means by which many have become enslaved.
Ultimately, the weakness of Monero is the need for internet access, however, once your coins are on the blockchain (in your wallet), they can’t be removed. If we get to a stage of lacking universal internet access through a fictitious cyber-pandemic, I fear we will have greater challenges to think about.
Once your watershed savings are secured in Monero, I would recommend investing in value-generating resources such as land, food-producing systems (livestock, agriculture), or skills (education to service others). These could all be used to barter should a global economic crash be looming on the horizon.
I personally don’t like the idea of investing in gold or silver as it is difficult to transport and store, which leaves you at the mercy of a third-party exchange.
Beware of Covetousness
Lands can be taken off you through force, crops can fail, and health issues could destroy your ability to work. Ultimately, the only secure assets are those in heaven and we should certainly set our affections there and obey our Master to fulfill the Great Commission through the advancement of the Gospel. Everything in this world is indeed sinking sand.
“But the day of the Lord will come as a thief in the night, in which the heavens will pass away with a great noise, and the elements will melt with fervent heat; both the earth and the works that are in it will be burned up. Therefore, since all these things will be dissolved, what manner of persons ought you to be in holy conduct and godliness” -2 Peter 3:10-11
We are also called to be good stewards of the resources that we are entrusted with on the earth and to leave a legacy or inheritance for our children (Proverbs 13:22). So it is still important that while we tarry here, we consider helping others as there very well might come a time when Christian communities will have to hold all things in common once again (Acts 2:44-45). What could you contribute to such a collective?