Justin Goro-The Great Hard Fork An Unraveling of State Legitimacy-

Martin​ ​Luther​ ​releases​ ​his​ ​White​ ​Paper​ ​on​ ​Open​ ​Christianity,​ ​a​ ​new​ ​decentralized​ ​peer-to-peer religion​ ​based​ ​on​ ​Proof​ ​of​ ​Love.

The​ ​Great​ ​Hard​ ​Fork:​ ​An​ ​Unraveling​ ​of State​ ​Legitimacy Introduction The​ ​liberation​ ​of​ ​money​ ​from​ ​state​ ​control​ ​made​ ​possible​ ​by​ ​Bitcoin​ ​has​ ​reopened​ ​societal dialogue​ ​on​ ​old​ ​philosophical​ ​questions​ ​about​ ​the​ ​fundamental​ ​nature​ ​of​ ​money.​ ​Until​ ​very recently​ ​most​ ​people​ ​didn’t​ ​think​ ​about​ ​money​ ​as​ ​a​ ​technology​ ​or​ ​as​ ​something​ ​that​ ​can​ ​exist outside​ ​of​ ​the​ ​control​ ​of​ ​nation​ ​states.​ ​In​ ​fact,​ ​introductory​ ​university​ ​textbooks​ ​even​ ​begin​ ​with the​ ​assumption​ ​that​ ​the​ ​supply​ ​of​ ​money​ ​is​ ​set​ ​by​ ​the​ ​central​ ​bank​ ​without​ ​ever​ ​exploring​ ​a setting​ ​in​ ​which​ ​money​ ​could​ ​emerge​ ​spontaneously​ ​like​ ​other​ ​goods​ ​and​ ​services.​ ​The​ ​ambient air​ ​of​ ​assumptions​ ​that​ ​protects​ ​the​ ​monopoly​ ​of​ ​money​ ​creation​ ​has​ ​given​ ​an​ ​unchallenged hegemonic​ ​authority​ ​to​ ​central​ ​banks​ ​which​ ​bitcoin​ ​finally​ ​pierced.

The​ ​rise​ ​of​ ​cryptocurrency​ ​doesn’t​ ​merely​ ​threaten​ ​the​ ​monopoly​ ​of​ ​central​ ​banking,​ ​however;​ ​in fact​ ​the​ ​entire​ ​nation​ ​state​ ​apparatus​ ​rests​ ​precariously​ ​on​ ​the​ ​structure​ ​of​ ​banking​ ​carefully crafted​ ​over​ ​400​ ​years.​ ​What​ ​cryptocurrency​ ​threatens​ ​is​ ​the​ ​very​ ​existence​ ​of​ ​the​ ​nation​ ​state which​ ​will​ ​have​ ​to​ ​pivot​ ​quite​ ​radically​ ​in​ ​order​ ​to​ ​survive​ ​the​ ​coming​ ​onslaught​ ​from​ ​the blockchain.​ ​The​ ​resulting​ ​institutional​ ​framework​ ​might​ ​look​ ​entirely​ ​alien​ ​once​ ​the​ ​dust​ ​has settled.​ ​To​ ​understand​ ​why​ ​the​ ​survival​ ​of​ ​the​ ​nation​ ​state​ ​is​ ​threatened​ ​by​ ​cryptocurrency,​ ​we have​ ​to​ ​delve​ ​into​ ​history​ ​to​ ​uncover​ ​the​ ​2​ ​most​ ​common​ ​sources​ ​of​ ​state​ ​legitimacy.

War​ ​is​ ​Peace

In​ ​AD​ ​312​ ​the​ ​Emperor​ ​Constantine​ ​began​ ​the​ ​Christianization​ ​of​ ​the​ ​Roman​ ​Empire,​ ​shifting from​ ​a​ ​persecutor​ ​of​ ​Christians​ ​to​ ​adopting​ ​it​ ​as​ ​official​ ​state​ ​religion.​ ​Shortly​ ​after,​ ​the​ ​Council of​ ​Nicaea​ ​was​ ​convened​ ​to​ ​formalize​ ​the​ ​New​ ​Testament,​ ​mirroring​ ​the​ ​gathering​ ​of​ ​some wealthy​ ​American​ ​land​ ​owners’​ ​attempt​ ​to​ ​formalize​ ​a​ ​government​ ​of​ ​and​ ​by​ ​the​ ​people​ ​some 1400​ ​years​ ​later.​ ​Between​ ​those​ ​2​ ​periods,​ ​states​ ​across​ ​Europe​ ​took​ ​an​ ​increasing​ ​interest​ ​in regulating​ ​and​ ​controlling​ ​the​ ​rise​ ​of​ ​Christianity​ ​and​ ​Christian​ ​thought.​ ​In​ ​spreading​ ​Christianity, the​ ​state​ ​was​ ​able​ ​to​ ​gain​ ​legitimacy​ ​in​ ​the​ ​minds​ ​of​ ​its​ ​subjects​ ​by​ ​piggy​ ​backing​ ​on​ ​the​ ​virtues of​ ​a​ ​peaceful​ ​religion.​ ​In​ ​this​ ​way​ ​a​ ​parasitic​ ​relationship​ ​was​ ​formed​ ​between​ ​ruler​ ​and​ ​church.

On​ ​the​ ​surface​ ​it​ ​might​ ​appear​ ​that​ ​the​ ​Church​ ​was​ ​a​ ​benefactor​ ​from​ ​this​ ​unification​ ​of​ ​mission but​ ​the​ ​gradual​ ​corruption​ ​of​ ​purpose​ ​that​ ​the​ ​Church​ ​was​ ​forced​ ​to​ ​endure​ ​under​ ​the​ ​unified Church-State​ ​corroded​ ​its​ ​credibility​ ​over​ ​time​ ​so​ ​that​ ​the​ ​seeds​ ​of​ ​the​ ​reformation​ ​found​ ​fertile soil.​ ​Whatever​ ​benefit​ ​the​ ​Church​ ​enjoyed​ ​from​ ​state​ ​protection​ ​was​ ​vastly​ ​overshadowed​ ​by the​ ​damage​ ​done​ ​to​ ​Christianity​ ​itself.

What​ ​sets​ ​apart​ ​this​ ​period​ ​of​ ​history​ ​is​ ​that​ ​this​ ​relationship​ ​between​ ​church​ ​and​ ​state​ ​in medieval​ ​Europe​ ​was​ ​unlike​ ​any​ ​other​ ​before​ ​it.​ ​In​ ​past​ ​civilizations,​ ​religions​ ​often​ ​existed​ ​to proclaim​ ​the​ ​king​ ​the​ ​holy​ ​representative​ ​on​ ​earth.​ ​The​ ​temple​ ​existed​ ​to​ ​legitimize​ ​the​ ​king.

Instead,​ ​following​ ​the​ ​fall​ ​of​ ​the​ ​Roman​ ​Empire​ ​the​ ​state​ ​falsely​ ​inserted​ ​itself​ ​as​ ​a​ ​high​ ​priest​ ​of Christianity,​ ​boldly​ ​and​ ​ironically​ ​advancing​ ​an​ ​imperial​ ​agenda​ ​in​ ​the​ ​name​ ​of​ ​a​ ​pacifist​ ​Christ.

The​ ​state​ ​pretended​ ​to​ ​deputize​ ​itself​ ​in​ ​the​ ​name​ ​of​ ​the​ ​Church​ ​in​ ​order​ ​to​ ​hide​ ​behind​ ​the moral​ ​legitimacy​ ​of​ ​the​ ​Church.​ ​As​ ​we​ ​shall​ ​see,​ ​this​ ​moral​ ​bait​ ​and​ ​switch​ ​became​ ​the dominant​ ​approach​ ​of​ ​western​ ​government​ ​right​ ​into​ ​the​ ​21st​ ​century.

A​ ​Theory​ ​of​ ​Legitimacy:​ ​The​ ​Active​ ​and​ ​Ambient​ ​State

To​ ​understand​ ​why​ ​the​ ​early​ ​European​ ​Church-State​ ​behaved​ ​in​ ​this​ ​way,​ ​a​ ​theory​ ​of​ ​legitimacy has​ ​to​ ​been​ ​developed.​ ​In​ ​addition​ ​to​ ​tax​ ​revenue,​ ​every​ ​state​ ​needs​ ​to​ ​draw​ ​on​ ​a​ ​source​ ​of continued​ ​legitimacy​.​ ​The​ ​existence​ ​of​ ​propaganda​ ​in​ ​every​ ​state​ ​to​ ​date​ ​is​ ​proof​ ​that​ ​no government​ ​can​ ​exist​ ​without​ ​the​ ​consent​ ​of​ ​its​ ​governed.​ ​In​ ​fact​ ​the​ ​more​ ​tyrannical​ ​the​ ​state, the​ ​more​ ​it​ ​needs​ ​to​ ​employ​ ​brainwashing​ ​and​ ​diversionary​ ​techniques​ ​in​ ​order​ ​to​ ​repress​ ​an uprising.​ ​This​ ​is​ ​why​ ​freedom​ ​of​ ​expression​ ​is​ ​constantly​ ​under​ ​pressure​ ​and​ ​attack​ ​throughout the​ ​world.​ ​An​ ​isolated​ ​citizen​ ​is​ ​much​ ​safer​ ​to​ ​the​ ​ruler​ ​than​ ​an​ ​organized​ ​populace.​ ​Whether the​ ​organization​ ​of​ ​a​ ​state​ ​is​ ​democratic​ ​or​ ​totalitarian​ ​then,​ ​it​ ​follows​ ​that​ ​every​ ​state​ ​must obtain​ ​legitimacy​ ​in​ ​order​ ​to​ ​persist​.

So​ ​far​ ​there​ ​have​ ​been​ ​only​ ​2​ ​strategies​ ​for​ ​obtaining​ ​legitimacy​ ​and​ ​these​ ​2​ ​dominant strategies​ ​will​ ​be​ ​referred​ ​to​ ​in​ ​this​ ​article​ ​respectively​ ​as​ ​the​ a ​ ctive​ ​state​ ​and​ ​the​ ​ambient​ ​state​.

Active​ ​State:​ ​A​ ​setting​ ​in​ ​which​ ​the​ ​population​ ​is​ ​made​ ​explicitly​ ​aware​ ​of​ ​the​ ​established​ ​ruling hierarchy​ ​through​ ​a​ ​strong​ ​reliance​ ​on​ ​the​ ​combination​ ​of​ ​intimidation​ ​and​ ​propaganda.

The​ ​active​ ​state​ ​is​ ​historically​ ​the​ ​most​ ​common​ ​form​ ​of​ ​government.​ ​It​ ​is​ ​easy​ ​to​ ​understand​ ​for both​ ​ruled​ ​and​ ​ruler.​ ​The​ ​best​ ​modern​ ​example​ ​of​ ​the​ ​active​ ​state​ ​is​ ​North​ ​Korea​ ​which​ ​pounds its​ ​citizens​ ​with​ ​the​ ​hammer​ ​of​ ​fear​ ​of​ ​disobedience​ ​and​ ​the​ ​deification​ ​of​ ​its​ ​leader.​ ​Throughout history,​ ​god-kings​ ​have​ ​ruled​ ​over​ ​their​ ​citizens​ ​by​ ​utilizing​ ​the​ ​simple​ ​mechanisms​ ​of​ ​active rule.

Ambient​ ​State:​ ​The​ ​state​ ​operates​ ​subtle​ ​levers​ ​whose​ ​effects​ ​are​ ​difficult​ ​to​ ​detect​ ​by​ ​citizens on​ ​a​ ​daily​ ​basis,​ ​making​ ​the​ ​state​ ​difficult​ ​to​ ​distinguish​ ​from​ ​background​ ​societal​ ​white​ ​noise.

The​ ​illusion​ ​of​ ​individual​ ​liberty​ ​manifests​ ​in​ ​the​ ​minds​ ​of​ ​the​ ​general​ ​population​ ​who​ ​are​ ​unable to​ ​accurately​ ​pinpoint​ ​or​ ​identify​ ​the​ ​ruling​ ​class.

The​ ​ambient​ ​state​ ​will​ ​always​​ ​outsource​ ​its​ ​legitimacy​ ​to​ ​mask​ ​its​ ​true​ ​existence.​ ​By​ ​confining its​ ​visible​ ​rule​ ​to​ ​a​ ​few​ ​pretty​ ​marble​ ​buildings,​ ​the​ ​ambient​ ​state​ ​appears​ ​benign​ ​and​ ​inert.

While​ ​both​ ​the​ ​active​​ ​and​ ​ambient​​ ​states​ ​rely​ ​heavily​ ​on​ ​propaganda,​ ​the​ ​active​ ​state​ ​focuses on​ ​deification​ ​of​ ​the​ ​leader​ ​while​ ​the​ ​ambient​ ​state​ ​relies​ ​on​ ​obfuscation​ ​and​ ​false​ ​humility.

In​ ​the​ ​case​ ​of​ ​dark​ ​ages​ ​Europe,​ ​the​ ​visible​ ​states​ ​hid​ ​their​ ​presence​ ​behind​ ​the​ ​sanctity​ ​of churches​ ​by​ ​declaring​ ​themselves​ ​missionaries​ ​in​ ​the​ ​spread​ ​of​ ​Christendom.

By​ ​removing​ ​itself​ ​from​ ​societal​ ​observation​ ​behind​ ​preexisting​ ​institutions,​ ​the​ ​ambient​ ​state frees​ ​itself​ ​from​ ​being​ ​held​ ​responsible​ ​for​ ​its​ ​deleterious​ ​effects​ ​on​ ​society.​ ​Instead,​ ​the​ ​very institutions​ ​that​ ​serve​ ​to​ ​prop​ ​up​ ​the​ ​ambient​ ​state​ ​bear​ ​the​ ​brunt​ ​of​ ​public​ ​outcry​ ​by​ ​a​ ​populace who​ ​are​ ​unable​ ​to​ ​detect​ ​subtle​ ​rule​ ​by​ ​a​ ​background​ ​force.​ ​This​ ​is​ ​why​ ​I​ ​claimed​ ​that​ ​the Church​ ​was​ ​being​ ​parasitically​ ​leached​ ​upon​ ​by​ ​the​ ​state,​ ​having​ ​its​ ​legitimacy​ ​gradually​ ​sucked dry.​ ​The​ ​ambient​ ​states​ ​of​ ​Europe​ ​gradually​ ​honed​ ​their​ ​soft​ ​touch​ ​elusiveness​ ​over​ ​the centuries​ ​following,​ ​further​ ​reinforcing​ ​the​ ​idea​ ​that​ ​they​ ​played​ ​a​ ​limited​ ​role​ ​in​ ​society.

The​ ​beauty​ ​of​ ​the​ ​ambient​ ​state​ ​is​ ​that​ ​it​ ​evades​ ​detection​ ​by​ ​even​ ​the​ ​most​ ​astute​ ​intellectuals.

Karl​ ​Marx​ ​was​ ​the​ ​first​ ​famous​ ​intellectual​ ​to​ ​fall​ ​for​ ​this​ ​sham​ ​when​ ​he​ ​targeted​ ​capitalists​ ​for the​ ​ills​ ​of​ ​society​ ​instead​ ​of​ ​correctly​ ​identifying​ ​the​ ​true​ ​background​ ​puppet​ ​masters,​ ​who themselves​ ​were​ ​merely​ ​masquerading​ ​as​ ​capitalists,​ ​draining​ ​legitimacy​ ​from​ ​the​ ​institution​ ​of commercial​ ​man​.

Honey​ ​“inflation” To​ ​use​ ​a​ ​bee​ ​keeping​ ​analogy,​ ​an​ ​active​ ​state​ ​is​ ​akin​ ​to​ ​a​ ​beekeeper​ ​bursting​ ​in​ ​and​ ​seizing honey​ ​with​ ​smoke​ ​and​ ​protective​ ​clothing,​ ​agitating​ ​the​ ​bees​ ​who​ ​see​ ​their​ ​ruler.​ ​An​ ​ambient state​ ​is​ ​similar​ ​to​ ​someone​ ​installing​ ​a​ ​tap​ ​at​ ​the​ ​base​ ​of​ ​the​ ​hive​ ​and​ ​slowly​ ​draining​ ​away honey​ ​without​ ​disturbing​ ​the​ ​bees.​ ​The​ ​bees​ ​are​ ​certainly​ ​disturbed​ ​by​ ​the​ ​installation​ ​of​ ​the​ ​tap but​ ​after​ ​that,​ ​encounters​ ​with​ ​netted​ ​ape​ ​invaders​ ​recede​ ​into​ ​distant​ ​hive​ ​memory​ ​while​ ​honey stocks​ ​mysteriously​ ​decline.

State​ ​Mortality

Both​ ​the​ ​active​ ​state​ ​and​ ​the​ ​ambient​ ​state​ ​sow​ ​the​ ​seeds​ ​for​ ​their​ ​own​ ​destruction​ ​in​ ​the​ ​way they​ ​draw​ ​on​ ​their​ ​respective​ ​sources​ ​of​ ​legitimacy.​ ​The​ ​active​ ​state​ ​tends​ ​to​ ​subsist​ ​on​ ​an impoverished​ ​mass​ ​of​ ​subjects​ ​and​ ​is​ ​therefore​ ​vulnerable​ ​to​ ​coups​ ​from​ ​within​ ​the​ ​ruling​ ​class as​ ​demonstrated​ ​recently​ ​by​ ​the​ ​change​ ​of​ ​leadership​ ​in​ ​Zimbabwe.​ ​Every​ ​time​ ​a​ ​churn​ ​in leadership​ ​happens,​ ​the​ ​active​ ​state​ ​faces​ ​a​ ​slim​ ​but​ ​very​ ​real​ ​opportunity​ ​to​ ​radically​ ​change​ ​its style​ ​of​ ​governance.​ ​This​​ ​CPGGrey​​ ​video​ ​explains​ ​the​ ​incentives​ ​facing​ ​active​ ​states​ ​very​ ​well.

The​ ​ambient​ ​state​ ​insulates​ ​itself​ ​from​ ​this​ ​effect​ ​by​ ​formalizing​ ​the​ ​churn​ ​in​ ​leadership​ ​in​ ​return for​ ​maintaining​ ​the​ ​exact​ ​same​ ​style​ ​of​ ​government​ ​post-churn.​ ​In​ ​the​ ​modern​ ​world​ ​this​ ​is​ ​seen in​ ​democratic​ ​elections​ ​which​ ​hold​ ​far​ ​more​ ​legitimacy-capital​ ​than​ ​revolutions.​ ​In​ ​this​ ​way,​ ​the omnipresent​ ​specter​ ​of​ ​revolution​ ​that​ ​threatens​ ​active​ ​states​ ​is​ ​completely​ ​neutralized​ ​in

ambient​ ​states.​ ​Instead,​ ​the​ ​ambient​ ​state​ ​is​ ​threatened​ ​by​ ​exhausting​ ​its​ ​sources​ ​of​ ​outsourced legitimacy.​ ​In​ ​the​ ​case​ ​of​ ​Western​ ​Europe,​ ​the​ ​state​ ​had​ ​nearly​ ​exhausted​ ​its​ ​reserves​ ​of church-tapped​ ​legitimacy.​ ​In​ ​order​ ​to​ ​save​ ​itself,​ ​the​ ​parasite​ ​had​ ​to​ ​disengage​ ​from​ ​the​ ​host and​ ​seek​ ​a​ ​new​ ​host,​ ​lest​ ​both​ ​die.​ ​And​ ​so​ ​we​ ​experienced​ ​the​ ​great​ ​separation​ ​of​ ​Church​ ​and State.

The​ ​great​ ​failing​ ​of​ ​modern​ ​electorates​ ​to​ ​grasp​ ​the​ ​nature​ ​of​ ​the​ ​world​ ​we​ ​live​ ​in​ ​is​ ​to​ ​assume that​ ​the​ ​ambient​ ​state​ ​is​ ​subject​ ​to​ ​the​ ​rules​ ​that​ ​govern​ ​the​ ​active​ ​state.​ ​Democratic​ ​election cycles​ ​rest​ ​on​ ​maintaining​ ​the​ ​myth​ ​that​ ​“this​ ​time​ ​change​ ​is​ ​coming”.

To​ ​sum​ ​up,​ ​leadership​ ​turnover​ ​threatens​ ​the​ ​health​ ​of​ ​active​ ​states​ ​but​ ​is​ ​subsumed​ ​as​ ​a legitimacy​ ​renewal​ ​mechanism​ ​by​ ​the​ ​ambient​ ​state​ ​who​ ​wishes​ ​its​ ​populace​ ​to​ ​mistake​ ​it​ ​for​ ​an active​ ​state.​ ​In​ ​return​ ​for​ ​immunity​ ​from​ ​revolution,​ ​ambient​ ​states​ ​have​ ​to​ ​parasitically​ ​tap​ ​their legitimacy​ ​from​ ​3rd​ ​party​ ​institutions​ ​which​ ​themselves​ ​are​ ​subject​ ​to​ ​sudden​ ​collapse.

From​ ​Confession​ ​to​ ​Commerce

Fortunately​ ​for​ ​the​ ​ambient​ ​state,​ ​by​ ​the​ ​time​ ​it​ ​had​ ​to​ ​disengage​ ​from​ ​the​ ​Church,​ ​the intellectual​ ​foundation​ ​had​ ​been​ ​laid​ ​for​ ​a​ ​new​ ​champion​ ​of​ ​legitimacy:​ ​the​ ​free​ ​market.​ ​The​ ​rise of​ ​capitalism​ ​gave​ ​so​ ​many​ ​fruitful​ ​avenues​ ​for​ ​a​ ​state​ ​that​ ​wanted​ ​to​ ​appear​ ​invisible​ ​while slowly​ ​consuming​ ​the​ ​economy.​ ​In​ ​fact​ ​the​ ​very​ ​virtue​ ​of​ ​limited​ ​government​ ​that​ ​liberals espoused​ ​served​ ​as​ ​the​ ​perfect​ ​cover​ ​for​ ​the​ ​roving​ ​parasite​ ​of​ ​ambient​ ​legitimacy.​ ​The innovation​ ​of​ ​the​ ​state​ ​in​ ​this​ ​new​ ​era​ ​where​ ​men​ ​were​ ​informed​ ​by​ c​ alculation​ ​rather​ ​than sermon​ ​was​ ​to​ ​latch​ ​onto​ ​an​ ​institution​ ​that​ ​formed​ ​the​ ​very​ ​basis​ ​of​ ​calculation:​ ​money.

Central​ ​Bank:​ ​The​ ​Church​ ​of​ ​Progress

As​ ​Western​ ​Civilization​ ​began​ ​to​ ​fall​ ​in​ ​love​ ​with​ ​scientific​ ​rationalism,​ ​liberal​ ​economists​ ​of​ ​the 19th​ ​century​ ​were​ ​espousing​ ​the​ ​brilliance​ ​of​ ​unfettered​ ​commerce.​ ​The​ ​ambitions​ ​of​ ​Industrial Man​ ​were​ ​rising​ ​to​ ​god​ ​status​ ​and,​ ​like​ ​all​ ​false​ ​gods,​ ​he​ ​felt​ ​increasingly​ ​vulnerable​ ​as​ ​he​ ​grew in​ ​stature.​ ​Confident​ ​in​ ​his​ ​ability​ ​to​ ​accumulate​ ​money,​ ​Industrial​ ​Man​ ​was​ ​unable​ ​to​ ​gain control​ ​over​ ​money​ ​itself​ ​which,​ ​like​ ​language,​ ​had​ ​always​ ​been​ ​an​ ​emergent​ ​phenomenon​ ​of society.​ ​Just​ ​as​ ​the​ ​greatest​ ​authors​ ​have​ ​very​ ​little​ ​control​ ​over​ ​the​ ​evolution​ ​of​ ​English,​ ​so​ ​too the​ ​wealthiest​ ​tycoons​ ​have​ ​no​ ​say​ ​over​ ​the​ ​purchasing​ ​power​ ​of​ ​the​ ​measure​ ​of​ ​their​ ​wealth.

Capitalizing​ ​on​ ​the​ ​growing​ ​sense​ ​of​ ​insecurity​ ​that​ ​accompanied​ ​the​ ​growth​ ​of​ ​national​ ​output, the​ ​state​ ​stepped​ ​in​ ​to​ ​soothe​ ​fears​ ​by​ ​nationalizing​ ​and​ ​regulating​ ​the​ ​supply​ ​of​ ​money.​ ​By applying​ ​the​ ​now​ ​popular​ ​principles​ ​of​ ​scientific​ ​inquiry,​ ​the​ ​central​ ​bank​ ​represented​ ​man’s taming​ ​of​ ​the​ ​wild​ ​anarchic​ ​waters​ ​of​ ​finance​ ​with​ ​committees​ ​of​ ​informed​ ​bureaucrats.​ ​Man​ ​had finally​ ​declared​ ​himself​ ​master​ ​over​ ​money.​ ​And​ ​so​ ​memory​ ​of​ ​a​ ​period​ ​before​ ​money​ ​was backed​ ​by​ ​nothing​ ​and​ ​issued​ ​by​ ​technocrats​ ​began​ ​to​ ​recede​ ​with​ ​every​ ​passing​ ​generation until​ ​we​ ​arrived​ ​at​ ​the​ ​present​ ​point​ ​in​ ​time​ ​where​ ​economic​ ​textbooks​ ​declare​ ​money​ ​a centralized​ ​institution​ ​like​ ​a​ ​telescreen​ ​declaring​ ​that​ ​we’d​ ​always​ ​been​ ​at​ ​war​ ​with​​ ​Eastasia​.

The​ ​public​ ​takeover​ ​of​ ​money​ ​ushered​ ​in​ ​a​ ​new​ ​era​ ​of​ ​public​ ​economic​ ​thought​ ​that​ ​accepted the​ ​state​ ​as​ ​a​ ​beneficial​ ​caretaker​ ​of​ ​all​ ​matters​ ​finance.​ ​As​ ​a​ ​societal​ ​bargain​ ​for​ ​establishing order,​ ​the​ ​state​ ​would​ ​assume​ ​all​ ​powers​ ​of​ ​taxation,​ ​of​ ​course.​ ​This​ ​included​ ​taxation​ ​on​ ​flows of​ ​money​ ​rather​ ​than​ ​just​ ​stocks​ ​of​ ​wealth.​ ​The​ ​passing​ ​of​ ​the​ ​income​ ​tax​ ​represents​ ​society’s acknowledgement​ ​that​ ​all​ ​money​ ​is​ ​first​ ​and​ ​foremost​ ​the​ ​property​ ​of​ ​the​ ​caretaker​ ​state.

The​ ​Ambient​ ​Banking​ ​State

“There​ ​is​ ​no​ ​subtler,​ ​no​ ​surer​ ​means​ ​of​ ​overturning​ ​the​ ​existing​ ​basis​ ​of​ ​society​ ​than​ ​to​ ​debauch the​ ​currency.​ ​The​ ​process​ ​engages​ ​all​ ​the​ ​hidden​ ​forces​ ​of​ ​economic​ ​law​ ​on​ ​the​ ​side​ ​of destruction,​ ​and​ ​does​ ​it​ ​in​ ​a​ ​manner​ ​which​ ​not​ ​one​ ​man​ ​in​ ​a​ ​million​ ​is​ ​able​ ​to diagnose.” — John​ ​Maynard​ ​Keynes Once​ ​the​ ​norms​ ​of​ ​ubiquitous​ ​state​ ​control​ ​of​ ​money​ ​had​ ​been​ ​established,​ ​the​ ​state’s​ ​role​ ​in money​ ​became​ ​ambient​ ​to​ ​most​ ​citizens​ ​who​ ​knew​ ​no​ ​other​ ​way.​ ​The​ ​illusion​ ​of​ ​liberty​ ​was fostered​ ​in​ ​the​ ​mind​ ​of​ ​the​ ​citizen​ ​who​ ​would​ ​easily​ ​grow​ ​enraged​ ​by​ ​inefficient​ ​postal​ ​services without​ ​realizing​ ​that​ ​half​ ​their​ ​income​ ​and​ ​all​ ​of​ ​their​ ​pension​ ​were​ ​being​ ​siphoned​ ​off​ ​silently like​ ​honey​ ​through​ ​a​ ​hive-tap.​ ​Failing​ ​to​ ​recognize​ ​the​ ​nuances​ ​of​ ​the​ ​ambient​ ​state,​ ​western civilization​ ​boasted​ ​its​ ​superior​ ​way​ ​of​ ​life​ ​relative​ ​to​ ​the​ ​Soviet​ ​Union​ ​who​ ​was​ ​still​ ​using​ ​the now​ ​outdated​ ​active​ ​state​ ​approach,​ ​a​ ​model​ ​that​ ​was​ ​too​ ​easily​ ​recognizable​ ​by​ ​westerners​ ​as overt​ ​rule​ ​to​ ​garner​ ​any​ ​sense​ ​of​ ​legitimacy.

Bitcoin’s​ ​two-pronged​ ​threat​ ​to​ ​the​ ​current​ ​Ambient​ ​State

The​ ​current​ ​ambient​ ​state​ ​dines​ ​at​ ​the​ ​table​ ​of​ ​central​ ​banking​ ​legitimacy​ ​but​ ​bitcoin​ ​has​ ​come to​ ​kick​ ​the​ ​legs​ ​out.​ ​The​ ​first​ ​and​ ​most​ ​obvious​ ​victory​ ​bitcoin​ ​won​ ​over​ ​the​ ​central​ ​banking cartel​ ​was​ ​to​ ​expose​ ​and​ ​eliminate​ ​inflation.​ ​Succumbing​ ​to​ ​inflation,​ ​an​ ​omnipresent mechanism​ ​of​ ​theft,​ ​has​ ​now​ ​been​ ​relegated​ ​to​ ​a​ ​lifestyle​ ​choice​ ​where​ ​just​ ​a​ ​decade​ ​ago​ ​it​ ​was considered​ ​an​ ​inevitable​ ​fact​ ​of​ ​existence.​ ​The​ ​weapon​ ​of​ ​mass​ ​HODL​ ​has​ ​been​ ​deployed​ ​and Central​ ​banks​ ​will​ ​never​ ​get​ ​back​ ​their​ ​ability​ ​to​ ​inflate​ ​away​ ​our​ ​wealth.

Make​ ​no​ ​mistake:​ ​cryptocurrency​ ​and​ ​income​ ​tax​ ​cannot​ ​coexist.

The​ ​next​ ​ambient​ ​institution​ ​to​ ​fall​ ​will​ ​be​ ​the​ ​state’s​ ​asserted​ ​ownership​ ​of​ ​all​ ​matters​ ​finance.

This​ ​one​ ​gives​ ​it​ ​legitimate​ ​authority​ ​to​ ​tax​ ​our​ ​income.​ ​In​ ​recent​ ​times,​ ​states​ ​have​ ​begun agitating​ ​that​ ​profits​ ​made​ ​in​ ​bitcoin​ ​would​ ​be​ ​subject​ ​to​ ​tax.​ ​This​ ​attempt​ ​to​ ​tax​ ​cryptoflows radically​ ​reduces​ ​the​ ​scope​ ​of​ ​use​ ​cases​ ​open​ ​to​ ​the​ ​nascent​ ​industry.​ ​In​ ​response,​ ​obfuscating technologies​ ​have​ ​begun​ ​emerging​ ​that​ ​will​ ​conceal​ ​flows​ ​between​ ​wallets.​ ​Make​ ​no​ ​mistake: cryptocurrency​ ​and​ ​income​ ​tax​ ​cannot​ ​coexist.​ ​The​ ​ambient​ ​state​ ​can​ ​choose​ ​to​ ​either​ ​pivot​ ​to property​ ​taxes​ ​or​ ​see​ ​their​ ​revenues​ ​eventually​ ​vanish.​ ​Cryptocurrency​ ​tax​ ​evasion​ ​is​ ​an anti-fragile​ ​beast​ ​which​ ​means​ ​that​ ​the​ ​more​ ​the​ ​state​ ​clamps​ ​down,​ ​the​ ​better​ ​the​ ​evasive technology​ ​will​ ​get.

State​ ​Survival

The​ ​state​ ​can​ ​avoid​ ​total​ ​annihilation​ ​if​ ​it​ ​once​ ​again​ ​adapts​ ​to​ ​circumstance​ ​as​ ​it​ ​did​ ​at​ ​the​ ​time of​ ​the​ ​Reformation​ ​but​ ​to​ ​do​ ​that​ ​it​ ​has​ ​to​ ​recognize​ ​that​ ​its​ ​source​ ​of​ ​20th​ ​century​ ​legitimacy​ ​is collapsing​ ​before​ ​its​ ​eyes.

By​ ​asserting​ ​legal​ ​tender​ ​and​ ​money​ ​laundering​ ​laws,​ ​the​ ​state​ ​risks​ ​having​ ​its​ ​ability​ ​to​ ​enforce both​ ​innovated​ ​away.​ ​Bitcoin​ ​alone​ ​has​ ​already​ ​made​ ​a​ ​mockery​ ​of​ ​legal​ ​tender​ ​laws.​ ​Monero, Dash,​ ​Ethereum​ ​and​ ​others​ ​are​ ​on​ ​the​ ​crest​ ​of​ ​a​ ​wave​ ​that​ ​will​ ​drive​ ​a​ ​stake​ ​into​ ​the​ ​heart​ ​of taxation​ ​on​ ​monetary​ ​flows.​ ​None​ ​of​ ​these​ ​technologies​ ​would​ ​be​ ​as​ ​useful​ ​if​ ​not​ ​for​ ​the​ ​modern state​ ​outsourcing​ ​its​ ​legitimacy​ ​to​ ​the​ ​banking​ ​cartel.​ ​How​ ​popular​ ​would​ ​Bitcoin​ ​really​ ​be​ ​if​ ​we still​ ​had​ ​a​ ​gold​ ​commodity​ ​currency,​ ​for​ ​instance?​ ​Cryptocurrency​ ​is​ ​a​ ​noose​ ​placed​ ​over​ ​the

neck​ ​of​ ​the​ ​banking​ ​cartel​ ​that​ ​grows​ ​ever​ ​tighter​ ​the​ ​more​ ​it​ ​squirms.​ ​The​ ​infinitely​ ​deep​ ​well​ ​of banking​ ​garnered​ ​legitimacy​ ​cemented​ ​during​ ​the​ ​New​ ​Deal​ ​era​ ​is​ ​drying​ ​up​ ​and​ ​ambient​ ​states will​ ​have​ ​to​ ​disengage​ ​from​ ​banks​ ​in​ ​order​ ​to​ ​save​ ​both.

A​ ​New​ ​State

The​ ​Ambient​ ​State​ ​is​ ​facing​ ​a​ ​major​ ​existential​ ​crisis​ ​for​ ​the​ ​first​ ​time​ ​since​ ​the​ ​separation​ ​of Church​ ​and​ ​state.​ ​There​ ​are​ ​3​ ​possible​ ​survival​ ​strategies​ ​open​ ​to​ ​the​ ​state: 1. Separation​ ​of​ ​Money​ ​and​ ​State:​​ ​The​ ​ambient​ ​state​ ​relinquishes​ ​all​ ​control​ ​over monetary​ ​formation​ ​and​ ​repeals​ ​legal​ ​tender​ ​laws.​ ​Taxation​ ​is​ ​reverted​ ​to​ ​a​ ​fee​ ​scheme that​ ​mimics​ ​a​ ​private​ ​institution​ ​or​ ​on​ ​stocks​ ​of​ ​immovable​ ​wealth​ ​such​ ​as​ ​land.​ ​VAT​ ​and Income​ ​Tax​ ​are​ ​consigned​ ​to​ ​history​ ​books.

2. Switch​ ​to​ ​Active​ ​Rule:​​ ​internet​ ​usage​ ​is​ ​completely​ ​repressed.​ ​The​ ​only​ ​way​ ​to​ ​kill cryptocurrency​ ​in​ ​this​ ​instance​ ​is​ ​to​ ​completely​ ​destroy​ ​capitalism​ ​since​ ​not​ ​even​ ​the internet​ ​is​ ​needed​ ​to​ ​maintain​ ​a​ ​blockchain.​ ​Nothing​ ​short​ ​of​ ​widespread​ ​enslavement would​ ​achieve​ ​this.​ ​Nations​ ​like​ ​China​ ​which​ ​believe​ ​they​ ​can​ ​maintain​ ​ambient​ ​rule while​ ​censoring​ ​the​ ​internet​ ​will​ ​face​ ​the​ ​music​ ​sooner​ ​than​ ​smaller,​ ​more​ ​open​ ​nations such​ ​as​ ​New​ ​Zealand​ ​or​ ​Mauritius.

3. Radical​ ​Decentralization:​​ ​To​ ​shield​ ​themselves​ ​from​ ​individuals​ ​digitally​ ​seceding, governments​ ​will​ ​shed​ ​their​ ​inefficient​ ​vestiges​ ​and​ ​may​ ​even​ ​relinquish​ ​national​ ​control by​ ​devolving​ ​into​ ​city​ ​states​ ​in​ ​order​ ​to​ ​tap​ ​into​ ​the​ ​few​ ​remaining​ ​reserves​ ​of​ ​legitimacy which​ ​pool​ ​at​ ​the​ ​local​ ​level.​ ​With​ ​no​ ​banking​ ​cartel​ ​to​ ​fall​ ​back​ ​on,​ ​microstates​ ​will​ ​have to​ ​source​ ​legitimacy​ ​from​ ​ethic​ ​tribalism​ ​or​ ​by​ ​actually​ ​offering​ ​useful​ ​services.

4.

One​ ​thing​ ​common​ ​to​ ​all​ ​3​ ​scenarios​ ​above​ ​is​ ​that​ ​banking​ ​and​ ​finance​ ​will​ ​radically​ ​shrink​ ​in importance​ ​and​ ​economic​ ​scope​ ​once​ ​blockchains​ ​have​ ​had​ ​their​ ​way.​ ​Another​ ​Great Reformation​ ​has​ ​begun​ ​but​ ​this​ ​time​ ​pamphlets​ ​have​ ​been​ ​replaced​ ​with​ ​white​ ​papers​ ​and​ ​the 20​ ​000​ ​+​ ​denominations​ ​of​ ​Christianity​ ​that​ ​followed​ ​the​ ​first​ ​will​ ​be​ ​mirrored​ ​by​ ​the​ ​20​ ​000+ states​ ​that​ ​will​ ​emerge​ ​to​ ​replace​ ​the​ ​current​ ​small​ ​group​ ​of​ ​banking​ ​nations​ ​that​ ​dominate​ ​the planet