Why Open-Source Finance Could Fix Our Economy

The global debt based economy is a hungry machine that’s devouring resources at an alarming rate. Our current model is based on the false assumption that natural resources are unlimited and that the markets can stay in a perpetual state of growth. 

The fractional reserve banking system creates money out of debt and charges interest on all the credit. Want to buy a house? Get a mortgage and you’ll buy one house for the price of two. This debt based credit system puts a considerable amount of pressure on society to produce more in order to stay solvent. 

The end result of a debt based economy is that there’s always more debt created than money coming in. One only has to look at the $61 trillion in expanding global debt to see that the system is broken. 

Politicians sing sweet lullabies to their constituents about paying down the debt and solving our economic woes. The fact of the matter is that it’s impossible to pay down the global debt because the creation of credit is the primary source for the expansion of our money supply.

Fractional reserve banking is an elaborate ponzi scheme. Ponzi schemes have a centralized authority that issues shares and pays old investors profits from money that comes in from new investors. There’s no real value in a Ponzi scheme and the instant new money stops coming in the whole thing implodes. 

Fractional reserve banking pays interest on old debt by expanding the money supply with the creation of new debt. Just like a traditional Ponzi scheme, the growth of our economy needs to be constant, otherwise the entire structure implodes once the expansion comes to an end. Any time the economy retracts we call it a recession and the markets start to panic. 

The entire system is being artificially propped up by strong armed government intervention in the form of bail-outs, bail-ins and taxes. Centralized control over global finance is a necessary ingredient in keeping this scheme alive. 

The consequences of perpetual debt expansion is excessive waste, degradation of our environment, third world poverty, wars fought for economic gain, higher taxes and crony capitalism. If we don’t change our current trajectory, the final outcome may be suicide for the human species. 

Perpetuating the Insanity of a Broken System

It’s becoming quite obvious that the solution to our global problems may not come from a top down approach. Every few years new politicians promise to fix all our problems. Their proposed solutions only deal with the problems on a superficial level, they rarely tackle the issues at the root cause.

As a result of multi-generational brainwashing, rather than taking personal responsibility and seeking our own solutions, people rally behind new billionaire oligarchs who’s self interest will always be to perpetuate the status quo. “This time it’s different™”. 

Einstein defines insanity as doing the same thing over and over again and expecting different results. The sooner we can all admit that our current society is fundamentally insane, the closer we’ll be at working towards real solutions. Placing an “X” on a ballot every few years accomplishes nothing and is not going to solve our problems. 

Governments are more concerned about spending billions of dollars on technology that can wipe us all off the face of the map then they are about making the world a better place. The day that governments built nuclear weapons that can render us all extinct in an instant was the day we should have fired them. 

Open-source Economics as a Potential Solution

Bitcoin was born out of the ashes of the global financial meltdown of 2008. Satoshi Nakamoto gifted the world with Bitcoin and blockchain technology likely because he knew that centralization isn’t going to solve our problems. 

For the first time in history, individuals have the power to create their own financial networks and experiment with new economic models at a grass roots level. We’re currently in the midst of a global paradigm shift and financial renaissance. 

Rather than complaining to third party fiduciaries to fix our problems, we now have the capacity to build our own strategies from the ground up. The current economy has a life of its own and politicians are too busy struggling to patch the holes of the sinking ship. 

The decentralized crypto economy is not all sunshine and lollipops because technology can’t save us from human nature. The industry is rife with scams and thieves but this harsh wild digital jungle makes seasoned veterans more discerning and resilient to b.s. If you stick around long enough in this industry you’ll eventually build a firewall for your mind.

Crypto is the wild west of the digital age, where adventurers leave the comforts of what is known to explore new frontiers. With freedom comes danger but without risk there can be no reward. 

There are many experiments and new economic models that are being played with right now and most of them will likely result in horrible failure. Crypto is still very much in the experimental stages but eventually we just might discover a better model for running our global economy.

Our current economic model is at the heart of society and the root to many of the world’s problems. The solution will be to build a model that’s completely different and that will likely only happen on the fringes of society. Innovation is happening deep within the trenches of the crypto underground.

Bitcoin opened up pandora’s box, now that we have a new paradigm there’s nothing anyone can do to stop it because you can’t kill an idea, especially one based on decentralization. When the solution presents itself, rather than protesting to the oligarchs to fix things, the change will likely happen as a natural power shift that comes with the freedom of choice. Perhaps true change will come as a quiet rebellion…


Crypto trader and investor. My preferred style is swing trading and longer term accumulation plays. I help coach traders and share my trades over at skillincubator.com