“Out of this high inflation or hyper-inflationary crisis, there will emerge a new monetary order entirely. That monetary order may take one of multiple scenarios, which we’ll cover in our journey together. But the scenario The Crypto Capitalist feels is most probable in its emergence is the one I call Mr. Robot. The name is taken from the HBO TV series of that name. If you’ve seen it, you probably watched season 1 thinking the show was a story about a group of rebel hackers who crash the global financial system.
It’s not until we’re unto Season 2 that we realize that it’s more than this. It’s really about a battle between two competing digital currency systems: A government sponsored digital cash, depicted by “EvilCoin”, and the countervailing crypto currency of freedom, portrayed by Bitcoin (in the show it also turns out that EvilCoin’s strings are being pulled largely by Chinese Communist Party).
Out here in the real world, we are headed toward a hauntingly similar situation: COVID has been the accelerant which has pulled forward tectonic shifts which would otherwise have taken decades or more to play out. We face a type of hyper inflationary crash, the end of the USD hegemony and a new system which will usher in a two tier society of digital nobility (have’s) and Neo-Feudal serfs (have-not’s). The tiers will be defined by two different monetary descendants to fiat currencies of yore. Which of these currencies forms the basis of your economic existence will determine which tier you’re in.”
Mark Jeftovic in "The Crypto Capitalist Manifesto"
This quotation is from Mark Jeftovic’s “Crypto Capitalist Newsletter.” It neatly summarises one theory on our collective financial future.
Jeftovic is an entrepreneur, CEO of EasyDNS, and editor of the Crypto Capitalist newsletter. He’s also, like me, a fan of the series Mr. Robot.
His arguments on inflationary events, Bretton Woods, the United States dollar as a reserve currency and the implications of Facebook’s Diem for central banks are influential, and widely circulated.
So this isn’t simply an episode about crypto currency. Instead, it’s about how superpowers, citizens, banks, platforms and nation-states are competing to shape the next 100 years of finance.
| About this Podcast |
The Origins of Government podcast is a re-introduction to an old-school classical debate: What is government. How should it work? Why do we need it?
Before we can meaningfully define the government of the future, we need to revisit the mistakes and victories of the past. From the bitter legacy of the 20th century, to the failures of early-stage globalisation, this is a first principles look at government yesterday, and tomorrow.