Thank God for Bitcoin

1. Money is deeply spiritual and reflects our values

The way we use money demonstrates what we believe to be real, good, right, and important.

Money as a spiritual force. Money plays a significant role in nearly all human relationships and interactions. It is a tool that can be used for good or evil, enabling both charity and greed. The Bible is full of monetary metaphors, and even describes salvation in financial terms like debt and redemption.

Reflecting our values. How we earn, spend, save, and give money reveals our deepest priorities and beliefs. Money can become an idol when we trust in it more than God. Understanding the spiritual nature of money is crucial for using it wisely and ethically.

• Money impacts: Family, business, personal relationships
• Biblical emphasis: Over 2,000 verses on money and possessions
• Spiritual metaphors: Payment, debt, forgiveness, redemption

2. The history of money reveals a pattern of corruption

Monetary history is rife with misguided intentions, temptations, and unintended consequences.

Evolution of currency. Money has taken many forms throughout history, from commodity money like shells and gold to credit money and fiat currency. Each innovation brought both benefits and new opportunities for corruption.

Recurring temptation. A consistent pattern emerges of rulers debasing currency to fund wars and enrich themselves at the expense of citizens. The shift from commodity money to fiat currency controlled by central banks has greatly expanded this potential for abuse.

Key monetary innovations:

• Standardized weights and measures
• Minted coins
• Paper money and banknotes
• Central banks
• Fiat currency (not backed by commodities)

3. Inflation is a hidden tax that steals from the community

Monetary expansion is a way for government authorities to steal from the community through a hidden tax, usually without representation, legislation, or transparency.

Deceptive wealth redistribution. Inflation occurs when the money supply increases faster than economic output. This devalues existing money, effectively transferring wealth from savers to those who receive the newly created money first (typically governments and banks).

Erosion of purchasing power. While modest inflation is often presented as normal or even beneficial, it steadily erodes savings and wages over time. This disproportionately harms the poor and middle class while benefiting asset holders and those with access to cheap credit.

Effects of inflation:

• Discourages saving
• Encourages debt and speculation
• Increases wealth inequality
• Distorts economic signals

4. Fiat money enables government theft and corruption

Fiat money is immoral because it is only useful for reallocating wealth without consent.

Unlimited money creation. Fiat currency, not backed by physical commodities, allows central banks to create money at will. This gives governments the ability to spend beyond their means through deficit spending and money printing.

Abuse of power. The power to create money out of thin air is a constant temptation for governments to solve problems through inflation rather than responsible fiscal policy. This leads to moral hazard, cronyism, and the funding of programs and wars that citizens might otherwise reject.

Problems with fiat money:

• No inherent value or scarcity
• Enables stealth taxation through inflation
• Centralizes economic power
• Distorts free market price signals

5. Bad money corrupts politics, incentivizing war and wasteful spending

Fiat enables and encourages these immoral actions that sound money would prohibit and discourage.

Removal of constraints. When governments can create money at will, it removes natural limitations on spending and military adventurism. This leads to larger, more intrusive governments and prolonged conflicts.

Misaligned incentives. Politicians are incentivized to promise free benefits and push costs into the future through debt and inflation. This creates a cycle of fiscal irresponsibility and erosion of democratic accountability.

Political consequences:

• Growth of welfare and warfare states
• Short-term thinking and lack of fiscal discipline
• Expansion of bureaucracy and cronyism
• Increased social division and populism

6. Corrupt money systems lead to moral decay in society

Bad money corrupts our character. They influence how we act, permeate our relationships, and affect our life choices.

Societal impacts. An inflationary monetary system encourages high time preference (short-term thinking) and discourages saving. This leads to a culture of consumerism, debt, and instant gratification.

Erosion of values. When money is constantly devalued, it can lead to a breakdown of trust and long-term planning. This affects personal relationships, business ethics, and community bonds.

Signs of moral decay:

• Materialism and consumerism
• Breakdown of families and communities
• Decline in product quality and craftsmanship
• Growth of meaningless, rent-seeking jobs
• Loss of long-term perspective

7. The Church has been compromised by the fiat money system

While asking God to forgive their spiritual debt, they take on financial debt.

Worldly entanglements. Many churches have embraced debt financing and worldly measures of success, compromising their spiritual mission. This often leads to a focus on growth and programs rather than authentic discipleship.

Loss of prophetic voice. By participating in and benefiting from the fiat money system, churches have often failed to critique its injustices. Some have even promoted a "prosperity gospel" that twists scripture to align with materialistic values.

Church compromises:

• Taking on large debts for buildings and programs
• Measuring success by attendance and budget
• Avoiding challenging teachings on money and justice
• Accepting government funding and tax benefits that limit independence

8. Bitcoin offers a more moral alternative to fiat currency

Bitcoin was created to redeem the good aspects of modern money while restoring money to its original goal: serving and helping mankind, not destroying it.

Key innovations. Bitcoin is a decentralized digital currency with a fixed supply cap. It removes the need for trusted intermediaries and cannot be inflated by central authorities.

Alignment with moral principles. Bitcoin's design promotes personal responsibility, long-term thinking, and honest money. It makes large-scale monetary manipulation and hidden taxation through inflation impossible.

Bitcoin's moral advantages:

• Cannot be arbitrarily inflated
• Resistant to confiscation and censorship
• Promotes financial sovereignty and inclusion
• Aligns incentives towards saving and capital preservation

9. A Bitcoin standard could redeem money and transform society

Bitcoin is a system that turns our individual sinfulness into our economic salvation. Bitcoin converts our individual self-interest into good for the community.

Societal transformation. Adopting Bitcoin as a monetary standard could lead to profound changes in government, economics, and culture. It would force fiscal responsibility, reduce wastefulness, and promote long-term thinking.

Redemption of money. By removing the ability to create money out of thin air, Bitcoin could restore money to its proper role as a neutral medium of exchange and store of value. This could lead to a more just and sustainable economic system.

Potential impacts of a Bitcoin standard:

• Smaller, more accountable governments
• Reduced ability to fund wars and wasteful programs
• Increased savings and capital formation
• Stronger families and communities
• Renewed focus on productive work and innovation

Last updated: October 1, 2024