“Amid the chaos, keystone global institutions and bureaucrats have openly discussed the present day as an opportunity to remake the world. “The Great Reset,” as the plan has been called, represents a radical initiative by world leaders — many of whom are unelected — to transform the global economy.
At a WEF meeting in early June, the world’s most powerful business leaders, government officials and activists first announced the proposal to reset the global economy in the aftermath of the COVID-19 lockdown.
The Great Reset will inform the future state of global relations, the direction of national economies, the priorities of societies, the nature of business models and the management of the global commons. We have a golden opportunity to seize something good from this crisis — its unprecedented shockwaves may well make people more receptive to big visions of change.
Many details of the Great Reset won’t be rolled out until the WEF meets at Davos, Switzerland, in January 2021. It is clear, however, that world leaders have big plans of a new world order and, contrary to the founding principles of Bitcoin (BTC) and crypto, centralization appears to be a big part of it.
The cryptocurrency industry has been planning its own “Great Reset” as well — one based on decentralization. While global governments want to put the world on a distributed ledger in order to digitize finance so governments can have more control, there are very smart people on this planet who have their own plans.
Instead of social credit systems and centralized fiat currencies, we want each individual to be in control of their own money, to be less dependent on banks, and to be in control of defining what money and real value is.
Satoshi Nakamoto saw an economic dislocation like the Great Reset coming. He etched the now famous line into the Bitcoin network’s genesis block: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” While world leaders openly announce the Great Reset, imploring the world to trust their vision, they paint a picture of a future, more centralized world.
For how many years we can hold this “new territory of freedom” depends entirely on how well the cryptocurrency industry adapts to the Great Reset. The Great Reset might come down to central bank digital currencies versus the cryptocurrencies of the people — centralization versus decentralization.”
“While tax avoidance has been around since the first tax was levied, the crypto-rich – empowered by a technology that pays no heed to borders and driven by an ideology critical of all centralized authorities – are bringing it to the next level.
Ananina is the founder of Plan B Passport, a business that works primarily with Bitcoiners to obtain legal residency status in their choice of six tax-haven nations. Plan B offers information on “how to legally optimize” one’s tax strategies by moving lives, possessions or assets to the “best jurisdictions.” This open approach to tax avoidance is perfectly legal.
These businesses work with government’s “citizenship by investment” units, so people can pay a fee, fill out a few forms and claim their benefits. While the process varies by nation, in most cases, citizenship can be bought for six figures. It’s not cheap.
Wealthy individuals, you find they have three houses, three domiciles, to ensure they are never in one country sufficiently long to become a tax resident.
Proponents get as many passports as necessary or obtain legal permanent residence status in tax haven nations, offering them the chance to shuffle capital and business documentation around. They become citizens of the world, or perpetual travelers, to maximize their profits and minimize their obligations to the state. You can have one foot in New York and one in the Cayman Islands and have responsibilities to no one but yourself.
The ideal “haven nation” will enable visa-free travel with a number of countries, and have limitations on taxing income earned outside their borders. Many have low, or non-existent, tax policies on wealth and capital gains.
You go to the butcher that has the best meat, and farmer for the best fruits and vegetables, so do you shop for the lifestyle that you want? Countries are literally competing for your wealth.”
See Also: Plan B Passport
“Despite the fact that Pomp believes Ethereum will succeed in the future, he doesn’t think any of the value will accrue to ETH beyond pure investor speculation. In 2015 people said Blockchain not Bitcoin. In 2020 people said Ethereum not Ether. Both wrong.
Three reasons. I’ll keep it simple.
- If there’s demand for blockspace on Ethereum, there’s demand for ETH. Any transaction that leverages Ethereum as a settlement layer must pay a fee denominated in ETH. There’s virtually an endless amount of use cases for Ethereum’s blockspace. All of it drives a demand for ether.
- Paying transaction fees in ETH is only part of the story today. The other part comes from the proliferation of decentralized finance (DeFi) and the need for trust-minimized collateral. ETH is the most trust-minimized asset on Ethereum. Any other asset on Ethereum requires some other protocol or custodian to exist, forcing a higher degree of trust than the network’s native asset. Ether as a source of capital holds priority in the Ethereum economy.
- While fees don’t accrue to ETH holders today, they will in the future. Ether represents the right to Ethereum’s future cash flows. A productive asset! And those cash flows are hitting all time highs as we speak. Equally important, ether has rights to Ethereum’s cash flows via both active participation (validation) and passive participation (holding). This is done through two mechanisms:
- ETH becomes a productive asset via Proof of Stake in Ethereum 2.0. Users deposit ETH in order to secure the network and in return receive a claim to its cash flows. Ether effectively becomes a crypto bond.
- EIP 1559 introduces a burn whenever there’s a significant demand for Ethereum. What results is a universal dividend to all ETH holders as everyone’s percentage share of the network rises equally. In theory, if Ethereum is used enough, EIP 1559 can actually create a deflationary environment despite ETH having perpetual issuance and no supply cap.
Ethereum is becoming an invaluable global settlement layer for the internet of value. When you understand how ETH accrues value from that success, it actually becomes irresponsible to not have any exposure to that asset.”
“I claim that yield farming will bring about DeFi protocols that not only can attract & create more value more efficiently than the likes of Google and Facebook, but also is capable of voluntarily spending a considerable portion of that value on doing good.
DeFi will be a money vortex, sucking in massive amounts of value from the wealthy.
DeFi protocols are insanely cost-efficient. First of all, once developed and deployed, DeFi protocols require next to no technical maintenance or continuous expenditures. Given these advantages, DeFi protocols can provide better financial products at much lower costs. Moreover, yield farming rewards allow DeFi protocols to provide fundamentally higher returns to investors and liquidity providers.
Because of this low competitive pressure, DeFi protocols can feasibly spend a significant portion of their income on doing good, rather than being forced to spend the money on some silly arms race and falling into the Malthusian trap. This property, combined with being zero-expenditures and zero-margins, makes DeFi protocols a radically new kind of entity, one that’s almost infinitely scalable in income, and at the same time blessed with the freedom to use that income at will.
If we want to ensure that DeFi protocols become engines for doing good, we must first pull our heads out of the corporate paradigm. We must start treating DeFi protocols not as corporations but as nations.
Governance power should not be distributed solely based on the amount of liquidity provided. There should be multiple ways of being rewarded governance power, such as making code contributions, organizing community events, writing analyses of governance proposals and so on. Governance systems should have a clear purpose or ideology regarding what it hopes to achieve in the wider world.
The governance system should never make nurturing the protocol the ultimate end, but a means to achieve its purpose, for a system focused solely on its own perpetuation will never amount to anything great.
If we are able to build a DeFi protocol with a democratic rather than plutocratic governance system, we will unleash a force for good.”