Virtual Money

‘Virtual money’ is the second issue in this sub-theme of P5GO. This 4th Industrial Revolution has already started and cause changes to man, machine and societies. We learned a lot about the previous’ outcomes and should respond more sensible this time. ‘Virtual Money’ is a Game Changer, because it alters its very own properties, from being a material to be immaterial. In this fragile state of transcending, money will be abused in attempts for CCD, CdE and even WW, - like the financial crises in America and Europe prior to WW2. Still, inexpensive, decentralized and secure financial systems can easily be implement in time by sound use of IR4 technocracy, bureaucracy and democracy. Most interesting, though, is that major barriers to the monetary IR4 seems rather to be mental than technical. In order to argue all this, this blog provides a rather profound reference to the theoretical arguments, after an introduction and before some concluding remarks.

It might seem strange - these visions of changes that the virtualization and democratization of money will cause. It might help though, to recall the changes caused by the digitalization and virtualization of material products during the previous IR3. Virtual money will also cause some short and long terms changes in the IR4 – rather different though. Still, during the IR3, supplies of material products were also altered to selfservice of immaterial products, - like ordering things via the internet. Some actors in the markets were not willing or able to fit in to the new realities in time, - regretfully.

It is like money transcends its properties from matter to energy, which makes some untraditional points of view for the financial sectors. Some properties of Virtual Money are comparable to energy that is potential (stored) or kinetic (transferred). Also, current electricity has the speed of light in the opposite direction of the flow of (material) electrons. In fact, neither information nor money has any size, weight or mass, even though material container and carriers might. Also, money has no value, cost or resistance in itself. Promoting exchange of products and services is the objective, money is simply a mean to make it done. Therefore, money should not be material, it should transcend to energy, in order to flow unhindered.

Now, in this time of IR4, a trustworthy democratization of the banking and financing systems is enabled by ‘block-chain’ technology. It is like a financial Linux systems, - free for anyone, free from oligarchic middlemen and free from central bank systems. True democratic monetary systems can be made for anyone for free. In fact, it is so easy to make that even I personally can make it in 1 hour fully operational at the cost of 100 euro/month. Such a Ethereum Blockchain system is hosted at Azure cloud services and consists of 3 Linux servers, 2 storages, network, etc. It is free for anyone to use with a free add-in application on a Google browser. More advanced features can be added and might cost extra.

Still, trade of products and services is as fundamental as communication. There have always been trade between any humans too, - long before any money existed. The introduction of material money certainly leveled up trade and society, though. Here are some related descriptions from Wikipedia:

The blockchain technology is as important for the democratization of money as the internet websites is for common knowledge. However, quite alarming aspects of abuse of IT are talked through in UU 2017.mai.12.

There are several kinds for virtualized money and financing. Most are attached to national authorities, even though the currency might not be national (e.g. the confederal Euro).

The free movement of money in EU’s Internal Market is based on the TEU (Treaty of the European Union). The removal of barriers to trade does not need to be expensive, but very benefitable. The technology is here already, yet hindered by dominant market actors. 2% of GDP is made by such oligarchic middlemen. That is much too much. Anyways, here are some brief description of the EU monetary systems, mostly from Wikipedia.

Virtual money has most certainly become a powerful mean related to this P5GO theme (5th Pyramid Game Over). It is already abused in plutocratic warfare towards ‘the West’. The multi-national confederation is attacked by means of virtual money in several ways, - especially towards the Eurozone in order to cause dysfunctionality and thereby CCD (colony collapse disorder), CdE (Coup d’ Etats) and even WW (world wars). Serious mistakes are done instead of defense - and it does not seem to be fixed yet. In order to fix those corrupted systems, the whole inter-governmental Executive Parliamentary powers have to act coordinated and in accordance to the valid legislations of TEU, - not just talk and write about it. Europe, ‘the cradle of democracy’ needs to be more functional – not dysfunctional.

No matter the politics and constitutions, the IR4 escalates new means like the virtual money, crowdfunding and democratic payments for trade. Quite alarming is that some ‘dark markets’ adapt and abuse the systems much faster than national and confederal constitutions are willing or able to do. Some corrupted servants even promote such dysfunctionalities.

Will the Euro become central, de-central or democratic? The answer is yes to all, because the Euro is transcending to virtuality too. It is centralized with the ECB, yet confederal decentralized with the national banks. There are high qualitative data-encryptions involved, so block-chain is not required. It might be useful in a hybrid banking system though. Such a combination of Euro and block-chain currency will be the solution to quickly implement and realize solutions for Basic Income. (See UU 2017.mai.26.) In brief, the Euro is, - and will transcendence further towards being an international hyper-currency. This will be elaborated in the next UU blog.

Treaty on European Union:

“Pet Shop Boys are an English electronic pop duo, from London. They have sold more than 50 million records worldwide and are listed as the most successful duo in UK music history by The Guinness Book of Records. Three-time Brit Award winners and six-time Grammy nominees, since 1985 they have achieved 42 Top 30 singles and 22 Top 10 hits in the UK Singles Chart, including the song Opportunities (Let's Make Lots of Money)". The association for the song to this blog is somewhat similar to the explanation of the quotes about the lyrics: “The song ‘Opportunities (Let's Make Lots of Money)’ is written from the perspective of a man who describes himself as being intellectual and educated. The lyrics are addressed towards another character, identified as having ‘looks’ and brawn’, and who is invited to join the song's protagonist in a scheme to ‘make lots of money’. Tennant has made it clear, however, that the schemes are doomed to failure. The punchline of the ‘joke’ of the song, he says, is that ‘the people in it are not going to make any money’. The band have attributed the cynicism of the song, in part, to the punk rock attitudes of the period. The meaning of the lyric is taken at face value by some listeners, and this subsequent interpretation of the song as a materialistic anthem receives mixed reactions.” However, the ironical critics are kind of backfiring if replacing the word ‘money’ with the more relevant word ‘music’. The duo most certainly took the opportunity in the industrial revolution of music, where skillful musicians suffered unnecessarily by some predatorian music industry. (The band was also presented in UU 2014.nov.28.)
Pet Shop Boys - Opportunities (Let's Make Lots of Money) (studio, disco, lyrics)

Extra UU – BlockChain Virtual Money

The invention of the Blockchain for Bitcoin made it the first digital currency to solve the double spending problem, without the use of a trusted authority or central server. Blockchains are secure by design and a distributed computing system with high fault tolerance. Decentralized consensus makes blockchains suitable for trade and basic income as well as other recording of events, medical records, and other records management activities, identity management, transaction processing, and documenting provenance. Here are some videos about it – and there is much more on the internet to see.

How the blockchain is changing money and business | Don Tapscott https://www.youtube.com/watch?v=Pl8OlkkwRpc
So ein Ding- mobilbetaling
So ein Ding: Bitcoin & Blockchain
How Bitcoin Works in 5 Minutes (Technical)
MilkenInstitute: The Blockchain: A Revolution You Need to Understand
https://www.youtube.com/watch?v=nQZUi24TrdI The Blockchain and Us (2017)
Blockchain: Real World Use Cases
BILL GATES - NOBODY CAN STOP BITCOIN | Bitcoin Is Unstoppable https://www.youtube.com/watch?v=k0HmrSfJwhU
Building Ethereum Blockchain-as-a-Service on Microsoft Azure + Chrome Metamask Extension

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