The root problem with conventional currency is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts.
Bit of a backstory
In 2016, I stumbled upon cryptocurrency, and went down the rabbit hole trying to figure out who Satoshi was. (I personally think it’s Hal Finney, but more on that another time.)
I was so excited by the magic of sending money through borders instantaneously at a fraction of a cent, through no intermediaries - that I had to get in on the action. I convinced my dad to buy $20,000 worth of Bitcoin (About $700) at the time, and wouldn’t stop talking about it with my then girlfriend. (She once almost broke up with me because I was reading about Segwit & ASICboost during her birthday dinner)
We used to joke around in subreddits on how someday institutional investors would want in on the action - not realizing that our new money would replace bankers & their merry gang entirely.
Fast-forward to 2021
Crypto has captivated the world now - just like it hooked me in 2016. But everyone is focused on the wrong thing. No one uses bitcoin for what it is - A peer to peer digital cash system. Instead, it’s a speculative instrument used to hedge against inflation, or make fiat gains. Jerome Powell recently called it a replacement to gold. Some call it a store of value.
I think it's neither.
Bitcoin has the potential to destroy monetary policy that has only widened the wealth gap over time - given the nuances of trickle down economics.
Why is monetary policy the devil?
Here’s a graph showing the average income over time for an adult.
An average adult made
$7,200 in 1950
$27,540 in 2020
The average income almost 4x’ed over 70 years. But this is a false narrative.
Take a look at a graph of inflation - or purchasing power per $100 over time.
In 1950, a hundred 1900 bucks could buy you $35 worth of stuff.
in 2020, a hundred 1900 bucks could only buy you $3.06 worth of stuff.
So although incomes have gone up 382%, the value per dollar of income has gone down nearly 91%
And what do we owe this to?
This is fucking insane.
Look at how M2 money supply explodes post-covid.
So what’s the solution?
Cryptocurrencies are decentralized. Changing the network rules to mint new coins, or modify the system rests in the power of those with skin in the game.
Jerome Powell is not an elected official chosen to represent the people - yet his actions have real world consequences to those with real skin in the game. You and me.
Swype is a project to help take back that power, and give everyone the ability to live a fully fiat-free life.
Payroll comes in as crypto,
Crypto is spent as fiat.
You’ll never have to touch dollars again.
In the coming weeks we’ll be onboarding a few users who’re ready to make that leap. No more bankers, no more fiat. Your bank is on your phone, and your money is secured on-chain.