How The Blockchain Can Free You From The Banking Industry

By Joe Jarvis

The power or right to act, speak, or think as one wants without hindrance or restraint… that’s freedom.

For many, the word means the ability to do as they see fit. For some, it’s a call to action. And for others, freedom is a dream worthy of giving their lives.

Fortunately for a good number of people within the Western world, freedom is something we have come to expect within our daily lives.

Though for as often as we hear and speak of our freedom, there still exist many areas in which freedom is merely just a word.

And in no area is that lack of freedom felt more heavily than within banking institutions. We rely on these institutions and companies for critical aspects of our lives. Yet all too often they serve only themselves at to the detriment of their customers.

Modern Banking and the Bonds of Finances

The advent of modern banking grew out of a principle of providing people with a utility. Banks could be relied upon and used to advance customers’ living standards and financial security.

Though as populations boomed and business continued to soar, banking shifted into a $100 trillion dollar industry globally.

With that shift came a change in the way that banks conducted themselves.

Loans took on a predatory nature with the help of government incentives. They no longer were designed to help individuals attain the things they could use to better their lives. But instead, loans trapped individuals into a spiraling debt cycle to drive banking profits higher.

Fraud became more widespread and much more difficult to prosecute. Often perpetrators simply resigned with a healthy severance package earned from their misdeeds.

And regulators became embroiled with those they were meant to be regulating. Lobbying on behalf of commercial banks became a standard practice.

The entire industry shifted into becoming a source of distrust and malalignment among average citizens. And after the 2008 financial crisis and the subsequent bailouts, that distrust only grew.

In the aftermath of the 2008 financial crisis, the uglier side of the banking industry became quite apparent.

The truth about the predatory loans and the shady dealings of corporate banks started to come to light over time. Stories of how major banks had acted against the interest of the people they served began to become the norm.

Though ugly as it is, modern banking and its major players have not changed at all nor lost their grip on power over countries. If anything they’ve strengthened those bonds.

Those bonds have formed a deep connection with the way we live.

Without banks, many of the things we take for granted, things as simple as buying a morning coffee, would be much more difficult.

On top of that, modern life almost necessitates the need for an individual to do business with a bank.

Understandably, the inability to live without banks is a limitation of personal freedom in the true definition of the word. But how can that be changed?

Cryptocurrencies and a New Type of Finance

By now, most people are familiar with cryptocurrencies in some fashion. Whether or not they fully understand them, though, is based upon their exposure. But with the popularity of Bitcoin in the news, most are at least aware that a different currency exists outside of the typical one.

It was Bitcoin that brought cryptocurrency into the spotlight, introducing many people to the idea of a financial system operating outside of the reach of major banks. Though, unfortunately, it was also Bitcoin that rather soured the average citizen on the idea of cryptocurrency as well.

It’s–relatively–anonymous exchange coupled with media efforts to link cryptocurrency with crime, sullied the first impression people had with the currency. There was also misconduct of certain individuals within the Bitcoin sphere, which led to cryptocurrency being mislabeled and misunderstood.

But what if we take a step back to look at the cryptocurrency for what it is and what it can do? We see the best possibility for breaking the chains of modern banking and freeing people from the power of the banks.

Cryptocurrencies are a way to remove major banks from the equation of personal finances.

They allow people to trade, buy, sell, and use a medium of exchange more quickly, more securely, and without the need for a bank.

In principle, cryptocurrencies are the best way for people to take back their freedom to act in their own best interests, without relying on manipulative banks.

The Blockchain and Secure Banking

The sense of security that you can get from a major bank stems from the ability of the bank to process and reflect transactions in an accurate way.

Banks act as the intermediary ensuring all transactions are to some level accurate and secure from fraud.

But for the sense of security it gives individuals, modern banking is anything but secure.

Fraud occurs from within the institution itself, as witnessed by the major scandal facing Wells Fargo.

From the outside, banks are not impervious to breach as hackers often break into the networks used by banks.

So, that sense of security is merely a feeling and not reflective of the reality of modern banks.

Banking can be done securely. But the current system is unable to do it.

This is where cryptocurrencies flourish.

The technology behind cryptocurrencies relies on a principle called the blockchain.

The simplest explanation is that the blockchain is a means of securing information across a vast network of computers. By design, it ensures that transactions are always conducted in a secure fashion. Anyone can confirm this on the public ledger.

The science behind the blockchain requires an understanding of cryptography and the ways in which computers communicate. In application, it is simply a built-in system that protects the accounts of every person within the system.

And yes, hackers can steal tokens kept in online wallets. But there are hardware wallets, kept offline, that are like safes for different cryptocurrency, and even allow recovery if stolen. Yet they are thus far impervious to hackers.

Slovenia’s Push to Modernize Banking: Blockchain on a National Scale

Despite–or due to–all the benefits, cryptocurrencies and the blockchain have received pushback from governments across the world. Obviously, major banks are instrumental in the pushback as their system is threatened by the innovative process.

And while most of the world grapples with the idea of cryptocurrencies, one country has stepped forward to embrace the blockchain and the type of banking it promotes.

Slovenia has been a haven for innovation over the years embracing changing technology. Entrepreneurs and tech-based startups are continuously relocating to the country.

This is due to the forward thinking that has now begun to define the country.

So it should come as no surprise that it would be the first nation to openly embrace the blockchain.

The announcement that Slovenia would begin looking into applying blockchain based banking came directly from a statement made by Prime Minister Miro Cerar.

While addressing a crowd at the 2017 Digital Slovenia 2020 convention, Prime Minister Cerar announced that he wished to position Slovenia as the leader of blockchain innovation within the EU. He further went on to say Slovenia would look towards developing a national application of the technology.

Doing so would not only legitimize blockchain throughout the world but also set the precedent for finally breaking free of the modern banking system.

The application of the blockchain and its use within a national system is still in developmental stages within Slovenia. But already this signals to other nations that they will have to compete or risk losing advanced business and entrepreneurs to neighboring states.

So, proponents of the system across the world look towards the future success of Slovenia with eager anticipation.

Its success could open the doors for a wider utilization and could very well signal the end of the modern banking industry.

And with it, the end of the stranglehold commercial banks have over citizens.

Joining the Modern World and Freeing Yourself

The world can look towards Slovenia to prove that the blockchain will serve a greater purpose on a national level.

But individuals can already free themselves from the modern banking system.

You too can join the movement towards a decentralized banking system by diversifying your savings to spread risk beyond commercial banks. Holding an amount of cryptocurrencies that you could still afford to lose would be a good start.

There are already systems in place to make the utilization of cryptocurrencies as easy as the current system. In fact, a number of businesses now accept Bitcoin and more are joining their ranks with each day.

It may be prudent to maintain an account with a commercial bank for the time being. But moving more assets towards cryptocurrencies strengthens the currency itself and increases demand on businesses to adapt to the new currencies.

By participating, we help to lay the foundation for the largest overhaul of the banking sector in generations. This moves society towards a more free and independent future. One without the bonds of modern banking.

You can read more from Joe Jarvis at The Daily Bell, where this article first appeared.

5 Ways to Keep a Tax Farm (Citizens) Producing

By Joe Jarvis

The government depends on the citizens to produce, to create value from which the ruling classes can leech. They need to keep us working and spending in ways that they prescribe in order to insert themselves into transactions which would otherwise have nothing to do with them. Here are five ways that they keep the tax farm going.

1. Credit Cards and Debt

Credit cards, student loan debt, home loans, and car loans all represent an obligation to work full time. Once you have been saddled with debt, you cannot make the choice to take time off to pursue a business endeavor you are passionate about. You are on the hamster wheel.

The more debt you have, the more you have to earn, and the more taxes you will pay on those earnings. The less freedom you have to be productive in an alternative way.

The housing bubble was no accident; the government doesn’t care if you can afford it, they want you to “own” a home–or rather own a mortgage.

Of course, debt has its place, for instance taking on a home loan in order to have lower monthly payments than rent, and put that money into an asset.

But the problem comes when people take on an expensive home loan because they currently have a great job, ignoring the possibility that the job may not always be there. There are people who take out loans for a car–a clever trick GM started back in the day–in order to keep up with their neighbors or squeeze some momentary satisfaction out of the purchase.

And, of course, credit cards give us a dangerous “solution” to depression: shop therapy! Just like a drug, it can give a momentary high, replaced by an anxious desperation when the bill comes. And all the while you are paying sales tax on almost every purchase.

Who Cares About the “Wealth Gap” if Everyone is Richer?

By Joe Jarvis

How many successful people can there be? It seems like, after every article you read these days, the author bio talks about a book they have written, an invention they created, a prestigious award or some other indicator of great success. Yet I’ve never really heard of most of them.

I used to get pangs of jealousy when I would see descriptions like that of successful people; it almost felt like there were a limited number of “success” spots on planet earth, and if they were taking one up, it made it that much less likely for me to get one.

But it’s not true. There is no limit to the number of successful people that can exist, especially since everyone has a slightly different idea of success.

And in the same vein, there is no limit to how many wealthy people there can be. Wealth is not a zero-sum game, there is not some amount of wealth out there that once it is grabbed, is gone. Anyone can create wealth. Growing a garden is a great place to start creating the necessities to live and giving yourself a little food shortage insurance plan.

When people say the rich get richer and the poor get poorer, that is a huge misrepresentation of what is really happening, even if the rich have far more compared to the poor.

Invest In The Highest Value Asset: Personal Skills

By Joe Jarvis

That’s what this world needs: skills. Raw resources are useless without the skill to properly apply them.

There are skills for financial gain, skills for personal gain, and skills for a backup plan. Most of them overlap; something once a hobby can become a career, for instance becoming a tennis instructor. Or a skill that is a “backup plan” can become the bread and butter in an emergency, like keeping bees or growing a garden.

Tangible assets are a needed hedge when it seems everything–the stock market, real estate, bonds–are overvalued or in a bubble. A good useful skill is as tangible an asset as they get. And unlike resources, a skill cannot so easily be taken from you.

Most people understand the need to acquire some sort of work skills in order to make money, be productive, and create wealth. But a lot of people decide to be trained in skills that other people, organizations, society, or those in power tell them they should desire. And then, they usually stop after acquiring one major skill.

But just like we diversify investments in order to spread risk, the same makes sense when it comes to the skills you invest your time to acquire. Be creative in your skill-set. There is really no one that can tell you what will be best for you, or for future job markets, or in an emergency.

Sometimes the demand for a particular skill can disappear as technology advances and years of training can become practically useless. In this situation, it makes sense to have something to fall back on so you aren’t forced into a low-skill labor job just to make ends meet.

In fact, some of the most successful people have gotten to their final career destination by melding a seemingly random mixture of skills. Yoky Matsuoka is a Japanese woman who was a semi-pro tennis player in her younger years but went to school for technology and ended up in robotics. She was interested in the complex way the arm and hands moved during a game of tennis, and by combining her love of tennis with robotics, she helped develop the most state of the art robotic hand yet seen.

[Read about Matsuoka and other “Masters” in Robert Green’s Mastery. I listened to it on Audible during my free trial. Try Audible and Get Two Free Audiobooks.]

It always makes sense to have a plan b as well, to have something to fall back on. This could be in the event of losing a job or being stranded in the wilderness, or the economy collapsing.

There are certain skills that protect you from ruin in a really dire situation. For example, if an EMP attack took out the power grid, would you rather have 20 Bitcoin, or the ability to forage for wild edible plants? If you need to protect yourself in an L.A. riot type situation, a gun is a great resource, but it is practically useless without the skill to hit the target.

But backup training and useful hobbies don’t just have to apply to apocalyptic scenarios. Learning graphic design might be a fun side project that also gives you a backup plan if you lose your job. Being forced into a career change is not a far-fetched “catastrophe” for which to plan.

One skill I enjoy sharpening is foraging for wild edible and medicinal plants. In the event of a zombie apocalypse, I would be able to survive better. Let’s face it, I’m a bit of a prepper, so being able to find food in a natural environment gives me a sense of freedom, knowing that I wouldn’t immediately starve to death if left to my own devices.

In fact, though I am only an amateur forager currently, I think I might have enough skills to die very slowly if I suddenly had to forage for all my food. So slowly, in fact, that I may even hone those skills in the meantime enough to prevent the death. What I should do is start practicing complimentary skills like hunting and fishing so that I always have a way to find food, as long as I have access to nature. Here’s a video with a little foraging overview of wild edible plants where I live.

It makes sense to pursue things you are passionate about because otherwise there just won’t be enough energy and fervor put into shaping a skill to be useful.

Anything that seems like a fun hobby where a skill must be gained, there is no harm in pursuing it. In the short term, it will be a fun side activity but might become quite valuable in the long run. A friend of mine enjoyed singing for the elderly at assisted living and nursing homes. When he was unexpectedly let go from his job, he managed to turn his singing into a full-time career where he makes as much if not more money than before and enjoys much more freedom.

Often our skills end up being melded with others to form a unique type of skill-set with endless combinations. It’s the same reason why there can be infinite songs if you arrange a limited number of notes in different ways. Well, there are more skills than musical notes, and more are being invented every day. This provides for an endless combination of skills to be innovative in our hobbies, backup plans, and career goals.

I use examples from my own life about the type of freedom I pursue, and the skills which interest me, but that doesn’t mean these are the only or best ways to go. I really want to hear from all of you in the comments what you have done to diversify your skill-set. I bet we will find quite the diversity.

Joe Jarvis writes for The Daily Bell, where this article first appeared.

Image Credit: Pixabay