Bitcoin’s Impact On The World, Pt. 4.1 – First Principles (Redux)

Previously

In Part 3 of this opening series, here , we looked at bitcoin and its demonstrable properties, attributes, and characteristics. We also concluded that these bitcoin properties line-up with the definition of dependable money, which we defined here .
Now, we open up Part 4 of our opening series, “Bitcoin’s Impact On The World“. Part 4 is dedicated to tying together all of the previous articles so that we can forecast what bitcoin’s impact on the world will be once we have a true hard money standard (versus our current fiat currency standard). Overall, we deeply consider the ideas of naturally constrained governments which are only able to defend individual liberties, nothing more, nothing less.

Looking Back To The Beginning

At the very beginning of this opening series, I proffered three questions based upon first principles of civics and asked you to consider what your answer is to them. Those three questions were:

• What are the air and the lifeblood of the U.S. gov’t which enables it to act far beyond its Constitutionally mandated scope?
• What enables modern government the ability for them to engage in all long-term tyranny or authoritarianism?
• What allows government to operate with complete impunity and a total lack of accountability to the people?

By now, I’m sure that you can guess what my answer is – fiat currency (and, by extension, government-imposed debts). Based upon this opening series, I hope that you have come to the same conclusion.
When the state has control of the money supply and monetary policy, it is able to extract financial value out of our wallets and bank accounts, corrupt our moral values and sense of ethics, and force all of us to pay for this corruption along the way.
Even if we as individuals choose not to participate in a particular activity, such as toppling foreign countries, donating money to organizations which are anathema to our values, or forcing citizens to buy goods and services which they do not want, the state can use its power over the money supply do all of those things and use our hard work to make it happen contrary to our will.

The Levers Of Power

Since we’re already looking at first principles, let’s dig deep by asking a series of fundamental questions:

“What If…?“

• What if… the federal and national governments around the world could not inflate the money supply whenever they wanted?
• What if… the state had to live on a budget the same as everyone else?
• What if… every war had to be funded by the people directly (instead of via inflation)?
• What if… departments, agencies, and bureaus were limited by the budgets that they were allocated and could not grow endlessly?
• What if… politicians and bureaucrats did not have the dials, levers, and buttons of power afforded to them via fiat currencies?
• What if… the state did not have unlimited power because it were naturally constrained by hard money?

These are the questions that most have never considered previously because we had no alternative… until now.
If you’re wondering what it would be like to remove the “power of the printer” from the politicians, bureaucrats, and technocrats, then wonder no more!

We have bitcoin, a monetary system which completely
removes the capricious, emotionally-driven,
incompetent, and insidious decision-making power
from both the elected and unelected few.

Just like all psychotechnologies which promote individual liberty, Bitcoin pushes the power of self-sovereignty to where it belongs – with the common person. Bitcoin creates a truly level field where every single participant has equal voting, interacting, and economic power in this ecosystem. Everyone can participate equally and no one party has the ability to change the rules ad hoc, ad infinitum, ad nauseum. Much as gravity applies to everyone and everything equally, bitcoin’s rules apply ubiquitously, without distinction nor prejudice.

The Composition Of U.S. Federalism – The Constitution

The U.S. Constitution is based on this one principle stated with three words:

“Rules, not rulers.”

It does this by way of the dissolution of absolute power (which corrupts absolutely). ^[1] The Constitution did an amazing job of decentralizing power.  Even within the federal government, the Founding Fathers ensured that we have three co-equal branches of government for the purpose of decentralizing power.
Per the 10th Amendment, powers not specifically granted (“enumerated”) to the Federal government are instead reserved to the individual states and the people. ^[2] The Founders knew that centralization of power is the only means by which the state can become draconian and authoritarian. In their attempt to maintain checked power, the Founders created federal structures which respected the concept of decentralization.
The Founders knew that there would always be “scope creep“, ^[3] governments which naturally always want to acquire more and more power over the decades, slowly, gradually, imperceptibly.  In their efforts to bring that scope creep to a crawl, the Founders did an amazing job of constructing a system with well-defined goals and guardrails.
The only thing that was missing was a monetary system which supported the Founders’ intent and goals. While I appreciate that the signers of the Constitution called out gold and silver within the text of our founding document, my only criticism is that they did not make federal requirements that only hard, dependable money could be used. ^[4]

But, now we now have that monetary system
which is dependable money.  We have bitcoin,
the world’s first true form of money.

For once, we have an actual commodity which is a representation of scarcity, where individuals and governments must economize and make decisions based upon value-orient priorities given limited resources.
The entirety of this blog is to promote the monetary and fiscal exsanguination ^[5] of all contemporary governments to the point where the only thing they are capable of doing is defending the rights of its citizens, nothing more, nothing less.

Next Steps

In the next article, < here >, we will forecast bitcoin’s impact on the globe based upon first principles and historical examples. More specifically, we will examine the impact of removing obtrusive and intrusive governments from our lives.

The Learning Never Stops!

If you want to continue your journey of learning about all things bitcoin with knowledgeable and helpful people who love to be of service to others, I highly recommend my bitcoin MeetUp, “Bitcoin, Huntsville, Crypto, & Coffee” which you can find here .  We meet two times every month online to discuss bitcoin and its impact on the world. You’ll be able to talk directly with others who are also on their personal bitcoin journey and ask them engaging questions.  We’re not selling anything. The only thing that we ask of you is to come to the table in good faith and be willing to DYOR – Do Your Own Research. We love newbies and the energy they bring!

Donations

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End Notes, References, & Citations

[1] “Power corrupts. Absolute power corrupts absolutely.” — Lord Acton

Brave search engine summary: “Absolute power corrupts absolutely quote“:
“Absolute Power Corrupts
The quote ‘Power tends to corrupt, and absolute power corrupts absolutely‘ is attributed to the 19th-century British historian and politician Lord Acton, whose full name was John Emerich Edward Dalberg-Acton.
He first articulated this idea in a letter written to Bishop Mandell Creighton in 1887, where he emphasized the moral dangers of unchecked authority, particularly within political and religious institutions. The quote underscores his belief that power, especially when concentrated, inevitably leads to moral degradation and tyranny. This principle has since become a foundational maxim in discussions about governance, liberty, and the necessity of checks and balances.“

[2] The 9th and 10th Amendments to the U.S. Constitution

The 9th and 10th Amendments to the Constitution are a powerful combination. Together, they guarantee that even unidentified rights and powers need to stay with the several states and the people. This is the legal embodiment of the idea of decentralization, equal standing, and minimizing scope creep. [3]

“Ninth Amendment
The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.“

Brave search engine summary: “9th amendment to the constitution“
“9th Amendment
The states that the enumeration of certain rights in the Constitution shall not be construed to deny or disparage others retained by the people. It was ratified on December 15, 1791, as part of the Bill of Rights. The amendment was introduced by James Madison to address concerns that listing specific rights might be interpreted as implying those were the only rights citizens possessed. It serves as a constitutional safety net, affirming that the Bill of Rights is not an exhaustive list of individual rights.
The Ninth Amendment protects unenumerated rights—rights not explicitly listed in the Constitution. These rights are inherent and extend beyond the written text, ensuring that the government cannot restrict liberties simply because they are not named in the Constitution. The Supreme Court has invoked the Ninth Amendment to safeguard rights such as the right to privacy, the right to travel, the right to vote, and the right to make personal decisions about health care and one’s body. Landmark cases like Griswold v. Connecticut (1965) and Roe v. Wade (1973) relied on the Ninth Amendment to recognize the right to privacy as a fundamental unenumerated right.
Despite its importance, the Ninth Amendment has been considered by some legal scholars as “forgotten” or “irrelevant” for much of U.S. history, with limited direct application in constitutional law until the 20th century. Its primary function is often seen as a rule of construction, meaning it instructs courts not to interpret the listed rights as an exclusive catalog, thereby preventing the government from assuming powers beyond those explicitly granted. Some argue it establishes a presumption of liberty, requiring the government to justify laws that restrict individual actions. Others view it as a general limitation on government power rather than a source of substantive rights. The amendment reflects a natural rights tradition, suggesting people possess more rights than any constitution could ever fully list.“

“Tenth Amendment
The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.“

Brave search engine summary: “10th amendment to the constitution“:
“10th Amendment
The Tenth Amendment to the United States Constitution, ratified on December 15, 1791, as part of the Bill of Rights, establishes the principle of federalism by stating that powers not delegated to the United States by the Constitution, nor prohibited to the states, are reserved to the states respectively, or to the people. This amendment reinforces the idea that the federal government possesses only those powers explicitly granted by the Constitution, while all other powers are retained by the states or the people. The amendment was proposed to address concerns from Anti-Federalists who feared a powerful central government and was intended to clarify that the federal government’s authority is limited and enumerated.
Although some legal scholars and the Supreme Court have described the Tenth Amendment as a “truism” or a “tautology,” meaning it merely restates that the federal government only has powers granted to it and retains nothing beyond those , it has played a significant role in constitutional interpretation. The Supreme Court has used the amendment to limit federal overreach, particularly in cases involving the commandeering of state governments. For example, in New York v. United States (1992), the Court ruled that Congress cannot force states to take title to low-level radioactive waste or assume liability for its disposal, as this violated the Tenth Amendment. Similarly, the Court has held that the federal government cannot compel states to enforce federal laws or to enact specific legislation.
The Tenth Amendment is often cited in debates over states’ rights and the balance of power between state and federal governments. It underpins the concept of state sovereignty, allowing states to exercise general police powers—such as establishing police and fire departments, setting public health regulations, and managing emergency responses—unless prohibited by the Constitution. While the amendment’s text is simple, its interpretation has evolved, with the Supreme Court increasingly using it to impose limits on federal power, even when Congress is acting under its enumerated powers, such as under the Commerce Clause.“

[3] Scope creep

“Scope Creep
Scope creep (also called requirement creep, or kitchen sink syndrome) in project management is continuous or uncontrolled growth in a project’s scope, generally experienced after the project begins. This can occur when the scope of a project is not properly defined, documented, or controlled. It is generally considered harmful.“

[4] The Founders specifying gold and silver within the U.S. Constitution as the monetary base

In fairness to the Founding Fathers, they placed provisions within the Constitution for gold and silver as the basis for a our monetary system. The Founders knew the value of a hard money standard. They had seen numerous examples throughout history where government had actively engaged in debasement of the money supply in order to maintain and acquire more power. Specific sections of the Constitution pertaining to gold and silver are as follows:

Article I, Section 8:
This section grants Congress the power to coin money and regulate its value.
Text: “The Congress shall have Power To … coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.“

Article I, Section 10:
This section restricts states from coining money or issuing their own currency.
Text: “No State shall … coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts.“

[5] Exsanguination

“Exsanguination
Exsanguination is the loss of blood from the circulatory system of a vertebrate, usually leading to death. The word comes from the Latin ‘sanguis‘, meaning blood, and the prefix ‘ex-‘, meaning ‘out of‘ “.

“Exsanguination
Exsanguination is defined as massive bleeding resulting in the loss of the entire body blood volume over 24 hours or half of the body’s blood volume over 3 hours, often due to vascular damage from injuries, particularly in unstable pelvic ring injuries.“