Tuesday, May 22, 2018

With Bitcoin's value being tied primarily to energy, are cryptocurrencies really the ultimate outcome for the dream of Technocracy?

When it comes to inherent value, Bitcoin and other cryptocurrency advocates will say that they are backed by a 'Proof of Work' concept.  And that 'work' is inevitably tied to energy, and the amount that is required to 'mine' each coin over the lifespan of their process.

With this in mind I have been reminded lately of another attempted scheme, this time from the 1930's, which attempted to reconstitute money as being tied to energy rather than to commodities such as gold and silver.  And it was during the era of the Technocrats that this idea gained traction.

“Technocracy is a form of government in which engineers, scientists, health professionals and other technical experts are in control of decision making in their respective fields. The term technocracy derives from the Greek words tekhne meaning skill and kratosmeaning power, as in government, or rule. Thus the term technocracy denotes a system of government where those who have knowledge, expertise or skills compose the governing body. In a technocracy decision makers would be selected based upon how highly knowledgeable they are, rather than how much political capital they hold.” 
What the organization proposed was that the amount of energy that is required to produce every single thing that society needs should be accounted for, and everyone would be given their share, simply by dividing between the population, of the amount of energy over a given budgeting period. – Cold Fusion Now
Ironically, energy would become the foundation of currencies starting in the 1970's with the advent of the Petrodollar.  Then 40 years later a failed Vice-President by the name of Al Gore would lead the charge for taking oil (energy) backed money to its ultimate pinnacle by trying to introduce 'Carbon Credits' as a replacement for currencies.

Yet while the carbon credit scheme never really got off the ground, another energy based currency appears to have done so.  And starting with Bitcoin back in 2009, this digital currency backed by its Proof of Work concept may in the end be the latest attempt to tie money to energy, rather than to a tangible and finite commodity.

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