This article is provided for information and education purposes only and is not intended as investment advice. Readers are encouraged to do their own research and consult a professional before making any investment decisions.
Governing bodies have been the sole arbiter of sanctions and stimulus for too long now, and the people have very little control over economic matters that affect their own lives. Ordinary people often lack a voice on the stage where these matters are discussed, and even if they had a voice, they have no real leverage to bring to the negotiating table. Most ordinary people face heavy burdens from debt, liabilities, lack of liquid assets, many fail to grasp basic economic concepts, and there are a lot of people who couldn't care less. It is high time that people who do care take back control of their own lives, begin reducing nanny state economic controls, and embrace the free market on a society wide level.
If a large group of ordinary people wanted to sanction a company, organization, or country, for unlawful or unethical behavior, they can't because under the current monetary system they possess no real power to apply economic pressure. When the populace has no savings and are overburdened by debt, they really have little control over their economy and worse yet, they put their free market at serious risk of being exploited by crony capitalists. The people cannot stimulate their own economy without having access to liquid assets, which opens the door for massive government issued fiscal stimulus packages that can disproportionally benefit select industries or businesses in exchange for increased political support. In a way you can blame the people’s reckless financial habits for rapidly expanding big government intruding upon the free market. When you feed something, it grows.
What's the solution?
While cryptocurrency is no magic bullet, it does help empower people to take the necessary actions to regain control. These necessary actions are:
Pay off Your Credit Card and Chop it in Half - Stop giving your economic power away to others, especially if you are one of the people who are stuck in a revolving credit trap. Credit card companies make most of their money on the poorest customers they service. While it may take a while to get out of this trap, once you get ahead of the game you can start to rely on money you own, instead of borrowing from high interest lenders like credit card companies. Credit cards are only safe for wealthy people who can pay off their bill right away. Once your credit card is paid off, buy cryptocurrency with the money you would have wasted making interest payments.
Avoid Stupid Debt - Sometimes taking on debt is necessary, but don't take on debt for frivolous items such as vacations, luxury purchases, or investments. If you live an indebted lifestyle you will always find yourself making interest payments to others, instead of being able to earn interest on your own savings. When you are further in debt than your assets will cover, you have less than zero leverage; whoever you are in debt to has leverage over you.
Save Money - Hoard cryptocurrency which is not controlled by one country or government. If a populace has a large collective savings held in cryptocurrency, they have enough leverage to pick and choose when and how they stimulate the economy, spending only on what they prioritize.
Tactical Spending - A shift in consumer priorities toward spending on goods that fortify the local supply chain and ensure that companies which are too important to fail receive the capital they need to stay in business. By spending wisely now, consumers can make their lives much easier and avoid risk to their supply line in the future. Vote with your dollars if you really want to make an impact on society.
Economic Boycotts - If a country or organization is widely corrupted, don't trade your cryptocurrency for their fiat currency or goods until they rectify their ethical practices. It's really that simple, this is 'the people's sanction'.
Decentralization - Distribute power widely enough that no one entity can gain absolute power and authority. When one power gains absolute authority, the free market usually dies, and the people lose most of their power.
Democratization of Sanctions and Stimulus - Providing that the majority of people can get out of debt and store an impactful amount of savings in cryptocurrency, they can wield a large amount of control over their economy. To protest actions of a large totalitarian government, all they must do is hoard money in a stable cryptocurrency, until the government refines its ethics. This hoarding will cause an economic slowdown by reducing consumer spending, which will decrease government revenue. To stimulate an economy all the people must do is spend tactically. Since the people have a large collective savings, they will wield larger economic power and have a greater variety of tools at their disposal to guide their economy.
If society at large can adopt these practices, not only will it lessen the economic reach of totalitarian governments, but it can also prevent the rise of totalitarian governments in the future by giving civilians an immediate means of divestment. To say that cryptocurrency will have a large impact on the geopolitical landscape in an understatement; cryptocurrency is the new geopolitics, and crypto always sides with the free market.