Category: Crypto Mining

Brazilian congressman Fábio Ostermann sees Bitcoin as a means to make state tools obsolete and allow technology to free people.

In an episode of the “Bitconheiros” podcast with the guest Fábio Ostermann, the Brazilian deputy commented, among various topics, on Bitcoin and the adoption of decentralized technologies. This story was shared by local news outlet Bitcoin Bulletin.

The Brazilian parliamentarian said that technologies that promote decentralization have the potential to liberate Brazil, as they can render many institutions obsolete, such as the Central Bank and other institutions linked to monetary policy. he he shared,

“Personally, I firmly believe in the future of freedom in Brazil and, consequently, in the future of prosperity in Brazil. I believe that our children will live in a level of freedom that we never imagined.

“Probably because of what our generation is building. […] I have a lot of confidence in the future of freedom and of Brazil, consequently, because I see that in the worst case, technology will make us free.”

Brazil currently ranks 133rd out of 177 countries in the Heritage Foundation’s Index of Economic Freedom. The Latin American country did not have a significant indication of freedom in any observable aspect.

Bitcoin, as the parliamentarian and various people throughout the episode rightly pointed out, has the potential to open up a lot of room for the growth of freedom in the world. It takes away from centralized agents the monopoly of money issuance and the financial system.
Bitcoin Adoption in Brazil

In recent decades, Brazil has gone through a series of episodes that have undermined the population’s trust in state institutions. From 1940 to 1994, the country experienced severe inflation and occasional hyperinflation. Many point out that this may be one of the main reasons for the popularity of bitcoin in the country, since the population is used to not trusting money issued by the government.

Brazil currently has more people investing in bitcoin and other digital assets than the US stock market.

The lack of confidence in the government itself due to various historical events has become an inseparable part of the culture of Latin American countries. As most South American countries have experienced hyperinflation, dictatorships, and confiscation of their economies, it is natural that there will be resistance to trusting centralized institutions.

Because it is a decentralized currency network that does not need to rely on intermediaries, Bitcoin has become a strong net alternative to government-issued money, as well as a way to gain sovereignty through hard currency in a crash-resistant currency network. the censorship.
“Technology will set us free”

During the conversation, the deputy, known for defending agendas linked to economic freedom, continued:

“[Bitcoin] is going to transform various state tools, which today, or until recently, were considered as indispensable as the Central Bank itself. As monetary regulatory authorities, it will sooner or later render them obsolete.”

As stated, Bitcoin has the real potential to undermine the power of central banks and monetary institutions around the world because it is a protocol for money in the virtual cyberspace of the Internet.

Through aligned incentives and an “army of miners” striving to find new blocks and maintain network security, Bitcoin has held its own for 13 years, providing a robust monetary network and a highly appreciable liquid asset.

The parliamentarian also highlighted the emergence of a number of technologies that have the potential to reduce the role of the state through decentralization. “The trend is that we follow the path of increasing decentralization… It is what some people commonly call uberization… But there is a phenomenon behind it, which is the phenomenon of decentralization, the decentralization of options.”

Ostermann was most likely referring to decentralized applications, which seek to run services from conventional applications and systems through complex smart contracts. The congressman’s statements are very reminiscent of the predictions made by the economist Milton Friedman, who stated on several occasions that eventually the creation of money native to the internet would be responsible for diminishing the role of governments around the world.

Bitcoin is a hope for Brazil, for Latin America and for people around the world.