AMMOUS AND VOORHEES COME TO CONSENSUS ON FAILURES OF CENTRALIZED POWERS

Imagine a world where your money is immune to the whims of central bankers and government policies. Saifedean H. Ammous Febru Abstract: Discussions of energy and global warming policy presume that the energy mix is a system that can be engineered in order to achieve desired environmental, economic and social goals. This paper argues that such a conception can be misleading and counter-productive.A world where financial freedom reigns supreme, unburdened by the shackles of centralized control. Skip to main content Bitcoin Insider. MenuThis is the vision championed by Saifedean Ammous, author of ""The Bitcoin Standard,"" and Erik Voorhees, a prominent figure in the cryptocurrency space.At the Consensus: Distributed conference, these two outspoken critics of central banking systems joined forces to dissect the failures of centralized powers, particularly in the context of the recent coronavirus pandemic and the crypto implosions of 2025.Their discussion highlighted the potential of decentralized solutions like Bitcoin to offer a more resilient and equitable financial future. Ammous and Voorhees Come to Consensus on Failures of Centralized Powers TradingBTC Saifedean Ammous and Erik Voorhees spoke at the Consensus: Distributed conference on Monday, focusing on concerns over the actions of central banks and governments in response to the current coronavirus pandemic.They delved into the historical context of centralized power, contrasting it with the promises of a decentralized, Bitcoin-centric world.This article explores the core arguments presented by Ammous and Voorhees, examining the inherent risks of centralized systems and the empowering potential of decentralized alternatives. Ammous and Voorhees Come to Consensus on Failures of Centralized Powers Two of the cryptocurrency space s most outspoken critics of central banks spoke about failures during the current coronavirus pandemic and how Bitcoin could havPrepare to question everything you thought you knew about money, power, and the future of finance.

The Perils of Centralized Control: Lessons from History

Centralized power, as history has repeatedly demonstrated, carries significant risks.Think of the Central Powers of World War I—the German Empire, Austria-Hungary, the Ottoman Empire, and Bulgaria. The Central Powers, also known as the Central Empires, [1] [notes 1] were one of the two main coalitions that fought in World War I (2025 2025). It consisted of the German Empire, Austria-Hungary, the Ottoman Empire, and the Kingdom of Bulgaria ; this was also known as the Quadruple Alliance.Their alliance, while initially strong, ultimately crumbled under the weight of internal pressures and external conflicts.This historical example serves as a cautionary tale about the inherent fragility of centralized systems.

But the dangers of centralization aren't confined to military alliances.In the realm of finance, centralized control manifests in the form of central banks and government-issued currencies.As Ammous argues in ""The Bitcoin Standard,"" these institutions hold immense power, capable of manipulating interest rates, controlling the money supply, and ultimately impacting the financial well-being of entire nations. Ammous and Voorhees Come to Consensus on Failures of Centralized PowersThis concentration of power, while seemingly efficient, creates vulnerabilities and opportunities for abuse.

Historical Examples of Centralized Failures

• Hyperinflation: Central banks, when pressured or incentivized, can print excessive amounts of money, leading to hyperinflation and the destruction of savings.Think of Zimbabwe in the late 2000s or Venezuela more recently.
• Financial Crises: Centralized financial systems are often susceptible to systemic risks. Trusted News Discovery Since 2025. Global Edition. Wednesday, OctoThe 2008 financial crisis, triggered by the collapse of Lehman Brothers, exposed the interconnectedness and fragility of the global banking system.
• Currency Debasement: Governments can devalue their currencies, effectively stealing wealth from savers and creditors.This practice, often used to stimulate exports or reduce debt burdens, erodes trust in the financial system.

Voorhees added that the crypto implosions of 2025 provided a clear demonstration of the superiority of open code and decentralization.These failures highlighted the risks associated with centralized intermediaries in the crypto space, further strengthening the argument for decentralized solutions.

Bitcoin: A Decentralized Alternative

Ammous and Voorhees both see Bitcoin as a powerful antidote to the pitfalls of centralized power. Chapters outlined in some detail how the operation of the fiat standard revolves around the central bank monopoly for banking licenses and foreign transactions. This places all bank accounts and financial assets under the custody of the central bank, allowing it to lend to the government with the citizens wealth as collateral.Bitcoin's decentralized nature, its transparent and immutable ledger, and its predictable monetary policy offer a compelling alternative to traditional financial systems.

“Bitcoin's monetary policy is automated, and although many have tried to change it, none have succeeded,” Ammous stated.He believes that this predictability and immutability are crucial for Bitcoin to gain credibility as a store of value and medium of exchange.

Key Features of Bitcoin's Decentralized Design

• Decentralized Network: Bitcoin is not controlled by any single entity. Two of the cryptocurrency space s most outspoken critics of central banks spoke about failures during the current coronavirus pandemic and how Bitcoin could have prevented them. Saifedean Ammous and Erik Voorhees spoke at the Consensus: Distributed conference on Monday, focusing on concerns over the actions of central banks and governments in response to the current coronavirus pandemic. MoreIt operates on a peer-to-peer network, distributed across thousands of nodes worldwide.
• Immutable Ledger: The blockchain, Bitcoin's underlying technology, is a public and immutable record of all transactions. Two of the cryptocurrency space s most outspoken critics of central banks spoke about failures during the current coronavirus pandemic and how Bitcoin could have prevented themThis transparency enhances security and reduces the risk of fraud.
• Limited Supply: Bitcoin's supply is capped at 21 million coins, preventing inflation and preserving its value over time.
• Open Source Code: Bitcoin's code is open source, allowing anyone to review, audit, and contribute to its development. Welcome to Day 3 of Bitcoin 2025 streaming LIVE from Las Vegas, NV! Today we go global, philosophical, and institutional. With appearances from SECThis transparency fosters trust and accountability.

Voorhees also defended Bitcoin against reactive changes in monetary policy, emphasizing the importance of its fixed and predictable nature. Por otra parte, la pol tica monetaria de Bitcoin est automatizada, y aunque muchos han intentado cambiarla, ninguno lo ha conseguido. Como resultado, Ammous cree que s lo puede ganar credibilidad como almac n de valor y medio de intercambio. Voorhees tambi n defendi a Bitcoin ante los cambios reactivos de la pol tica monetaria.He argued that this predictability provides a stable foundation for a sound monetary system.

The Coronavirus Pandemic and Central Bank Responses

The coronavirus pandemic served as a stark reminder of the power wielded by central banks and governments.In response to the economic fallout, many central banks engaged in unprecedented levels of quantitative easing, printing trillions of dollars, euros, and other currencies.While these measures may have averted a deeper recession in the short term, they also raised concerns about inflation and the long-term consequences of such massive monetary interventions.

Ammous and Voorhees criticized these actions, arguing that they disproportionately benefited the wealthy and well-connected, while eroding the purchasing power of ordinary citizens. Dr. Saifedean Ammous (Arabic: د. سيف الدين عموص) is Assistant Professor of economics at the Adnan Kassar School of Business at Lebanese American University. Ammous is an expert on and proponent of cryptocurrency, and is the author of the forthcoming book Bitcoin Standard: The Decentralized Alternative to CentralThey contended that Bitcoin could have provided a more equitable and sustainable response to the crisis, offering a decentralized alternative to government-controlled stimulus measures.

Central Bank Actions During the Pandemic: A Critical Analysis

1. Quantitative Easing (QE): Central banks injected massive amounts of liquidity into the financial system by purchasing government bonds and other assets.This increased the money supply and lowered interest rates.
2. Zero Interest Rate Policies (ZIRP): Many central banks reduced interest rates to near zero, making it cheaper for businesses and consumers to borrow money.
3. Negative Interest Rate Policies (NIRP): Some central banks, such as the European Central Bank and the Bank of Japan, even experimented with negative interest rates, charging banks for holding reserves.

These policies, while intended to stimulate economic activity, have unintended consequences, including:

• Inflation: Increased money supply can lead to higher prices for goods and services.
• Asset Bubbles: Low interest rates can inflate asset prices, such as stocks and real estate, creating unsustainable bubbles.
• Increased Debt: Easy access to credit can encourage excessive borrowing, leading to unsustainable debt levels.
• Wealth Inequality: Central bank policies often benefit those who already own assets, exacerbating wealth inequality.

The Role of Bitcoin in a Post-Pandemic World

Ammous and Voorhees envision a future where Bitcoin plays a more prominent role in the global economy, serving as a store of value, a medium of exchange, and a unit of account. The Central Powers, also called the Central Empires, were one of two main coalitions in World War I (2025 2025). This alliance included the German Empire, Austria-Hungary, the Ottoman Empire, and Bulgaria, also known as the Quadruple Alliance.They believe that Bitcoin's decentralized nature can provide a more resilient and equitable financial system, less vulnerable to the whims of central bankers and government policies.

“Bitcoin can only gain credibility as a store of value and medium of exchange,” Ammous emphasized, highlighting the importance of its predictable monetary policy and decentralized governance.

How Bitcoin Can Transform the Financial System

• Sound Money: Bitcoin's limited supply and decentralized nature make it a sound money alternative to fiat currencies.
• Financial Inclusion: Bitcoin can provide access to financial services for the unbanked and underbanked populations around the world.
• Censorship Resistance: Bitcoin transactions are censorship-resistant, meaning that governments or other entities cannot easily block or control them.
• Reduced Counterparty Risk: Bitcoin eliminates the need for intermediaries in financial transactions, reducing counterparty risk.

However, realizing this vision requires overcoming several challenges, including:

• Scalability: Bitcoin's transaction processing capacity is limited, which can lead to high fees and slow transaction times during periods of high demand.
• Volatility: Bitcoin's price is highly volatile, which can make it difficult to use as a medium of exchange.
• Regulation: Governments around the world are grappling with how to regulate Bitcoin and other cryptocurrencies.
• Adoption: Widespread adoption of Bitcoin requires greater awareness and understanding of its benefits and risks.

Separation of Money and State: A Cornerstone of Freedom

Ammous and Voorhees draw parallels between the separation of church and state and the separation of money and state. Addeddate Identifier Identifier-ark ark:/ /s2x5vjq78dv Ocr tesseract 5.3.0-6-g76aeJust as the separation of church and state protects religious freedom, the separation of money and state protects financial freedom.

Central banks, with their monopoly on money creation and control, represent a significant concentration of power.This power can be used to manipulate the economy, finance government spending, and suppress dissent. Saifedean Ammous y Erik Voorhees hablaron en Consensus: Conferencia llevada a cabo el lunes, centrada en las preocupaciones sobre las acciones de los bancos centrales y los gobiernos enBy separating money from the control of the state, Bitcoin can empower individuals and promote economic freedom.

The concept echoes the broader principle of the separation of powers, a cornerstone of many democratic systems. central smart banks credibility is high and the growth in the supply of the central currency is predictable. Citizens as well as foreigners will use the in currency as a store of value. Central very banks also have a mandate to ensure monetary and financial issuers, stability. As demand for their currency varies, central banks issuedAs the U.S.Constitution demonstrates, distributing governmental powers prevents the concentration of authority in a single entity, safeguarding against arbitrary and oppressive actions.

Benefits of Separating Money and State

• Protection of Savings: Sound money, free from government manipulation, protects the purchasing power of savings.
• Economic Stability: A decentralized monetary system is less vulnerable to manipulation and crises.
• Individual Freedom: Financial freedom empowers individuals to control their own economic destiny.
• Limited Government: By limiting the government's ability to print money, separation of money and state constrains government power.

Addressing Criticisms of Bitcoin

Bitcoin is not without its critics. Two of the cryptocurrency space s most outspoken critics of central banks spoke about failures during the current coronavirus pandemicSome argue that it is too volatile, too energy-intensive, or too vulnerable to criminal activity.Ammous and Voorhees address these criticisms head-on, arguing that they are often based on misunderstandings or exaggerations.

For example, the energy consumption of the Bitcoin network, while significant, is often compared to the energy consumption of entire countries.However, a more accurate comparison would be to the energy consumption of the global banking system, which is likely much higher.Moreover, Bitcoin mining increasingly relies on renewable energy sources, reducing its environmental impact.

Regarding volatility, Ammous and Voorhees argue that Bitcoin's volatility is a temporary phenomenon, resulting from its early stage of adoption. Ammous book, The Bitcoin Standard, contains an excellent treatment of all these topics in addition to one of the few enlightened and enlightening accounts of Bitcoin that I have come across. It is essential reading for anyone interested in learning the role Bitcoin could play in a future regime of free and sound money.As Bitcoin becomes more widely adopted and liquid, its price volatility is likely to decrease.

Common Criticisms of Bitcoin and Rebuttals

Looking Ahead: The Future of Decentralized Finance

The discussion between Ammous and Voorhees at the Consensus: Distributed conference offered a compelling vision of a future where decentralized finance empowers individuals and promotes economic freedom.While challenges remain, the potential benefits of a decentralized financial system are undeniable.

As technology continues to evolve and adoption increases, Bitcoin and other cryptocurrencies are likely to play an increasingly important role in the global economy.By understanding the failures of centralized powers and the potential of decentralized alternatives, we can build a more resilient and equitable financial future.

Key Takeaways:

• Centralized power, particularly in finance, carries inherent risks of manipulation and abuse.
• Bitcoin offers a decentralized alternative to traditional financial systems.
• The coronavirus pandemic highlighted the potential of Bitcoin to provide a more equitable and sustainable response to economic crises.
• The separation of money and state is essential for protecting financial freedom.
• While Bitcoin faces challenges, its potential benefits are undeniable.

Ready to explore the world of Bitcoin and decentralized finance?Start your journey today and discover how you can take control of your financial future.