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Former Greece’s Finance Minister Yanis Varoufakis has responded to critics who feel his stand on Bitcoin is worth giving a second thought.
The former finance minister who maneuvered the economy of Greece during the 2012 crisis responded to an Op-Ed published by Ben Arc on Bitcoin Magazine purposely to convince the economist to have a rethink over Bitcoin.
Responding to Arc “as a fellow socialist,” Varoufakis said he was intrigued by the blockchain algorithm in 2011 when the industry started gaining prominence and equally got hypnotized by the potentials of the decentralized ledger, however, the claim that Bitcoin is an alternative to fiat money is out of common sense.
He said Bitcoin cannot help civilize the world or bring about the socialist’s idea of a utopian model. Varoufakis opined in the response that Bitcoin is not designed to help move the world out of the shackles of capitalism since the industry is devoid of the “mechanism necessary to stop capitalist.”
Interestingly, the economist is sure that the moment socialism starts ruling the world, “something like Bitcoin” will rule the monetary systems. This, he mentioned, would happen in a world devoid of share markets and private banks.
Varoufakis reminisced on the crash of 2008 and the 2020 COVID-19-induced crisis, saying if Central Banks did not have the power to print more trillions of dollars and had to depend on the majority of Bitcoin’s users to increase the supply of money, the end would have resembled the 1929 collapse of corporations and banks.
He discussed the unequal ownership of Bitcoin which resembles the monetary idea that capitalism levied on the world.
Varoufakis observed that Bitcoin’s dominance cannot give socialism a chance under capitalism.
Conclusively, the socialist who observed that the “democratization of money” using Bitcoin will not democratize capitalism but will rather boost the idea, was not blind to the fact that Bitcoin is breaking the “cronyist chain” that links private bankers and central banks, but he noted that the digital currency does not battle the existing rings of private bankers, cabals and politicians.
The economist foresees that if Bitcoin replaces fiat money, the digital currency will only return the world to “a postmodern version of 19th Century America,” which is not what the socialists should hope to see.
The former minister’s statement comes at a time Bitcoin is trending higher. A few hours ago, Bitcoin stood around $11,300 before witnessing a little replacement. However, expectation of traders and investors as they hope that the post halving effect will drive Bitcoin above its previous high.