Why P2P series - Chapter 3, Circular Economies
Building a sustainable future
Dear peaches, as you may already know, our app allows users to buy Bitcoin P2P (peer to peer, or peach to peach as we prefer). But, even if many people have heard those words before, have you ever stopped to think what that even means?
The basic definition is pretty obvious, but in the bitcoin space, many people are still buying Bitcoin using services that require verification of personal information, aka VEXs, thus tying the Bitcoin bought to your identity. Which makes us wonder: have we (bitcoiners) really understood what this is all about?
In this series of blog posts we will dive a little bit deeper into what it means to use bitcoin P2P, and some of its advantages.
In today's chapter, we will get into how building a P2P mindset can lead to circular economies, why today's economy is broken, and how Bitcoin can bring us back to a more sustainable way of living with our surroundings.
As many bitcoiners believe, Bitcoin can be a lifeboat when the current unsustainable economic system eventually sinks. New systems with better aligned incentives will replace the current ones, leading to new models between peers. We believe these new models will be based in circular economies.
Circular economies benefit local producers, and take advantage of local resources. With this model in mind, participants will need to make sure their local community has almost everything they need to sustain their citizens, while leveraging their own products to trade with other areas of the world. Of course this doesn’t mean a local producer cannot enjoy products from another part of the world, it just means they can’t do so in the same way as today, where only a limited amount of big players can access huge economies of scale thanks to the easy money policies of their government.
The current model allows the cantillonaires (people close to the government and the money printer) to take advantage of the resources found in other areas of the world, as they can simply print money out of thin air, and buy scarce goods with non-scarce money, while devaluating everyone else purchasing power. Meanwhile a circular economy would redistribute this wealth and give everyone around the world more equal opportunities to compete for those same goods.
There's an excellent piece of content by Robert Breedlove, called Masters and Slaves of Money that gets deep into it, for those who are more interested in falling down the rabbit hole of Cantillonaires and money printers.
Even though the people in power will criticize “capitalism”, the “greedy corporations” or “terrorists” as the cause of wealth inequality in the world, we believe that fiat money is the main culprit. A hard money standard would change the incentives for absolutely everyone in this planet, creating a better scenario for circular economies to flourish, and for trade to flow freely between different territories, allowing us to make our home planet a little bit fairer in the process.
Peach by itself does not create circular economies ( yet ;) ), but the forming of a P2P mindset is the first step to make users understand the importance of exchanging goods and services locally, and that’s why we want to promote it. We believe in the power of good and strong relationships between humans, and the only way to achieve them is to create better incentives for humans to cooperate between them.
Once we’ve understood the power of good incentives between us, we can start flourishing again as a sustainable society.
Well, dear peaches, thank you for reading this far, this was the third of a full series of blog posts where we'll fall down the rabbit hole of P2P. If you want to receive updates about the next posts, feel free to subscribe to our mailing list.
If you want to know more about Peach features, or read some of our other articles, you can find them here!
Keep spreading the Peach word, who knows when you'll find the match of your life!
June 8th, 2023