Introduction

This ‘Thought or What If Experiment’ assumes the adoption of blockchain technology in designing monetary applications in addressing accountability, politicization, collusion, and global influence based on past financial systems. By decentralizing control and ensuring transparency, blockchain reduces the outsized influence of unelected entities and mitigates the risk of opaque decision-making. Its immutable and verifiable ledgers help prevent politicization, ensuring financial systems operate based on clear, objective rules rather than partisan agendas.

Blockchain’s decentralized nature disrupts collusion between corporations and governments, fostering a competitive and fair economic environment. Additionally, its global accessibility and resilience safeguard against exploitation by foreign powers, providing a secure and equitable foundation for financial innovation. In this way, blockchain presents a transformative opportunity to build a more transparent, accountable, and inclusive global monetary system.

What If: A World Where Bitcoin Transforms Money as Energy (Proof-of-Work)

Imagine waking up in the year 2035. The financial world is somewhat recognizable yet familiar—a hybrid system where Bitcoin has seamlessly integrated with traditional currencies, creating a more dynamic, inclusive, and resilient monetary landscape. Central banks, governments, businesses, and individuals coalesce around this dual-system approach, leveraging the strengths of both fiat and Bitcoin.  Bitcoin serves as a counterbalance to unwise printing of money where the fiat currency assumes that it will stimulate the economy.  However, bitcoin can be viewed as a singularity where technology intersects with economics.  In other words, the bitcoin economy and the fiat economy provide a check-and-balance approach to move toward a vision of Mutual Assured Peace (MAP) with no human lives lost when compared with the past history of fiat systems contributing to the policy of  Mutual Assured Destruction (MAD) resulting in costly human lives lost in the millions from proxy wars during the Cold War as one of many examples based on history of conflicts resulting from economic inequities.

In this thought experiment, we explore the possibilities if Bitcoin didn’t overthrow the existing fiat system but evolved alongside it? What would this coexistence mean for economies, individuals, and society as a whole?

The Coexistence of Two Systems

In this speculative world, fiat currencies and Bitcoin serve complementary roles rather than competing for dominance. Fiat currencies remain the backbone of everyday transactions and monetary policy. Governments continue to adjust interest rates, manage liquidity, and provide stability through these currencies. Bitcoin, however, has become a parallel system, excelling where traditional finance struggles, like stimulating an economy with fiat currencies.

• Fiat for Transactions: Governments ensure the liquidity and predictability needed for large-scale economies, keeping fiat as the primary medium of exchange.
• Bitcoin as a Reserve and Hedge: Bitcoin acts as a store of value, a hedge against inflation, and a means for secure global transactions.

A New Role for Bitcoin

In this imagined scenario and after the near economic crash in 2008, Bitcoin has evolved into more than just “digital gold.” Its decentralized nature and fixed supply make it a trusted asset in an increasingly unpredictable world based its past 15 years of being battle-tested resulting in increased global security and rapid global adoption since its release in 2009.  Here’s how Bitcoin will function:

1. As a Monetary Safe Haven:
   • In countries experiencing hyperinflation or unstable fiat systems, Bitcoin provides a secure alternative for preserving wealth, especially for those countries without an infrastructure of banks or what is commonly called the ‘unbanked’ individuals.
2. As a Cross-Border Currency:
   • In an economic crises, businesses and the nation’s population can timely use Bitcoin to settle international transactions, bypassing traditional banking delays and fees.
3. As a Tool for Financial Inclusion:
   • Billions of unbanked individuals participate in the global economy using Bitcoin wallets, opening up new avenues for growth and innovation.

The Role of Governments and Institutions

What if governments and central banks embraced Bitcoin rather than resisted it? In this future, they’ve found ways to integrate Bitcoin into their financial systems:

• Central Bank Reserves:
  • Central banks diversify their holdings with Bitcoin, reducing dependence on foreign currencies and gold. Bitcoin’s scarcity and transparency make it an attractive asset.
• Regulatory Frameworks:
  • Governments establish clear, balanced regulations that prevent misuse while encouraging innovation. Bitcoin transactions are taxed fairly, incentivizing legal use.
• Public Services:
  • Governments leverage Bitcoin for efficient delivery of welfare programs, cross-border remittances, and emergency relief, minimizing corruption and inefficiencies.

Everyday Life in a Bitcoin-Enhanced World

The image below attempts to illustrate a vibrant future where blockchain technology seamlessly integrates into everyday life. A glowing decentralized network links buildings, individuals, and marketplaces, with a prominent Bitcoin symbol at the city’s core, symbolizing a thriving hybrid monetary system. Holographic data streams show transparent, real-time financial transactions, reflecting empowerment and transparency. The clean, green environment powered by renewable energy highlights sustainability, while the bustling activity of digital and physical commerce showcases financial inclusion and technological progress. This visionary scene inspires collaboration and innovation in building a more equitable financial future.

For individuals, this hybrid system offers the best of both worlds. Imagine this:

• Savings and Security:
  • A family in Argentina saves in Bitcoin to protect their wealth from inflation, while using their local currency for daily expenses.
• Global Commerce:
  • A freelancer in Kenya is paid in Bitcoin for work done for a client in Germany, avoiding international wire fees.
• Financial Sovereignty:
  • An entrepreneur in India directly controls their Bitcoin holdings, free from intermediaries, allowing them to reinvest quickly and securely.

Transforming the Economy

The integration of Bitcoin reshapes global finance in profound ways:

1. Innovation Catalyst:
   • Businesses create new financial products, from Bitcoin-based lending platforms to blockchain-driven supply chain solutions.
2. Leveling the Playing Field:
   • Emerging markets gain easier access to global trade and investment, using Bitcoin to bypass traditional barriers.
3. Transparency and Trust:
   • Bitcoin’s public ledger reduces corruption and fraud, fostering greater trust in financial transactions.

Challenges Along the Way

No transformative system comes without challenges. In this thought experiment, society overcomes the following hurdles:

• Energy Use:
  • Renewable energy and technological advancements power Bitcoin mining, turning it into an engine for green innovation.
• Scalability:
  • Tools like the Lightning Network enable fast, low-cost transactions, making Bitcoin practical for mass adoption.
• Regulation vs. Innovation:
  • Governments and innovators strike a delicate balance, ensuring consumer protection while fostering creativity.

What We Can Learn from This Thought Experiment

This imagined future illustrates that Bitcoin doesn’t need to replace fiat currencies to revolutionize money. Instead, it can coexist, offering an alternative that enhances stability, empowers individuals, and drives innovation. This dual system fosters choice, competition, and accountability, benefiting economies and societies alike.

But the most intriguing part of this thought experiment is what it says about today. It suggests that the road to this future begins now—with thoughtful integration, open dialogue, and a willingness to explore the unknown.

What if we embraced Bitcoin as a partner in financial evolution, not a disruptor? What if the coexistence of Bitcoin and fiat became the foundation of a new monetary era? The answers depend on how boldly we imagine—and act—today.

Author’s Notes and References

The ‘what-if or thought experiment’ articles below are attempts to make blockchain and bitcoin more understandable by relating it to natural laws found in nature so that we can develop systems like the ones found in nature that are resilient and are found to have interactive relationships of system of ecosystems.  His insights on nature and technology are based on his 26-years of dealing with various technologies, such as directed energy systems and precision-guided munitions.  His insights were also from his international experience with setting up a large number of technical workshops and conferences while stationed at the European Office of Aerospace Research and Defense (EOARD) under the Air Force Office of Scientific Research (AFOSR).   There he was a Deputy Commander, Chief Scientist/Technical Director, working jointly with similar technical agencies of the Army, Navy and Air Force Research Laboratories in the United States.  His additional duties include being the IT technology manager for the Tri-Service organization as well as being the point-of-contact for Electrical and Computer Engineering applications.

• Blockchain Technology and Voting Systems – IEEE Region 5
• Engineering a Better Economy: Why KEYSTONE-Based Technologies Matter More Than Ever – IEEE Region 5
• Reimagining Global Stability: How Decentralized Technology Could Usher in a New Era of Peace and Sustainability – IEEE Region 5
• The Mysterious Satoshi Nakamoto: A Humble Engineer or STEAM-Driven Collective and Philanthropist – IEEE Region 5
• Do You See The Light in Bitcoin? – IEEE Region 5
• Trump’s Administration Will Impact AI, Energy, Crypto and More – IEEE Spectrum