Cryptocurrency: Avoiding The Parasite Economy

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Have you ever wondered why Western economies seem to be slowing? This does not refer to the recent collapse due to the shutdown of the global economy. It started long before this.

Over the last decade, we heard about a "booming" economy from the politicians. The cheerleader in charge, Trump, even called it the best economy ever. Of course, the numbers do not reflect that sentiment. Instead, the growth rate, especially coming out of a major recession like we had more than a decade ago was rather abysmal.

So why is this the case?


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When we look at the fundamentals of an economy, it comes down to production. For all the stats, metrics, and other things used by the media and others, the only thing that really matters is production. This is the starting point. If something is not produced, it cannot be bought. This can be a problem in a consumer driven economy.

Bullshit Jobs

A number of years ago there was a paper that came out called "Bullshit Jobs". It had such an impact that it eventually was turned into a book. The main thesis was that even though there were lots of jobs being created, they were, in all actuality, bullshit. In other words, they were not needed.

This ends up going through the economy in a variety of ways.

When we look at the student loan discussion, we see a major part of the equation omitted. People focus upon the debt while overlooking an essential piece: how many of these degrees are completely worthless in the marketplace?

We have institutions turning out millions of students a year with degrees that have no value. This was always the case but it is taking on a great deal more significance with the Internet. Outside of STEM and some sub categories like accounting and IT, few degrees mean anything. What is one going to do with them?

Art history might be a fascinating subject to some but, outside being a curator at a museum, what is the value of it? And besides, why spend a hundred grand to study something you can look up on the Internet for free. Wikipedia and other sites are full of art history that one can research and learn without the cost.

Thus, we have millions of people who have a large debt obligation yet no marketable skills. Of course, society tries to compensate for this by creating jobs for these people. We have government work, the educational system, NGOs, and charities which make people believe they are adding value to the economy. They are not.

Certainly, there are some merits to these. However, like the banking industry, the value add they provide is quickly overridden by the rent seeking that takes place. We also see this in the medical industry. Billions of dollars are sucked out due to unproductive activities.

Each of these areas, if scaled down to their contributing pieces, could be reduced by more than 50%. This will not happen until there is a collapse since too many structures are in place to defend these people and make them feel important.

In all honestly, the person who is making a sandwich at the local deli is adding more to society since at least they are delivering someone food, an essential in life.

True wealth generation only comes from a few sources. An economy needs to:

  • Manufacture goods
  • Mine/drill raw materials
  • Develop/create things such as software, books, or videos
  • Growing crops like food, grains, tobacco, hemp

Outside of this, we see a variety of industries that crop up to support these areas. However, as we can see, we got a lot of dead weight that is not enhancing or facilitating any of these areas.

Cryptocurrency's Opportunity

Cryptocurrency first started with the idea that it would be able to eliminate some of the rent seekers in the financial industry. This is a place where most of what we see is just bloat. In fact, with technology today, much of the financial services sector could be eliminated. At the head of this is the banking industry. As we are well aware, a crypto wallet provides the full extend of banking services for 90% of the people. Most people use a bank to store, send, and receive money. A crypto wallet does all of this without the need for the bank.

This is a major parasite eliminated from society, or at least reduced.

Peer-to-peer transactions can wash out a lot of the fluff in society. Why deal with any third party entity when direct transactions can happen? This is something the world have not yet grown accustom to. While saying "code is King" might be over the top at this point, we can see the ability to reduce the need for these institutions that simply "push paper" around.

Cryptocurrency also can reward any type of behavior, at any level. This is a very important idea. In our present system, there is a lot that adds value to an economy that is not financialized.

Ultimately, it comes down to energy put forth. Who is doing the creating versus who is getting the rewards? We see a system where the producers end up getting little to nothing while the extractors get a whole lot. Why are countries running up huge deficits over the last few decades? Look no further than the number of producers versus the parasites.


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Trillions of dollars each year goes to support this system. We have economic system that are based nothing more than the movement of money. While this is a vital aspect to an economy, it also misses the entire production aspect. This is where central banks fail.

In other words, there are less builders and more extractors. As the ratio keeps skewing, things only get worse.

We can see this mindset entering the crypto world. Everyone wants the free lunch as they say. It doesn't matter at what level it is at, we see the same approach. It can be from a major institution just buying something up or a new poster coming onto a site.

Social media is a prime example of a parasitic situation. There are many who actively create a great deal of content. While they get some rewards, it is not a lot. Most of the value is extracted by the platform. That is why these entities get more powerful by the day.

As we experiment with different governance systems, we need to be mindful of what we are incentivizing. If we allow the parasites to enter, we will end up with the same things as before, just in a digital form.

It is easy to see the difference between creating an application that uses electricity more efficiently as compared to developing another messenger application.

Cryptocurrency can start to take on the world's major problems if we think in that direction. Instead of Lambos and mooning, we have ability to take on these extractive institutions to free up capital for more important endeavors. Consider things such as cancer research, longevity, energy efficiency, and food production. These are all matters that crypto-economic system can help to advance.

Ultimately, it can be done is a much more efficient manner than it is today.


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Art history might be a fascinating subject to some but, outside being a curator at a museum, what is the value of it? And besides, why spend a hundred grand to study something you can look up on the Internet for free. Wikipedia and other sites are full of art history that one can research and learn without the cost.

If you want to study art history, move to Florence in Italy, the degree is much cheaper and you learn on the spot where it happened and you might get a job in the field.

Do you mean that one who has a double major in Popular Culture and Bagpiping is not relevant in the job market?
Joke aside, even if this majors exists, you are right, people pour in money to follow their passion, thinking that if it is a passion it will be a demand of it on the real market. Sadly is it not.

The best positive example of your post might be Japan, a country close to none natural resources, which by manufacturing get's is value add, being one of the top economies.

The system needs to be reinvented or redesigned as now it reminds of my time in communism behind the iron curtain, where each person needed to have a job, even if it is not productive. We had a lady at the end of the rolling stairs who was staying there the whole day to stop them when nobody was on them. the wear and salary was much higher than the value of the electricity saved. This is the same with the system,but the jobs have been turned as paper pushers in a government office. No real world benefit.

I see also that crypto and further digitization can help free up a lot of resources. Imagine putting the world daily military spending of roughly 5479452054794 USD into cancer research. Yes, the world spends over 5,5 trillion USD a day for military.

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Yes, the world spends over 5,5 trillion USD a day for military.

I dont think that is accurate.

The entire global GDP is like $80 trillion. Using your number, we will get there in under 2 weeks.

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My bad, it is roughly $2000 billion, not trillion a year, that is almost $ 5,5 billion a day.

https://www.sipri.org/media/press-release/2020/global-military-expenditure-sees-largest-annual-increase-decade-says-sipri-reaching-1917-billion

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It depends on the country but in my country, education has never been about the kids. First priority is the ministry, then the universities well being, and the kids are the last ones. At some point there has been a joke, saying there should be a sign at the university entrance saying Unemployment Factory.

The other day I was wondering when was the last time when the Ministry of Education has done a survey to see how many jobs are needed in each field long term and compare it with that universities are offering nationwide. My guess is never, as what do they care, right? If there's demand for these university diplomas, why not sell them?

The difference is, in my country, the loan system is very different, you can't get a 5 year loan to pay for university and pay it back after. You go to university if you can afford it.

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I would say we have the same thing in the United States although they do put out stats. I believe they are doctored and do not truly reflect what is taking place. Many of the degrees these kids get do not have value in the marketplace.

A lot of jobs in the market place do not have value either. We are seeing them eliminated in droves as technology replaces a great deal of them.

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Stunning, totally stunning. In reality, you have said it all, it makes no sense to spend s whole lot of money on degrees that the effect wouldn't really yield dividends. I have been saying this for a long time about education in Nigeria how people pay ridiculous amounts of money with no certainty. Its like putting money in a futile venture. It's about time people look into other means, crypto for example and aiming as being dependent on one's self.

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Yeah although I am sure the "educators" are highly compensated.

What is ironic, in the US, it isnt even the teachers who are making the money but the administrators and school "elites".

They are getting the 6 figure salaries.

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The teachers are of course underpaid, I know that for sure, yet its baffling Why this is suposedly so.

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Shitty jobs that are big words, ha well that's the only thing we can hope for unless we achieve the much desired financial freedom.
Thank God down here there is not much debt to obtain titles for an unpayable debt for more than half or almost throughout the life of the students, here on that subject there is hardly a school that grants scholarships, disguised as apparently They are scholarships but in reality they are loans with a modic interest rate, and then of course to ensure that they pay themselves they place people in jobs of the type you mention here, of course the educational level is quite hard and only bright people aspire to that elite.
Jaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
let me laugh, accounting, accounting, jaaaaaaaaaaaaaaaa soon Lucca Paccioli's accounting will go down in history, today with decentralization companies are outsourcing this and that work will be part of history, let alone the audit will also be part of history Now with the ERP's the whole system is done automatically SAP-Oracle allow an incredible traceability so that the operations are registered automatically and the entire accounting cycle from the provisions to the generation of Financial Statements are executed almost instantly by bot, towards that we are going and manual bookkeeping will be history.
As you well say, if you do not have little or no commercial skills, a PHD will do you good to earn a living, I have always said it if you cannot sell it, it is useless, a lot of passion, a lot of good cause, but if it cannot be sold, it will not help much, even in The bible says that the good Samaritan carried money, I mean, he sold something, he was very likely a merchant but if he had not brought money from trade, no one would remember him today, then the base is trade, but hey, we are screwed with many students in careers enchanted but not very useful for the economy.
Urra finally someone mentions something important ** "Cultivation of crops such as food, cereals, tobacco, hemp" *
For me that is the heart of production, food, if there was no one to produce it, the rest of the activities could not be carried out, it hurts that it is not given the true value or the price it deserves, but hey if you see my blog or if by chance you have the opportunity to see it, I go along this line and thanks to it it has allowed me to share some knowledge in that branch and I have learned more by being here.

Great analysis, I have seen many who are excited about lambos, that the reality here would not serve me at all in my deteriorated streets, when I have enough money I will buy a tractor, that is what really served me or a backhoe to fix the street of my community to remove the stones and that the wheels of the cars and motorcycles and bicycles do not get so damaged that is what I plan to do one good day this takes off that I know will be soon so when I think of someone, what will make this hoping well I hope my opportunity will be to buy a tractor and the backhoe and I also hope to dig some wells since the sangrones of my community have a pump and charge US $ 8.00 per month for the water service to the poor communities this because crime demands your slice.
So I hope to do something to improve the life of the community that saw me grow up, one good day not too far away, when they ask what I want the good money for, there are the answers.
Oops I think I got off the subject, but coming back to good we hope that the vultures that are lurking just seeing how to take advantage of the system through passing papers, maybe one day they will disappear little by little.
Regards.

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You had me until you said my job in the educational system was worthless... :)

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Not all jobs in there are worthless. Education is, obviously, vitally important. Plus, outside of teachers, a lot of support is required. However, we have to realize that the entire system is bloated.

We, quite frankly, send a lot of kids to college who do not belong there. This is especially true considering the debt they leave with and their track record of getting jobs. The fact that many, if not most, kids cannot find jobs that support the payments shows a shortcoming in the economics of the system.

There are too many living off the debt these kids take on.

As mentioned, we see the same thing in the US medical system.

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I was just giving you a hard time :) I am lucky that I work in a fairly rural school district. We have a pretty solid understanding that some of our students are going to just be farmers like their parents are/were. We also have a really awesome trades program that prepares students to do those skilled trades jobs that they maybe don't need to go to college for. If I had known I could make twice what I make now being a welder, I might have made some very different decisions in high school!

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If I had known I could make twice what I make now being a welder, I might have made some very different decisions in high school!

Isn't that the truth?

Dont worry I spent 20 years in a job that, at the end of the day, really didnt add that much to society.

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The education issue about degrees is true. However I do not think the government wants to change this. They want people to borrow so it creates money that flows into the economy. We are a debt based system and they are failing to keep the money flowing. Also technology is deflationary as less labor is required so overtime thus less jobs. The government has to ensure that there is enough people employed so that the economy can function and people won't riot. Therefore as parasitic as it is, I doubt it will change.

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I agree...it will not change until the system collapses. If online schooling takes off, for at least a large portion of the population, then the schools will have to switch. They will not keep putting the same resources in.

Until that point, status quo will be in effect.

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Parasites! I was just commenting yesterday on a post by edicted that we need another term to use than "the elite" as it is such a doublespeak mindfuck. Parasites is exactly the right term. awesome.

A real threat to the token economy is the automation.
AI can already create articles. The game can change in ways we cannot forcast.
If a bot could write as good as you can (it can already write as good as me) can a "PoB" survive? Or maybe its just same old PoS.

If the "ownership" of the bots is tokenized among different people, then having bots write all the articles on the Internet will mean that money is flowing to many different people.

Like anything with automation, the question is who owns it? If it is corporations, not good.

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If we allow the parasites to enter, we will end up with the same things as before, just in a digital form.

That's what I was thinking, that it might not change except that everything will be digitized. That everything will be digitized, of course in stages, I think it will be, but ...

Who are "we"? (those who will not let the parasites enter)

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We are those working to make the parasites obsolete.

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As we experiment with different governance systems, we need to be mindful of what we are incentivizing. If we allow the parasites to enter, we will end up with the same things as before, just in a digital form.

Oh yeah... You got a point here. Many are cheering this digitization era as if it is a given and the perfect technology and industry child.

I also agree with you on the lambo mindset. That has to finally fade away. Lambos have for too long shadowed actual developments of the blockchain tech and what it has managed to fix in the real world.

Take a look at Hive, it hasn't bought Lambos, but it has managed to pay bills and provide for some users. It hasn't bought me any Lambo but it paid for my gas, food, electricity etc. That's where I see the growth beyond the speculative side of crypto.

Oh, after reading the post I realize that it's not just Romania where we have more diplomas than actual job offers for all of those diplomas.

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Wow, this spoke volumes to me!

BULLSHIT JOBS lol,

I was a carpenter and then had back surgery -

that led me to think that if i got degree i wouldn't have to live on 'disability' and be a bum like so many others i thought less of (that good ol'fashioned - if you cant work you're useless garbage upbringing)

well, i ended up being worth less in tech support with a degree than i was as high school drop out banging nails

it's expensive as f*** to be poor - late fees , fines , towed/lost vehicles

so i said 'fuck it' and just gave up and filed for disability.

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Yes Western economies are slowing and imploding because they are still running on a set of false ideas. The form of capitalism they've been using the last hundred or so years doesn't work very well. So instead of addressing that they double down on it.

One of the biggest problems contributing to this was Donald Trump over the last 4 years. He goes to DC . .he does the same thing just about every politician does which is not tell the truth about our economy. When Obama was president he told the truth about our economy. He said the job market numbers Obama quoted were false and he was right. He gets to DC and he uses the same metrics to lie about the job market numbers doesn't tell the truth about it then.

So tha'ts pretty much our story with this economy that we do not produce anythign and haven't for a very long time. A blind man can you tell you that's a recipe for disaster, "blind literally and figuratively". Now where crypto comes in yes there would be many opportunities that crypto could address.

Unfortunately whereas as you may not have the banks as middlemen you still have centralized exchanges operating still with a big grip on this sector. So you got the wallets moving their value into their custody in which case you probably have quite a bit of manipulation security issues etc., You mention how in social media the platforms get the bulk of the value of the content and thus we end up with not a a favorable situation

In cryptocurrency the problem is you still have what i would deem as a syndicate group now representing in a sense this more corporate structured platform. Unfortunately we changed our technology but we didnt change ourselves. So we only come into crypto with the same structure. I would imagine that if you can create and manufacture any economy and platform you'd like. That you'd just create one that does that. If you want velocity of money and value to change hands which i would think you would. Then you can manufacture that. It no longer has to be the accidental or incidental economy. It certainly doesn't need to be a repeat of the economies we have now.

So i find that in cryptocurrency we talk a good game about what it can be and do. Our actions however show otherwise and your actions are everything.. words don't matter. Yes life extension.. cancer research.. productivity thats not stolen and manipulated away from the people that earn it due to machinations within the fibers of the system designed for this to take place. Yes crypto could fix that. Crypto doesn't and probably isn't going to fix it until we take the old train of thinkers out of crypto and put in new ones.

Spending billons to make peanut butter taste more peanut buttery or chocolate taste more chocolately adds very much to a severe flaw in our list of priorities lol. We become of aware of this we don't get better we get worse with it. So crypto is doing the same thing its not doing anything different. It could and maybe it will but there is still this false sense that the fact our economy has managed to kick the can down the road so long that it works and will get better. Statistically wealth distribution has but gotten worse. For people to be productive you gotta have a healthy society. You can't have a horse that's not feed and rested be productive.

These people need land so they can eat and grow food. They don't have any. They have a cess pool in an imprisoned concrete jungle many of them. They live poorly because they believe in this type of system of bad priorities and no productivity. Yes the lambos and mooning is a again a false misconception of productivity over an unsustainable system that first shouldn't even be referred to as an economy but an " ecosystem". That is the first error. That we think of it as nonconnected instead of interconnected so then you can go create a ripple effect that harms the society around you based on the false premise of this form of capitalism we're under of no productivity or anything of real value and then we bring those same principles to crypto. The guys at the top of crypto act just like Donald Trump did. They talk a good game they line their pockets but then at the end of the day it comes down to themselves and can we make money and the rest of the ecosystem fall in peril. So yes crypto can be many solutions to these ills if we want it to be. If we wanna accept data when it's favorable to us but when we get to washington dc we go oh now this data is okay it works because it favors my narrative then we will have problems. So that's where i think we are with that.

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