The Ethical Case for Bitcoin: Money as Debt

Posted on March 03, 2025

This video explores the ethical arguments for using Bitcoin.

Why It Matters

I believe it's our ethical duty to transfer away from fiat to something like Bitcoin. For a full description of why, I recommend reading "The Creature from Jekyll Island" which you can find on my reading list on this website.

Do you know where money comes from? You might be interested to know that all money is debt, and that the current financial system is built in such a way that eventual failure is guaranteed.

Understanding Money as Debt

Our current financial system is based on a fundamental misconception about the nature of money. Most people think of money as a neutral medium of exchange, but in reality, modern fiat currencies are debt instruments created by central banks and financial institutions.

The Ethical Alternative

Bitcoin represents a radical departure from debt-based money. As a decentralized currency with a fixed supply cap of 21 million coins, Bitcoin cannot be inflated away through unlimited money printing. This makes it fundamentally different from fiat currencies that can be created out of thin air, diluting the value of existing money and effectively acting as a hidden tax on savers.

By transitioning to Bitcoin, individuals can opt out of a financial system that systematically transfers wealth from ordinary citizens to those closest to the money creation process. This isn't just about personal financial gain—it's about choosing a more ethical monetary system that doesn't rely on perpetual debt expansion and doesn't privilege certain groups over others.

Taking Action

Understanding the ethical dimensions of our monetary system is the first step toward making more conscious financial choices. Bitcoin offers not just a technological innovation but a moral alternative to the current financial paradigm. By learning about and adopting Bitcoin, you're not simply making an investment decision—you're making an ethical choice about the kind of monetary system you want to participate in.

Further Reading

To deepen your understanding of these issues, I recommend:

  • "The Creature from Jekyll Island" by G. Edward Griffin
  • "The Bitcoin Standard" by Saifedean Ammous
  • "Layered Money" by Nik Bhatia

These resources provide important context for understanding why Bitcoin matters beyond its price action.