I was reading an article about how much money is pouring out of China, as the rich keep abandoning the country as the government keeps reaching further into their pockets and businesses. This has only been exacerbated by the implosion of the housing industry in the country, where gross mismanagement by the government has devalued a lot of the wealth that individuals held. It is an exodus that over the last handful of years has seen trillions pour out of China, despite there being very strict controls in place.
Where there's wealth, there's a way.
It is a pretty good case study of human behavior, where we will look to protect what we perceive as our own. And of course the irony is, that while we might feel the wealth we have is our own, it really is not. This is pretty obvious to most of us here in crypto, but it should be incredibly obvious to those who live in a communist regime. However, as I have mentioned for the last thirty years or so, China isn't really a communist country, it is a capitalistic monopoly.
monopoly
/mə-nŏp′ə-lē/
noun
Exclusive control by one group of the means of producing or selling a commodity or service.
A company, group, or individual having exclusive control over a commercial activity.
A commodity or service so controlled.
The definition of capitalism really needs to change, because the division between private and state has also changed over time, blurring the lines significantly. This means that private has moved into government functions, and governments have moved into the wealth generation business above and beyond the good of their people. Much like any corporation.
Government Inc.
Never forget that government is about making a profit, generating wealth, though the organization might not care that much about money itself, as their currency is overall control, with currency just being one of the tools at their disposal. We are slaves to currency, not just because we want more of it in our pockets, but because in order to participate in the modern world, it is required for trade with others, making it a control mechanism for those who actually own.
Own money might be an oxymoron.
Money is a concept, which makes ownership of it impossible. There is nothing actually underpinning the value of it other than it being mutually agreed as a form for marking a trade. So, when a person is taking their wealth out of a country, what does that actually mean? Just another form of trade, isn't it? One currency owned by one government, for different currency owned by another government. Sure, the political climate and conditions might alter, but their wealth is no more their own than it was earlier.
For the last few hundred years at least, centralized money systems have been employed in order to facilitate trade, and keep those with power, in power. It has been a highly effective strategy for the most part, because it is compelling to participate in the system, because it is far easier to manage our affairs with other people, when we are able to trade in tokens, rather than one for one. It is convenient and that makes it attractive, even if there are downsides to it. Similar to eating fast food, it might make life easier at the time it is consumed, but over time, the negatives creep in.
Ownership might be valuable, but it isn't actually convenient. For instance, owning an investment property can attract wealth, but the owner is responsible for maintenance also, even though not living there. There are costs involved, contractors to pay, repairs, wear and tear. There might be profit left over, but there are risks to hold also. Similarly, owning a car is also an issue, as while it isn't an appreciating asset normally so has depreciation costs, there are also the maintenance and fueling costs also.
There is a cost to owning currency also.
It is very inconvenient.
Again, people in crypto know this, as compared to the centralized currencies that are facilitated by the banks as a middleman and influencer who skim heavily off the top to increase their own power, it is difficult to use. Sure, it has got far, far easier to use daily than it was a decade ago, but that is because it is leveraging the banks and government structures again. If it required staying completely independent of them, it would be very difficult again. But, the easier it gets...
The bigger flight risk we become.
Taraz
[ Gen1: Hive ]