Dear Hendrick,

Thank you for your thoughts on this subject. I think that when it comes to central governments and issued currencies, seigniorage — the difference between the face value of currency and their production costs — is a privilege that no government will be eager to give up any time soon.

Against that backdrop, it comes as no surprise how central governments (except perhaps with the exception of Japan), have been eager to either put down, discourage or outright ban cryptocurrencies altogether (China) — with varying degrees of efficacy.

As to whether or not American hegemony is waning, I would humbly suggest that at this stage at least, it’s too early to call. During the Carter administration, many were also quick to call for the end of American hegemony, decades later and those somber predictions have simply not played out.

Perhaps it is ironic then that democracy, which has kept America strong is under threat globally and even within the heart of the United States, the ideological struggle as to the complexion of that democracy is still an ongoing battle.

To that end, I would suggest that cryptocurrencies contribute to the decentralized vision of democracy and quite apart from being feared, ought to be embraced as the financial tool to propel democracy further.

Yours,

Patrick