Why do we even need Crypto?

So after the previous article about the need for simplicity, I would like to step back a bit and think about crypto from first principles.

why do we even need crypto?
And when I say crypto I mean a decentralized currency
I'll try to do it in a problem solution Q&A format.

What does crypto allow us on the most basic level?

Crypto allows us to reach a consensus about the state of a Ledger, this allows us to create a currency that incentivizes the security of that ledger so it's circular.

Let's go in a bit deeper,
why do we need a currency?

The main reason is the ability to do trade without direct barter because barter requires that you would always have a valued good at your disposal to trade for stuff you need.

let's go even deeper why do we need barter???

Hang in there… :)
Because it’s difficult for a single individual to get all the basic necessities by himself and that is also why humans live in a community.

This also explains why communities are forming around cryptocurrency's

We reached the final principle humans need to cooperate in a community for food security and shelter, but what if a small community is able to provide for themselves why would they need a currency?

Much like crypto itself, the answer is a circular game theory,
the basic human family can provide food shelter, and security witout a currency until it is faced with a tribe that is stronger,
then they have to form into a tribe that can provide food security and shelter,
but then they are faced with a bigger tribe, and they compete for water or territory to grow food,
so now they need a way to protect themselves from the bigger tribe so they make an alliance with another small tribe, but then they are faced with war from a bigger alliance they need to form a bigger structure something that looks like a nation with a king and an army, then the nation is threatened by another nation, this starts a race to the large unions we see today like the United States, Soviet Union or the European Union that are spreading across whole continents, to protect from an invading empire.

With every restructure of Humane society,
Society needs to find better means for cooperation,
And as the game theory race above shows we are headed to a single world nation spread across the Internet.

After going deep into the first principles of why a currency is needed let's try to answer the original question why do we need a decentralized currency?

On the first block of Bitcoin, this message was embedded

The Times Jan/03/2009 Chancellor on brink of second bailout for banks

now we can fully understand it,
you can read about the 2008 crisis, there are books and movies.
But in my opinion, the bailout mostly shows where the governments are failing,
as we said the basic reason that we have a currency system is to provide security food, and shelter for the individual, what happened in the bailout is the exact opposite people lost their homes their savings because banks abuse their power and the government instead of helping the injured Poor people they helped the strong powerful banks the ones causing the whole mess in the first place.

so we see that on large scale governments and currency systems fail to solve the basic problem that is the reason for their existence…

so for humanity to scale to a global society working together, we would need a better financial system that individuals could trust in, a system that would provide for them the security food, and shelter they need.

And this can only be achieved by decentralizing the power of banks governments & large corporations, there is a reason why humanity chose different types of democratic government models over kings & dictators because on a big scale they accumulate too much power and they can abuse it in horrifying ways,
The same goes for governments and corporations on the scale of continents they accumulate too much power.

so humanity is moving in two opposite directions
1) is becoming one global society that makes us all use the same centralized services ($USD, Amazon, Facebook, Google, Chinese manufacturing, Big tech, Big Pharma)
2) decentralizing power from organizations and individuals that accumulates too much power (kings, empires, monopolies, cartels)

Crypto can save us by incentivizing decentralization.

But before crypto would be able to solve humanity's problems, the crypto ecosystem needs to solve its own problems and that is exactly what we're going to talk about in the next article.