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Decentralized systems of living have historically enabled the West to expand its reach across the globe. From the feudal era to the Industrial Revolution, and now with Bitcoin (BTC) — referred to as the new feudalism — decentralization has been pivotal to this growth.
Summary
- History echoes in decentralization: From medieval feudalism to Bitcoin, Western expansion and resilience have flourished when power is distributed rather than centralized.
- Lessons from feudalism: Local governance from the 10th to 13th centuries fostered the first middle class, improved literacy, and helped the West withstand plagues and crises.
- Innovation through fragmentation: The Renaissance, Industrial Revolution, and wartime advancements prospered when governance, economies, and ideas were decentralized.
- The perils of centralization: Empires and economies that concentrated power often declined or collapsed, a fate the West historically evaded through distributed authority.
- Bitcoin as a new frontier: Similar to past decentralizing forces, Bitcoin circumvents central banks and presents the West with a potential safeguard against financial elite dominance.
970–1270: The Feudal Revolution
The first significant expansion of Western Civilization occurred between 970 and 1270 with the rise of the feudal system. At that time, feudalism was decentralized, enabling a minority of men to serve as military and religious figures while peasants cultivated the land. This fostered greater local autonomy in governance and economics.
Within feudalism, power was spread among local lords, knights, and manors, permitting adaptation to local economic and governance needs. The decentralization of the economy in the 12th century led to the emergence of the bourgeoisie — the middle class of that era — breaking the rigid agrarian lifestyles of the time.
This rise of commerce, towns, and a middle class sparked a social and economic revolution, enhancing literacy and introducing new ideas and ethics. Feudalism ushered the West into a fresh phase of expansion, enabling it to navigate plagues and religious strife. The decentralized nature of feudalism fortified the West, paving the way for future decentralized reorganizations.
Decentralized feudalism thwarted the concentration of power that could have hindered innovation, empowering the West to adapt and flourish through economic diversification, rather than falling prey to the stagnation seen in centralized civilizations like Rome. Lords presided over their domains independently, free from a central authority.
1300–1600: Late Middle Ages and Renaissance
After enduring a medieval crisis, the West once more reformed its institutions, charting a new course for expansion. The feudal hierarchy weakened as economic crises spread globally. Growing independence in urban centers allowed them to evolve into trading hubs, increasingly self-governing, especially in Italy and Flanders.
Protestant movements fragmented the previously united Church and the monarchies of the feudal period. These decentralized forces encouraged intellectual variety, new governance models, and economic innovations, seeding the birth of capitalism.
The dispersal of religious and political authority nurtured new ideas. The West successfully navigated the fate that befell ancient civilizations like Mesopotamia or Rome, which succumbed to centralized control.
The decentralization of time permitted the West to withstand crises, including religious conflicts and economic upheaval. Expansion resumed, propelling the transition into the modern age.
1750–1850: Industrial Revolution
The Industrial Revolution ignited swift expansion in the Western world, driven by technological and economic advancements. Centralized mercantilist economies evolved into more decentralized market-driven structures. Commercial capitalism emerged as individuals and private enterprises pursued profit through trade and innovation, moving away from state-controlled monopolies.
Financial systems became decentralized with the advent of deposit banking. The flow of capital became less constrained. Bankers leveraged loans and bookkeeping to create money, reducing the reliance on centralized reserves. This further economic decentralization spurred industrial growth, urbanization, and technological advancements, enabling the West to recuperate from the economic turmoil of the Napoleonic Wars and the restrictive mercantilist framework.
Decentralized economic frameworks prevented the West from being ensnared in inefficient, state-operated economies, potentially leading to stagnation. Instead, market flexibility and private initiatives propelled progress, ensuring the West’s continued expansion and resilience.
1914–1945: Decentralization in the Modern Era
Scientific and military efforts became increasingly decentralized during World War I and II. A diverse and loosely coordinated assemblage of scientists, engineers, and military units from various nations collaborated on the wartime agenda. Scientific innovations led to new technologies like radar and atomic weaponry while laying the groundwork for what would later evolve into the internet.
The centralized regimes of the day — Nazi Germany and the Soviet Union — could not compete with the decentralization of the West, which successfully vanquished the authoritarian systems of fascism and communism.
2009-?: The Age of Bitcoin
The years between 1945 and 2008 marked the decline of European dominance, with the United States and the Soviet Union emerging as the two leading global powers amid the Cold War. This era was characterized by rapid technological innovations, decolonization, and growing global interdependence.
During this time, the power of the Anglo-American banking establishment intensified, contributing to increased centralization across the Western world.
Bitcoin is Hope
Bitcoin holds the potential to decentralize power, finance, and broader societal structures. Centralized institutions are likely to resist this trend of decentralization, collectively risking the future of Western civilization.
Financial elites have exerted considerable influence in the post-World War II era, bolstered by their centralized control over credit and currency. Bitcoin challenges this existing paradigm, bypassing traditional banking intermediaries and state-controlled monetary frameworks.
Bitcoin serves as an escape from the dominant financial institutions, such as the Federal Reserve and the Bank of England. The original cryptocurrency redistributes power, offering a glimmer of hope to the declining West. It also empowers individuals to navigate around centralized banking systems.
With its ability to decentralize the financial system, Bitcoin promises a more equitable and cooperative global structure driven by technological and intellectual advancement, thus ensuring the continuation of Western civilization.
