What are cryptocurrencies and how to they work? Does the Bible teach anything related to these type of currencies? In this post, we will explore more about cryptocurrencies and the Bible.
Traditionally, money is based on rare metals like gold, silver etc. The first instance of money in the Bible from Genesis 17:12 means ‘silver’ as it is the same word translated for silver in Genesis 13:2. In this currency method, the value the money representing the currency is same. For example, if I have 1 shekel (a unit of weight) of silver as money to trade a cows, the money that I have is actually worth 1 shekel of silver and this value I have is not dictated by any authority using any other items.
But Peter said to him, “May your silver [G694 ἀργύριον argurion] perish with you, because you thought you could obtain the gift of God with money [G5536 χρῆμα chrēma]!
Acts 8:20
In the above verse, Peter is interchangeably using money and silver as same. Even Jesus was betrayed for thirty pieces of silver. In summary, the currency used in Biblical times, from Abraham even till Jesus are all based on rare metals like gold and silver.
If I have put my confidence in gold, And called fine gold my trust, … That too would have been an iniquity calling for judgment, For I would have denied God above.
Job 31:24,28
As Job said, it doesn’t matter if the currency system is with gold and silver. We must never put our confidence in gold. If we do so, we deny the God above.
Fiat Currency – Trust on Authority / Governments
Fiat money is a type of currency that is not backed by a commodity, such as gold or silver. It is typically designated by the issuing government to be legal tender. Fiat money generally does not have intrinsic value and does not have use value. It has value only because the individuals who use it as a unit of account – or, in the case of currency, a medium of exchange – agree on its value. They trust that it will be accepted by merchants and other people.
Wikipedia – Fiat_money
In traditional currency, people trust gold and silver as means of currency because they have value in it. In fiat currency, the trust is on the government or a central authority.
Then God said, “Let there be light” [fiat lux]; and there was light.
Genesis 1:3
In the Latin Vulgate Bible, the Hebrew phrase יְהִי אוֹר is translated in Latin as fiat lux. Fiat means “to do” or “to make”. Fiat currency has its advantages over traditional currencies. Advantages include easy to carry, easy to transact large volumes and will not run out of coins. There are also disadvantages like easy counterfeiting and inflation.
It is better to take refuge in the LORD Than to trust in princes. … Do not trust in princes, In mortal man, in whom there is no salvation.
Psalms 146:3; 118:9
As Psalmist writes, we must not trust in princes or rulers but take refuge in the LORD.
Crypto Currencies – Trust on Ponzi scheme
A cryptocurrency is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. It is a decentralized system for verifying that the parties to a transaction have the money they claim to have, eliminating the need for traditional intermediaries, such as banks, when funds are being transferred between two entities.
Wikipedia – Cryptocurrency
Cryptocurrency aims to solve some of the problems with fiat currency by removing the central authority and keeping a cap on the availability to keep inflation in check. Or does it?
Without the central authority or government approving the usage or allowing crypto exchanges to work, cryptocurrencies are useless. For instance, it is banned and illegal to trade in more than a dozen countries.
Most of the cryptocurrencies are used by criminals. This is because, the transactions are anonymous and secure which bypasses central authority. Here, the buyer and the seller want a trusted means of transaction that doesn’t trace back to them and cryptocurrency fits their bill perfectly.
It is essentially a Ponzi scheme where it lures investors and pays profits to earlier investors with funds from more recent investors. How does this unregulated Ponzi scheme work? Taking bitcoin as an example, earlier investors having made a reasonable amount of bitcoins desperately want more and more recent investors to buy so that the value of each bitcoin skyrockets. Every additional investor means, it increases the value of the cryptocurrency, thus the wealth of earlier investors. Hence, it is essentially a Ponzi scheme in disguise.
Not backed by anything can be a wrong statement. It is actually backed by distrust in government and central authority. If we mine gold or silver, we have intrinsic value in it. What about mining hashes in cryptocurrencies? Can anyone do anything with the hash they mined?
It is driven by greed. Many people who actively “invest” in cryptocurrency are not doing so for their daily needs to buy some stuff from shops, but rather they trade in crypto-exchanges to make profits.
In short, cryptocurrencies cannot operate without government approval and they are mostly a ponzi scheme driven by greed.
And he causes all, the small and the great, and the rich and the poor, and the free men and the slaves, to be given a mark on their right hand or on their forehead, and he provides that no one will be able to buy or to sell, except the one who has the mark, either the name of the beast or the number of his name.
Revelation 13:16-17
Will cryptocurrency help during the period of the Beast kingdom? Absolutely not. As we can see, without the government allowing the usage of cryptocurrencies, we cannot go to a shop and buy a product with it.
Then He said to them, “Beware, and be on your guard against every form of greed; for not even when one has an abundance does his life consist of his possessions.”
Luke 12:15
Jesus warned us to keep away from every form of greed. Cryptocurrency is a disguised ponzi scheme driven by greed and true Christians must not be tempted by it. It doesn’t matter what currency we use, our trust must always be on the LORD.
Conclusion
The Bible doesn’t explicitly say about cryptocurrencies since they didn’t exist in Biblical times. It does however gives us clear instructions. We can clearly see that cryptocurrencies cannot operate without government approvals, mostly used by criminals, a ponzi scheme driven by greed, not backed by anything and no intrinsic value on what was mined.
Do not worry then, saying, ‘What will we eat?’ or ‘What will we drink?’ or ‘What will we wear for clothing?’ For the Gentiles eagerly seek all these things; for your heavenly Father knows that you need all these things. But seek first His kingdom and His righteousness, and all these things will be added to you.
Matthew 6:31-33
Whether it is gold or silver as in ancient times or fiat currency these days or any new form of currency in future, God’s promise of taking care of us doesn’t depend on any of them. Let us be reminded on what the author of Hebrews says in 13:5, Make sure that your character is free from the love of money, being content with what you have.
