As part of our ongoing series on Cryptocurrencies we’re taking a brief look at the concept of passive income. Our friends at Cointcentral have a new piece on this which you can read here:
Technically, the term Passive Income refers to money that generates an increase in value while you do nothing except not touch it. You don’t invest it, use a percentage of it, or in anyway manipulate it. It “works” while you don’t.
This strikes us as a particular aspect of capitalism. The truth is that no income is passive in the sense that in order to have an income source that derives value from your lack of action, it rests on the labor of others without whom passive income could not exist.
This of course is capitalism in a nutshell. We could dwell on the morality or ethics of that but we shall confine ourselves to a more narrow question: Is it a sound long term strategy to build wealth by creating alternate dimensions of value in which lack of labor produces value?
The more value is moved into cyber coins – Cryptocurrencies – the more traditional labor become either valueless or retains value based on its use as a means to buttress passive income.
The result of that, inevitably is a stratified system of Passive Income, have and labor heavy have-nots which of course builds resentment.
The standard response would be to insert here some comment about how were a long way from pitchforks and torches and people storming the gates or setting up guillotines on the National Mall.
But consider this from Marketwatch – hardly anyone’s idea of a Left-wing propaganda piece – and then rethink your strategy.
“In fact, a cultural revolution is creating a new global collective conscience between capitalism and inequality, the Haves and the Have-nots. A powerful virus is spreading, rising from the grass roots of billions in the repressed poor and the middle class, forcing moral leaders to step forward and openly challenge the destructive forces of capitalism. You can now even see them jumping on this new bandwagon.”