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      "title": "Cryptocurrencies and the Law, can they cooperate together?",
      "body": "# Cryptocurrencies and the Law, can they cooperate together?\n\n![](https://cdn.steemitimages.com/DQmQ8YzXnDwEzBqLyyhEAdz8QWaKTomwdgkkjwZK8GR2diR/image.png)\n\nThe law, in simple terms, is a set of rights and obligations design to live in a country. So the goverment of a country, in it's sovereignty right, create the laws that define the commercial relationship between it's citizen in what's called Contracts.\n\nA contract is an: \n\n**\"agreement between two or more capable people, in which reciprocal obligations are created in a certain time. Either to give, to do or not to do\".** \n\n![](https://cdn.steemitimages.com/DQmXEdui7EsFcbdbmHx6EJkpQQUUFdqgDgqN99vsFCsAe7X/image.png)\n\n\nSo contracts have to be between two or more *capable*  peoples, since there are so many disadvantages created by social inequality, one of the parties can't be a minor or a mentally alienated person, in order to protect the weak, law forces contracts to be between people with legal consent, able to be a subject capable of legally coercing.\n\nContracts also have to had reciprocity in it's writtings, if one of the parties is the only being oglibed in the contract then that document lost it's nature of a contract and becomes a donation, and as such have to comply with the requirements of donations. This is the case since the law tries to avoid the enrichment without a cause, avoiding the chaos by legally creating unjustices. That doesn't meant that is imposible to enrich without a cause, a cause being creating values for others like jobs, but law is made to protect the already establish system, and not  creating enough obstacles for the regular Joes climbing up the social ladder is unaceptable by the powers that be.\n\nGoing to the main subject of this writting, the law also establish the concept of legal tender, which is:  \n\n**\"a medium of payment recognized by a legal system to be valid for  meeting a financial obligation\".** \n\n![](https://cdn.steemitimages.com/DQmXXKp5b7t9fxtxoNwnQcj1iwzFmqpRdW9BVo962PijbmE/image.png)\n\nSo, when two or more parties agreed, on a contract, upon either to give, to do, or to not do, creates an obligation when one of the parties will be the one who gives, do or not do something and the other will compensate with a legal tender. A valuable that it's accepted by the entire society as a medium of exchange capable of extinguish obligations. That legal tender is the fiat currency. \n\nLaw also mandates that the government will have the sole right to establish the monetary politics of the country. So, Bitcoin establish a monetary politics where deflation is the key element, 21 million coins no more, fixed supply govern by mathematics, leaving the monetary politics to algorithms and to software programmers. \n\nSteemit establish a low inflation rate but the delivery of the new money created goes to content creators, rather than to banks that through loans can mobilize the economy, at least that's what they said, what they think it happens, when everybody knows that's not the case, but again that's what the law they've created states.\n\nSo, being the origin of crypto currencies as a safe haven against the powers that be, against fiat money, to act as such have to be decentralized so it's money supply can't be changed at whim, just to benefit the oligarchy in power. That's the reason why cryptocurrencies as long as they are decentralized will never be allowed to served as a legal tender, never be allowed to extinguish debts in a legal contract. That's why  **in the legal state that we have crypto currencies serving as a medium of exchange is a contradiction for not understanding the underlying forces and fights that are in play.**\n\nCryptocurrencies in the current state of affairs has more sense being a safe haven, a deposit of value, but not a medium of exchange, since no one can use the legal force of the State against a merchant who has to balance the transfer of value made in his favor with the delivery of goods, or with doing or not doing the stipulated. In this sense, if we dare to create legal contracts with cryptocurrencies being the legal tender, the merchant can't be forced to comply with what he obliged himself to do in the contract, creating a legal situation of a enrichment without a cause, only possible for the naiveness of the losing party, but naiveness is not a weakness protected by the law.\n\nThis is the case right now until smart contracts can be fully implemented in our daily lives, when someone managed to make them easy to elaborate and to read. A smart contract being defined as **self-executing contracts with the terms of the contract between buyer and seller directly written into lines of code.** \n\n![](https://cdn.steemitimages.com/DQmVpCCGmY6CrpdketDq7KdtBeE7M6XHWApnXWmoR3A8FJX/image.png)\n\nIn a smart contract can be defined the *legal tender* with the power to extinguish the obligations is a cryptocurrency, and when that day comes, **I propose we don't name it legal tender anymore, but code tender, as the new state of affairs will be sustained upon codes, returning capitalism to it's origin, without the fractional reserve banking side of it.**",
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