The Cryptocurrency Prophecy. Mark of the Beast: Popes and the Vatican

INTRODUCTION

As a long-time contributor to Catholic talk radio, I’ve always viewed the economy, finance and investing through the lens of my Catholic faith. Even when I was a professional floor trader beginnning in 1982, there was a sense of
having a higher calling, a “sense of purpose” other than earning the almighty dollar. Since being introduced to Bitcoin, Ethereum and blockchain technology in 2016, I’ve been mocked, ignored, teased, and dismissed on the benefits of cryptocurrency as money, especially in relation to the Church’s teaching on Social Justice and Subsidiarity. 

I felt it was time to write an “executive summary” when I recently saw a “Bitcoin, 666 and the Mark of the Beast” on a Catholic news forum. My goal was to draft an easy-to-read summary, rough draft to get a few thoughts down on
paper. My goal for this article is to introduce the reader to Bitcoin and blockchain technology. It’s deliberately short on citations and relied on Google searches and Chat GPT to illuminate the topic. If this artcle seems “all over the place”, it’s because I have a touch of ADHD, and get distracted by shiny objects! 

My investment firm, Cenacle Capital Management (www.cenaclecapital.com) was started in 2004 and named after the room our Lord celebrated the Last Supper. I’ve always wondered if the inventor of Bitcoin, Satoshi Nakamoto was indeed Catholic! The idea being the Upper Room, or the “Cenacle” was a small, intimate gathering place where something profoundly transformational took place. I was introduced to in 2016, to Ethereum and Bitcoin, and it took all but 15 minutes to realize that blockchain technology is transformational technology and steeped in the social justice teachings of the Catholic Church. All of our clients own a very small percentage of Btcoin in their retirement accounts, since no investment has performed better than Bitcoin since 2009. 

SEC APPROVAL OF EXCHANGE TRADED FUNDS (ETFs)

January 11, 2024, marks the day about a dozen Bitcoin Exchange Traded Funds (ETFs) were approved by the Securities Exchange Commission (SEC), allowing investors and speculators to purchase “spot” bitcoins inside an IRA or 401K.

THE ESSENCE OF BLOCKCHAIN IS IMMUTABLE TRUTH 

Some people believe Truth can be coded in computer language. Mathematics & Science is the search for truth. 2 plus 2 = 4 and 6 times 6 =36. Our Catholic faith teaches that religion and science are ways of seeking Truth and cannot be
diametrically opposed to each other. (Fides et Ratio, St. John Paul II) If Bitcoin is truth-based computer code, and the truth will set us free, and Jesus is the Way, the Truth and the Life, and perfect charity exists in Truth (Caritas in Veritate, Pope Benedict); the logical conclusion one can arrive to is that Bitcoin is the most Catholic, truthful form of money that has ever existed. 

Bitcoin, the pioneering cryptocurrency, stands as a testament to the transformative power of trust (truth) in a digital age. Trust, a cornerstone of financial systems, is redefined and elevated through the decentralized and cryptographic principles upon which Bitcoin is built. One key element contributing to Bitcoin's establishment of trust is its decentralized nature. Operating on an independent, peer-to-peer (person-to-person) network, Bitcoin eliminates the need for
intermediaries, such as banks, credit unions, title companies, or governments, that scrape billions of dollars in profits from financial transactions and fostering a direct trust relationship between transacting parties. 

Of the 8 billion people on the planet, several billion have no access to banking, investments, nor can they use personal property as collateral for a loan. Bitcoin's decentralized, non-hierarchical ( top down) structure ensures that no single entity holds disproportionate control, instilling confidence in users that their financial interactions are not subject to manipulation or interference. No longer is there a need for banks, credit unions, credit card companies, trust companies, and other “trusted” third party intermediators or intercessors. The cryptographic underpinnings of Bitcoin further fortify trust in the system. Transactions are secured through advanced cryptographic techniques, ensuring the integrity and confidentiality of financial data.

The use of a public and personal private "key" ( think safety deposit box) adds an extra layer of security, allowing users to transact with confidence, knowing that their digital assets are protected by cutting-edge cryptographic protocols. Additionally, the transparent and immutable nature of the blockchain technology that supports Bitcoin contributes to trust-building. The word “immutable” is a fancy word for something that cannot be changed or altered. It's like a rule or a quality that remains forever constant and doesn't allow any modifications. 

Think of it as a characteristic that stays the same and doesn't vary over time, no matter what  happens. In the world of technology or programming, for example, an immutable data structure would be one that cannot be modified after it's created. It's a term often used to describe things that are meant to be consistent and unchanging. Are there any attributes or teachings of the Catholic Church you would consider immutable?

Every bitcoin transaction is recorded on an open public ledger, in the "cloud" that is accessible to anyone, at any time. This transparency fosters accountability, reducing the likelihood of fraud and providing users with a clear view of the entire transaction history. Anyone can view the scrolling ledger of bitcoins being transacted here. https://www.blockchain.com/explorer/mempool/btc

Every single transaction no matter how big or small, every “block” of transactions since 2009 are available for scrutiny. Bitcoin's trustworthiness stems from its decentralized architecture, cryptographic security, and transparent ledger. Imagine if every Fortune 500 company could post revenues, expenses, deductions and other vital economic data available to investors in real time. 

Is the world becoming more digital or less? 
As the digital era continues to unfold, Bitcoin stands as a beacon of trust, demonstrating that secure and transparent financial systems can thrive in the decentralized and interconnected landscape of the 21st century. 

The current financial system is ripe for an upgrade. You cannot deposit a US check at a bank in England even though we have been doing business with them since about 1750. You can’t easily donate US dollars to a charitable institution outside the US. Either the financial infrastructure doesn’t support it, or US dollars must be first converted to Eurodollars, Indian rupees, or Mexican pesos. It took 31 days for me to receive a wire transfer from the London Stock Exchange in 2013, with four financial intermediaries each scraping fees. It took 45 days to send donations from a local Catholic Church to a remote orphanage in India. 

Blockchain technology will permit money to travel as easily and efficiently as a text message. 24 hours a day, 365 days a year in a matter of a few seconds without the need of trusted company to facilitate the transaction.  If you think New York City is a city that never sleeps; just wait a few years when every stock Exchange, lender, commodity exchange, and bank never, ever closes.

Social Justice of The Catholic Church

Subsidiarity is a fundamental principle in Catholic social teaching that underscores the importance of addressing societal issues at the most decentralized level possible. At its core, subsidiarity asserts that higher levels of authority should only intervene when lower-level entities are unable to address concerns effectively. This principle aims to uphold human dignity and promote the common good by emphasizing the autonomy and responsibility of individuals and local communities. The Catholic Church teaches that subsidiarity reflects a proper understanding of the human person, recognizing their inherent dignity and capacity for self-governance.

According to this principle, decisions should be made at the most immediate and personal levels, allowing individuals and communities to actively participate in shaping their own destinies. Subsidiarity seeks to prevent excessive concentration of power at higher levels, (think World Economic Forum, global central banks, World Economic Forum) preserving the integrity and autonomy of smaller social, local units. While subsidiarity promotes local autonomy, it also acknowledges the role of higher authorities (“The State”) in assisting when necessary. The role of “the State” among other things is to provide a rule of law, unbiased justice, and to redistribute goods and services. 

Paul VI in Populorum Progressio called for “the creation of a model of market economy capable of including within its range all peoples and not just the better off. He called for efforts to build a more human world for all, a world in which all will be able to give and receive, without one group making progress at the expense of the other”[94]. 

In this way he was applying on a global scale the insights and aspirations contained in Rerum Novarum, written when, as a result of the Industrial Revolution, the idea was first proposed — somewhat ahead of its time — that the civil order, for its self-regulation, also needed intervention from the State for purposes of redistribution. Not only is this vision threatened today by the way in which markets and societies are opening up, but it is evidently insufficient to satisfy the demands of a fully humane economy. 

"What the Church's social doctrine has always sustained, on the basis of its vision of man and society, is corroborated today by the dynamics of globalization.” Caritas in Veritate 

This intervention, however, should be guided by a genuine commitment to the common good and respect for the principle of subsidiarity. The Catholic Church encourages a collaborative approach that fosters solidarity among individuals and communities. In summary, subsidiarity in Catholic social teaching emphasizes a balanced distribution of authority, advocating for decision-making at the most local level compatible with the common good.  By respecting the autonomy of individuals and communities, subsidiarity seeks to create a just and harmonious society where each person can contribute to the well-being of all.

POPE PIUS XI
'Quadragesimo Anno' commemorates the 40th anniversary of Rerum Novarum. It delves into social and economic issues, emphasizing the importance of subsidiarity and criticizing both unbridled capitalism and totalitarianism.
The encyclical advocates for a balance between individual and societal responsibilities, fostering a more decentralized approach to social organization. Since the creation of the centralized, hierarchical Federal Reserve bank in 1916, and unbridled use of fractional reserve system has destroyed 96% of the value or purchasing power of the US dollar. It makes the poor destitute, and the rich even richer. 

Bitcoin is an invention, a piece of computer code that at its core is a decentralized computer network that uses math, computer code, to transfer value and provide settlement of the transaction almost simultaneously.
The Catholic Church’s teaching on social justice is founded upon subsidiarity and solidarity. Problems, economic support, and charity should be solved at the lowest, local level than in a top down, hierarchical, ivory tower method.
The writing of every Holy Father since 1916’s Rerum Novarum are filled with countless references to decentralization, the proper order of goods, solidarity, economic dysfunctions affecting the poor, subsidiarity, and truth, it would take years to compile them all! 

POPE BENEDICT XVI
"Caritas in Veritate" (Charity in Truth) is an encyclical by Pope Benedict XVI that addresses the importance of social justice, authentic human development, and the role of charity in economic and social systems. Released in 2009, the same time as the birth of Bitcoin, the height of The Great Recession and the banking system collapsing, the document builds on the Church's social teachings and emphasizes the interconnectedness of love, truth, and justice in promoting human flourishing primarily in the world of economics. The encyclical argues for an integral human development that goes beyond mere economic growth, emphasizing the importance of ethics, morality, and a commitment to the common good. It critiques forms of development that neglect the ethical dimension and calls for an economy centered on the person, emphasizing the dignity of every individual. 

Pope Benedict XVI promotes a vision of development that prioritizes the well-being of people over profit, advocating for an economy that serves humanity rather than exploiting it. Caritas in Veritate also explores the concept of globalization, urging a responsible and ethical globalization that considers the needs of the poor and marginalized. It calls for international cooperation, solidarity, and the pursuit of justice to address global challenges, including poverty, hunger, and environmental degradation. Overall, Caritas in Veritate presents a comprehensive vision of integral human development, blending charity and truth to guide economic, social, and political structures toward the service of humanity and the common good. 

Caritas in Veritate is the principle around which the Church's social doctrine turns, a principle that takes on practical form in the criteria that govern moral action. “Human costs always include economic costs, and economic dysfunction always involve human costs”. Caritas in Veritas #32 

Pope Paul VI
Humane Vitae was the first encyclical I read in the early 1990’s. The Catholic Church teaches the conjugal sex act is one act which contain two parts. That being unitive and procreative; so too a Bitcoin transaction consists of one act consisting of two integral parts. “The reason is that the fundamental nature of the marriage act, while uniting husband and wife in the closest intimacy, also renders them capable of generating new life—and this as a result of laws written into the actual nature of man and of woman. And if each of these essential qualities, the unitive and the procreative, is preserved, the use of marriage fully retains its sense of true mutual love and its ordination to the supreme
responsibility of parenthood to which man is called. We believe that our contemporaries are particularly capable of seeing that this teaching is in harmony with human reason.” Humae Vitae #12 

The Marital Act is Unitive: This aspect emphasizes the union and bonding between the spouses. Sexual intimacy is seen as a way for husband and wife to express their love for each other, fostering emotional closeness and strengthening the marital bond. The unitive dimension highlights the deep, mutual self-giving and total commitment between the spouses. 

The Marital Act is Procreative: This aspect emphasizes the potential openness to the transmission of life. In the Catholic understanding, the conjugal act is seen as participating in God's creative plan, allowing for the possibility of conceiving, and bringing new life into the world. While not every sexual act must result in procreation, the openness to life is an essential element of the marital act. According to Catholic moral teaching, these two dimensions of the marital act are inseparable, and artificial means of contraception that deliberately separate the unitive and procreative aspects are generally discouraged. 

Bitcoin, like the conjugal act, consists of two parts, performed in one act. First, the sending of bitcoins is a transfer of value (money) from one person to another. Like sending money, leaving a tip, or buying something from the local farmers market with cash. Secondly, the immutable updating of an open accounting ledger recording the transfer of bitcoin ownership (settlement, like when your check clears the bank in 3 days) happens together with the first act. 

The Conjugal Act 

The Catholic Church describes the conjugal act, which refers to sexual intercourse within the context of marriage, as a sacred and meaningful expression of spousal love and unity. The Church teaches that the sexual union between a husband and wife is not merely a biological or physical activity but holds profound spiritual and sacramental significance. According to Catholic theology, the conjugal act is considered an integral part of the marital covenant, reflecting the mutual self-giving and total commitment of the spouses.

It is seen as a way for married couples to participate in God's creative plan by cooperating with Him in the procreation of children. The Catechism of the Catholic Church emphasizes the dual purposes of the conjugal act: the unitive, expressing the love and unity between the spouses, and the procreative, open to the transmission of life. According to Catholic teaching, the sex act is considered unitive and procreative. This concept is often referred to as the "unitive and procreative" meaning of the sex act. 

Bitcoin represents two acts in one transaction. The transfer of monetary value; and settlement finality. Sending bitcoins or any other cryptocurrency transaction has “finality”. The near instant settlement of the transaction so the receiver can use the funds quickly. Compare this to using an electronic ACH transfer where it can take 1 to 5 business days to send an electronic payment. Compare this to selling shares of stock or a mutual fund in an IRA or 401K where settlement happens “T+1”; or “transaction + 1 day”. 

Compare this to your bank closing at 5 pm on a Friday afternoon especially when there is Federal bank holiday the following Monday. No “settled” transactions can really happen over a 48-to-72 hour time frame.
Blockchain technology today, as in Bitcoin, Ethereum, and the thousands of cryptocurrencies trade 24 hours a day, nights, weekends, & holidays. It never stops. It never closes. It doesn’t have to wait for the stock market to open to trade.
This is where the legacy system is heading. It will converge with a system designed by geeks, nerds, and libertarians looking to unshackle the disenfranchised from the system that exploits them.

Conclusion

As you become reacquainted with the encyclicals of the Popes viewed from the perspective of Bitcoin and blockchain technology, the reader becomes almost overwhelming optimistic in how blockchain technology is truly the technology of the masses and for the poor. The shackles of financial oppression have been broken. Bitcoin like the US Dollar or any other of the worlds currencies can be used for good or evil. It can be used to fund the Church, feed the poor, clothe the naked, shelter the homeless, and bring global peace to the world instead of continuing wars and military conflicts paid for by the military industrial complex, and funded by fiat based, debased, unlimited currency creation. The Vatican can save tens if not hundreds of millions of Eurodollars in needless banking and foreign exchange fees if it embraces Bitcoin and blockchain technology. I suspect one day, the Vatican will create it own private cryptocurrency to foster "intra-organizational" flow of funds.  

However, as we have heard from recent developments, Central Bank Digital Currencies (CBDC’s) will pervert this open, transparent, free, low cost, instant efficient technology. Money will become weaponized. Surveillence by the State will increase. Exercising Catholic morality in public and personally will likely struggle even further. CBDC's, not Bitcoin is the money to be feared.