Things Crypto Bros Can Learn From Money Heist Series. Anyone who has not seen Money Heist may be unfamiliar with the story of Salvador Dali red jumpsuit bank robbers who are commanded by a multidisciplinary genius known as “The Professor”.
Money Heist’s message connects with a large portion of humanity’s deep-seated dissatisfaction for the form of hierarchical unjust in society. That’s why we’re marveling at the courageous heroic robbers.
First Story: Fiat Central Bank a.k.a La Casa de Papel (The Paper House)
The key ideas here is about:
- Fiat Money
- Quantitative easing/Liquidity Injection
- Moral ambiguity & Class Struggle/Class antagonism
- Wealth Gap
The beautiful opening song of the series, in an aesthetic abstract way, symbolically portrays the central bank of Spain, which is reflecting both the paper printing machine (fiat company) and the paper as a fragile object, symbolizing the institution they try to do the mess with.
Key moment – The Professor scene:
“ You’ve been taught the see good and bad guys. But what we’re doing is okay to you when other people do it. in the year 2011 the european central bank made 171 billion euros out of nowhere just like we’re doing, only bigger. 185 billion in 2012, 145 billion euros in the 2013. Do you know where all the money went? To the banks, directly from the factory to the pockets of the rich. Is anyone call the European Central Bank a thief? No, ‘Liquidity Injection’ they call it. And they pulled it out of nowhere, Raquel, Out of nowhere!”
“I’m making the liquidity injection, but not for the banks, I’m doing it here, In the real economy. With this group of losers, which what we are, Raquel. To get away of this all, don’t u wanna get away?”
Quantitative easing/Liquidity Injection a.k.a the money printing on Fiat Money system
Fiat is the main theme of the first story. The Spanish central bank, just like pretty much every other central bank, conducts monetary policy to achieve price stability (low and stable inflation) and to help manage economic fluctuations.
Hit the break pedal on the money supply printer when inflation is too high, and do liquidity injection/quantitative easing when inflation is too low, a.k.a. money printing. The money is printed out of thin air. Printing is the popular term, though in the real world, they do it electronically, like adding tokens.
It is widely known that this liquidity injection, which the ECB has been doing pretty much all the time for so long, has contributed to widening the wealth gap and creating “too big to fail” monsters (class antagonism) other than distributing the prosperity. And today as we know, they keep firing at will making the gap even wider and wider.
This gang of anarcho-illegalists is doing the same thing as the authorities do, the “liquidity injection,” but for themselves, the ordinary loser working class. What they try to rob is just peanuts compared to the trillions that the central banks has been printing for the rich. This is the point where Raquel, the police inspector, has a change of heart, as she is also a working class person, and at that moment, had been screwed by the system itself, and all this heist is a symbol of class struggle.
Second Story: La Casa de Papel: El Fenómeno
The key ideas of the story:
- Perception as the basic foundation of market economy
- Gold Reserve
- Game Theory — Conflict and Solution Equilibrium
Why the phenomenal? Because the game here is played by flaming the perception war toward the established idea. The professor start the perception war by raining millions of money out of the sky to the public. He is creating perception and the public support. On the other side, the market economy is fundamentally depend on the perception of the participants.
The video goes viral, and with the public perception on his side, the professor increases the tense and starts to stress not only the banks but the whole system in the real world scenario.
Gold plays an important part in central banks’ reserves management, and central banks are significant holders of gold. They use gold to diversify their reserves as it still holds the statue for the natural hedge against inflation, still holds the highest trust among countries, as a store of value, anticipation for possible incoming crises and also to get some space out of dependency on the U.S. dollar, which is the world reserve currency. But.. but…
Perception War and Game Theory
This is what the gang tried to rob: the whole gold reserve of the Spanish Central Bank. While all the processes involve technically sophisticated plans, The Ace on the river is done by the power of perception and the logic of game theory.
Money Heist, in a very epic way, illustrates how the market relies solely on perception. After the public knows that the gold reserve has been removed from the bank by the gang, they publish the video of their awesome technique to physically transfer it. The market reacts all of a sudden; the domino effect starts; stocks plunge, investors panic. The professor calls it “the collosal pressure on the economy.”
After the team got caught and professor send in the gold (fake) back into the bank, the mainstream media get the picture of tons of gold sent back into the central bank. The market rebound from the bottom, the buy back begin, right at that moment.
Meanwhile, this is when the Ace card played by the professor, as the perception has already been boosted and the market participant’s trust has already been gained. The authorities now know that the gold is fake. Another catastrophic slump will destroy the market and the Spanish economy if the public knows that it is a fake one and the professor can publish the video of it on the internet. Finally, in an epic negotiation, both parties reach equilibrium because neither party wants to make things worse for the other. The deal is done, they are publicly announced dead, and they get out of the bank with all the gold. Elegantly finish the mission in style.
What’s happened to the market and the economy with all that fake gold as a reserve? Nothing. The recovery continues as public perception trusts that gold has returned to the Spanish Central Bank Reserve. The narrative developed by both parties successfully hides the fake gold reserve problem. This is why perception is the basic foundation of the market economy. Because the base is the faith of its owners and the government’s promise.
Woman on equality — Raquel and Alicia, the inspectors, switch sides
As addition, do you wonder why at both series, the two inspector which is woman, finally switch side? This is also have some point to reflect the ‘Woman wealth gap’. Men dominate the top of the economic summit while women are saddled with debt and poverty. After they both realize that they are just another pawn played and betrayed by the system, they switch to the egalitarian gang. Well, Raquel also have some bias as she fall in love the professor.
So what’s the things Crypto Bros Can Learn From Money Heist Series?
The value of fiat money is determined by the government’s declaration of it as legal tender; it has no inherent or intrinsic worth. It is only backed by the faith of its owners and the government’s promise.
The system is essentially rigged, the Great Inequalizers. Therefore there are always loopholes to exploit. As long as the system itself keep ballooning the problems, it is ideal to build narrative and accelerate the quantum jump in perception. Destabilizing the old narrative, Bringing the alternative narrative into the mainstream narrative.
The underlying worth of Cryptocurrencies extends far beyond the confidence of its users. The value of Bitcoin is derived only from the efficiency with which it may be used as a means of trade, not from a system of debt.
Considering Bitcoin to be a “Swiss bank” in your wallet, it’s possible to establish an economic value for the digital money. Even though Bitcoin hasn’t yet reached widespread adoption across the globe, it’s legitimate to state that Bitcoin is a better kind of gold than gold if you accept it as a currency store of value. Bitcoin, like gold, is unrestricted and may be exchanged for any product or service in any country in the globe. To be sure, this is merely a matter of social custom, just like gold, which has no inherent worth and provides no income. The mobility of Bitcoin is a significant benefit it has over gold.
To the moon!!!