Crypto vs Central Banks: ¡ZugzWang! (do you like chess?)

We are suffering a campaign perfectly orchestrated by commercial banks, central banks, and governments to discredit the crypto-sphere, which unfortunately affects the ignorant and people of good faith who approached the ecosystem with good intentions, but who have no instruction regarding how it works, and then they get scared and run away in terror. That is exactly what the banks, and the governments, are looking for so that people are scared and do not investigate much about this new tool that totally takes away the power of centralized dictatorships.

I think this is going to go on for a long time. The stakes are high, and very few suitable media can provide valid information about the technologies generically encompassed by the name of blockchain. Most of the mass information is provided by unpresentable journalists who have neither the talent nor the necessary education to convey the fundamental concepts. If you use these mediocre men and women as mercenaries to transmit false information, then you have a very effective destructive mix. The result cannot be other than to consider cryptocurrencies as objects “without intrinsic value” and “Ponzi schemes”.

Hahahaha. As if the debt ballots that central banks print had some “intrinsic value”. Please, what a ridiculous argument!

It is up to those of us who understand the quantum leap value of blockchain technology, to accurately disclose the new tools, and very particularly to counteract planned misinformation by all possible means.

The traditional banking system is conceived as a control system for the transfer of value between households and companies. The MMT (Modern Monetary Theory) “legalizes” the issuance of promissory notes by a Central Bank that in this way gives value to the money in circulation every day. The common man and woman are unaware of the pernicious manipulations of this system and have no idea how they have been manipulated for centuries. The whole apparatus is mounted on debt. The fundamental premise is to get into debt to never get out of the trap and have to spend our lives feeding the machine.

When we deliver a fiat bill (promissory note) to the greengrocer, we are transferring a debt that the Central Bank had with us. The greengrocer in turn is going to transfer it to another by buying something from him/her, or he/she is going to deposit it in his/her bank. Thanks to the MMT framework, what we call “market” ends up being a vulgar debt clearing box.

And it is here that explanation must be emphasized. Cryptocurrencies are “assets”, they are not “debt papers” like fiat bills are. Just by understanding this, we realize that we are in the presence of a conceptually different economy. No debt but assets are exchanged. It is almost like bartering. And nobody could regulate it.

How are they going to regulate it?

a- Banning mining? Unless they remotely tap into each computer, I don’t see how they could do it.

b- Interrupting the Internet? Well, in this case, they are also left without commercial banks, central banks, and governments. No need for cryptocurrencies to be involved.

c- Confiscating computers and smartphones from house to house? I know they are idiots, but I don’t think they can get to this point.

d- Prohibiting operations with cryptocurrencies? In such a case, how long would it be before the distributed talent of developers from all over the planet put together a new infrastructure?

e- Banning the manufacture of computers and smartphones? In that case, if they don’t also ban the making of picks and shovels, we will rebuild a new civilization as the Celts did 14,000 years ago.

f- Imprisoning the cypherpunks, the anarchists, the communists, the subversives from all over the world who continue to use cryptocurrencies? This case is interesting because the most prosperous business would become the building of prisons, and all the resources would be derived here.

g- Establishing an abusive tax scheme for those who pay with cryptocurrencies? In this case, they would only set in motion the development of a new informal economy, the crypto-informal economy.

h- Prohibiting the operation of exchanges? Guys, have you heard of P2P?

i- Seizuring your bank accounts? Oh boy, in case you did not know, that can be done today quietly, protected by “the law” and without the need for cryptocurrencies in between.

In other words, we are in the presence of what in chess is called “zugzwang”.

Zugzwang is a situation in which a player is at a disadvantage because it is his/her turn to play but any move he/she makes will disadvantage him/her. Zugzwang positions tend to emerge late in the game when the number of pieces and possible moves is reduced. Creating a zugzwang position is the only possible way to win some games. To discover the possibility of a zugzwang you not only need to plan your own game but also to control the possibilities and the opponent’s moves.


The example looks like a draw, but White wins the game by putting Black in a zugzwang situation with move 1.Rxh6 !! Black is in zugzwang: if the bishop moves, then Rxh7 mate, and if 1… gxh6 then a good mate for 2.g7x!

Zugzwang is a German word that means “compulsion to move” and the concept is based on creating a situation in which a player is put at a disadvantage by his obligation to make a move, in other words, the fact that the player is compelled to move means that his/her position will become significantly weaker. A player is said to be “in zugzwang” when any possible move will worsen his/her position.

But beware. The player who is losing and knows that he/she has to take the game to a draw will try to avoid the zugzwang, causing a “drowned king” position.


A drowned king situation occurs when the king is not in check, but it is the only piece the player can move, and to any valid square that the king could go, it will be checked. This situation gives the losing player the chance to draw a game. These are the rules of chess. The queen’s move on the previous board is not good.

I believe that the current situation of the traditional corporate-financial-governmental system based on the issuance of debt for the control of all world economic activity, is in zugzwang, desperately trying to achieve at least one draw. And we do not want a draw. We want them to lose as humiliatingly as possible, for all that they have been stealing from us for centuries. We want the common man and woman who today believes that banks are helping him/her, like commercials and communication in general say, to know that they are scamming him/her by making him/her play a macabre debt game in which only banks and politicians win, and those of us who work pay for that party.

A politician is by definition, an illiterate with power. It is not that he/she does not understand that blockchain technologies put them out of work, it is that he/she has not the capabilities to understand those technologies. Those who can understand them are their consultants who research, and who realize that the change in the rules of the game is brutal. We must not let them lead us into a drowned king situation.

Blockchain is teaching traditional economists how money works.

But it is also true that Sun Tzu told us in The Art of War written in 700 BC, as one of the great concepts of him:

The enemy must never be left cornered with no way out. This is a serious strategic mistake. If the enemy discovers that he/she has no way out, then he/she will fight for his/her life with superhuman forces that he/she didn’t even know he/she had. Sun Tzu.

In other words, the strategy that we should implement is that of zugzwang, showing the enemy some possible situations of a drowned king, without letting them reach those situations, of course. This is the way to make them believe that there is a chance of a draw. And let them settle for that.

Don’t forget three things:

1- Blockchain is not just Bitcoin. It is a quantum leap in human history.

2- You do not earn anything until you cash out your crypto and buy the objects that make you happy.

3- You do not lose anything until you sell the crypto that you had.

As usual, none of the things written in this post are financial advice and are not intended to replace personal research.

Thank you for reading!

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