By Justus Ranvier
Bitcoinism
Wednesday, June 11, 2014
https://bitcoinism.liberty.me/bitcoin-is-sedition/
The Reaction
Ever since the venture capital scene started talking about Bitcoin
back in 2013, one of the most frequently cited comments from them is
that Bitcoin is interesting for the technology, not the currency. In fact, this mantra has become so common that it almost sounds… scripted.
The Problem
What’s going on here?
Apparently millions of Bitcoin users around the globe
never got the word
that Bitcoin isn’t interesting as a currency. If Bitcoin wasn’t
interesting as a currency, then why would the banking system need to go
to such lengths to
slow down the capital flight from the Dollar to Bitcoin by enacting restrictive Choke Point restrictions on both regular businesses and P2P trading?
The answer lies with the fate of the US Dollar. All government currencies have a finite life cycle, with an average lifespan of
27 years. The USD has lasted longer than most, but it
will not be an exception.
However, whether you’re talking about the Weimar Germany, or Argentina,
or the USSR, or the USA, the death of a currency follows an known
script. The most important part of this script is that the
connected elites get out first and leave the rest of the population to be the bagholders.
The problem with Bitcoin is that goes off-script. The hoi polloi got
into Bitcoin before the elites got into it, and Bitcoin contains none of
the mechanisms via which they normally arbitrarily inflate the currency
to enrich themselves. This is a problem if you’re part of the modern
financial aristocracy. Something Must Be Done.
