You and I probably read a lot of the same news sources, especially when it comes to topics of Freedom, State coercion and regulation of productive individuals and companies. So I’ll assume you have a basic knowledge of Bitcoins and how they function as a digital currency.
Proprietary currencies have a long history and most of us have used a few of them. Bitcoin is different from these. It is not owned or operated by any central authority. It was created to ensure it would always be a scarce commodity (although it isn’t a true commodity in that it has no intrinsic value or use outside of being an agreed upon form of exchange) and cannot be inflated.
Basically, the way Bitcoin works is that there will never be more than a maximum of 21-million of them and it will take a little over a century to digitally create that many at a known, predetermined rate of increase.
Here’s what to like about all of this:
- It’s a voluntary medium of exchange between people who can choose or not choose to use it. State money is forced upon us under threat.
- Transactions of any size can be kept mostly private between individuals. The State system insists on individuals using financial institutions that report every detail to the State.
- Transaction costs approach zero. The State financial system insists on individuals using financial institutions that charge ridiculously high fees to individuals. The State and the banks are in collusion – against you.
- Bitcoin uses a method to ensure millions of users have a record of what coins are in the system, which ensures fake coins can’t be “printed.” It’s a currency with contractual terms and a way to see if the terms are being honored. State money is subject to constant printing and inflation by political whim, which robs you of wealth while you sleep.
- It’s international. Transactions can be performed between two parties anywhere in the world at the speed of computer computation. It doesn’t get much better than that. Try sending US dollars from a UK bank to a Mexican bank and watch the intermediaries absorb ten percent of the value and five days of time.
- Bitcoin is Stateless. This explains the previous four points. There is no coercive authority forcing individuals to use a system that is slanted against their own interests.
The many businesses and individuals using Bitcoin deserve the support of Freedom-loving people. The future of Bitcoin is uncertain, to be sure. Early pioneers don’t always attain market dominance. Speaking for myself, I have some Bitcoin (low four-figures in US dollar equivalence) and whether their value rises or falls all the way to zero it will not change my standard of living. What is important to me is giving market support to an attempt to provide individuals protection of their property under voluntary terms. That is exactly how Freedom will be built.
True Freedom is not an ideology; Freedom is a vast property-protection product that has not yet been built. When a network of new products can protect all forms of property at all times mankind will have achieved the condition of global human Freedom. Innovations like Bitcoin and its inevitable successors will be part of that Freedom because they supplant the coercion of State fiat currencies and State surveillance.
I think Bitcoin deserves support from those of us who want Freedom to prevail over coercion. You can learn about buying some here. (I have no affiliation with any of these products.)
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