At its core, Libertarianism champions personal freedom and the exchange of individual assets, viewing the state's main job as safeguarding these rights.1This ideology, centered on individual autonomy, holds appeal in the U.S., where about 10% of the populace identifies as Libertarian, and their electoral influence is growing.2.
With political winds shifting, Libertarianism is gaining traction and seriously impacting American thought, where Bitcoin plays a pivotal role in this surge.
Bitcoin: A Rallying Cry for Monetary Freedom
For Libertarians, Bitcoin represents a way to escape government overreach, as shown in a study by University College London's Lui Smyth, revealing nearly half of its users are Libertarians.3To them, traditional fiat systems are flawed, dominated by state-controlled central banks. Even giant payment networks seem like mere consorts to authority, while Bitcoin offers a decentralized alternative. takes power out of the hands By putting power back in the hands of individuals, Bitcoin aligns with the values of Libertarian purity.4
Influenced by the Austrian School of economics, with figures like Hayek and Von Mises, Libertarians see Bitcoin as a chance to break free from state-controlled money.5Bitcoin advocates also support 'hard money', emphasizing its finite supply of 21 million units that could combat inflation—a point of debate among economists today.
A Libertarian Utopia
Libertarian activists such as Roger Ver They praise the digital asset for allowing financial autonomy, highlighting the opportunity for individuals to fully manage their resources.6Taking his ideas further, Ver has been driving efforts to set up a sovereign society of his own. libertarian utopia .
At the Nexus Conference in 2017, Ver revealed with partner Olivier Janssens that they had already secured $100 million for their vision, with aims to reach as high as a billion.7Governments across the globe have shown unexpected support for their project, which plans a self-regulatory utopia with private arbitration and law enforcement.8In this Libertarian paradise, residents can choose any currency they prefer, although Bitcoin seems likely to dominate daily transactions.
Endangering Bitcoin
Yet, the very Libertarians pushing Bitcoin might inadvertently sabotage its widespread acceptance. Writer Martin Tiller warned of politics posing a severe risk to its future.9Though Libertarian advocacy helped make Bitcoin widely known—from a niche asset to a cultural phenomenon—that same passionate rhetoric could become an obstacle.
Tiller cautioned that by focusing solely on anti-government sentiments, they risk pushing away potential supporters of alternative currencies, ignoring diverse perspectives within the Bitcoin community.10
Instability as a Currency
Bitcoin, as a form of money, carries volatility risks, as evidenced by its wild price changes in 2017. the price rose In that year, prices soared from about $1,000 to more than $19,000. While enthusiasts celebrated, such fluctuations would destabilize a primary currency.11Moreover, Bitcoin mining can monopolize currency creation, raising fears of a few miners gaining excessive influence, undermining decentralization.12If Bitcoin were the main currency and someone lost access, recovery could be impossible. Take the infamous incident of a discarded hard drive, home to 1,400 bitcoins now worth a fortune.13
Still, firm believers in Bitcoin and Libertarian principles brush aside these hurdles, seeing them as minor obstacles in their quest. Satoshi Nakamoto They argue that as more people embrace Bitcoin, its value will stabilize, and they doubt miners could consolidate enough power.14The shadowy creator of Bitcoin remains distant, further limiting central control.
Conclusion
For Libertarians, individual responsibility for safeguarding one's digital assets is paramount, resonating with their core belief in personal accountability.
References
- https://plato.stanford.edu/entries/libertarianism/#Con
- http://www.pewresearch.org/fact-tank/2014/08/25/in-search-of-libertarians/
- https://pando.com/2013/04/17/why-libertarians-and-gold-hoarders-love-bitcoins/
- https://www.theatlantic.com/technology/archive/2017/05/blockchain-of-command/528543/
- https://www.coindesk.com/live-free-or-mine-how-libertarians-fell-in-love-with-bitcoin/
- https://www.coindesk.com/live-free-or-mine-how-libertarians-fell-in-love-with-bitcoin/
- https://bitcoinmagazine.com/articles/interview-roger-ver-his-plans-start-new-libertarian-country/
- http://www.trustnodes.com/2017/09/21/bitcoin-millionaires-announce-plans-form-libertarian-country
- https://cointelegraph.com/news/libertarians-bitcoins-biggest-threat
- https://cointelegraph.com/news/libertarians-bitcoins-biggest-threat
- https://www.investing.com/currencies/btc-usd-historical-data?cid=53082
- http://www.businessinsider.com/researchers-say-bitcoin-is-broken-and-could-collapse-2013-11
- http://www.businessinsider.com/i-threw-away-48-million-in-bitcoin-2017-5
- http://mashable.com/2017/12/12/bitcoin-satoshi-trillionaire/
