Bitcoin and Politics

Bitcoin and Politics

Bitcoin was closely related to politics.

At least in one of my books, I described how Bitcoin is very related to politics. In fact, I have posted the whole crypto anarchist manifesto. It is a manifesto back then in 1992. It was the early years when Internet has started to be developed and deployed across networks, but was still expensive and slow. This manifesto is the perfect picture of how the cryptographers in the CryptoNet saw that their expertise, cryptography, was a weapon to fight against the governments’ regulation which may limit their liberty.

They want a liberty for themselves, hence called as libertarians. They did not only sit and relax; they conducted research. Their goals were to create an anonymous payment system and an anonymous market where people can buy anything they want.

It has been years since the first idea came out. Not until 2008 when Satoshi Nakamoto solved one of the biggest problems in constructing an anonymous payment system: trusted third party (TTP). Instead of putting all the trust to the TTP, he distributed the trust to multiple parties. Most people call it as a trustless system, but after attending one of Paul Rimba‘s presentations, I would prefer to mention it as a distributed trust.

So basically when the governments want to take actions against Bitcoin (or other cryptocurrencies), it is normal. Real normal. Because it was Bitcoin who did the first punch against the governments’ system. Whether these restrictions are retaliation against cryptocurrencies or merely mechanisms to protect the wealth of all users, I am uncertain about that.

When Satoshi created Bitcoin, he might have forgotten to construct a convenient way for people to jump in the system without the help of any TTP such as coin markets. Most of the time, these coin markets are the gateways for anyone to convert their fiat currencies into cryptocurrencies. It is proven that these gateways have become liabilities rather than strong joints since they are obliged to obey all local regulations in order to secure their own business. At the moment, peer-to-peer exchange markets do not have significant contributions toward the communities as they are way too difficult compared to the convenient coin markets.

So, as a conclusion, I believe we are in the middle of a political war between centralized belief against decentralized paradigm. Who knows which will win. As for now, we can still see the central governments have the advantages over decentralized one.


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