The Old Radical: How Bitcoin Is Being Destroyed

[Eugen Leitl]

http://www.dgcmagazine.com/the-old-radical-how-bitcoin-is-being-destroyed/


The Old Radical: How Bitcoin Is Being Destroyed

Posted on October 24, 2012 by Julia	

This piece was recently sent to me by ban old radical.b The message is perhaps a bit harsh, but I have to admit, all I can do is grimace and nod in agreement to this thesisb& bBitcoin and state banking systems are born enemies: only one can survive. If you are imagining that they can peacefully coexist, you are fooling yourself.b

I was a radical before most of you Bitcoin users were born. That doesnbt make me any better than you (hopefully I did a few things to make you better than myself), but it does give me a better perspective; time just works that way.

Ibve been watching the recent developments in the Bitcoin markets, and having seen this drama before (too many times), I thought Ibd pass along a lesson. This will strike its target in some of you, but others of you are also likely to reject it, because it doesnbt match what you want to be true.

Herebs the lesson: Trying to go blegitb will destroy the Bitcoin market.

For those of you who havenbt turned away, Ibll explain:

Therebs nothing really wrong with Bitcoin itself. The developers are doing a nice job of addressing its problems and a heartening number of people have jumped up to create new tools and new services. No problem here.

The problem is that too many people in the Bitcoin market are thinking the old way.

Understand this: Bitcoin is a new thing b it is  not compatible with the old financial system.

Bitcoin and state banking systems are born enemies: only one can survive. If you are imagining that they can peacefully coexist, you are fooling yourself.

Bitcoin exposes the fraud that is state banking. If you think that politicians and bankers will calmly allow it to take over a significant percentage of world financial flows, youbre in denial. States will come after Bitcoin, and hard. They have no choice. Their money can only exist if there are no competitors.

Alan Greenspan may have done a lot of bad things, but he is not stupid. And before his adventures at the Fed, he wrote this:

(Under a fiat system), there is no way to protect savings from confiscation through inflationb& If there were, the government would have to make its holding illegal, as was done in the case of gold.

What gold was then, Bitcoin is nowb& times five.

So, let me try this again: Going legit gives the state a handle to grab you with. bLegitb means registered and regulated, doesnbt it? You have to tell them your name, where you live, and where you put your money, right? It means that they can control you whenever they want to.

There are two big reasons why Bitcoin people are tempted to go blegitb:

    They want to get mega-rich fast, like Mark Zuckerberg.
    They have been trained to be obedient and canbt unlearn it. They are compelled to believe that the government is basically good. It must just be one bad politician or one bad law.

#2 is what destroyed e-gold, and it looks like #1 is what killed GLBSE.

Because of GLBSE, Bitcoin is now being regarded as a currency and states will start to regulate it as one. That means that theybll attack the public exchangers and force everyone possible to comply with their rules.

Sob& itbs time to man-up, or to crumble.

(Interestingly, there is often a larger percentage of women that bman-upb than men.)

Will you have the guts to do the right thing when the pressure is on? If yes, I applaud and honor you. If not, here are a few cheap excuses to use (after all, who wants to admit conditioning or cowardice):

    Without the rule of law, everything would fall apart.
    Without regulation, criminals would destroy everything.
    Yes, regulation is coercive, but along with it comes a certain amount of public benefit!
    I got ripped off, and someone has to fix it!
    If I canbt sue someone, they can get away with ripping me off!
    We canbt get people to use Bitcoin unless itbs authorized.
    We need approval or we will forever remain a tiny market.

A significant number of Bitcoin people will say these things (and others), but the real truth will be that they are scared, or are still hoping to get mega-rich, or just canbt rip the bgovernment is our friendb meme out of their heads. But mostly it will be fear.

We all feel fear of course, but some of us are determined enough to do the right thing, even when webre afraid.

So, herebs a final tip: If you run into someone who can feel the fear and still do the right thing, donbt let go of them.

O.R.