Bitcoin! Freedom Baby, Yeah! It’s all very groovy.
I’m cheering for Bitcoin. I really am. But, the majority of present-day Bitcoinistas are likely to wind up impoverished, imprisoned or immolated at the stake in the public square.
Bitcoin is too much of a threat, to a global elite that relies on fiat currency for much of its power, for them to leave Bitcoin unmolested for much longer. The Progressive establishment has run the world for the better part of a century. They’re not about to let a bunch of pasty geeks eat their dinner without a fight.
How will the progressive establishment destroy Bitcoin? Let’s think like tyrants.
The US government could declare Bitcoin a national security threat and announce its intention to prosecute all Bitcoin users as money launderers. How sympathetic would the public be, if gangs of terrorists were discovered trading in Bitcoins? Or a child porn ring? Maybe they’re holding focus groups as I type, to pinpoint the most emotionally resonant cause, upon which they might lash the anti-Bitcoin initiative.
The Bitcoin Faithful have a tendency to view the conflict between Bitcoin and the US Dollar as a sporting match between technological standards. Mac Vs. PC! HD-DVD Vs. Blu-Ray! But the reality is that Bitcoin is a direct assault on one of the most important tools that our ruling oligarchy wields – the power to control currency. They’re not going to let it go without a fight, and they have guns. Also, robot wolf-bears:
But here’s the real reason why I am inherently (wolf-) bearish on the eventual fate of Bitcoin: It is a currency for Beta Males.
Consider the typical bitcoin user: White, male, tech-y, libertarian or neoreactionary conscience, reader of Hacker News, law-abiding citizen and productive member of society. In other words, he is a completely un-diverse, un-progressive, nice guy. He is the least cool, least hip, most privileged person in the world. In the end, Bitcoin ownership may actually serve the progressive elite well as a useful binary marker of who pack off to the Gulag.
Some say the US Dollar and The Cathedral it finances are dying. They are too optimistic. The Cathedral has no shortage of bright and tech-savvy allies willing to sell their souls for a slice of power. Google, Apple, Facebook, and many others will be lining up to kiss the ring. Neoreaction will be lucky if we can recruit Snapchat. The bad guys have hackers too.
And it’s not like the only players in the game are The US Dollar and Bitcoin.
I’m told there are a number of good old-fashioned corn-fed boys out in flyover ‘Murica. Their future looks bleak to me, but they do have a lot of guns, and they probably make up a majority of the US Armed Forces. Their preferred currency, if they’ve even considered the question, is physical gold and silver.
There are also the foreign candidates. China? Russia? La Raza? Will Canada finally cast off two centuries of politeness and assert her rightful claim over the entirety of British North America? Predictions are hard, especially about the future.
But I am fairly confident that whoever winds up in power, their first order of business will be to destroy Bitcoin. Doing anything else would be leaving money on the table.
You see, currency is a coordination game. If everyone is using silver, you want to use silver. If everyone is using bitcoins, you want to use bitcoins, etc. In a theoretical world with many independent agents, choosing a currency to put your savings into requires predicting everyone else’s behaviour. But in the real world, sometimes one person has the power to enforce his will on everyone else.
For example, what would happen if Russia introduced the “RubleCoin”, a cryptocurrency controlled by the Russia government, and insisted its citizens conduct all saving and transaction in RubleCoins? What if China did the same? What if some enlightened US President (or coup leader) recognized the imminent failure of the global financial system, and acted to create the DollarCoin, a bitcoin clone issued by the USG?
The result would be a world with all the benefits of the Bitcoin, but without the massive one-time transfer of global wealth to a bunch of Hacker News and Dark Enlightenment dorks. Myself included.
As I said, I think Bitcoin is a great idea. I own Bitcoins. I’m cheering for Bitcoin. The intelligent, curious, tech-savvy, risk-taking people who currently own Bitcoins are a more worthy collection of Aristocrats than any competitor. But history will screw them, because they have chosen to put their faith in justice and a good idea. They think that because they are right, they will succeed. But the Bitcoin nerds would be wise to heed the words of Freda Utley:
“Do not to expect the material rewards of unrighteousness, while engaged in the pursuit of truth.”
Sell your Bitcoins today, if you own them for any reason other than that it’s the right thing to do. If you want a picture of the future, imagine a boot stamping on a beta’s face forever.