Cryptocurrency is an expression of freedom. It is libertarian anarchy which distrusts state power in favor of individualism. It promotes the notion that privately run money is better because it’s picked by consumers instead of state-run bodies supported by taxes.
This also suggests that other goods and services run private and competitively in an open market.
Murray Rothbard first coined the term Anarcho-Capitalism in the mid-20th century. This idea promotes the notion of self-ownership and privately run institutions.
How Do Things change?
The idea of cryptocurrency is as old as the internet. There are several examples of fiat currencies being introduced that weren’t run or regulated by a State Bank or Government Body. When Bitcoin first debuted in 2009, it was thrashed by economists and almost everyone else.
10 years later, Bitcoin is recognized as the first and most valuable cryptocurrency. It paved the way for various other cryptocurrencies to enter the market and follow suite.
Interesting, the economist, theorist, and financial scientists who made negative remarks about the currency, clearly stating it won’t work for long run changed their views. They admitted the currency would continue to do wonders without being bent by the government or such authoritative bodies.
Technology is liberating the world, and Cryptocurrency almost made banks look worthless. The point is, Cryptocurrency’s embodiment of Anarcho-Capitalism proved to be extreme for people as compared to Innovation or technology’s usual image of individualism.
The Current State
Bitcoin is backed by mathematics where State Government backs the currency. Cryptocurrency’s whole design is different even when compared to digital payment systems like PayPal, etc. These only add a computer interface to the bank account and payment cards.
If cryptocurrency must survive, it needs a different transaction modern than traditional money system. It must completely stand apart from fiat currency and the organizations who rent it. Central Banks and corporations interfere with every transaction, and fiat currency could be fabricated from thin air even when currency records are maintained.
Following, we are going to quote the examples of some renowned names in financial sciences who once denounced cryptocurrency are now in favor of it:
A writer is known for his economic beliefs and arguments about politics and markets. He dismissed the idea of cryptocurrency because he believed it wouldn’t last. But he has changed his remarks seeing the changes bitcoin brought with its inception. In an interview, Doug said:
“My original objection to Bitcoin was anything didn’t back it. But fiat currency is no different. Therefore, it’s very much alike the currency of a country. It’s only a floating abstraction”.
Dr. Ron Paul
A former Politician, he is outspoken about his libertarian believes. Someone who ran for Presidency of United States for three times, he is now excited about what new revenues bitcoin will open after doubting its credibility. He recently made a statement saying:
“As a firm believer in currency competition, I’m excited to see the options bitcoin opens up.”
Director of Digital Development of Foundation for Economic Education (FEE), an advocate of the currency, he has shared his ideas about decentralization. Once skeptic about cryptocurrency, he said:
“As the capital, it is not owned by any one institution, which is amazing. And yet it puts massive economic power into the hands of the individual”.