Cryptocurrencies and Corpocracies

Cryptocurrencies are not libertarian. To be sure, aspects of cryptocurrencies, and the blockchain technology on which they are built, resonate profoundly with the libertarian ideal, but the resonance of one’s soul with an idea does not engender the resonance of theory with reality.

When I wrote my essay, “Cryptocurrencies are not Libertarian” (I’m not very good with names), I made three arguments:

1) While the value of a cryptocurrency, and its issuance, are not controlled by the state, this is not dissimilar to how ‘traditional,’ currencies already work. The value of floating currencies is already determined by markets, while issuance is partly the result of fiat money mechanisms. Furthermore, this infrastructure minimises the role of any individual.

2) Cryptocurrencies are not as anonymous as cash, for any transaction is recoded on a publicly viewable ledger. Further, the benefit of anonymity in terms of data protection and preserving freedom of choice are better achieved by the existence of a legislative body that can exercise power over bad actors and protect individuals. As such, anonymity is a false prophet telling a bad story.

3) Where anonymity may be valuable is in protecting those who are performing illegal acts, or acts deemed damaging to authority. Yet, in such scenarios, cryptocurrencies serve…