Why bitcoin and freedom go hand in hand

Bitcoin’s unique properties allow this new form of money to be valuable in a variety of ways. Yet many motivations have one motive in common: Freedom.

Freedom

Freedom takes several forms. Think of the freedom to trade, freedom of expression, freedom not to share data (privacy), but also the freedom to save.

 

??????Everything that is really great and inspiring is created by the individual who can labor in freedom???????. Albert Einstein

The internet has ushered in the information age. It has never been so easy, fast and cheap to communicate with each other all over the world. Internet censorship is a nuisance, and while it still happens, technology has increased the individual’s freedom of expression. Bitcoin is also seen as a technology that can increase people’s freedom and independence.

In today’s society, government control is playing an increasingly important role. There is a security camera on every corner of the street, large money transactions are monitored. The increasing degree of control has its advantages, for example, the detection of criminals is easier due to the surveillance cameras and the financing of parties that are dangerous to state security is more difficult due to the controls.

Yet some also see this increasing degree of control as a risk. Confidence that the government handles this power properly is a requirement. China gives us an example where state control is extremely high. Citizen behavior will soon be tracked via a ‘social credit score’. For example, when you cross the street while the traffic light was red, the fine is automatically debited from your bank account.

In the west there is (fortunately) no such authoritarian ruler. Yet many bitcoiners believe that the power of government bodies and central banks does not have good consequences.

Bitcoin as a solution

The absolute scarcity of bitcoin makes it a resort for some against currency devaluation, or inflation. Bitcoin is not a speculative investment for them, but an exit opportunity from central bank policies. Holding a form of money whose inflation is predictable and unchanging provides a freedom to save.

In contrast, some residents of Sudan and other countries appreciate bitcoin for another reason as well. Authoritarian regimes in these countries can often prevent, obstruct or even prevent money transfers. Using the decentralized Bitcoin network can be an attractive solution here. Corruption of those in power is excluded in bitcoin due to the trust in mathematics instead of third parties.

The open, neutral protocol makes it possible to send and receive value around the world. For people living under authoritarian regimes, the accessibility and independence of bitcoin can provide freedom of value exchange.

Negative interest rates and quantitative easing are advertised as monetary policy to help the economy as best it can. What is less discussed are the consequences of these measures. Negative interest rates rewards borrowing and punishes savings, and quantitative easing is printing money with depreciation as a result.

Although bitcoin will certainly not solve every problem in the world, it is nevertheless a technology that ensures the freedom of the individual to save and trade.

We previously wrote about inflation, a problem that bitcoin does not have.

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