Bitcoin, the free market in action

Love it or hate it, bitcoin represents a market out of control: Don Pittis - Business - CBC News:

January 3, 2018 - "In many ways, bitcoin is a microcosm of a pure free market. Whether you think that's a good thing or not depends on your own political values....

"[E]ven the most neo-liberal governments really don't like truly free markets..... South Korea ... plans to crack down and end anonymous trading.... The European Union and Britain have announced measures of their own to put controls on virtual currencies.... Russia has said something similar.... Beijing has banned trading outright....

"After all, bitcoin was founded on libertarian principles — the dislike of government involvement in our daily lives, the so-called 'nanny state.' The libertarian view, with a strong following in the tech community, is ... often ... in favour of things like encrypted messaging, with the goal of stopping groups like the U.S. National Security Agency from reading your email.

"In its harshest rendering, those strong free market principals [sic - gd] oppose taxation as a form of theft.... Digital currencies are a celebration of those principles. By design, bitcoin keeps your wealth strictly between you and the global blockchain....

"From a pure free market analysis, bitcoin may be the ideal currency. Rather than basing decisions on government tax laws and other rules that might seem like arbitrary red tape, a person using bitcoin could choose to consider only what's most profitable.

"According to Canadian tax law, people who earn money in bitcoin are required to report the value of that income. As bitcoins rise in value, Canadians are supposed to report those increases as capital gains.... But if those currency units are anonymous, they are hard for the Canada Revenue Agency to track, meaning ... the rest of us will have to pay more for the roads and streetlights that keep our economy functioning....

"Even in the long term, it is hard to see how governments can ever come to terms with a free market currency like bitcoin that robs them of so much power.

"But for those who believe free markets really are the solution to creating a sound and stable economy, there is a first test bitcoin and its ilk must pass to show libertarians are right. To prove their superiority over government-sponsored money, the unregulated digital currency markets must end their wild swings and bitcoin must reach a stable equilibrium price."

Read more: http://www.cbc.ca/news/business/bitcoin-libertarian-energy-1.4469822
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Bitcoin embraced by libertarians, investors

Bitcoin buyers with a libertarian bent drive prices to records - Jon Swartz, USA Today:

"September 21, 2017 - "Aaron Hanson, a software engineer from Chicago ... uses bitcoin wherever he can — to buy food at an empanada restaurant, airline tickets, his honeymoon in Africa this year — listing it alongside technology and individual freedom as his three beliefs in life.

"Austin Craig, a practicing Mormon who attended Brigham Young University, went a step further: He lived entirely on bitcoin during the first three months of his marriage and chronicled it in a documentary, Life On Bitcoin....

"For many, it is a lifestyle, something to be valued more than gold for financial investments and shielding personal information from the prying eyes of a distrusted government.

"Most Americans (78.5%) are familiar with the cryptocurrency, according to a survey of 1,000 Americans by LendEDU, a personal finance comparison site. But 48% aren't sure it's legal and 11% consider bitcoin ownership illegal in the U.S. Still, 40% were open to using bitcoin in the future, says Michael Brown, research analyst at LendEDU....

"The digital currency, whose finite quantities are created by computer programs, trades outside the traditional financial system, an attraction for people who have doubts — or at least seek an alternative — to mainstream institutions.

"'There’s certainly a libertarian feel' to the beliefs of bitcoin users, says Melanie Shapiro, CEO of Token, an identity-ring maker in New York. 'But we’re technologists, and technology provides freedom' from centralized government systems....

"The currency, which surfaced in early 2009 from someone using the name of Satoshi Nakamoto, has slowly evolved from cult curiosity to widespread lifestyle choice, with elements of political and religious fervor.

"What began as a currency championed by libertarians advocating decentralized currency or  criminals trying to avoid law enforcement has been embraced by venture capitalists and investors. It's not mainstream yet — too many people are wary of its high risk and complicated tools — but it's getting there.

"'It is the first global, highly liquid form of currency,' says Mike Jones, CEO of Science, a business incubator that owns and trades cryptocurrency. 'Much more so than than gold. It is about opening financial markets globally.'

"'It is digital gold,' says Overstock CEO Patrick Byrne, whose online retailer was one of the first to accept bitcoin payment."

Read more: https://www.usatoday.com/story/tech/news/2017/09/21/bitcoin-buyers-libertarian-bent-drive-prices-records/594971001/
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Ron Paul: Oppose right and left authoritarianism

Ron Paul: We Must Oppose Fascism Of the Right and Left | News and views from a different angle - Market Slant:

August 22, 2017 - "Following the recent clashes between the alt-right and the group antifa, some libertarians have debated which group they should support. The answer is simple: neither. The alt-right and its leftist opponents are two sides of the same authoritarian coin.

"The alt-right elevates racial identity over individual identity. The obsession with race leads them to support massive government interference in the economy in order to benefit members of the favored race. They also favor massive welfare and entitlement spending, as long as it functions as a racial spoils system.... No one who sincerely supports individual liberty, property rights, or the right to life can have any sympathy for this type of racial collectivism.

"Antifa, like all Marxists, elevates class identity over individual identity. Antifa supporters believe government must run the economy because otherwise workers will be exploited by greedy capitalists. This faith in central planning ignores economic reality, as well as the reality that in a free market employers and workers voluntarily work together for their mutual benefit. It is only when government intervenes in the economy that crony capitalists have the opportunity to exploit workers, consumers, and taxpayers....

"Ironically, the failure of the Keynesian model of economic authoritarianism, promoted by establishment economists like Paul Krugman, is responsible for the rise of the alt-right and antifa.... [M]any Americans continue to struggle with unemployment and a Federal Reserve-caused eroding standard of living. History shows that economic hardship causes many to follow demagogues offering easy solutions and convenient scapegoats....

"As the Keynesian-Krugman empire of big government and fiat currency collapses, more people will be attracted to authoritarianism, leading to an increase in violence. The only way to ensure the current system is not replaced with something even worse is for those of us who know the truth to work harder to spread the ideas of liberty.

"While we should be willing to form coalitions with individuals of good will across the political spectrum, we must never align with anyone promoting violence as a solution to social and economic problems. We must also oppose any attempts to use the violence committed by extremists as a justification for expanding the police state or infringing on free speech....

"Libertarians have several advantages in the ideological battle... First, we do not need to resort to scapegoating and demagoguing, as we have the truth about the welfare-warfare state and the Federal Reserve on our side. We also offer a realistic way to restore prosperity. But our greatest advantage is that, while authoritarianism divides people by race, class, religion, or other differences, the cause of liberty unites all who seek peace and prosperity."

Read more: https://www.marketslant.com/article/ron-paul-we-must-oppose-fascism-right-and-left
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Copyright © 2017 by Ron Paul Institute. Permission to reprint in whole or in part is gladly granted, provided full credit and a live link are given.

Venezuelans turn to bitcoin as currency collapses

Why Venezuelans Are Turning to Bitcoin Mining - The Atlantic - Rene Chun:

September 2017 issue - "In Venezuela, home to some of the worst hyperinflation since the Weimar Republic, a Big Mac costs about half a month’s wages. Or rather, it did, until a bread shortage forced the burger off the menu. The annual inflation rate is expected to hit 1,600 percent. Life resembles an old newsreel: long lines, empty shelves, cashiers weighing stacks of bills.

"To survive, thousands of Venezuelans have taken to minería bitcoin — mining bitcoin, the cryptocurrency. Lend computer processing power to the blockchain (the bitcoin network’s immense, decentralized ledger) and you will be rewarded with bitcoin. To contribute more data-crunching power, and earn more bitcoin, people operate racks of specialized computers known as 'miners.' Whether a mining operation is profitable hinges on two main factors: bitcoin’s market value — which has hit record highs this year — and the price of electricity, needed to run the powerful hardware.

"Electricity, it so happens, is one thing most Venezuelans can afford: Under the socialist regime of President Nicolás Maduro, power is so heavily subsidized that it is practically free. A person running several bitcoin miners can clear $500 a month. That’s a small fortune in Venezuela today, enough to feed a family of four and purchase vital goods — baby diapers, say, or insulin — online....

"But recently, Maduro has begun cracking down on mining operations, apparently finding in them a convenient political scapegoat — much as he calls those who seek to profit off inflation “capitalist parasites.” Yet trading bitcoin is still condoned. It’s as if Maduro realizes that cryptocurrency is one of the few things holding the country together.

"Because Venezuela has no cryptocurrency laws, police have arrested mine operators on spurious charges. Their first target, Joel Padrón, who owns a courier service and started mining to supplement his income, was charged with energy theft and possession of contraband and detained for 14 weeks. Since then, other bitcoin rigs have been seized — and, in many cases, rebooted by corrupt police for personal profit....

"Venezuela’s most resourceful miners ... are moving on to a new inflation-buster: the cryptocurrency ether (ETH). The profit margins are higher and, more important, the risk factor is much lower. 'Mining ETH or bitcoin is pretty much the same principle: using free electricity to generate cash,' one Venezuelan miner told me. 'But ETH mining is more affordable — all you need is free software and a PC with a video card. Any police officer is easily fooled into thinking your ETH miner is just a regular computer.'"

Read more: https://www.theatlantic.com/magazine/archive/2017/09/big-in-venezuela/534177/
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Libertarian Party of Canada now accepting donations in Bitcoin

Libertarian Party now accepting donations in Bitcoin (BTC) :: Wire Service Media:

March 22, 2013 - "The Libertarian Party is now accepting donations in Bitcoin (BTC) (1). The most significant advantages of Bitcoin are that the amount of Bitcoin is finite (2), and the software is open source (meaning anyone can read and understand exactly how the software works). Consequently, the amount of Bitcoin cannot be expanded -all current day government currencies are expanding their currency. Expanding currency, also called 'quantitative easing' or 'inflation' is the worst way that government makes money - the other two are through taxes and borrowing. Inflation hurts lower income families the most. The Bank of Canada is continually expanding the supply of Canadian dollars and the Canadian dollar is continually losing value. As the dollar is devalued, the price of goods and services tend to go up, resulting in an insidious tax on the productive working citizen."

Read more: http://www.wireservice.ca/index.php?module=News&func=display&sid=9983
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A libertarian nightmare: Bitcoin meets Big Government

A libertarian nightmare: Bitcoin meets Big Government - Salon.com - Andrew Leonard:

March 22, 2013 - "Bitcoins are ... a form of monetary exchange invented in 2009 by a mysterious character who called himself “Satoshi Nakamoto” but then disappeared.... Bitcoins are undeniably cool: marvelously “mined” from the ore of computer processing power and electricity.... Bitcoin is the fulfillment of a libertarian dream, a currency created out of the workings of the free market, unaffiliated with any state authority, respectful and protective of user privacy and anonymity, and designed to resist inflationary pressures.

"That’s all fine and dandy, but then here comes the government with its strong suggestion that any organization that facilitates the exchange of Bitcoins into other non-virtual currencies needs to register with the proper authorities....

"The more popular Bitcoin gets, whether as a symbol of resistance or a perceived safe haven in financially troubled times, the more government attention it will inevitably draw, and the more inexorably it will be sucked into existing regulatory structures."

Read more: http://www.salon.com/2013/03/22/a_libertarian_nightmare_bitcoin_meets_big_government/
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