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Since its inception 15 years ago, Bitcoin has captured the imagination of libertarians, anarchists, and various advocates for individual freedom and financial sovereignty. For them, Bitcoin represents a revolutionary challenge to state-controlled currency and authority. It symbolizes a transformative shift towards greater individual freedom and autonomy in modern society.
However, as Bitcoin gains mainstream appeal, there are increasing signs that it might be shedding its revolutionary roots. The exponential growth in users and market value corresponds with a fading of the libertarian spirit that initially defined this technology. In a future where Bitcoin becomes super mainstream, will it still embody the exciting libertarian ideals for its early followers? Or will it become another compliant financial asset absorbed into the existing global monetary order?
This question goes beyond philosophical debates surrounding crypto-anarchism and involves specific decisions that developers, miners, and users of Bitcoin will face in the coming decade. It entails a challenging balance between the fully financially sovereign vision of crypto-punks and the necessary compromises for scalability. Navigating these choices will determine whether Bitcoin realizes its disruptive potential or succumbs to the governmental forces it originally sought to evade.
In contemporary society, adopting a libertarian mindset often contrasts sharply with mainstream-approved viewpoints and is considered radical by many. The current challenge lies in confronting deeply ingrained belief systems in the widespread acceptance of nationalism, a belief system that freedom advocates take seriously. Despite the formidable nature of this challenge, many libertarians remain committed to advancing freedom through diverse strategic initiatives. Their collective efforts aim not only to challenge the status quo but also to prompt a profound shift in societal attitudes towards freedom.
The struggle against the pervasive acceptance of nationalism is an ongoing process, and dedicated advocates recognize the need for multifaceted approaches. From engaging in public discourse to promoting educational initiatives, their efforts are rooted in the belief that freedom principles are crucial for a prosperous society. This commitment transcends ideological boundaries and includes a shared vision for the future where individual freedom is valued and upheld.
As a liberty advocate, the discovery of Bitcoin signifies a crucial moment for me. As I embarked on my journey down the rabbit hole, I couldn't help but feel excitement about this project. The cryptographic protocol offers a clever workaround, separating money from the state, providing a new practical path for advancing freedom throughout our lives. Bitcoin embodies the principles of individual sovereignty and financial autonomy, becoming a beacon for those seeking alternatives to compulsory centralized systems of power. The meme "Bitcoin is the Trojan Horse of freedom" resonates deeply, suggesting that individuals previously indifferent to freedom principles might unknowingly accept them while pursuing personal economic interests through Bitcoin. The "digital ascent" is essentially a concealed "freedom ascent," emphasizing Bitcoin's transformative potential in advancing individual freedom and challenging traditional power structures.
Bitcoin has proven its ability to empower individuals by bypassing authoritarian regimes. Organizations like the Human Rights Foundation and the Oslo Freedom Forum effectively highlight personal stories of how Bitcoin positively changes lives worldwide, providing the ability to transact with a currency free from government devaluation and censorship. This sentiment echoes in today's Bitcoin community through slogans like "not your keys, not your coins," "be your own bank," and "we will separate money from the state!" There is a wealth of educational content dedicated to promoting these principles and emphasizing the greater freedom that comes with monetary sovereignty.
Furthermore, Bitcoin enhances individual freedom by allowing those with the capability to save to store their value in savings technology not constrained by government fiat currency Ponzi schemes. Individuals can engage in transactions with a currency immune to government scrutiny, providing a secure and censorship-resistant medium for financial transactions. While these achievements are noteworthy and commendable, there is often an unsettling fact that tends to be overlooked—the challenge of expanding the number of sovereign users in the network.
As you delve deeper into the world of Bitcoin, you gradually adopt a more technical perspective. While some find this understanding intuitive, others may face challenges. Nevertheless, you will eventually confront the reality of blockchain scalability. Due to the limitations of block size, each new block has transaction throughput constraints. The consensus solution adopted by the network is a layer-two scaling approach entering the Lightning Network. It enables parties to engage in multisignature channels, providing substantial payment facilitation for each of the few transactions required on-chain, including the opening, splicing, and closing of channels. Despite challenges such as liquidity management and online demand, this engineering marvel significantly expands the network's transaction processing capabilities virtually without limits. The only catch: most users need custodians.
Although the Lightning Network has been implemented, the number of sovereign users the network can accommodate is still limited. Despite increased payment scalability, the Bitcoin network can support only 10 to 100 million sovereign users, updating Lightning channels a few times annually—whether they are individuals, single custodians, or joint custodians implementing an eCash system. In a world with over 8 billion people, the implications are easily understood. The disconcerting reality is that less than 1% of the global population has the capacity to use Bitcoin in a sovereign manner.
Achieving sovereignty with Bitcoin requires exclusive control over UTXOs. Expanding the number of sovereign users on the network requires additional engineering efforts and consensus changes. It is crucial to establish mechanisms with minimal trust, allowing users to share UTXOs and resolve disputes over partial UTXO ownership without imposing excessive economic costs on the resolution process. Currently, the development community is discussing how the activation of contracts can begin addressing these issues, especially how CTV can help initiate the foundational building blocks for solving these sovereignty expansion challenges.
The seriousness and urgency of this issue prompt reflection on how much you truly value the principle of separating money from the state. We find ourselves at a critical moment, contemplating the journey and significance of a world fully immersed in hyper-bitcoinization. Without intervention, we might discover that 99% of the future population needs some form of regulation to navigate the complexity of the Bitcoin network.
This potential scenario raises legitimate concerns about the future control that states may exert over the network. The urgency of the issue becomes paramount. While I do not advocate for reckless actions and hasty implementations, there is a palpable sense that a metaphorical window of opportunity is approaching.
Reflecting on Bitcoin's history, it is clear that activating consensus changes becomes increasingly challenging as the network expands. The growth of the network introduces complexity, making it more difficult to convince the majority to accept protocol upgrades unless there is a massive demand for change. This nuanced perspective emphasizes the need for careful and rapid consideration of the evolving ecosystem dynamics of Bitcoin.
What concerns me is that most participants urgently need to genuinely value individual freedom, recognizing its importance in implementing critical upgrades and addressing these universally present scalability issues. Venturing into the Bitcoin space from a libertarian perspective, I painfully realize that most people in society generally do not respect freedom. The genuine concern is that Bitcoin, initially a cornerstone of the freedom movement, might gradually lose its essence, becoming another financial asset—first gradually, then suddenly. Facing the current reality requires a pragmatic perspective, acknowledging what it is rather than wishful thinking. For those who share my concerns, I earnestly urge you to steadfastly support individual freedom. With true conviction, embrace the crucial role Bitcoin plays in advancing this cause. The road ahead is challenging and requires collective efforts closely tied to our common goals. Let us fully recognize the critical work ahead and address the challenges of sovereignty expansion in a genuine way. In this organic endeavor, each one of us plays a unique and indispensable role—let us accept it with real strength and unwavering determination. |
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Post time 3-3-2024 13:33:52