Why are criptocurrencies defended by libertarians and anarchocapitalists?
Well, its defence is based on sound logic, supposedly.
They are the result of complex mathematical models and are (supposedly) immune to destabilization because the amount any given criptoccurency is “limited”. In other words they cannot be debased by any power.
That is, at least, the theory and I will suppose – I have very serious issues with this anyway – that their amount is limited, there is no power that can create them out of nothing and they cannot be hacked.
Supposing this and that the market participants accept them as medium of exchange.
Supposing that the market participants accept them as medium of exchange and store of value, we would have a market currency capable of competing with the best ones out there, like gold, as the best private money.
All of this sounds very well, but we forget a small detail which is very important in this issue of criptocurrencies, at least in their “current private form”. Something different will be the future digital currency world system, which will, of course, be obligatory.
This small detail I am talking about is the fact that there is no limit to the amount of criptocurrencies in the market, because contrary to gold, silver or copper, we are talking about endless potential digital currencies.
Can you see what I am saying?
Criptocurrencies depart from a false concept, which is that men try to be at the same height of God. We think we can become gods like “Him” and we can create our reality out of nothing.
Unfortunately, only God can create something out of nothing.
Only God can create gold and make it different of other assets, making it the best monetary element in the World.
But forget about God and let us focus on the mundane things.
The fact that there is a limited Bitcoin which can only reach 21 million units does not mean that there cannot be another 21 trillion criptocurrencies with even better “mathematical” capabilities than Bitcoin.
Only this show how futile is to defend the monetary value of this so called criptocurrencies, which can only be compared to episodes such as the Tulip bubble.
In fact, today, we have more than 1000 criptocurrencies, and each of them promising being better than the other. People try to buy them just to sell at higher prices later. This is just pure speculation.
The fact that digital technology is a reality and that the future is going to be even more attached to it, does not mean that those asset created by any citizen can be a perfect market currency.
The truth is that criptocurrencies are the antithesis of a true market.
How can I say this?
I say it for the simple reason that they are the total opposite of gold. Contrary to gold, they are the perfect tools a world dictatorship needs to control the financial lives of its subjects.
This blockchain world does not stop using the word “decentralized”, as if by the mere act of saying it thousands of times they will be such a thing; when the truth is that the digital world is the dream of any despot.
With that digital reality, those who adore controlling others will eventually be able to centralize all financial transactions using just ones and zeroes.
One thing is that people can make a lot of money speculating in criptocurrencies, “hacking”, stealing or selling garbage systems, and other thing is that those assets are valid as a market currency.
The currencies created by men out of nothing never were, are or will be fair or just.
Cheers and good trading