For close to a decade, cryptocurrencies have grown in leaps and bounds to the extent of having the power to redefine capitalism as we know it. Currently, markets are more focused on the changes introduced by blockchain technology in financial markets, private lives, as well as entrepreneurship. It turns out the influence of digital currencies aren’t just disrupting the financial markets.
Even though capitalism has been here for more than three centuries, it could be morphing into something else thanks to the advent of cryptocurrencies. It seems that cryptocurrencies are a timely phenomenon that could change economic systems as we know them today.
What Is Anarcho-Capitalism?
Ever heard of the word anarcho-capitalism? On businessdictionary.com, anarcho-capitalism is defined as a system in which private establishments compete with each other to provide infrastructure and other social services normally provided by governments. The other name of anarcho-capitalism is ree market anarchism’. Behind this view is the thought that a free market has the ability to maintain order and provide services without the need for government funding through taxation.
In such a society, the state does not exist and there is no taxation. According to libertarianism.org, anarcho-capitalism can only work where there are law and order, property, and markets. Instead of a centralized system of the state, the society shall be managed through the concepts of free markets, private property, and self-ownership. Basically, it implies a situation in which private establishments are able to self-regulate instead of relying on the statute laws.
Thus, anarcho-capitalism proposes that all government services, such as courts be operated by competitive private enterprises. While this has seemed far-off since it was first espoused in the mid-20th-century by Murray Rothbard, it seems closer to realization than ever before. But how do cryptocurrencies fit into the anarcho-capitalism mindset?
How Do Cryptocurrencies Fit Into The Anarcho-Capitalism Mindset?
In a post on quora.com, Bill Koutsoubas argues that Bitcoin will grow to become a currency that all must have, due to the fact that its system is invested in the future. That, however, doesn’t seem to be the biggest reason cryptocurrencies could just usher in the much-awaited anarcho-capitalism.
While there have been attempts to regulate cryptocurrencies, the technology behind digital technologies largely operates outside the ambit of state agencies. The original financial system as created by its founder Satoshi Nakamoto was meant to operate without regulation from central banks of governments.
In countries where cryptocurrency regulation has been attempted, it has been to protect investors from possible losses that result from the collapse of exchanges such as M.T. Gox in Japan. While the regulation of cryptocurrencies in Japan seems to curtail the freedom of innovation that existed in the market, it has succeeded in bringing digital currencies to the mainstream.
The bottom line is that the blockchain technology, even where cryptocurrencies are regulated still operates outside the prying eyes of the state. By all indications, this is bound to continue and, as more and more people adopt cryptocurrencies, the state of affairs envisioned by the proponents of anarcho-capitalism if bound to happen.
So don’t ask, ow do cryptocurrencies fit into the anarcho-capitalism mindset?’ instead, keep watching this space for what is thought to be the eventual death of the state as we know it today.