Blockchain technology, Bitcoin, and other digital assets have the potential to transform the world for good OR bad. Like many revolutionary technologies, they are neutral in nature—tools that can either empower individuals or centralize power, depending on how they are used and who wields control. This is why action from people who value individual sovereignty and liberty is crucial. Without vigilance, blockchain and Bitcoin could empower state control in ways never before imagined.
The Potential for Empowerment
At its core, Bitcoin was designed to be a peer-2-peer currency, without the need for a trusted third party. Blockchain technology itself offers unprecedented transparency and accountability, capable of reducing corruption and inefficiency. In theory, these innovations could enable a freer, more prosperous society, giving individuals control over their money, contracts, and even identity.
However, the same technology that promises liberation can also be co-opted. If citizens do not take action to defend their rights and limit government overreach, blockchain technology may become a weapon of tyranny.
The Threat of State Control
A significant portion of Americans believes in sacrificing individual sovereignty for the so-called greater good—trading personal freedoms for promises of security and stability. These people support policies that expand the power of the state, often without fully understanding the long-term consequences. Many of these beliefs are rooted in Keynesian economics, which advocates for heavy government intervention in times of economic crisis. Keynesians see measures like inflation, government spending, and centralized control as necessary tools to stabilize the economy.
The state’s desire for stability is not limited to wars or physical danger but extends to economic risks as well. Supporters of Keynesian policies advocate for expanding the state’s role in the economy to mitigate the impact of recessions and downturns. They believe in inflating currencies and manipulating monetary systems to protect jobs and maintain financial stability. Yet these interventions, while aimed at short-term stability, often come at the expense of individual freedoms and long-term prosperity.
The state thrives on such consent and will readily leverage blockchain’s capabilities to solidify its power. Imagine a world where the government uses blockchain to monitor every financial transaction under the guise of "security." Picture a state-controlled Internet of Things (IoT) network where smart home devices, security cameras, and communication tools are integrated into a comprehensive surveillance system. With blockchain-based data tracking, these systems could become far more powerful and omnipresent. Every aspect of daily life could be recorded, cataloged, and monitored.
Never before has the state possessed the capability to monitor every penny of your income, track your every movement, and even listen to your every word with such ease. If we are forced to adopt a digital dollar, a Central Bank Digital Currency (CBDC), or another form of state-backed stablecoin, all transactions—both in and out of your wallet—could be tracked and monitored on-chain. Consider this: You buy a simple cup of lemonade from the neighbor kid’s stand. But did you pay your tax on that transaction? Did the child register her business with the state? If not, both of you off to the gallows…
While this may sound crazy, we've already seen the state take similar actions by shutting down lemonade stands on a few different occasions. The infrastructure for such overreach already exists, and blockchain would empower this in ways I fear people are not fully understanding. With blockchain’s transparency and immutability, it could provide governments with a level of surveillance and control far beyond anything we’ve seen before, all under the guise of "security," "tax enforcement," or "economic stability."
This is why the warning rings true: "The only thing necessary for the triumph of evil is for good men to do nothing." Unless those who value individual liberty and sovereignty take an active stand against the growing encroachment of the state, blockchain and Bitcoin will be weaponized to serve tyranny rather than freedom.
The Dangers of a Keynesian Approach to Blockchain Control
The question we must ask ourselves is: What happens when a Keynesian economist or someone who firmly believes in greater government intervention is at the helm of a CBDC, a digital dollar, or the power of blockchain technology?
The answer is deeply concerning. Under a Keynesian approach, the state would likely use blockchain not to empower individuals but to enforce strict monetary policies designed to manage economic cycles. Inflationary measures could be programmed into digital currencies, allowing the government to manipulate purchasing power in real-time. Every financial transaction could be monitored to ensure compliance with tax policies and economic regulations. This kind of central control would undermine the very principles of economic freedom and sovereignty that Bitcoin and blockchain were designed to protect.
Without vigilance, blockchain and Bitcoin could empower state control in ways never before imagined. The only way to prevent this outcome is for those who value freedom to actively oppose the state's encroachment and assert their rights to privacy, property, and autonomy. Blockchain holds immense potential to serve as a tool for liberty, but only if we fight to keep it that way.
The Danger of False Security
Digital currencies like Central Bank Digital Currencies (CBDCs) are gaining momentum, and many governments are eager to integrate blockchain for regulatory and surveillance purposes. These initiatives are often marketed as measures to protect national security, prevent crime, and stabilize the economy. However, these promises come at a steep cost. Those who advocate for these measures fail to see the long-term danger of relinquishing control over financial privacy and personal sovereignty.
Which reminds me of Benjamin Franklin’s famous warning: "Those who would give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety." Despite this, many are willing to make this trade-off, believing that increased surveillance and state control will lead to a safer, more stable society. When in reality, history has shown us time and time again that such measures never deliver the promised security and often pave the way for further authoritarianism.
The Importance of Defining Sovereignty
The fight against state overreach is not just technological—it is deeply philosophical. Sovereignty begins with the individual’s ability to control their own property, labor, and choices. If we fail to define our sovereignty and rights now, we risk losing them entirely to creeping government control empowered by our beloved blockchain.
Blockchain and Bitcoin have the potential to reinforce individual sovereignty, but only if those who understand these principles defend them. Sovereignty means that no entity—public or private—should have the ability to control your financial resources without your consent. It means drawing a line in the sand and asserting that certain rights are non-negotiable. But without this clarity and defense, blockchain could easily become a tool that enforces compliance rather than liberates individuals.
The state has a long history of exploiting uncertainty and fear to justify overreach. Therefore, it is crucial to clearly articulate and defend what it means to be sovereign in a world where technology can either protect or undermine those freedoms.
A Call to Action
Considering that many anti-state activists prefer not to vote or engage in politics, I’m deeply concerned that the state will face minimal opposition in instituting these measures. While I understand the reluctance to participate in any aspect of public government, without political engagement and a defense of individual liberty, the state will continue to expand its power unchecked.
We must face the harsh realization that without active opposition to the state's encroachment, they will utilize blockchain as a tool for tyranny. Political and cultural vigilance is essential to ensure that blockchain remains a force for empowerment rather than an instrument of control. The future of sovereignty is in our hands. Will we allow the state to weaponize blockchain, or will we fight to keep it a tool for liberty? The choice, and the responsibility, lies with us.