Bitcoin vs Capitalism: Is One Better Than the Other?
This question has been asked since the inception of Bitcoin in 2009, and it’s still loud even up to date. One side says Bitcoin is a new form of money, hence should be regulated by the government like all other forms of money. Some people say that Bitcoin is a commodity, like gold or silver. This debate has been going on for years, and real progress to finding a definite answer is yet to be made.
Suffice to say, no side has all answers, but both sides have something important to contribute to this discussion. Bitcoin is a revolutionary idea, and it has the potential to change the world. What does that mean for capitalism? Most people believe that Bitcoin is an end to capitalism, but it’s more complex.
Bitcoin has its roots in libertarianism, so it makes sense that some people would think it’s a threat to capitalism. Bitcoin is decentralized, meaning that no one entity controls it. Most people are accustomed to thinking about currency in terms of capitalism. Hence many have often needed clarification on this type of currency. The idea is that there should be an intermediary- someone who makes money for themselves off of transactions done. With Bitcoin, you are your own middleman.
Asking an anti-capitalist about the nature of capitalism will elicit a response entirely different from that of a capitalist. If you ask a capitalist about their definition of capitalism, they’ll probably say it’s about making money. But if you ask a Marxist about their definition of capitalism, they’ll probably say it’s about exploiting workers and profiting off their labour.
When considering the opinions of capitalists about bitcoin, most people ask themselves if they are against it. Well, the short answer is that they’re not. Most capitalists love Bitcoin. To be clear, what we mean by “capitalists” is a broad class of people who make their money by participating in the capitalist system, regardless of how they feel about capitalism as an ideology.
Capitalists can be CEOs of major companies, start-up founders, or small-business owners. Most are using Bitcoin as an investment vehicle. It’s advantageous as they can use it anywhere in the world. They get their money immediately and can send it without paying a hefty fee.
Capitalism allows for more freedom of movement and transaction while also having some built-in protections against fraud. On the other hand, bitcoin doesn’t have protections built in because its value comes from its scarcity. There are only so many Bitcoins out there, so if someone tries to counterfeit them, people will know immediately.
Bitcoin and capitalism are each, in their ways, superior to the other. This is because each system has different goals and incentives at play.
For the first time in history, Bitcoin permits a payment system separate from government control, and anyone can transact regardless of their government or bank policies. It’s hard to compare Bitcoin with the capitalist system. Both work in different ways for different groups of people.
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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
DNACrypto Team
Cryptocurrency & Blockchain Experts
