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Jon Matonis: Bitcoin is incompatible with the state banking system and should not seek legitimation

photo of Michel Bauwens

Michel Bauwens
27th October 2012


Interesting libertarian argument excerpted from Jon Matonis:

(editor’s note: the illusion here is that keeping Bitcoin a-legal would protect it from state intervention)

” I was a radical before most of you Bitcoin users were born. That doesn’t make me any better than you (hopefully I did a few things to make you better than myself), but it does give me a better perspective; time just works that way.

I’ve been watching the recent developments in the Bitcoin markets, and having seen this drama before (too many times), I thought I’d pass along a lesson. This will strike its target in some of you, but others of you are also likely to reject it, because it doesn’t match what you want to be true.

Here’s the lesson: Trying to go ‘legit’ will destroy the Bitcoin market.

For those of you who haven’t turned away, I’ll explain:

There’s nothing really wrong with Bitcoin itself. The developers are doing a nice job of addressing its problems and a heartening number of people have jumped up to create new tools and new services. No problem here.

The problem is that too many people in the Bitcoin market are thinking the old way.

Understand this: Bitcoin is a new thing – it is not compatible with the old financial system.

Bitcoin and state banking systems are born enemies: only one can survive. If you are imagining that they can peacefully coexist, you are fooling yourself.

Bitcoin exposes the fraud that is state banking. If you think that politicians and bankers will calmly allow it to take over a significant percentage of world financial flows, you’re in denial. States will come after Bitcoin, and hard. They have no choice. Their money can only exist if there are no competitors.

Alan Greenspan may have done a lot of bad things, but he is not stupid. And before his adventures at the Fed, he wrote this:

“(Under a fiat system), there is no way to protect savings from confiscation through inflation’ If there were, the government would have to make its holding illegal, as was done in the case of gold.”

What gold was then, Bitcoin is now — times five.

So, let me try this again: Going legit gives the state a handle to grab you with. ‘Legit’ means registered and regulated, doesn?t it? You have to tell them your name, where you live, and where you put your money, right’ It means that they can control you whenever they want to.”

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