I made a joke post earlier making fun of scam ICOs, encouraging people to send Ethereum and Litecoin to me, in return for which they will receive an equivalent number of meaningless, worthless, no-shits-given Anarchist Shemale Coin, in a humanitarian effort to facilitate the divorce of money from those who lack common sense. But to be totally honest, I’ve been watching Bitcoin and Ethereum for a while (perpetually rooting for the underdog, I am), and I actually would like to launch a cryptocurrency. I quite obviously lack the technical expertise to do this–I fix computers and networks and do light programming. I don’t write communication protocols. I could have delved that deeply into the mechanics if I wanted to, but I didn’t.
The question is worth asking, though. Given that there are countless (at least five hundred) altcoins (seemingly a label that means “not Bitcoin cryptocurrency”), of what value would another be? Actually… I have a pretty good answer for that. Bitcoin is currently in the process of showing us why communism and raw equality generally fail, why flat hierarchies fail. There are too many cooks in the kitchen, many of whom refuse to compromise, all of whom have their own way of doing things. By December, Bitcoin will have hard forked and created at least three new currencies–Bitcoin Cash, Bitcoin Gold, and either Bitcoin Classic or B2X–or some other acronym, depending on how November plays out. Regardless, it is splitting quite a lot.
On the one hand, this is good. If you owned a Bitcoin in August, then you suddenly 1 Bitcoin and 1 Bitcoin Cash once it forked. In that sense, it mirrors stock splits in a lot of ways–it doubles the amount in existence and splits the value across that amount. Someone who owned 100 Exxon shares 70 years ago now owns probably twenty thousand. Companies do this to drive down investment costs, which brings in more investment money. Bitcoin faces similar problems, because so many people are reluctant to spend $40 on 0.01 BTC when they can spend $40 and get 0.76 LTC. Ostensibly the growths and values are the same, but, psychologically, they are not. 0.76 LTC feels psychologically like a more substantive purchase. I would bet that more than 75% of this year’s newcomers to the industry purchased LTC, ETH, DASH, or another alt-coin before they purchased any BTC. Anyway.
The hard-forking appears to be a permanent feature of Bitcoin, and there isn’t really any reason to suspect that it’s going to die down as time goes on. After S2x there will be something else, some other point of contention. Markets don’t like unpredictability and uncertainty, and this is going to hurt Bitcoin’s value, whereas the primary thing keeping it popular these days seems to be that it was the first and is simply the most well-known. I wouldn’t touch it, even with the possibility of having my coins duplicated into several alt-coins. In fact, I converted my BTC into freaking DOGE, which is forever going to be worthless.
“White papers” are well and good, but you know what is really missing from the ICOs and the altcoins?
That’s right. A constitution.
See, we anarchists are not anti-government. We’re anti-state. Many of us have pointed out numerous times that the state is merely one form that a government takes, just as a truck is one form an automobile takes. If I hate trucks, that doesn’t mean that I hate cars or vans. In fact, I do hate trucks, because 98% of the people driving them in Mississippi have absolutely no need for them, and are just driving them because of cultural reasons, wasting copious amounts of gasoline and doing unnecessary damage to the environment (yes, I said that).
The White Paper would serve basically as the Constitution itself. I’d love to enlist people like John McAfee and other brilliant minds for such a project. Security, anonymity, and individualism would be the core tenets of the currency. Most importantly, however, would be that it would have amendments similarly attached to it immediately upon being adopted. First among those would be the requirement that, at any time, 5% of currency holders could request a vote (the blockchain itself could be used to store these votes, too), whereupon each member on the Board would be recalled with a simple 51% majority.
It’s anarcho-capitalist in the sense that it wouldn’t be the individual’s vote that mattered, but how much of the currency they actually held–voting with their wallet, so to speak, which is a more accurate imitation of the market. Someone with 1,000 of this currency has a much higher vested interest than someone with 0.01 of the currency, and it simply stands to reason that the person with 100,000 times the stake should have a much more powerful voice. They have more to lose, which will cause them to be more conservative and considerate. People don’t risk millions of dollars regularly in a free market (and they only do so in the United States because of the socialized losses / privatized profits system that we have).
It is necessary, all evidence suggests, to have some authority that determines the direction that a ship should go. Having 3,000 passengers attempting to decide a heading is bedlam, and there is too much noise for the system to be efficient. It is necessary, for the sake of productivity and progress, for there to be a hierarchy, a group of informed, knowledgeable individuals who make the decisions on how the ship should be sailed. The problem with the state, of course, is that we have no choice but to get on the ship. This system I’m talking about would be voluntary–no one would have to take part in it (thereby consenting to “rulership” of the board and its Executive Committee). It would be entirely their choice to submit to the board’s decisions by purchasing the currency. The Second Amendment would be that measures shall always be taken to ensure that the system is voluntary. This means it must have competition, even if this means that the board must hard-fork the currency themselves. Not that it would come to that, of course. The odds of one cryptocurrency overtaking all others are so low that it can almost be discounted entirely–but not entirely, not really. The protection must be written in as one of the first few amendments.
Competition is what’s important. When people are forced to participate in a system, then that system has no competition. The result is inefficiency, fraud, corruption, and direct abuses of people’s rights. Decentralization is not the goal, nor is a flat hierarchy. These are merely ways of ensuring that no small group or single person has the power to abuse in the first place. Another, more effective, method is to ensure that people only submit to this group voluntarily, and that market forces like competition keep this small group behaving in a way that ordinary people approve. Having a centralized cryptocurrency, even one offered up by the United States Government, isn’t really a problem, because we have so many better alternatives. It would only become a problem in the event that the United States Government used its state power to eliminate its competition (which it probably would try, honestly). JP Morgan Coin isn’t necessarily a problem for the same reason. As long as their is competition, the market will sort it out, and market pressures will ensure that JP Morgan doesn’t do anything too screwed up.
The right of users to not have any personalized information stored would be a critical tenet. Nothing but a long string of hex characters could be stored. The coin would officially boycott (even though it couldn’t prevent) any exchanges that required identifying information in order to make purchases. Even the P2P exchange Airwave (which hasn’t launched yet) asked me for my freaking government ID, are you kidding? Considering that its white paper states that its goal is to make exchanges resistant to government interference, that is a bizarre move on their part, but, given that it was to be whitelisted rather than simply accepted, I’ve chosen to ignore it and pursue it anyway.
Besides, the purchasing of crypto-currencies is not nearly as important as the manner in which they are stored. HD Wallets are a necessity. By using rotating wallet addresses, a particular user can have their true wealth made completely invisible by anyone watching the network–a feature of Jaxx that caused 0.63 LTC to temporarily vanish from my wallet yesterday, in fact. Once the coins are purchased, it is easy to tell the IRS and government officials that one was hacked, and all the coins stolen, and it’s upon them to prove that this didn’t happen in the United States. Wish them the best of luck attempting to prove that you were not hacked. Golly gee, I certainly was. Yeah. Definitely. All of my crypto vanished, IRS. Some clever hacker just got my phone, and, yep… All of it went Poof. Just in case any government agencies are curious about why “constitution” and “crypto” are being discussed on an anarchists’ website, they should know that. That 0.63 LTC I mentioned? Hacked away, almost as soon as it reappeared in my wallet. Alas, alas, que sera, sera.
I’ve not given this the thought to actually put forward any serious white paper for any enterprising crypto-interested individual to consider, much less ten critically important amendments. That isn’t my point in this. I’m simply attempting to draw attention to a huge problem that crypto-currencies face, and the obvious solution to that problem. Bitcoin is proving that some sort of central leadership is necessary, and that having too many cooks in the kitchen just causes them to create too many freaking dishes, because Bob insists on using pepper, which would clash with the paprika that Janet is using, and Janet’s paprika would clash with the garlic in April’s dish.
Meanwhile, Ethereum continues on almost exactly as planned, with its hard-forks literally planned into the process for the beginning, and about to be implemented without devastating the network. But Ethereum, however well-intentioned and noble they may be, and however useful ether and the ethereum blockchain (separate from the currency) are, the fact remains that they are a standard company, and are far from incorruptible. This is the case with nearly every alt-coin. They are like people who seized government because they wanted government power, instead of seizing government because they wanted the people to be free. Obviously, because this last group requires such a high degree of principle that they are exceedingly rare, the Ron Pauls, John McAfees, and Daryl Perrys out there. They created crypto companies to make money, not to create a new currency and turn it over to the masses via democratic processes. No, the founders and creators want to keep themselves at the top.
We’ve seen the same thing with many of the new caucuses within the Libertarian Party, one of which I recently helped form before I became inactive in it because I observed exactly this phenomenon. The trick, it seemed, was that they wanted not to form a caucus that advocated and implemented a certain set of ideas independent of themselves while they were merely the ones who set it up, but wanted to form a caucus to be the heads of. It’s like the Libertarian Party county affiliates who wrote nothing into their bylaws about replacing the Chairperson. Imagine if Nolan and others had neglected to include any method of replacing them as the party leaders–it would have said quite a lot about their intentions, wouldn’t it? Props to the Audacious Caucus, however, for not doing this, and for having, from the start, bylaws that were about the principles, not the individuals who at that moment were advocating those principles.
And that’s fine that they created a crypto-currency and blockchain for the purposes of heading the company and being the ones with wealth and power. That’s fine, because Ethereum competes. But we badly need a structured crypto company to determine the direction of a currency that exists for the users, rather than for the company. What kind of person starts a new company and, before that company is even launched, writes into the very company’s constitution that the person who created it can be replaced and is not certain to lead it?
Such a currency would be successful, because it would be stable. It would remain successful because it would be competitive. It would offer people a place to store their wealth where they have a real voice to influence the direction, whether they were ignorant or wealthy, well-informed or poor, but where safeguards in the form of the “Bill of Rights” would ensure that, even if a vote did not go their way, there were constraints and limits on what could and could not be done with their wealth.
So someone do this. Be the next Satoshi. Do something not to be at the head of a powerful and wealthy company; do it to help the people of the world.