Those who engaged in Bitcoin markets post-2017 encountered a different paradigm and vision compared to their predecessors. Presently, little attention is paid to the period spanning 2010-2016. Instead, focus lies on the upward price trend, eliciting excitement over the appreciation of their asset portfolios.
Gone are the discussions about the separation of money and state, a market-driven medium of exchange, or a transformative revolution that could influence global politics. The discourse on reshaping the monetary system to enhance freedom has also faded. The Bitcoin community now pursues different objectives.
Amidst this evolution, a crucial juncture emerged where this digital asset could have shielded numerous users and businesses from rampant inflation stemming from corporatist statism, facilitated by central banks’ monetary monopoly. However, the original purpose of the symbol BTC was gradually diverted.
The notion was eloquently articulated by F.A. Hayek in 1974. Throughout his career, he advocated for prudent monetary policies, grappling with the resistance of governments and affiliated institutions that prioritized currency manipulation for elite gains rather than public welfare. Hayek ultimately proposed a fundamental separation of money and authority.
In his 1976 writings, Hayek underscored the necessity of stripping the government of its monetary control to prevent an unchecked expansion of state power, which posed a severe threat to civilization. He emphasized the pivotal role of curbing government’s access to additional funds to forestall its unrestrained growth.
The challenge in realizing this vision lay in technical and institutional obstacles. As long as the state-backed currency functioned adequately, there was little impetus for change. The impetus for reform would not arise from the ruling classes benefiting from the existing system, a flaw that undermined previous arguments for the gold standard. How could this obstacle be circumvented?
In 2009, an unidentified developer or group introduced a white paper outlining a peer-to-peer digital cash system, designed in technical jargon rather than economic terms. While economists initially found its mechanics perplexing and dubious, the system’s efficacy became evident in 2010. By leveraging a distributed ledger, double-key cryptography, and a fixed quantity protocol, it introduced a novel form of money that seamlessly integrated currency and settlement mechanisms.
Bitcoin realized Hayek’s envisioned ideal, which had previously seemed unattainable. The distributed ledger, reliant on internet connectivity to globalize operational nodes, introduced unprecedented accountability. The fusion of payment methods and settlement mechanisms on such a scale represented a groundbreaking development. Bitcoin’s escalating value, facilitated by the distributed ledger, underscored its market acceptance.
Personally invested in this innovation, I authored numerous articles and even penned a book in 2015 titled Bit By Bit: How P2P Is Freeing the World. Unbeknownst to me, those were the twilight days of the original vision, preceding the protocol’s transformation under a consolidated group of developers. They steered Bitcoin away from its peer-to-peer cash concept towards a lucrative digital security model, relinquishing its role as a challenger to state currencies in favor of an asset held under third-party control.
Witnessing this evolution firsthand was disheartening. Our sole recourse now is to narrate this tale comprehensively, a task undertaken adeptly by Roger Ver in Hijacking Bitcoin. This seminal work meticulously presents the facts, allowing readers to draw their conclusions. I was privileged to contribute the foreword, encapsulating the essence of this narrative.
The recounted narrative delves into the tragedy of a liberating monetary technology co-opted for divergent purposes. While disheartening, this narrative also signals the potential for rectifying Bitcoin’s hijacking and rekindling its emancipatory promise. Despite the setbacks, the opportunity for this groundbreaking innovation to emancipate the global economy persists, albeit through a more convoluted path than anticipated.
Roger Ver emerges as a silent hero in this saga, embodying profound expertise in technology and unwavering commitment to Bitcoin’s emancipatory ethos since its inception. His dedication to peer-to-peer currency for the masses and a competitive market for alternative currencies is commendable. This work stands as a crucial historical document, challenging entrenched beliefs and ideologies. Painful yet indispensable, this book serves as a testament to the enduring struggle against co-option and betrayal.
The narrative of Bitcoin’s trajectory echoes familiar themes observed across various sectors. Institutions conceived from noble ideals often succumb to external pressures, deviating from their original purpose. Bitcoin’s journey mirrors this pattern, underscoring the vulnerability of institutions and ideas to compromise and corruption in our imperfect world.