What is Bitcoin and Why Do Governments Hate it?

by George Hess

Within the mainstream media and economic journals, Bitcoin and other alternative currencies have become synonymous with fake money, price instability, and speculative investment. To some extent, these media outlets are correct. Bitcoin has no inherent value; it is very similar to the dollar bill and all fiat currencies in that regard. It is worth little more than the memory it occupies or the paper it is printed on. It does not have intrinsic value like gold or silver. What gives bitcoin and other currencies value is confidence, or people’s willingness to use the currency for transaction. Furthermore, Bitcoin has had a rapidly fluctuating price and is a very volatile market laden with speculation. So while the mainstream media has adequately discussed the basic qualities of Bitcoin and the recent alternative currencies market, it has failed to perceive Bitcoin’s wider implications.

Bitcoin is freedom. Bitcoin is a currency completely outside of government control. It breaks the rules. It is non-taxable, immune to inflation, and completely decentralized. What does this mean? All transactions with Bitcoin must be voluntary. It breaks down the government’s ability to quickly and forcibly levy funds. Imagine for a moment a world where bitcoin is the universally accepted form of currency. Governments can no longer tax in the same way that they could with physically currency. Because all transactions are voluntary, they must petition the people for funds. What does that mean? It means an incredibly accountable government, one that can no longer indiscriminately wage war, or redistribute wealth without the express consent of its citizens. Poor results prompt the withdrawal of funds. Morally reprehensible actions also prompt the withdrawal of funds. The government would then be accountable in the same way that businesses are accountable, and can be boycotted.

This is why governments have taken action against bitcoin. They have associated it with money launderers and terrorists, when in actuality Bitcoin represents something much nobler. It represents the ability to decide whether your money goes into drug prohibition, aggressive and expansionist foreign policy, the prison-industrial complex, or none of the above. It puts the power in the hands of the people and breaks the monopoly of state power.

Where has Bitcoin become popular? It has given the Argentinian people an alternative to the disastrous monetary policy that has been in effect since the early 1900’s. It has become popular in the United States where inflation has become the state’s catch-all solution for the ever increasing national debt. Bitcoin is a free-market solution to a problem created by governments. It is a revolutionary development towards individual freedom and away from state mandated spending and control. The state’s attempts to ban it are promising indications of its ability to challenge government hegemony and affect sweeping social change in the future.



  1. If bitcoin can survive into a trusted currency, despite governmental pressures, then all is not lost.

  2. What is Bitcoin? Something far greater and more valuable than any government can create in fiat currency. Why do they hate it? That’s easy. because they know how much of a game-changer it is, and it takes control away from them.

    Governments hate ANYTHINg they can’t control. With government, it’s all about control.
    Their control. How do you feel about that?

    Evander Smart

  3. […] via What is Bitcoin and Why Do Governments Hate it? | The California Review. […]

  4. “And I can see you – Your brown skin shining in the sun – You got your hair combed back – Sunglasses on baby”.
    – Before you step out to go sunbathing, ascertain that your skin is clear
    from any ingredients of makeup creams and cologne liquids that would make your skin more
    disposed to sunburn. Of course, a fresh coconut cake is always a special treat at Christmastime,
    just as using coconut in the favorite holiday fruit salad of the
    south, Ambrosia.

  5. Much less pleasant but equally essential is understanding expertise these kinds of as cleansing dentures,
    feeding individuals, having temperatures and measuring catheter output, all of which totally get
    ready students for the expertise evaluation test.
    Data coverage: market sizes (historic and forecasts), company shares,
    brand shares and distribution data. The doctors and the physicians must be experienced and trained in handling the laser instruments.

  6. When one hear the term plastic surgery, the first thing come into mind
    that it is related to a star (TV or movie actor) who trying to delay
    the effects of aging. You have to be very clear about why
    you want the nose surgery done. This massage also encompasses the beauty facial techniques making this a
    wonderfully relaxing massage to receive.

  7. The rank and file performance will be given a formal rating every six
    months — this will be the basis of their salary increments.
    They portion of people do not copy their styles from their elders or younger as they set their own style.
    Finding the very best, proper and fairly as well as measurement prom dress may possibly appear like a daunting job.

  8. There is no such thing at the moment but there are goods that
    promise to stop additional hair loss and maybe restore some of
    the lost hair, if the follicles haven’t completely withered away.
    The platinum blonde is a much sought after persona, and the look, an elegant
    and beautiful one if carried off properly, is a much desired and much employed part
    of dressing up. The magnitude, the effect rate, and the duration of the hair
    loss depend on the phase when the interference occurred.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: