The Effete Rebellion of Bitcoin
February 17, 2015·0 comments·market structure
Bitcoin is celebrated as the ultimate rebellion against centralized control, yet the very feature that makes it independent from government also makes it legally indistinguishable from a 13th-century bearer bond. There's a fundamental contradiction at the heart of Bitcoin's appeal. The thing that makes it rebellious is the exact thing that makes it catastrophically risky for anyone outside a criminal enterprise.
• Bitcoin's independence comes with a hidden cost. The technology that prevents government interference also strips away all liability protection. If your private key is stolen, there's no insurance, no "forgot your password" button, no recourse. You are, as the saying goes, SOL.
• We've forgotten what bearer bonds actually were. For centuries, they were the preferred tool of criminals because possession meant ownership, no questions asked. The US government spent decades eliminating them. Bitcoin is just the same problem in modern dress.
• Our expectations about money are shaped by 60 years of federal insurance. Since the FDIC made cash deposits essentially risk-free, we've grown accustomed to the idea that we can't lose a dime. Bitcoin offers the opposite bargain. That's not liberation. That's a regression.
• The real appeal of Bitcoin has nothing to do with its function as currency. It signals technological sophistication, anti-government sentiment, and a touch of outlaw mystique. The same identity you might express with a tattoo or a hoodie. Except your tattoo won't bankrupt you if someone steals it.
• What happens when people realize this isn't an investment or a store of value, but a fashion accessory with catastrophic downside risk? The appeal survives only if the rebellion remains theoretical, something worn but never truly tested.
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