How Bitcoin Protects Private Property Rights
This time around, we will continue to talk about the role of the bitcoin in philanthropy, in the realm of private property rights. But earlier than we talk about it, we need to recognize why non-public belongings is so important.
One of the biggest drivers of economic growth and a high standard of living is private property rights.
The idea is that you own the fruits of your labor as well as everything you buy from the fruits of your labor. To illustrate this, suppose you are working for a company and you save a lot of money to buy a car. You own the money you earn (which is the fruit of your labor) and the car. The government has to protect your property from being stolen by other private individuals, and the government itself cannot take your property without reason and / or just compensation.
Private property rights are important because they stimulate productivity. People are prevented from working if the money they earn or the goods they buy can be confiscated without warning or compensation.
And in a society where people are encouraged to work, there are fewer products and services available and fewer innovations. These three factors are key drivers in improving the quality of life in the region. Every year there are better cars, better phones, computers and faster internet due to private property rights.
But, property rights do not exist naturally. They must be enforced by a government that punishes people for stealing other people's property as well as not encroaching on their own citizen's property. And, unfortunately, many countries around the world do not have a government to do so.
For example, the Chinese government will cut off people from Alipay and WeChat Pay, popular Chinese payment systems, if they make statements that are against the current dictatorial regime. Russia will freeze human beings's bank money owed in the event that they unfold news that works against the Kremlin and its pursuits. And in 2021, Nigeria froze the bank accounts of anti-government protesters.
Lack of respect for private property harms the citizens of these countries and puts them in a worse condition of life than other independent countries. It is no coincidence that democracies are richer than dictators.
HOW DOES BITCOIN PROTECT PROPERTY RIGHTS?
The Bitcoin blockchain, by design, makes it impossible for private and public actors to gain control over someone else's money. Blockchain is protected from theft and unitary control because it is a decentralized system. The blockchain is spread across a network of computers called nodes, and to control the blockchain, you must control at least 50% of the nodes in the network. This is a virtual impossibility because the energy and resources required to control 51% of the network would be invincible by any practical measure today. Blockchain has met the test of time, 51% of which is still under the control of a single actor, and as the number of nodes increases, the likelihood decreases.
Under a dictatorial regime, citizens do not have to worry about the government stealing their bitcoins, nor do they have to rely on incompetent governments to protect their property.
For millions of people around the world, bitcoin is the first opportunity for them to exercise their sovereignty over their own money. They have control over their money and they don't have to worry about anyone stealing it. Bitcoin is helping them protect the human right to private property.
