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Previously, I also wrote about Bitcoin Anarchism on a well-known bitcoin forum, namely Bitcointalk.org. But here I will explain in more detail. So, do you think Anarchism and Bitcoin are related to each other? Do you think that Anarchism and Bitcoin have nothing to do with it? If you think that bitcoin has nothing to do with anarchism, you are wrong !. In my opinion, Anarchism and Bitcoin have the same link. Okay, let's talk one by one about anarchism, bitcoin, and the relationship.
In a language dictionary, anarchism is defined as "the teaching (understanding) which is against every state power; a political theory that dislikes government and laws ”. Even though there are anarchists who justify any means, there are also many anarchists who avoid using force and violence in realizing the social order they want.
One of the greatest examples of anarchism in action was in 1936 when the Spanish revolution took place. About five to seven million people join a social structure without a government. Everyone performs their duties according to their respective responsibilities: some work in agriculture, work in factories or schools, to withstand attacks from the military. The results of this work can be enjoyed by everyone according to their individual needs, not based on what they have given to the community.
In this example, the absence of a ruler does not produce things that citizens in general fear, such as violence and crime everywhere, people living in hunger, the law of the jungle applies, and so on. The anarchism that occurred at that time was very different from the meaning of anarchism that was introduced by the government and its media.
In a true sense, one form of anarchy that is currently developing is Bitcoin. Bitcoin, which has been around since 2009, is hotly discussed today. The busy discussion of Bitcoin (and transactions using it) made the Central Bank feel the need to conduct a study of Bitcoin. The Central Bank's move seems to make entities with an interest in Bitcoin feel the wind of attention from the payment system authorities.
Bitcoin is a virtual currency. Everyone can get Bitcoin by mining. To be able to imagine how Bitcoin is mined, we can remember a time when our teacher taught quadratic equations in school. In the past, we were taught how to find the root of the square equation. The quadratic equation x2 - 5x + 6 = 0, for example, will produce the numbers 2 and 3 as a solution. The process of mining bitcoin is a process of finding one of the roots of the equation created by Satoshi Nakamoto, the originator of the Bitcoin concept. The first person to come up with one of the solutions to the Bitcoin equation will be rewarded with bitcoins.
The solution to the algorithm is a block of 64-bit numbers which is equivalent to 50 bitcoins. At the time of writing, 1 bitcoin is equivalent to around USD 33K. Multiply yourself to calculate the results you get if you get 50 bitcoins. A sufficient amount to buy a large urban house.
But wait. Mining bitcoins is not as easy as those calculations. The Bitcoin equation is also of course much more complicated than the quadratic equation that is exemplified. As an illustration of the level of difficulty, the number of digits in a 64-bit number is 2 to the power of 64 or 18,446,744,073,709,551,616 digits to be precise. With devices that are sold in the market, an ordinary computer device can only collect 0.00000060 bitcoins in 24 hours. With a capital of USD 200 to buy equipment plus the electricity consumed, it may take more than 6 months to return on investment.
Moreover, bitcoin is designed to become increasingly difficult to obtain over time and more and more people are using bitcoin. Every four years, the value earned from mining bitcoin halves. Thus, the value of bitcoins can be maintained against the price of goods. The number of bitcoins alone is limited to 21 million Bitcoin, which is expected to be mined by 2140. This design allows Bitcoin to maintain its value, without the interference of third parties as authorities. Bitcoin is designed to break the current economic order which is controlled by the government and supported by the banking system.
Apart from the design, the anarchic nature of Bitcoin is supported by a community of supporters. The Bitcoin transaction system is recorded in a shared database called the blockchain. This blockchain is stored by bitcoin miners who are also recorders and confirm transactions with bitcoin.
Every time a transaction occurs, the user will ask for a request to update the blockchain. If you can determine the validity of the bitcoins used in the transaction, then the update will be added to the blockchain and the transaction will be confirmed.
Bitcoin is a form of anarchy in the economic system. The Bitcoin system is designed to self-rule and is supported by the application of technological advances so that it looks amazing to fans of mathematics and technology. However, given the example of anarchism that was successfully implemented in Spain, everyone must do their part in their respective roles for this concept to be successful.
Unfortunately, virtual communities are not as ideal as the anarchist community at the time of the Spanish revolution. Without any authority, there is theft, fraud, piracy related to bitcoin. Not to mention the misuse of bitcoin to buy illegal goods or services such as narcotics and hitmen. However, the biggest concern for bitcoin will occur if the supporting community no longer plays their big role, namely; trust Bitcoin.
Bitcoin's biggest weakness is that there is no underlying currency to it. Gold is recognized for its value because of its noble, shiny, anti-rust properties, good electricity conductor, and so on. If everyone suddenly stopped recognizing gold as a currency, you could at least wear it as jewellery or as a power cord which is nicer than copper. However Gold still has the benefit of its intrinsic properties.
The US dollar, although more absurd, the underlying causes can still be understood. Since the US dollar has no underlying gold deposits, the current value of the US dollar is based solely on people's trust in the American government. Thus, the value of the US dollar fluctuates depending on the performance of the American government. If at any time everyone no longer believes in the American dollar, the American government must buy all of these dollars. A little absurd, but still accepted by everyone today.
Meanwhile, the value of Bitcoin is a single 64-bit number which matches the algorithm developed by Satoshi Nakamoto. The amount is limited and not easily obtained. However, what makes Bitcoin valuable so that a seller is willing to sell his item in exchange for block numbers? Only because the seller is sure that someone else is willing to accept the payment with the number block. With such an underlying, people's belief in Bitcoin as a currency is as primitive as using shells as a currency based on trust. If people's trust in the value of Bitcoin decreases slowly until finally if that trust is completely lost, then 64 bits of that number are as worthless as the HVS paper on which USD 100 is written and drawn with the face of President Bill Clinton.
Therefore, wishing Bitcoin success is the same as expecting an anarchist social order to succeed. It seems impossible, but in fact, an anarchic social order can be carried out with satisfactory results. The anarchist social order that occurred in the Spanish Revolution described at the beginning of the article, lasted for more than 2 years before the invasion of General Franco managed to conquer areas controlled by anarchists.
As the latest information, social anarchy which is also supported by economic anarchy in Spain is carried out extremely. For one thing, the people who supported anarchism in Spain at that time burned government money. As a result, coupons (and even just trusts) can be used to get fruit and vegetables. If you support Bitcoin for success only so that later it can earn a lot of money, you are only trashing the brilliant concept of Bitcoin anarchy.