Bitcoin Is Anti-Democratic and That’s Good!

February 10, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

It is a common misconception that Bitcoin (BTC) is a “democratic currency”. In fact, the cryptocurrency is not based on democracy, but on consensus. And there’s nothing wrong with that, it’s even beneficial for everyone involved:

The current spirit of age uses “democracy” almost synonymous with “the good”. Bitcoin (BTC), however, overcomes this paradigm: in the case of cryptocurrency, the rules are not shaped by the will of the majority, but by consensus.

The consensus is not a system of rule, but a mechanism through which voluntary cooperation is made possible. Democracy, on the other hand, gives the majority the right to impose their will on one minority.

Consensus, however, means that every participant — and without exception — must recognize the rules of the system. If you do not use the right software, you can not send digital coins in this system, it is incompatible. But does not that automatically mean discrimination and exclusion of dissenters? On the contrary!

Anyone can get into the Bitcoin ecosystem or say goodbye to it. Just as it suits her or him. If you think another consensus is more in line with your own beliefs, you can switch your bitcoins to a compatible altcoin or build a whole new network.

Hard Forks as peaceful conflict resolution

But what if a faction does not want to leave Bitcoin, but wants to change it to its own will? That’s not a problem at all. Because regardless of whether this group owns the majority of the coins or the mining equipment, they can not impose on the other side their ideas of the ideal system.

When two parties split, a fork is made and those involved can be saved on their own terms. In the future, there will be just two cryptocurrencies with a different orientation.

As is known, such a case occurred on August 1st, 2017, when Bitcoin Cash (BCH) split from BTC. After long trying to convince the Bitcoin community to introduce larger blocks for better scaling, the BCH faction simply put their plan into action. Not with the original, but with a new, newly created coin.

No one was forced to do anything. BTC owners were given just the same amount of BCH after the fork and then decided if they wanted to exchange those tokens for BTC to increase their bitcoin inventory. Likewise, BCH fans were free to exchange their BTC for Bitcoin Cash or just keep both coins. All alone the free market decides what prevails.

Compare that to a currency reform under a democratic government: The citizens have virtually no choice but to give up their old money and exchange it for the new legal tender. A fair competition, in which the best currency prevails, does not take place.

Author: Marko Vidrih