Bitcoin and Prohibition


POSTED BY JAMES CLAYTON ON APRIL 7, 2014


One of the reasons I don’t worry about the games being played with Bitcoin, is that I have a very good understanding of history and how behavior played out during prohibition. (Also a reason why I have been buying and mining Darkcoin – I will get to that later) At the start of prohibition alcohol consumption fell sharply, almost 30%. Over the next few years however, most everyone realized the government was full of shit and started drinking again. Not a little, but way more! Vast underground empires were built upon it. Consumption went up 60-70%! Respect for authority fell drastically, and gangsters were sometimes even portrayed as “heroes” as the banks and regulators were so corrupt.

Basically, it backfired, not a little, but in the worst way imaginable. They lost revenue, respect, people were more in danger as it was riskier without any agreed upon rules… and they increased the use of what they tried to stop and lost control of it entirely. That was with large bottles of liquor that are hard to hide and easy to find, not with virtually untraceable electronic cash that can be hidden on a piece of paper or in any tiny electronic storage device. What they risk is not only losing some revenue, they risk hastening the revolution dramatically by trying to slow it down. Seems they didn’t learn from history at all.

Sure, worst case this will suck that we can’t buy stuff at horrible mega corps with Bitcoin that are outsourcing jobs and lowering our standards of living, but best case people could perhaps in theory buy stuff much cheaper and just say “fuck them”, not that I am suggesting this, I am just saying that is what is going to happen in this scenario. They may quickly lose all control and relevancy by being so overbearing and cumbersome. The funny thing is, when they finally realized their policies were more harmful than good, and finally ended prohibition: PEOPLE NEVER WENT BACK TO THE LOWER LEVELS OF DRINKING. Prohibition permanently increased alcohol consumption in America.

So, they have a choice, they can talk to people that understand the tech, a little at least, and figure out a solution that makes them somewhat relevant for a short period of time into the future, or they can radically hasten the loss of their own jobs and all control. Those are the only real choices they have, short of shutting off the entire internet and turning into some serious bad guys – and hoping the people don’t rise up against them. In that worst case scenario, that simply hastens the revolution and that is why I think Darkcoin looks like a pretty good investment, either way.

Not to get all doom and gloom or anarchist on everyone here, but really, it doesn’t matter what they do. The future is set and the people will be free even faster in the long run if they try and stop it. Centralization is archaic and will fade away over time, just like Kings and Queens. They will be quaint things people look at in the future and think how did we ever get by with all these fools trying to run everything, while running it so poorly?