Bitcoin Blockchain Demonstrates the Value of Anarchy – Bloomberg

The fact that Bitcoin was designed to confound human decision-making is a feature, not a flaw. The core protocol is tasked with enforcing the single rule most crucial to the cryptocurrency’s value: no counterfeit spending. By contrast, the U.S. dollar is burdened with effecting monetary policy, enforcing sanctions, fighting crime and much more. The more functions a currency has, the more things there are to argue over, and the more likely the community will be to fracture. Bitcoin’s uncompromising focus allows it to serve a broader user base.In blockchains, anarchy is the worst form of governance except for all the others. That said, it’s still possible that Bitcoin didn’t get things right the first time around. As more people get involved, coordinating decisions will become even more difficult, and Bitcoin’s inflexibility may prove too limiting. 1 Even Ethereum, which once executed a $55 million loss recovery on three days’ notice, is finding it difficult to repeat the procedure 18 months later. Any decentralized cryptocurrency has a limited window in which to coordinate decisions. So let the creative experiments begin.

Source: Bitcoin Blockchain Demonstrates the Value of Anarchy – Bloomberg