When we discuss bitcoin, we usually focus on its importance as independent, scarce money. But we do not point out enough the importance that it can not be censored. Nobody can block a bitcoin transaction from going through.
Bitcoin’s network is rock-solid, secure and durable. It is successfully serving as an uncensorable form of money and is used by citizens all around the world as an alternative currency. Wherever inflation is high or access to the financial world is limited, bitcoin is there.
Bitcoin’s uncensorable and scarce qualities are going to be increasingly important going forward.
Take PayPal for example. PayPal is turning its back on its original mission of being a democratized, easy and simple to use payment system. It is now restricting participation who they define as being unworthy to use it. But who defines who is unworthy? The move has worrying implications for financial freedom, and financial censorship is a trend that’s only going to accelerate.
With the development of central bank digital currencies, governments will be able to track and block any transaction they don’t like. That makes alternative, decentralized and uncensorable payment systems such as bitcoin more important than ever.
Sven Franssen