One of the reasons that the State fails to maintain its control is because it’s competing with the creative potential of every human on Earth. Let’s take the drug war. The federal government of the United States has been dealt significant blows in its crusade against cannabis in recent years as individual states have legalized consumption of the plant either entirely or in approved manners. Hoping to regain some semblance of control, the feds tried to use their influence on the banking industry to make life difficult for cannabis related businesses. However, the centralized banking system isn’t as powerful as it once was:
Enter bitcoin, the cryptocurrency that consists of digital coins “mined” by computers solving increasingly complex math problems. At least two financial-technology startups, POSaBIT and SinglePoint Inc., use the cryptocurrency as an intermediate step that lets pot connoisseurs use their bank-issued credit cards to buy weed.
Once a customer decides on which marijuana product to buy, an employee asks if he or she would like to use cash or digital currency, Lai said. If the buyer prefers the latter, the Trove employee explains that the customer can use a credit card to buy bitcoin through a POSaBIT kiosk, with a $2 transaction fee tacked on.
The customer, who would now own bitcoin equal to the value of the purchase, can then redeem the currency in the store. Or the buyer can keep their bitcoin and use it anywhere else that accepts the currency. If the customer finishes the purchase in the store, POSaBIT, which pockets the transaction fee, then sends the value in U.S. dollars to Trove’s bank account.
Cryptocurrencies have been making the State red in the face ever since the first person realized that they could be combined with hidden services to perform anonymous online transactions. Now they’re disrupting the fed’s war on drugs in the physical world in states where cannabis has been legalized.
Cryptocurrencies are a technology gun stores should also be looking into. Banks have been closing the accounts of many businesses tied to the gun market. Technologies like Bitcoin and Ethereum could allow these businesses to circumvent the need for centralized banks by either utilizing an intermediary like the cannabis industry is starting to do or by being a direct store of wealth outside of a third party’s control.