If Bitcoin doesn’t work for drug dealers, it doesn’t work for anyone.

The Litmus Test

Hi Plebs,
A lot of people worry about criminals using Bitcoin for illegal activities. But focusing too much on the criminals distracts us from the bigger question - can Bitcoin really work as a currency for everyone?

The truth is, if Bitcoin can work for criminals, it means it can work for anyone. For Bitcoin to be a successful currency, it has to work for all people, even criminals.

Now, this doesn't mean criminals should use Bitcoin for illegal things. That's not what we're saying at all. What we're recognising are the properties that allow Bitcoin to function as intended in the first place.

Think of criminal activity as a test for Bitcoin. If Bitcoin doesn't even work for drug dealers, then it won't work for normal people either. But if it does work for criminals, that means it can work for anyone who wants to use it.

If it was possible to censor certain Bitcoin transactions based on the activity, or individuals involved. That would make it possible to censor any transactions at all. And let's be honest, if there was a group to censor, criminal enterprises would be the prime target.

So, while criminal use of Bitcoin isn't something to promote. It actually highlights Bitcoin's fundamental strengths as a permissionless currency system. The bigger issue is ensuring it works for all, not just opposing specific uses.

When people say Bitcoin "works," they mean the core network system behind it. It doesn't matter if companies accept Bitcoin from certain addresses. Or if banks freeze accounts tied to those addresses. Those things don't impact Bitcoin's future success.

The important thing is whether the Bitcoin network itself would approve a transaction block, as long as it follows all the consensus rules. In other words, would the miners and nodes reject a transaction just because of who sent it, even if it’s a valid transaction?

Bitcoin can only truly work as a currency because it has become decentralised. With no central control. But having no central control isn't the end goal itself. The real goal is censorship resistance. Making sure the currency system runs free without any outside interference.

And censorship resistance isn't about protecting criminals. It's about protecting Bitcoin's basic role as a decentralised money system.

Keeping the network rules intact, based only on Bitcoin's normal process. Not outside censors, is what allows Bitcoin to work permissionlessly. This ability to work freely with no gatekeeper is vital for Bitcoin to serve as a fair currency for everyone.

Cheers, and onwards with Bitcoin.

Next
Next

How Bitcoin's Fixed Supply Provides True Price Signals