Bitcoin’s Existential Crisis
Cryptocurrencies lack leaders — they have no single source of truth. Philosophically, this can get complicated.
Identity is a troublesome thing — for humans, nonliving systems, and objects alike, especially as they change over time. Humans can rely on essential traits like DNA to serve as stable markers of identity, and nonliving systems (corporations, for example) can rely on governments and legal systems to anoint them with stable identities.
Cryptocurrencies and public blockchains, though, have no such privilege. They aim to decentralize their leadership without relying on a single third party in establishing their identity. Instead, they rely on subjective social- and economic-consensus mechanisms. While some cryptocurrencies use foundations or corporations to resolve disputes and arbitrate core issues of identity, that’s a fragile approach and generally not consistent with the objectives of these systems.
The most sustainable approach for cryptocurrency is to dispense with the kingmakers, bite the bullet, and leave it to intersubjective consensus. This requires a commitment to a set of practical values that constitute the essence of the system. Systems with more internal consistency and more universally agreed upon value sets are better equipped to last.
