The Bitcoin Industry and the Principle of Subsidiarity

Abstract

This article evaluates the Bitcoin Industry from the point of view of the principle of subsidiarity. Bitcoin is the first successful cryptocurrency because of its algorithm, distributed-ledger technology, use of anonymity, and cross-border nature. Anonymity and cross-border nature avoid control of monetary authorities. Bitcoin’s market share and market capitalization are the biggest among cryptocurrencies. But what is Bitcoin?  Is it a currency, a payment system, a speculative asset, a commodity, a tax haven, an asset suitable for money laundering, all together controlled by “miners,” or simply a computer file? According to the principle of subsidiarity, all forms of collectivism are contrary to the formation of a harmonious society, and private initiatives should not be taken away by a higher power. On the other hand, individuals or groups of people cannot be equated with sovereign states or global institutions. Bitcoin enthusiasts are libertarians who glorify technology, despising any ethical or social control. They support an erroneous idea of subsidiarity that argues that subsidiarity is a matter of devolution of power or smallness of scale in favor of individual freedom and a utilitarian common good.