Is social upheaval good for bitcoin? I asked Nick Szabo.
Note: This is the second in a series of questions. See Also: Could Cypherpunks have done cool stuff without in-person interactions?
A collapse in societal trust will generally increase demand for trust-minimized assets like gold and Bitcoin. People may come to realize that the trusted third parties they were relying on are not as reliable as expected.
For example, people are learning the hard way that police have no legal duty to protect you. Banks, exchanges, and custodial wallets are also security holes. You and your account are just bits to these operators, who will freeze or seize your assets when political winds shift strongly enough against you.
Bitcoin has what I call “deep safety”, in that it’s secure against legal and political threats. As opposed to an asset like Treasury bonds, which avoids volatility risk while being vulnerable to everything else. A situation that creates legal and political instability might be good for Bitcoin, but will be bad for the world in general.
Personally, I would rather not have societal collapse, even if it is good for Bitcoin. Only a sociopath would be in favor of massive death and destruction for the sole purpose of making a number go up.