I’ve recently delved into the works of Robert Greene and have been struck by the profound influence Niccolò Machiavelli had on his thinking. This realization has piqued my interest, compelling me to want to explore Machiavelli’s seminal work The Prince. So I bought the book and look forward to reading. In the meantime I found a a GPT to help me better understand Machiavelli’s ideas. From my research it seems like his teachings can provide a lens through which one can examine various modern phenomena, including the emergence of Bitcoin.
Machiavelli’s views on power and governance are centered around the pragmatic and often harsh realities of political life. He posits that to maintain power, a ruler must be willing to operate beyond the bounds of conventional morality. In The Prince he counsels rulers to be cunning, ruthless, and pragmatic to preserve their states and their power. Machiavelli famously suggests that it’s better to be feared than loved if one cannot be both. Yet, he also stresses the importance of image and public perception, advising rulers to appear virtuous, even when their actions might not be, as public favor is a powerful tool for control.
Reflecting the turbulent nature of Renaissance Italy, marked by incessant warfare and the rise and fall of city-states, Machiavelli’s philosophy acknowledges that power is often secured and maintained through force, deceit, and strategic alliances. His work does not glorify cruelty or malevolence but rather presents them as unfortunate but necessary tools in the complex and often perilous game of politics. His insights are not meant solely for tyrants but for any leader in a precarious position, suggesting that a deep understanding of the darker aspects of human nature and power is crucial for both preserving good and preventing ill.
This Machiavellian framework is intriguing when applied to Bitcoin. Like Machiavelli’s ideal prince, Bitcoin operates within a realm of stark realities. Its fixed supply counters human greed and the destructive tendencies of inflation, much like a wise ruler who understands and anticipates the base nature of their subjects. By capping the total number of bitcoins at 21 million, its creator, Satoshi Nakamoto, ensured that no single entity could devalue the currency through mass production. A common tactic in fiat systems that erodes wealth and exacerbates inequality to enrich those who control the money at the top.
Bitcoin reflects Machiavellian principles through its establishment of a steadfast system, impervious to the capricious tendencies of leaders or the fluctuating moral compass of humanity. Its foundational protocol mandates uniform rules, not governed by the virtues of individuals but by the unalterable principles of mathematics and cryptography. However, like Machiavelli’s prince, Bitcoin presents a duality: it liberates individuals from the control and tyranny of centralized systems but also demands a new kind of responsibility where users must be their own bankers and protectors. In this new digital realm, understanding and navigating the Machiavellian undercurrents of power, greed, and control becomes paramount.
I always say that people come to Bitcoin for the number go up technology and stay for the liberty it can bring into the world. While it’s tempting to view Bitcoin through an altruistic lens, a Machiavellian analysis reveals a more complex and robust foundation. Nakamoto’s creation is not merely a testament to human cooperation but a strategic defense against our more destructive tendencies. In an era fraught with uncertainty, Bitcoin stands as a bulwark against the darker aspects of human nature, channeling them into a system that, paradoxically, might just bring out the best in us all. This deeper understanding makes me increasingly bullish on Bitcoin, viewing it not just as a currency but as a Machiavellian masterpiece in the digital age.
1/2/24
Conor Jay Chepenik
