Bitcoin Mining: A Beacon of Democratic Liberty Amidst Monetary Tightening

Hello everyone! I'm Sam Kiernan, a Bitcoin Mining Analyst, eager to share my insights on Bitcoin mining and the broader industry. As this is the inaugural article of this series, we're starting off with a philosophical perspective on Bitcoin mining, along with pertinent updates, including the recent monetary tightening. So, without further ado, let's dive in!

Mining Bitcoin: An Act of Freedom

The philosophy of Bitcoin mining extends far beyond the mechanics of validating blocks and acquiring bitcoins as a reward. It represents the "vita activa," a term coined by political philosopher Hannah Arendt, symbolizing proactive engagement and freedom. Let's decode this.

Bitcoin miners aren't merely participants in a network but active contributors shaping the ecosystem's present and future. As a Bitcoin miner myself, it's not uncommon to hear me say, "Supporting the network is one of the greatest things I can do," because, to me, Bitcoin is a tool for human liberation. The essence of mining, thus, intersects with Isaiah Berlin’s interpretations of negative and positive liberty.

Negative liberty represents freedom from intervention from governments and other people. It's about charting your path without constraints. Positive liberty, on the other hand, embodies the act of participating and realizing one's potential. It's not just about being able to do something; it's about actually doing it.

This concept emphasizes the idea of non-domination and learning to co-exist with others. As long as we have a say in the decisions that affect us, "intervention" does not limit our freedom. Rather, consented and authorized interventions could enhance it.

Bitcoin mining personifies this concept of positive freedom. Miners aren’t bystanders but active validators, ensuring the integrity of the entire network. It’s not reserved for the elite or those with significant capital but open to anyone with the right tools. It's democratic and collectively strengthens the system. Even with criticisms of concentrated mining, it's essential to note that many of the largest miners are public entities. Their ownership and decision-making are dispersed into boards, thus distributing power. Mining Bitcoin, in essence, is an exercise in positive freedom.

Fed's Monetary Tightening & Bitcoin

Switching gears to more immediate concerns, the Federal Open Market Committee (FOMC) recently resumed rate hikes after a one-meeting pause, raising its benchmark fed funds rate by 25 basis points to a targeted range of 5.25%-5.50%.

This move doesn't seem to have significantly impacted Bitcoin's price, which remained steady at around $29,300 in the immediate aftermath of the announcement.

It's worth mentioning that despite the Reuters survey showing that most economists expect the recent hike to be the last one this cycle, the Fed’s own projections suggest otherwise.

Regardless of these uncertainties, the beauty of Bitcoin lies in its decentralized nature, and it is this freedom, this "vita activa," that we, as miners and supporters, choose to emphasize. Even as we navigate these tightening monetary policies, Bitcoin continues to be an arena of democratic liberty, where every miner is an active participant in shaping and preserving the ethos of decentralization.

Stay tuned for more updates from the world of Bitcoin. Remember, we are not just participants; we are contributors, shaping the future of this global cryptocurrency, one block at a time.

Footnotes

[1] (https://www.coindesk.com/consensus-magazine/2023/07/27/mining-bitcoin-is-an-act-of-freedom/)