A cross post from Reddit, but very much worth a read, as it has a certain eloquence that many writers seem to lack.
http://themisescircle.org/blog/2013/05/29/crypto-anarchy-and-libertarian-entrepreneurship-chapter-iii/Bitcoin is an enormous improvement over PayPal, credit cards, banks, and it is even superior to gold in many ways. It can be teleported instantly anywhere in the world without relying on any institution other than a distributed network of computers. A Bitcoin wallet, properly secured, cannot be stolen. Banks are obsolete. It is more difficult to create new bitcoin than to create gold. It would be possible to create a machine that makes gold with nuclear reactions. It would be much more difficult to convince the Bitcoin community to accept a change to their software that would allow their currency to be inflated. Bitcoin is potentially, and I believe very probably, one of the greatest inventions in history. It fights squarely on the side of libertarians.
