Ty Simpson: Crytosecession & Taxation

Advanced Cyber/IO, Money
Ty Simpson
Ty Simpson

Cryptosecession and the limits of taxation

Cryptosecession is the use of cryptographic and blockchain-based technologies (e.g. Bitcoin, Ethereum, Bitnation) to economically secede from incumbent institutions—namely, the state. Jason is at the 2016 Public Choice Society conference at the moment, where he’ll be presenting a paper in which we show that the threat of cryptosecession exerts an even greater limitation on government over-taxation than fiscal federalism and political secession. Things aren’t altogether rosy, though, because this elicits a sort of ‘arms race’ between secessionists and the state. All depends on the ability to secede to the ‘crypto economy’, which in turn depends on the relative development of crypto technologies of opacity (or resistance) versus state technologies of legibility (or control). The paper can be viewed here and slides for the talk are here. Below is the abstract, and a couple of slides that sum up the argument:  Read more.