Bitcoin In Grips of Communist Takeover


The man who claims to be Satoshi Nakamoto, Craig Wright, took to his blog this week to warn Bitcoin and cryptocurrency developers that “his” invention is not for communists.

Wright bemoaned the current trend in the cryptocurrency space, which sees many coins launch with built-in developers funds or pre-mines. According to Wright, this is tantamount to a communist takeover, and simply places all of the risks on the purchaser of such coins – not the development teams themselves.

Craig Wright: Dev Funds Are Communist

Writing on, Craig Wright claimed that the idea of developer rewards, “presents simply a form of techno-socialism.”

Development funds have become a common feature in many modern coin launches. The teams behind such coins often argue that development funds are needed to get their projects off the ground. Investors are often happy to indulge in this practice because they seek profit and want their chosen investment to succeed.

Craig Wright, however, argues that the only people who should be paid in the Bitcoin ecosystem are those who need to be – that is, miners. He wrote:

“The incentives in Bitcoin do not require that developers be paid. The only party that requires payment and the only party that can be validly paid is made up of the nodes (aka miners).”

Bitcoin in Grips of Communist Takeover?

Wright goes on to claim that dev funds are an example of people attempting to avoid the judgemental glare of the free-market. Instead of seeking to monetize their efforts, these developers merely attempt to subsidize their own existence with investors’ money. Wright wrote:

“So yes, it is just an attempt at a communist takeover. It is removing risk from themselves and putting it onto everyone else. It is subsidising their own existence, by placing the cost of their income on everyone else.”

The unspoken subtext in Wright’s latest rant could perhaps be Bitcoin Cash (BCH), and its recent attempt to fund developers by implementing a tax on its miners. However, the infrastructure funding plan (IFP), as it was known, was rejected by the Bitcoin Cash community during a technical update on May 15.

Craig Wright claims developers shouldn’t be funded, as doing so would disrupt the entire incentive system. Instead, says Wright, developers should be beholden to the free-market, just like everyone else. He wrote:

“There is no reward necessary for developers, and to incorporate such a system skews the entire incentive system, adding a group of technocrats that are not necessary in any manner.”

The post ends by stating that free-market competition is the backbone of Bitcoin’s incentive system, and that…

“Communists need not apply.”

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