Renowned venture capitalist and influencer Naval Ravikant on Sunday described cryptocurrencies as free-market technology that would eventually replace the “socialist” fiat system.
Free Markets Over ‘Socialist System?’
In an X post, Ravikant referenced the Nixon Shock of 1971, when President Richard Nixon ended the dollar’s convertibility to gold.
This, he argued, marked a transition from a “natural system” where the dollar was pegged to a scarce commodity to a “socialist system” backed by the government’s authority and credibility.
“Crypto is tech to replace socialist money with a free-market system,” Navikant stated.
The AngeList co-founder added that market systems are “inherently competitive” and new forms of money will continue to emerge to “challenge” incumbents.
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The Counter-Arguments
Supporters of Ravikant's theory argued that the fiat system centralizes money supply in the hands of the government, which goes against their concept of “capitalism” and free markets.
Wale, an X user, questioned how cryptocurrency is any less of a “socialist” asset in light of centralized exchanges, exchange-traded funds, and real-world asset tokenization.
Cory Klippsten, the founder and CEO of Bitcoin-based (CRYPTO: BTC) Wealth Platform Swan Bitcoin, dismissed the “socialist” narrative of fiat, deeming it “a deliberate wealth transfer from workers and savers to asset holders and debtors.”
In an X post dated Aug. 23, Klippsten said Bitcoin is “way better” for communists and socialists.
Ravikant is known for bullish views on Bitcoin, having previously deemed the asset as the ultimate store of value among cryptocurrencies.
Price Action: At the time of writing, BTC was exchanging hands at $95,671.28, down 0.38% in the last 24 hours, according to data from Benzinga Pro.
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