The Bitcoin war: How governments are rigging the system

There’s no doubt that Bitcoin will change the economic world forever — but Logan Allen, the founder and CEO of Zorp Corp — is well-aware that the crypto technology doesn’t come without its issues.

“As a technology, it’s been fundamentally limited,” Allen tells James Poulos on “Zero Hour.” “Political forces found a way with Bitcoin to create a scarce resource that they could control and thus manufacture solutions.”

“So in other words, there’s a small group in the Bitcoin community that have made Bitcoin unable to scale through various types of factious arguments and political squandering and or political squabbling,” he continues.

Now, solutions to these manufactured issues are being sold.

“They call them ‘lightning,’ they call them ‘liquid,’ they call them all of the things, just different layers that you can stack up and try to get people to use. But all of these layers reintroduce a problem that Bitcoin was fundamentally created to solve,” he explains.

“That problem is actually a legal problem called the ‘third-party doctrine’ and amusingly, all of the problems that are proposed for fixing Bitcoin and scaling it reintroduce this third party,” he continues.

The third-party doctrine is a legal loophole around the Fourth Amendment, which Allen explains allows the government to know where we are at all times.

“As long as we choose to have a phone, because there’s a third party between us and the government that’s collecting our information. And so, by the third-party doctrine, the very fact that we need to use a telecommunications network in order to have our phone, and that the telecommunications network knows where we are, means that we actually opted into exposing our information and neglecting our privacy,” he tells Poulos.

“This is true in money as well as in communications,” he continues. “So Bitcoin was created to solve a very particular problem in the privacy space, which it was solved. It was built to remove the third party.”

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