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 Politics are composed of people who need to win majorities in public votes to maintain their positions. If all of those elected have to fight for the support of long term Bitcoin holders who value freedom above all else, I can't see a system where totalitarianism runs as rampant as it does today.

What I'm thinking of isn't so much using politics to fix things, but the adoption of Bitcoin creating a more self sovereign voting base to limit the power of politicians.