Billy Jo

May 2021 · Edited March 2026

The Sovereign Individual thesis — Bitcoin is the exit from the nation-state

Bitcoin is insurance, not rebellion. Exit is optional, but increasingly necessary.

I read The Sovereign Individual by Davidson and Rees-Mogg, written in 1997. It predicted the internet would break the nation-state's grip on violence and taxation. When the cost of protection surpasses what's being protected, the institution collapses — like the Catholic Church in the Middle Ages.

Bitcoin is the financial tool that turns this prediction into reality. It's the first asset history has seen that can't be seized, inflated, or taxed without your consent. It's your exit from the nation-state's financial system.

But there's more. The authors hinted at a physical layer of escape. Bitcoin solves money. Starlink solves connectivity. Together, they create a full exit kit — one that works even if a country's infrastructure falls apart around you.

Look at Ukraine in 2022. Banks froze, but civilians moved wealth with Bitcoin. When internet cables were cut, Starlink kept connections alive. This isn't a thought experiment anymore; it's happening.

"Anyone with a portable computer and a satellite link will be able to conduct almost any information business anywhere, and that includes almost the whole of the world's multitrillion-dollar financial transactions."

The crowd thinks Bitcoin is just speculation. It's not. It's political technology. But not anti-government. I served near North Korea. I respect what governments do: defense, police, infrastructure. Bitcoin is insurance, a backup plan for war, currency collapse, or capital controls. You hope you never need it — but you want it anyway.

People also say governments will ban Bitcoin. History says otherwise. Institutions fight to protect revenue, but new tech wins eventually. The Soviet Union tried to block PCs and Xerox; it failed. Same with Bitcoin.

The full sovereignty stack today: Bitcoin for money that can't be frozen; Starlink for internet beyond borders; a second passport for mobility; flag theory to pick your legal home. You don't need all at once, but Bitcoin is the key that unlocks the rest.

"In the future, when most wealth can be earned anywhere, and even spent anywhere, governments that attempt to charge too much as the price of domicile will merely drive away their best customers."

In ten years, this thesis will be mainstream. Those who bought Bitcoin early will be like offshore capital movers before 20th-century confiscations. This isn't about getting rich. It's about preserving freedom.

Davidson and Rees-Mogg wrote about a "portable computer and satellite link" in 1997. Today, that's your smartphone and Starlink. And Bitcoin runs the financial layer. They were not early. They were exactly right on time.

Exit is optional, but increasingly necessary.