Even though he's been critical (and like Peter Schiff, completely wrong) about cryptocurrencies, Martin Armstrong has been forward looking on this point of taxation being obsolete. His proposal is to do just money printing instead to pay for government, but from the centralized entity of a central bank, using old school checks and balances to limit the currency dilution. Obviously we know how that ends up, because it always fails, and the incentives are wrong to prevent abuse. You pointed out exactly why Hive, or something like it, is a far superior solution to this. The incentives line up here, and it's bound to work then.

With a central bank, the necessary monopoly currency is coercive in nature, just like taxation. The negative effects are just hidden better. With something like Hive, participation is voluntary, and for small players, they can exit at any time without negative consequence. Monopoly fiat currencies and their currency dilution hurt this group the most, so it seems to be the most effective way to keep them from becoming economically captive in some way. It's the big players who can't just hoist anchor and leave. It would destroy all the wealth they built in the community, so all of the incentives are there to keep their behavior responsible and in support of maintaining the community in good faith.

That political spectrum diamond is genius by the way. When you go to the extremes, the solutions proposed by both left and right wing leaning people tend to converge, so the square shaped diagram doesn't really work. There's another diagram that was floating around the aether a few years back that illustrated it as a horseshoe. I like this diamond much better because it tells us a lot more with a more elegant and simple illustration.