Review of The Sovereign Individual
The Bible for Bitcoin Maximalists?
Let’s talk about The Sovereign Individual. I kept hearing it crop up in nearly every single podcast with Bitcoin as a theme, so, when in Rome, read the book. Or something like that. Anyway, turns out this book isn’t just a book; it’s a crystal ball wrapped in historical parallels, sprinkled with futurism, and dipped in a bit of “end-is-nigh-for-nation-states” doom. (But is it?) James Dale Davidson and Lord William Rees-Mogg don’t just want you to think differently — they want you to rethink everything. And yes, it’s as dramatic as it sounds.
Imagine sitting in 1997, drinking your instant coffee, and someone tells you that by 2024, your government might lose its grip on power, cryptocurrencies would become a thing, and your neighbor could choose their tax rate like picking a Netflix subscription. You’d probably laugh them out of the room. But fast-forward to today, and suddenly, Davidson and Rees-Mogg don’t seem so crazy?
The Big Idea: Nation-States Are So Last Season
The authors argue that we’re at the dawn of the Information Age, which they claim is the fourth great stage of human organization. First, we hunted and gathered. Then we farmed. Then came factories. And now? It’s the era of microchips, algorithms, and “sovereign individuals” — people who live autonomously, slipping through the fingers of traditional governance like data packets on the internet. Or something like that.
This shift, they say, isn’t just a footnote in history; it’s a seismic event. Just like the printing press led to the Reformation and the gunpowder cannon dismantled medieval fortresses, information technology is rewriting the rules of sovereignty, economics, and, well, governance. In their view (back then), the nation-state — our modern-day Roman Empire — is on its way out, and a decentralized, meritocratic, digitally-driven future is rolling in. Maybe they were early, or just maybe they were too late?
The Nerdy But Important Stuff: Megapolitics
Davidson and Rees-Mogg introduce “megapolitics,” which sounds like something your overly enthusiastic poli-sci professor would teach, but it’s actually kind of genius. It’s the idea that technology, geography, and even things like disease determine who gets to control violence (yes, they really lean into this “violence” theme). Historically, whoever controlled violence controlled power. But now, technology is lowering the “returns to violence,” meaning brute force isn’t as effective anymore. Why invade a country when you can just hack their servers?
The Sovereign Individual: Who Is This Superhuman?
Picture this: You’re a hyper-educated, tech-savvy person (probably wearing minimalist sneakers) who works from your laptop in Bali. You’ve moved your money into crypto, your business is registered in Estonia, and you pay taxes in… wait, do you even pay taxes? You’re Davidson and Rees-Mogg’s dream come true: a sovereign individual, free from traditional government control.
They argue that in this new world, people will start shopping for governments the way we shop for gym memberships. Countries will have to compete for “customers” (a.k.a. citizens), offering lower taxes and better services. This might sound like a libertarian utopia, but the authors make it clear that it’s not all sunshine and rainbows.
The Good, The Bad, and The Dystopian
Here’s where things get spicy. The authors are pretty pumped about this new world — especially for the cognitive elite. These are the people who will thrive because they can adapt, innovate, and leverage technology. The rest? Well, they might not fare as well. The middle class, especially in advanced economies, could take a major hit, and inequality might skyrocket.
Governments, meanwhile, won’t go down without a fight. The book predicts they’ll try to hold onto power through authoritarian measures like asset seizures and heavy-handed regulations. So while the future might be great for some, it’s going to be rough for a lot of others.
Why You’ll Either Love This Book or Throw It Out a Window
The Sovereign Individual is one of those books that makes you think, “Wait, are we talking about the future or some dystopian sci-fi novel?” The authors’ sweeping historical analysis is fascinating, and their predictions about things like the rise of cryptocurrencies and the global mobility of wealth feel eerily spot-on. But their tone? It’s a mix of “We’re so right it hurts” and “Sorry-not-sorry if you don’t like it.”
Think of the book as an intellectual rollercoaster: thrilling, occasionally nauseating, and definitely not for the faint of heart.
Are You Ready to Be Sovereign?
Whether you see The Sovereign Individual as a roadmap to Braveheart-style freedom or a cautionary tale of Orwellian chaos, one thing’s for sure: it forces you to confront some uncomfortable questions. What happens when governments can’t keep up with technology? How do we balance individual autonomy with some sane level of governance?
