Law shapes the acceptable bounds for culture, yet culture is a leading indicator for law.

How does Law shape Culture?

  • Criminalizing (or even making hard) certain activities pushes them out of the mainstream. Eg:
    • Europe’s red tape has dampened the entrepreneurial culture there.
    • US’s soft criminalization of cryptocurrencies has led to strong decentralization in base layer.
  • Laws also attract (or repel) people that share the the culture the law promotes.
    • Silicon Valley is not a place, but a people.
    • Taxes, extradition push people to places.

How does Culture shape Law?

  • As the culture becomes mainstream, politicians supporting the culture eventually rise to power and laws are shaped based on the culture. Eg:
    • UBI, stimulus, drugs.
    • Bitcoin’s culture determined the winner of the blocksize wars. Ethereum’s culture determined the outcome of the DAO fork.

Culture Instead of Law

  • Law should lay down the bare minimum needed to thrive.
  • Guiding principles should come from culture instead.
  • Law should be flexible enough to enable innovation but rigid enough to prevent malicious abuse.

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