Definition Of Anarcho-Capitalism

Definition Of Anarcho-Capitalism. In this post, we shall discuss about the definition of anarcho-capitalism. Concept of original appropriation and principles of anarcho-capitalism. We shall also study  free-market anarchism, free-market capitalism and variants.   

Definition of Anarcho-Capitalism is a vital topic. An American economist conceived Anarcho-Capitalism. His name Murray Rothbard. It is a political philosophy, accepted by people in crypto space.

Meaning Of Anarcho-Capitalism

This is the same as definition of anarcho-capitalism. Anarcho-Capitalism is a political philosophy that demands the eradication of centralized states. Its purpose is to encourage ownership of private properties.  

The philosophy is simple. If the market is independent, it builds a free society. It promotes the freedom of people to perform activities with each other. Therefore, government should not interfere.

Anarcho-capitalists believes that restraining people, slows down societal development. They frown at having states in capitalist community. This brings about disunity.  

Private agencies should take charge of contracts and conflict resolutions than the state. What Anarcho-Capitalists want, is for means of production to be privately own. There should be an organized system for work and commodities. So that, for any labor, there is a wage. Study more on the definition of Anarcho-capitalism.

Concept Of Original Appropriation

The purpose, is to permit individuals to own resources.

 The principle of original appropriation cuts across self ownership.  This is the right over your own body. It is believed that, blockchain-based decentralized technologies can solve problems of anarcho-capitalism. It can achieve this, by providing a different option for the division of duties of the state.

They claim that decentralized services provide an alternative to the division of state functions. This is by providing an unchanging public records of identities. It is achieved, by the use of smart contracts. Little experiments have been carried out in creating real communities. This creation is according to the principle of Anarcho-Capitalism. An example is Liberstad, which was founded in 2015. It is a private city-society in Norway.

Principles Of Anarcho-Capitalism

Principles of Anarcho-Capitalism, deals with the operation of anarcho-capitalism. Like we earlier discussed, Anarcho-Capitalism, is a political philosophy. It aims at advocating  ownership of private properties. This can be actualized by private agencies and free markets. Anarcho-capitalists put out that, a society can be self-regulated and civilized. This is through active participation in free market. This situation is described as a voluntary society.

The ownership of private properties will still be implemented in a theoretical anarcho-capitalist society.  Private defense agencies and insurance companies are there to enforce the system. This agencies play the role of law enforcement.

There are other philosophies that are like anarcho-capitalism. But Murray Rothbard was the first to use the word, 1940s. He rejected the labor theory of value postulated by Lysander Spooned and Benjamin Tucker. He also rejected their anti-capitalist and socialist norms.

 For Rothbard’s anarchocapitalist society to operate, it has to be registered. The registration must be under a consensual legal code. This agreement will be accepted in the court. The legal code encompasses contracts, private property, self-ownership and tort law.  

There is a huge difference between anarcho-capitalism, minarchism and anarchism. The state of a night watchman is protected in Minarchism. The night watchman protects individuals and private properties. Meanwhile, anarchism upholds anti-capitalist movement. It claims that capitalism isn’t suitable social and economic equality.

Anarcho-capitalists do not support libertarian socialist theory of anarchism. The believe that the are authoritative and use coercion.

Free-Market Anarchism

Free-market anarchism has to do with an anti-state political policy. Their aim is to bring anarchism and capitalism together. Free-market anarchism also works towards eradicating the state involvement and instilling law enforcement. Voluntary donors fund it. In their interest to develop the society, the ensure voluntary trade of personal property and services. The also give back to charity as part of their personal selfless principle.

Achieving the goal of private ownership can be stressful. There are some non-state property, that dwell in an anarcho-capitalist society. However, the state doesn’t interfere in the acquisition and transfer of the property.  When talking about individual freedom, the state can help to actualize this. The state should implement certain laws that secures the interest of citizens. The interest of the citizens should come first before the state.  

What Is Free-Market Capitalism ?

According to Anarcho-capitalists, free-market capitalism is the pillar for establishing a free society. Murray Rothbard said free-market capitalism is a “peaceful voluntary exchange.” This is the opposite of “state capitalism.”

He  defined it as a devastating partnership  between business and government. In state capitalism, there is use of coercion to bring down the free market.

 The main reason for free market capitalism, is to prevent the state from stealing the citizens’ properties. They do this by approving high tax rate and other tough measures.

Accepting a capitalism that is free from restriction can be difficult. This is because anarcho-capitalist and other social anarchists doesn’t trust in market.


Discussing Anarcho-Capitalism comes with similar or slightly different theories. Variants is an important aspect. Murray Rothbard is one of the leading economist whose theory is under anarcho-capitalism. Variants just deals with philosophers and their philosophy.

In Rothbard’s anarcho-capitalism philosophy, there will be an implementation. That is a mutual agreement of a legal code. The purpose of this legal code is to promote independence and reduce aggression.

One of the anarcho-capitalist philosophies, is by David D. Friedman. The philosophy is the system of law, produced for profit on the open market. This will cause an absolute libertarian society.

The philosophy of Murray Rothbard is based on absolute natural law. However, he gave an explanation. He said “You can establish Anarcho-capitalism on pragmatic grounds. You cannot establish it on absolutist natural law ground.”

Friedman said “ I am not an absolutist rights theorist and also not a utilitarian.” However, he believes that the best way to defend libertarian views is by utilitarian arguments.  

Another philosopher, Hans-Hermann Hoppe, uses unique ethics for his foundation. His foundation is based on private property anarchism. This his philosophy is similar to Rothbard’s natural law approach. This is all about Variants.


I believe in this article, you have been able to know the definition of Anarcho-capitalism, concept of original appropriation and principle of Anarcho-Capitalism. Also, you should have learnt the meaning of free-market anarchism, free-market capitalism and variants. It is advisable to also carryout your own research, you gain more knowledge on this topic.

See the List of things to learn.

  1. Blockchain Technology
  2. Defi
  3. NFTs
  4. DAOs
  5. Crypto
  6. Web 3.0
  7. Altcoin Tokenomics
  8. Metaverse
  9. Smart Contracts

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