A critical distinction between democracy and Bitcoin is that Bitcoin is an <i>opt-in</i> system.<p>Let&#x27;s say alternative Bitcoin software causes a hard-fork in the blockchain: you now how two currencies. The parties involved on each side of the chain might decide that it&#x27;s worth it to keep two competing currencies going, or they may reconcile the fork and return to running compatible software. In the end, the voluntary choices of the parties determine where they go (informed by economic incentives, of course).<p>Democracy is a system in which some group of people hold <i>coercive power</i> over the rest of the population. If the rules change (income tax, imminent domain), there is no opt-out short of leaving your property, family, career and moving to another country. Your compliance with the new rules of the game is ensured at the end of a gun.