By enforcing debt collections, protecting private property, and spending on inevitable things like military and police however the government already has a significant effect on the market. Choosing not to direct this effect is simply irresponsible.
This is the most important error out of all his silliness. If we're to presuppose as "good" things like protecting property rights, enforcing contracts, punishing crimes like rape, murder and theft (and I agree), then we can say that government is able to perform some of these "good" functions; however, none of these "good" things ever take place without the people taking part in government doing "bad" things. Mostly we're talking about extortion and robbery (AKA taxes), but it includes things like military conquest as well here.
This is the first thing any statist is going to struggle with, simply acknowledging the reality of the essential nature of states. If they can even start to do that, then it becomes a matter of thinking that these aggressive actions are justified on some sort of utilitarian grounds. At this stage comes a lot of wishful thinking along with whatever pseudo-economics, "If we just elect the right people, they'll be handing out new counterfeited notes to the poor next time."
After that, we're to the classical "But who will build the roads?" stage. Much more so in law than in economics is there work to be done in showing how problems are solved. Libertarian theory is in some ways quite new and still developing, though in some others time-tested, age-old wisdom. So, I agree that not only is not "directing" my actions toward (at least paying for) the protection of private property irresponsible, but knowingly directing my actions toward an inferior means (i.e. a state) of accomplishing the goals in mind is irresponsible. States only do "good" things by doing "bad" things first, so if we can figure out how to do more good with less bad, I'm for it, and bitcoin is an example of a way.
This is not to disparage solely you Babylon, the anti-capitalistic mentality is a common affliction, but I am really not interested in the type of faulty arguments you are putting forth. I'm not here to debate someone who isn't going to learn about what they wish to argue against. Please try to read some of the books people have suggested because there is a wealth of information out there. Bitcoin is a real life experiment regarding Gresham's law, viz. bad money driving away the good. See here for instance,
What Has Government Done to Our Money? -- Fiat Money and Gresham's Law.
Even this is really an advanced concept. I suggest again Murphy's book or the first couple hundred pages of Mises'
Human Action in order to understand the fundamentals.