This is an engineer, a lawyer, BTC Trust.
“I have been working on a new electronic cash system that is completely peer-to-peer without the need for a trusted third party.”— Satoshi Nakamoto
Sitting outside the pub late afternoon on one of the perfect Fall days in Colorado. I’m meeting fellow bitcoiners I met in Austin late this summer. As the sun set behind the mountains, the sky turned orange, setting the perfect backdrop for lively Bitcoin conversations.
When we ticked off the typical list of all we agreed on — censorship is bad, red meat is good, etc. — we made blunt comments that we wish more businesses would accept Bitcoin as payment. “No, why do you want to break up with Satz?” was the reply he threw back. Of course, a true bitcoiner would value Satoshi more than anything else in the world. Why trade them for groceries, T-shirts, or beer? Laszlo HanietzThe idiot exchanged 10,000 bitcoins for two pizzas.? I have not repeated that mistake. Tell me when Bitcoin hits $200,000 he.
This mindset is not just my new friend. This is the sentiment presented by Michael Saylor and others in his HODL community. They will supportBitcoin is the scarcest asset in the world.digital gold“Buying Bitcoin is like buying real estate in Manhattan 100 years ago’, ‘Don’t sell Bitcoin! I call this the HODLer’s dilemma.
But is this really a dilemma? Satoshiinnovation? With the proliferation of the Lightning Network and uncustodial mobile wallets intuitively operated by parents (or children), do we need to evolve our understanding of Bitcoin’s value proposition? I believe it’s time to stop thinking of it as a means of preservation and start conceptualizing it. primarily as a means of exchange …it is also about preserving value better than any other asset on the planet. If you haven’t paid attention yet, there are several reasons.
“Bitcoin is convenient for people who don’t have credit cards or don’t want to use them.”— Satoshi Nakamoto
Now is the time to start breaking away from the system. Signals are stronger than ever. Today, we live in a world where fiat currency systems can:
all this happening today, And that’s probably just the tip of the iceberg. In a retail system where cash transactions are increasingly scarce and inconvenient, the majority of large banks, credit bureaus, and payment systems appear to have an existential stake in controlling our behavior. acquiesce to seemingly governmental demands..
Of course, Bitcoin is no censorship panacea — at least it is the most commonly purchased and exchanged method today. Canadian truck driver protest Promised to suppress the voices of their citizens, governments have shown us that they will do whatever it takes to do so, and in the process licensed exchanges and chain analysis techniques have allowed addresses to be blacklisted or donated. It has taught us that it can be very effective in identifying and identifying users. I have. However, we encourage others to accept and trade Bitcoin by exchanging everyday goods and services with peers and traders as often as possible. It can be robust, decentralized, and difficult to censor. Privacy-minded communities naturally choose to adopt non-custodial wallets, engage in collaborative transactions, and avoid KYC exchanges. Growing and educating this community has never been more important.
Convenience and autonomy
“E-currencies based on cryptographic proofs make transactions easier and money safer without the need to trust third-party intermediaries”— Satoshi Nakamoto
A common objection to Bitcoin transactions is that they are too complicated or too slow compared to credit card swipes. This is no longer true. Now, any beginner-level bitcoiner can download her Muun Wallet and within minutes send Lightning invoices to her clients to pay via her QR code. Coinkite has an NFC device that allows users to sign transactions with a simple tap of the card. There are many, many more examples. The beauty of these solutions is that they are completely non-custodial. This means that there is no central third party controlling the coins. The software simply allows the transaction to be broadcast to the network. Lightning transactions settle instantly, with fees an order of magnitude lower than Visa and Mastercard’s traditional 2-3%. (For example, I recently had a fee of about $.60 for a transfer worth $700 USD. rich ranch beef last week. That same transaction would have cost about $20 if I was using Visa. )
Moreover, these transactions promote autonomy for both parties. Lightning transactions, like all other transactions backed by Bitcoin’s proof of work, occur without counterparty risk. Risks such as consumers not paying their bills, disputing charges, not having enough money in their accounts, or filing for bankruptcy in the future are excluded from the equation. All this risk manifests itself as transactional inefficiencies, the costs of which are absorbed directly or indirectly by merchants and consumers. An untrusted system like Bitcoin is therefore more efficient, reducing risk for merchants and ultimately lowering the price of goods and services for responsible consumers.
“I believe that within 20 years, trading volumes will either be very high or disappear altogether.”— Satoshi Nakamoto
It’s good to think of all transactions in terms of Bitcoin. If money really is a store of value, we take a cautious approach to spending and account for the potential increase in value that money might have in the future. This is true regardless of whether you are using the SAT or dollars.website bitcoinorshit.com I emphasize this point very bluntly.
There is also a story that Laszlo Hanieczfamously bought two pizzas for 10,000 BTC in 2010. In fact, considering his BTC market value over a decade later, Laszlo would have paid billions for pizza. But I am amazed when Bitcoiners accuse his Laszlo of being economically naive and use this example to support their position that Bitcoin should never be used. The simple truth is that virtually everyone who bought a pizza in 2010 spent thousands of bitcoins.The only way to avoid this is to eat cheaper or go hungry. Understanding this has fundamentally ended the public controversy over using bitcoin for products and services.
The overwhelming majority of us need to exchange financial energy for goods and services in order to survive in today’s society. which Products and services take precedence over opportunities to earn more sats. It’s a personal and unique decision for each of us.The answer should be considered independently regardless of whether that monetary energy is spent in sats, dollars or yen – it is monetary energy only. Saved — What’s left — This is important when it comes to the HODLer’s dilemma.
The more you start trading with BTC, the more BTC you can potentially save. For one thing, we tend to be more discerning about our purchases when dealing with solid money, a proven store of value. Sure, we really want new iPhones. You may decide to wait another year before upgrading and keeping these sats for the future. On the one hand, we all need food, shelter and clothing. If you can choose to buy meat from Costco with your Visa card or directly from a ranch that accepts Bitcoin, why not choose the latter?
Currently, the number of merchants accepting Bitcoin is steadily increasing, but relatively few. As bitcoiners begin to realize that the theory of “using dollars to save sats” can be counterproductive, more people will seek goods from merchants that accept bitcoin for payment. This surge in demand could drive merchant adoption and shift the timeline of the Bitcoin economy significantly to the left.
More Exchange Equals More Value
“More users means more value per coin. It can create a positive feedback loop. More users means more value, attracting more users to take advantage of that value. can do.” — Satoshi Nakamoto
This is where we are sitting today. A growing number of speculators and Bitcoin enthusiasts are embracing the idea that Bitcoin is a true store of value. The community further believes that scarcity of assets will inevitably lead to tighter supply, causing prices to skyrocket. Admittedly, this could simply be caused by his HODLing act, but as Satoshi Nakamoto points out, the higher the number, the higher the value. user Go up. Is buying and holding an asset considered use? If the brilliance behind Bitcoin is that it allows peer-to-peer transactions without a third-party Why don’t we just use that ability and not just stack and spend?
I believe that for Bitcoin to reach its full potential as a store of value, it needs to become a true medium of exchange. Demand is fundamental to Bitcoin’s price, as value does not come solely from scarcity.Bitcoin utility It is in this moment of demand power that its true potential as a store of value is realized. Today’s economic and political context may be just the motivation we all need. But until bitcoin became an integral part of our daily economic activities, it tended to be valued alongside other speculative assets, the same fiat currency system it was trying to replace. It is easy to be swayed by whims.
Guest post by Scott WardenOpinions expressed are entirely our own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.