Bitcoin's release in 2009 marked the beginning of a new era in human history. It had been a while before anyone had tried to successfully challenge fiat's monopoly on currency issuance. While Bitcoin didn't attain success overnight, it did eventually catch on like a wildfire.
Initially it was perceived as a toy for programmers, gamers and other tech nerds. Most laughed and didn't take it seriously at all, even predicting when it would die. Some later regretted their initial skepticism and changed course, while others continue to double down on predicting Bitcoin's death, even to this day.
Fast forward to today, and Bitcoin is now one of the most important "assets" to own and is now a force to reckon with. The prevailing narrative from the early days of Bitcoin, which has largely persisted to this day is that of "hodl your Bitcoin and never sell". Whilst there was a time and an era where this was prudent advice, that era is behind us now. We are now at the "then they fight you stage".
Today MiCA officially goes into full effect. Meaning less freedom and more surveillance for Bitcoiners in the EU. This trend isn't going to slow down. In Australia the travel rule also goes into effect today, which requires that all crypto sent and received on locally-regulated crypto exchanges will require users to provide additional information, such as the name of the person the crypto is being sent to or received from, and the name of the platform. So much for eliminating trusted third parties, as the pseudonymous and permissionless Bitcoin ecosystem is being KYC'd and choked at the fiat on/off ramps.
How did we get here? Well there is no single answer to this question, but one of the main reasons for this is that most Bitcoiners were all hodling waiting for number go up and the promised land of hyperbitcoinization. This passivity lulled people into a false sense of security as the assumption was that "Bitcoin has already won fellas, let's sit back, relax and watch the fiat empire collapse."
The fiat overlords went from being clueless about what Bitcoin was to building CBDC rails in less than a decade. The BIS Innovation hub was established in 2019 and since then has conducted over 30 different pilot projects that cover everything from wholesale CBDCs to retail CBDCs. The ECB is projected to be ready to roll out the digital euro by 2029, with at least 100 other countries currently at different stages of piloting their own CBDCs. The irony of it all is that most of these CBDC projects were in part inspired by Bitcoin's rise and were a reaction to its growing traction.
Yes, Bitcoin did also make its own major strides and I am not in any way implying that there was zero progress. The lightning network, coinjoins, silent payments etc, are examples of some of the Innovations at different stages of implementation that the Bitcoin network has made not to mention the plethora of companies out there with different products and services that are making a dent in the world.
That said, Bitcoin is still vulnerable and the ghouls in charge are doing everything in their power to destroy it. They obviously know the network is solid and can't be shut down or inflated, so they are poisoning the waters around it; while selling "safe solutions" like CBDCs and stablecoins to the public who still think money is a state invention. They never mention the endless debasement or rising debt levels in their pitches for obvious reasons and tend to keep the masses hypnotized with faster, cheaper payments and other more convenient solutions.
With all this stuff happening around us, passively "hodling to the moon" is akin to sitting on a railway track as a freight train approaches at top speed! Hyperbitcoinization is not an event but a process that is kicked into gear by individuals adopting Bitcoin, not via national state adoption as the prevailing popular myth goes. Those that value Bitcoin's freedom features, all have a part to play in this fight. Hodling alone will not stop a CBDC from being imposed in your country or your privacy from being compromised by anti-privacy and anti-human legislation.
Here are a few ideas that I think will be helpful in cementing Bitcoin's place as freedom money. First it's super important to STOP using centralized exchanges for acquiring/selling Bitcoin. These are surveilled choke points that will keep you tethered to the fiat system but once CBDCs are rolled out, it will likely not be possible to use CBDCs to purchase Bitcoin. Better wean yourself ahead of time. Using P2P alternatives like Hodl-Hodl is the way to go. Further to this, earning and spending in Bitcoin is another logical way to bypass these KYC'd choke points. Your privacy is yours to protect, and freedom will never be handed to you as a passive hodler.
Secondly if you're an entrepreneur or have aspirations of becoming one, having BTC as a payment option is important. Square (in places that it has reach) has already made this super easy for its merchants. Bitcoin is money and should be accepted for goods and services. Of course this suggestion would require each entrepreneur to take risk that they are comfortable with, legal or otherwise, whilst also bearing in mind that once the CBDCs becomes the new game in town, this opportunity will likely be out of reach by then. The day is coming where if you haven't laid the foundation for opting out now, you will not have the option in future.
For the builders and Devs, I guess the path is more straightforward. Now is the time to build more privacy preserving applications and services. Definitely there has been a lot of cool tools that have been built over the years but the landscape we are in is a different one where privacy is under assault and this attack has to be met with tools that the BIS Innovation hub, will have counters to a decade from now. Unless most people are able to use bitcoin without friction, they will likely be bamboozled by the shiny UX's from team fiat.
The rest of us have loved ones we can educate, or gift bitcoin, or merchants (including your local farmer, baker and butcher; books that can be written, and many other things that are important in ensuring that Bitcoin's use as P2P e-cash is increased. These suggestions aren't exhaustive and those with bigger imaginations than mine can envision more. The point remains the same; passive hodling is fastest way to end up in the gulags.
Hodling has its place but it can't be the entire strategy. Bitcoin is money and should be used as such.
add build up cryptographic web of trust with people you know.
Aye 🤝🔥
well said. Too bad its purchasing power keeps falling... somebody said something about melting ice cubes, yes?
What's going down is its fiat price not its purchasing power
try reading that sentence once more, and then make sense of the words
Unless this is sarcasm, I'm lost, please explain.
Money's price is definitionally its purchasing power. To say that it's only bitcoin's fiat price going down, not purchasing power, is a strict contradiction
You didn't mention the increased importance of home mining in places that are cracking down on non-KYC exchanges. Start finding uses for that waste heat around your homes and communities, so there's a steady injection of fresh sats.
You are right and thanks for pointing that out 🤝 Will incorporate that in a part 2 because that's definitely important given how low the barriers to entry for home mining are now