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2024-12-03 16:52:24Like many others, I am still navigating my path toward a Bitcoin circular economy. While I’ve earned my first sats, building a sustainable livelihood solely from Bitcoin remains a work in progress. At the same time, my enthusiasm for working in a fiat-centered world diminishes daily.
This reflection is not only about my personal journey but also the broader question of how people worldwide can transition into a Bitcoin-based economy. Here, I’ll share my thoughts on adoption, the narratives shaping Bitcoin’s role, and how individuals like us can contribute to this shift.
Digital Capital vs. Peer-to-Peer Payments
A key debate in the Bitcoin space centers on two narratives: Bitcoin as "digital capital" and Bitcoin as a peer-to-peer payment system. Michael Saylor has championed the digital capital narrative, especially among institutions, but this focus has drawn criticism for overshadowing Bitcoin’s origins as a payment network.
As a former entrepreneur and sales professional, I see value in both perspectives but also pitfalls if one dominates. 1. The Value of Digital Capital: The concept of Bitcoin as "digital capital" is a powerful one, and Saylor deserves credit for popularizing it. Capital represents the sacrifices that drive progress, and Bitcoin, as hard money, is 100% capital—unlike fiat, which is 100% liability. This distinction is critical and deserves recognition. 3. The Danger of Custodial Sirens: However, the digital capital narrative risks losing a vital part of Bitcoin’s ethos: self-custody. When institutions like MicroStrategy rely on custodians to hold their Bitcoin, they reduce it to a liability. The old adage rings true: Not your keys, not your coins. Without self-custody, the foundation of Bitcoin’s value—its decentralization and trustless nature—weakens.
Takeaway: Bitcoin can be both digital capital and a peer-to-peer payment system, but only if self-custody remains central to its adoption.
Grassroots Adoption: The Power of Peer-to-Peer
Bitcoin adoption is thriving where people need it most—regions like South America and Africa, where fiat currencies often fail. In these places, Bitcoin’s peer-to-peer nature is not just a feature; it’s a lifeline. In contrast, adoption in Western countries faces challenges. Regions like Finland, once pioneers in Bitcoin payments, have lost momentum. The average person here is more likely to chase “the next Bitcoin” or other tech trends than to understand what truly sets Bitcoin apart.
Self-Custody Is Key: What differentiates Bitcoin is self-custody. This encourages users to care about decentralization and peer-to-peer networks. Without it, Bitcoin risks becoming just another centralized asset.
The Path Forward:
To make Bitcoin more tangible and legitimate in everyday life, we need to connect it to real goods and services. When people see “Bitcoin Accepted Here” signs, they perceive it as real money. The solution is simple but powerful: * Start selling products and services in Bitcoin. * Create and support marketplaces—both local and global—that use Bitcoin as their primary medium of exchange.
These changes won’t happen overnight, but they will grow naturally as demand increases. Each step we take helps build the circular economy we envision.
Final Thoughts
Bitcoin adoption requires action. Whether you’re offering goods, services, or simply holding sats in self-custody, every step counts. It’s better to do something small today than to wait for a perfect system tomorrow.
Let’s chip away at the fiat mindset, one sat at a time.
Thank you for reading!
Sophos
P.S.
Looking for original Bitcoin content, marketing copy, or creative writing? I’m a pen-for-hire with three books under my belt and a background in sales and marketing. I’d be happy to help bring your ideas to life—paid in sats, of course.