Time to join the Bitcoin circular economy
Manufacturers of 3D printed weapons operate with the slogan “Free men do not ask permission.” They do not ask the state for permission to carry weapons. They don’t trust gun manufacturers to make a weapon that they would like to see developed. In doing so, 3D gun printing works in parallel and outside of the legacy model of regulated manufacturers producing serialized, compliant guns that can only be purchased through third-party licensed firearms dealers after passing verification. state background.
A “Bitcoin circular economy” is based on the same principle. Freemen do not ask for permission to transact with each other and do not trust legacy third-party financial institutions that operate in conjunction with state authorities.
In this article, I’ll define the circular economy of Bitcoin, provide examples, describe its benefits, and give tips on how to get started.
Defining the circular economy of Bitcoin
A Bitcoin circular economy (ECB) is Bitcoin.
The title of the Bitcoin white paper is “A Peer-to-Peer Electronic Cash System.” The “system” is an economy consisting of pairs in a network, which trade with each other using bitcoin. You are acquiring bitcoins by earning it or receiving it through donations.
“Circular” is a bit redundant. But it helps to describe Bitcoin economies where participants frequently trade with each other, rather than describing the totality of all Bitcoin transactions on the P2P network.
A common misunderstanding is the scale of this economy. A Bitcoin economy is not the size of a nation-state, replacing economies based on central banks. The minimum size of a Bitcoin economy is three participants. Three participants are a network, a system. An ECB is parallel to the fiat financial system.
One misunderstanding about Bitcoin economies is that they are all or nothing.
“Internet commerce has come to depend almost exclusively on financial institutions that act as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers from the inherent weaknesses of the trust-based model. “
Satoshi Nakamoto, The Bitcoin White Paper.
Individuals and businesses operating in a Bitcoin economy can, and often must, also use fiat. One can think of Bitcoin economies as the Tor network of money: separate, more private, and much harder to censor. Clearnet works well enough for most people and Internet applications. However, for certain people and applications, Tor is required. Of course, if the Internet was Tor, and Tor had less latency, it would be better for everyone except the State. Similarly, if Bitcoin were the dominant financial system and suffered less volatility, it would be better for everyone except the state.
A second misunderstanding about the Bitcoin economy is that it is mutually exclusive from HODLing. You can earn bitcoins and HODL. You can take the expense of your HODL and replace it. Don’t get caught up in binary thinking.
Example of the circular economy of Bitcoin
The center of 3D gun printing is a collective called Deterrence Dispenser that has more than 18,100 members. Let’s track how bitcoin circulates in this community.
Shortly after a 3D printed Glock design came out, Dispensed member “Spooky Rails” began manufacturing and selling aluminum rails that increased the durability of the Glock. It only accepted bitcoins because Spooky Rails did not want to know or have a record of the real identity of its customers. And he wanted to protect his own identity. From the bitcoin it earned, Spooky Rails likely contributed to one of the five Bitcoin rewards dispensed for deterrence to develop new designs.
In September, my the Guns N ’Bitcoin held a conference called Bear Arms N’ Bitcoin where they held a silent auction. The proceeds were donated to Deterrence Dispensed in bitcoin. Perhaps the winner of the 3D weapon reward purchased one of the auction items.
Benefits of Bitcoin’s circular economy
Bitcoin is the separation of money and identity.
The money of the nation state is the marriage of money and identity. Your credit cards, checking account, and PayPal account start with your identity; your name, address, social security number, email, phone number and more. This has three tyrannical consequences for economies.
First, the state and third parties can censor the trade before it occurs. If you attempt to open an account with Visa with the identity of Gab’s founder, Andrew Torba, or his wife, you will be denied access to their services. Torba and his wife cannot use these services to participate in the social media economy.
Second, the state and third parties can censor future trade. With third parties, you are your transactions. Third-party services record every transaction you make. They monitor your trade and if you buy or sell something you do not agree with, they mark your identity as non grata. You are prohibited from future trading. By doing this to thousands of companies and millions of people, the state and third parties have censored entire economies before they can be formed.
In contrast, a Bitcoin economy is not tied to identity. Perhaps this is the most underrated application of Bitcoin, and why Bitcoin has become the money of choice for the 3D gun printing trade. A Bitcoin economy is a censorship-free economy.
Another benefit of participating in a Bitcoin economy is acquiring bitcoins without using third-party KYC / AML-compliant services. These services are the problem that Bitcoin was supposed to solve. As Nick Szabo put it, “Trusted third parties are security holes.” KYC / AML compliant third-party services are largely how the state can monitor, censor and collect tax revenue from Bitcoin users. The Bitcoin that you earn or receive as a donation is a bitcoin that you did not have to buy from a third-party exchange. The more people acquire bitcoins through trade or donations, the less necessary KYC / AML services become, making Bitcoin less fragile and more robust.
When you participate in a Bitcoin economy, you build relationships with people who value Bitcoin as equals. You can trade bitcoins with them, instead of buying and selling on third-party KYC / AML-compliant exchanges.
You can participate in a bitcoin economy today! The easiest way for most people to do this is to use bitcoin as a payment method with those who do their best to use the bitcoin earned as a payment method. Certainly, you don’t need to always use bitcoins with them. You may or may not use bitcoin with companies that accept bitcoin but immediately convert it to fiat. But spend bitcoins sometimes.
You can also earn bitcoins! A parallel concert begins. Request donations through BTCPay Server or Samurai PayNym. Sell items on Craigslist for Bitcoins or request to be paid in Bitcoins at your current job.
Participate in peer-to-peer trading. Ask a friend to buy or sell you bitcoins. Try to do it for $ 20. Make it a fun exercise and experiment.
A Bitcoin circular economy is one in which commerce flourishes without surveillance, censorship, and dependence on third parties. Anyone can participate by earning, spending, donating, and buying bitcoins from those who do the same. A Bitcoin economy runs apart and parallel to the central bank’s fiat economy.
Bitcoin trading is an example of Bitcoin.