Why should you stop buying bitcoin?

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Bitcoin is useless, it is a bubble, it is going to zero, it pollutes the planet, it finances terrorists, politicians are going to stop it, it has no value because you cannot touch it, it does not scale, it is very slow and mining is concentrated in a few few. Taking all this into account, it may be advisable to put it aside and use better alternatives as money. For example…. Well…. No.

The truth is that there is not, not even remotely, a better alternative. So even if all that FUD was true, even so, there really is no better option than using bitcoin and playing for the basilisk. That does not mean that the sooner we stop buying bitcoin, the better off we will all be. If the reader believes that Bitcoin is so useful as to present the only alternative to global fiat slavery, I invite you to read about why – even having that vision – it is advisable to stop buying satoshis.

Ways to acquire bitcoin

To address the proposal of stopping buying satoshis, I will briefly review the ways to acquire them. Fifteen years after the birth of the Bitcoin network, today its purchase continues to be the most popular option. Although – in my opinion – Purchasing is not the best acquisition method.

Let's look at the current purchasing methods:

Centralized Exchanges (VASPS)

Entities that are dedicated to buying and selling BTC in a rather friendly way, in general with good user experiences, technical support and ease of use of their app among other advantages. But they force the user to comply with the draconian FATF regulations and inform the States of all the operations carried out, thus generating large and unpredictable tax events. Likewise, they often suffer “hacks” or untimely closures that cause themselves or third parties to keep all of the users' money.

Between individuals at a distance – digital P2P

Buyer and seller meet in cyberspace. None of them report that a p2p was made but, because the fiat part is digital, it is recorded by the banks and therefore the movement is reported. The buyer of the sats must send money from one bank account to another bank account and the banks involved may require justification of this, as well as block the operation and keep the money. The main difference with the previous system is that, in case of successful operation, the State only sees the movement of money, but is unaware of the concept. Among the ways to reach this purchase variable are: finding yourself directly on social networks, finding yourself through a decentralized exchange or, for example, doing so through the use of a bot that has an escrow, reputation system and LN.

Physical P2P

The third form of purchase is the classic p2p, voluntary market (also known as free, black or parallel). The advantages of this are that there is no KYC/AML even on the fiat side involved thanks to the use of cash. This system is almost the best there is for acquiring sats due to the absence of information provided to the State. But it has the disadvantage that it continues to use fiat, that is, depending on a tool manufactured, manipulated and strongly regulated by the State.

BTC as a form of payment for products or services

The last and best option is stop buying satoshis. That is, stop using fiat to acquire them and instead produce and deliver value. This value is placed on the market through products or services that the sats acquiring holder offers and that are rewarded in satoshis by the acquirer of these. That is, instead of buying BTC, the counterparty is expected to acquire the products and services that we sell directly in BTC. This method for acquiring sats is radically different from the purchase that was developed above in basically all its possible variables. The main difference It is a form of transmission of value between individuals in which no third party intervenes.. When a transaction of products or services is carried out for bitcoin, fiat is completely eliminated from the equation. This option is not only the most ethical but also, in the long term, the only one that scales. When a free and voluntary system competes with a restricted and coercive system, it is only a matter of time before the former absorbs the value that exists in the latter. Among the disadvantages of this system we could note the lack of liquidity and size of this market. Clearly there are many more people in the world willing to pay a dollar for a bottle of water than 1,575 sats for the same product. Therefore, the water seller has a better chance of selling if he accepts the weak currency rather than just accepting the hard currency. This is an undeniable fact of reality in 2024 but over time will be solved thanks to the mass adoption that NGU technology will eventually produce.

Furthermore, leaving aside retail, the seller of services generally has advantages when operating with bitcoiners than with pre-coiners. In addition to being paid in the best currency that has existed in all of human history, the service seller interacts in this case with another bitcoiner. That is, a buyer who is much more likely, on average, to have a lower time preference than a pre-coiner.

Conclusion: The value-for-value model is vastly superior to the fiat-for-value model. Not only because of a removal – or at least greater obstruction – of third parties who wish to parasitize the value, but also because it brings together parties that at least already have an element in common between them. Because, as Perón said, “for a bitcoiner there is nothing better than another bitcoiner.”

Camilo JdL for Criptonoticias at 842,457 timechain

Disclaimer: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of BitcoinDynamic. The author's opinion is for informational purposes and under no circumstances constitutes an investment recommendation or financial advice.