[NOTE: this was an article I wrote for the Financial Times a few months ago. Due to the relentless editing from their team, I pulled it. I am publishing it here in response to their constant negative and unbalanced reporting on Bitcoin]. Presidential guards standing to attention in pristine uniforms with bayoneted rifles lined the corridor leading to a suite of the Presidential House (Casa Presidencial) in San Salvador. This place is everything you expect it to be, regal, ordered, imposing - an explicit expression of power. I took my seat and waited anxiously.
I am not so sure about the rate of adoption. It appears to me that Uber or Airbnb had a much faster adoption rate. Which is strange because in the case of Bitcoin there are no material limits (you don't need houses or cars either).
Two major questions (linked) remain in my opinion :
- How do you relate with the real world ? With fiat moneys it is done via institutionalized violence (IRS, Police, Army etc.)
- How do you inherit BTC ? The problem is that by definition only you should be able to move your money (which is the flipside of : no one can stop you from moving your money in opposition to traditional banking system) and heritage happens when you are dead... How my 7 years old daughter will get the keys ? She doesn't know how it works either. What if she dies in a trip in the same time as me ? etc.
It is not like the heritage question can be dodged : we are all going to die one day. And if the solution is to centralize (say go to a lawyer with keys in an envelope) haven't we lost the very interest of cryptos ?
Your optimism is honorable, Peter. However, the reality is that the growth of Bitcoin (the network) and bitcoin (the digital currency) are bringing on attacks to all digital monetary assets, greatly slowing adoption. Bitcoin was the first and most successful "cryptocurrency" to date, accounting for about 40% of the entire digital monetary assets. Its "game theory" and "network effects" will escalate and guarantee not only its survival, but its place as the apex monetary asset in history. However, for the convinced "bitcoiner" who finds it difficult to remain patient, the FUD, the lies, and the negative propaganda, are frustrating and too much for all but the strongest believers.
Can't judge why FT wanted to edit your piece to death, I guess it's their prerogative just as it was yours to tell them to gth :-) The FT coverage of Bitcoin and digital assets overall is puzzling indeed. If you search their site and scan the headlines they seem mostly negative or explore the same old narratives - this is odd for an organization of their standing and with their stated objectives. Fortunately we have places like this, where you can be your own editor. Re El Salvador - to think that such an ambitious plan would roll-out without any issues is naive to say the least and this country's vision and gutsy move should be applauded imo. It would be great if we can hear from you how the roll-out is going because frankly it's difficult to tell the truth from the FUD you read in the media. Perhaps an idea for another article :-) - thanks for what you are doing for ₿ and the community :-)
I am not so sure about the rate of adoption. It appears to me that Uber or Airbnb had a much faster adoption rate. Which is strange because in the case of Bitcoin there are no material limits (you don't need houses or cars either).
Two major questions (linked) remain in my opinion :
- How do you relate with the real world ? With fiat moneys it is done via institutionalized violence (IRS, Police, Army etc.)
- How do you inherit BTC ? The problem is that by definition only you should be able to move your money (which is the flipside of : no one can stop you from moving your money in opposition to traditional banking system) and heritage happens when you are dead... How my 7 years old daughter will get the keys ? She doesn't know how it works either. What if she dies in a trip in the same time as me ? etc.
It is not like the heritage question can be dodged : we are all going to die one day. And if the solution is to centralize (say go to a lawyer with keys in an envelope) haven't we lost the very interest of cryptos ?
Peter, thank you for taking the time to research and write such concise and informative article.
Very good post Peter, thanks for the great work you do in presenting more balanced views of Bitcoin-related matters.
Well done Peter! I'll be sending you a kind comic on the 23rd. I wish you success. And BTW, the SV does not mean what you think it means ;)
Great piece. Thanks for sharing.
Peter, you're better served on Substack anyways.
Your optimism is honorable, Peter. However, the reality is that the growth of Bitcoin (the network) and bitcoin (the digital currency) are bringing on attacks to all digital monetary assets, greatly slowing adoption. Bitcoin was the first and most successful "cryptocurrency" to date, accounting for about 40% of the entire digital monetary assets. Its "game theory" and "network effects" will escalate and guarantee not only its survival, but its place as the apex monetary asset in history. However, for the convinced "bitcoiner" who finds it difficult to remain patient, the FUD, the lies, and the negative propaganda, are frustrating and too much for all but the strongest believers.
Can't judge why FT wanted to edit your piece to death, I guess it's their prerogative just as it was yours to tell them to gth :-) The FT coverage of Bitcoin and digital assets overall is puzzling indeed. If you search their site and scan the headlines they seem mostly negative or explore the same old narratives - this is odd for an organization of their standing and with their stated objectives. Fortunately we have places like this, where you can be your own editor. Re El Salvador - to think that such an ambitious plan would roll-out without any issues is naive to say the least and this country's vision and gutsy move should be applauded imo. It would be great if we can hear from you how the roll-out is going because frankly it's difficult to tell the truth from the FUD you read in the media. Perhaps an idea for another article :-) - thanks for what you are doing for ₿ and the community :-)