Bitcoin meets the definition of (imperfect) cypherpunk money – the first of its kind. Bitcoin doesn’t meet the definition of hard, soft, or sound money, although one could say it’s metallic peer-to-peer electronic cash.
Bitcoin is necessary but not sufficient to build a peer-to-peer financial system. Bitcoin is one tool in the financial self-sovereignty toolbox. Bitcoin is a hammer. What is the drill? What is the carpenter’s square? We can’t build a financial freedom house without all the tools. We need other peer-to-peer networks that use proof of work to disintermediate third parties that censor startup fundraising, lending, or publishing.
By replacing trust with computation, Bitcoin is the separation of money and identity. Know Your Customer (KYC) regulations reattach identity to cash. And by functioning peer-to-peer without needing user identity and being comprised of digital computer bits, Bitcoin is permissionless and pseudonymous. However, Anti Money Laundering (AML) laws insert a third party, severing peers. KYC/AML Bitcoin isn’t Bitcoin.
Elites, be they financial, tech, or political, wield tremendous power, except against organized angry mobs. As the economy worsens, censorship increases, and ethnic conflict burns, more mobs will organize financial attacks on institutions to punish them for perceived corruption and malevolence. If you’re going to join one of these swarms protect yourself by practicing good OpSec, such as using a pseudonym, using bitcoin to pay for services, and use encrypted communication channels.
A Bitcoin circular economy is one where commerce flourishes free of surveillance, censorship and reliance on third parties. Anyone can participate by earning, spending, donating and buying bitcoin from those who do the same. A Bitcoin economy runs apart from and parallel to the central bank fiat economy.
Bitcoin commerce is Bitcoin exemplified.