I was discussing with some people these days (in a bar, drinking some beers paid with sats) about what is Bitcoin as financial instrument.
And I made a simple drawing on a piece of paper using the 3 circles diagram, positioning myself in the middle:
https://m.stacker.news/51616
Where do you position yourself in this diagram?
I will explain why I position myself in the middle, based on how I use bitcoin and what is for me. Maybe for each one of you is something different.
1. Bitcoin as money is:
- medium of exchange
- unit of account
- self banking / self custody
- financial sovereignty
- worldwide acceptance (no need to use a currency exchange)
- property
- freedom of speech / censorship resistance
- no coercion
- path to freedom
2. Bitcoin as asset is:
- limited property
- still depending on a fiat currency
- capital gains
- possible coercion for taxation
- custodial / self-custodial
- dependable of a currency exchange
- you are still under a fiat system
3. Bitcoin as currency is:
- backed by bitcoin as money
- is used only as currency exchange platform, to facilitate exchanges between other fiat currencies (paypal over bitcoin)
- capital gains (maybe)
- property (maybe if is self-custody)
- possible coercion for taxation
- you are still under a fiat system
Discuss...