A Bitcoin circular economy is a closed-loop system that designs out all of the corruption and headache of dealing with central bank-issued money. As savings technology is still the largely dominant story for Bitcoin, itâs helpful to take a closer look at a few lies about a topic thatâs growing in popularity: the Bitcoin circular economy.
A Bitcoin circular economy requires ways to earn, save and spend bitcoin. Oftentimes, when anyone is making progress on talking about earning or spending bitcoin, discussions will get derailed by fabrications that we can clean up here today.
1. Number Go Down Is Better For Payments
This is a lie. Period. There is no way that anyone who cares about Bitcoin actually wants the number to go down. I understand a certain crowd of staunch privacy advocates will tweet ânumber go downâ from time to time; I believe that is more to tamp down what they see as unbridled and uninformed optimism rather than an actual scan of their day-to-day lives and believing that number going down is good for their stack.Â
I think that people who have already cut up their credit cards and left their banks are sometimes frustrated with what they interpret to be our casual usage of the word ârevolutionâ in the West. I see their point, but nevertheless no one is rooting for number to go down.
2. Payments Cause The Number To Go Down Because Merchants Dump For Fiat
The whole âmerchants dumping for fiatâ thing has not played out in my personal experience of talking to business owners. No one talking about the Bitcoin circular economy is out there door knocking and trying to sign up merchants that are going to dump for fiat. Dumping is obviously antithetical to the entire point of creating the circle to begin with.Â
What is actually happening is more and more people everyday are realizing that the tools are available to demand bitcoin for their services, and so weâre starting to see what happens when people do.
3. Spending Bitcoin Is Only For Unbanked Nomads
Iâm sorry but my dinner bought with bitcoin from last Friday would like to beg to differ. Iâm literally a privileged married person from Southern California with a bank account and a mortgage and I found a way to buy food directly from another human being (not through a gift card) using Bitcoin. To me, thatâs really amazing and itâs helped me grow my perspective on what weâre all doing here.Â
If you donât want to touch your HODL stack, thatâs totally understandable. Download the Strike app and get in the circular economy game without touching your stack.The Strike app is a fiat app that pays bitcoin invoices, so it also solves a lot of other complaints you get from HODLers about not wanting to spend bitcoin. If youâre a business demanding bitcoin for your goods and services, you definitely want to educate your customers on Strike, Iâve watched even the most ardent HODLers be amazed.
4. If You Like Bitcoin Payments, You Donât Understand The Value Proposition Of Bitcoin
Seriously? This is probably the most annoying lie I hear about the Bitcoin circular economy. Bitcoin derives value from its hard money attributes and from people hoarding and saving it. This is exactly why Bitcoin payments are actually so exciting: Why would you not want your business to participate in commerce using the best money in the world? Saving bitcoin and also demanding people pay you in it in return for goods and services are complementary mindsets, they are not at odds.
The great news is that in spite of any and all misinformation and misunderstandings, the number will go up, the payments will go round and the middle men wonât be paid. Watch out for these Bitcoin circular economy lies and donât fall for them.
This is a guest post by Brian Harrington. Opinions expressed are entirely his own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.