What Does “The Bitcoin World” Mean?
“The Bitcoin World” refers to a developing parallel economic model in which Bitcoin serves as the primary medium of exchange and all value is measured in satoshis, commonly known as sats, the smallest unit of Bitcoin. In such a model, Bitcoin operates alongside the traditional financial system and fiat currencies. Essentially, the idea is to create a level of independence from traditional economic models.
The essence of the idea is independence, not replacement. The Bitcoin World exists as an alternative that is not exposed to the inflationary decay of traditional fiat currencies. Over time, it is expected to grow. Whether it will eventually replace national currencies to a large extent remains to be seen. However, for now, it serves as an alternative grounded in sound money principles.
Crypto Changed Everything: Why Location No Longer Matters
Yes, global economics has escalated to the point where it is literally Bitcoin vs the fiat money system. Many are considering Bitcoin as an alternative financial system. Rising inflation and debt have contributed to a lack of trust in national fiat currencies. People are turning to Bitcoin as a solution, not merely a future possibility. Bitcoin circular economies already exist in certain jurisdictions.
Once a nation escalates to a new level of “measures” or tactics not yet seen, something happens within that nation’s moral and ethical fiber. Whether it is born of necessity or not is irrelevant. Something happens within the core of its integral operating mechanism. Many have realized this within the crypto space. The First World is no longer particularly attractive, prompting many in the crypto space to leave their homelands.
Cryptoneurs do not need a city with a robust economy, unlike a traditionally employed person. Individuals seeking higher income have always simply moved to bigger cities with more opportunities. This traditional dynamic has zero bearing for a cryptoneur and therefore ultimately removes the need to be in any particular location. This has an enormous impact on the reshaping of global stratification.
Why The First World Economic Model Is Under Pressure
Despite economists’ best efforts to curb inflation, it continues to erode the dollar’s (and every other currency’s) purchasing power. Ever since its inception in the 1970s, the dollar has lost approximately 96% of its purchasing power. Essentially, fiat currencies are designed to operate this way. Fiat currencies are fundamentally flawed.
This is why Bitcoin is the future of money; it is designed to appreciate in value and purchasing power over the long term. It may suffer short-term volatility. However, as a savings mechanism and a means of preserving value, it works well. It is the answer to inherently flawed and outdated currencies.
Why Developing Countries Are Seizing The Crypto Opportunity (Faster Than the West)
Unclear crypto regulation and increased taxation are two large contributors leading to many seeking alternative citizenship. This is where the more “under the radar” countries are seizing the opportunity and creating attractive tax benefits, basic regulations, and other incentives. The idea of moving to El Salvador a few years ago would not have seemed particularly exciting unless you were like me.
I love coastal spots, and having access to the beach is a key deciding criterion. I am not too concerned about much else, provided there are basic services and a coastline. Portugal currently has zero taxation on crypto, provided it is earned outside of Portugal. This has been one of the more frequently chosen new destinations for cryptoneurs.
What Are The Benefits Encouraging Certain Countries To Embrace Crypto?
When you begin to examine the current economy and simultaneously look to the future, it becomes rather clear. To be honest, it’s the same reason we are all involved in crypto. With crypto ultimately becoming the fastest-growing sector, it makes sense to position yourself accordingly. Countries that embrace and build at these stages are ultimately setting themselves up for the future.
Attracting new citizens with capital means that the real estate market receives a tremendous lift. Either building or refurbishing will proceed at an accelerated pace, and the existing economy will begin to receive the intended stimulus through actual purchasing. Instead of punishing innovators, they are embracing them, recognizing that it is a more profitable and mutually beneficial approach.
What Is A Healthy Business Approach? (And Why Most Get It Wrong)
Good business psychology leaves the customer feeling like he has secured a good deal and experience. At the same time, the service provider is happy and satisfied with the returns. When both sides are happy, word spreads, and businesses grow. The relationship between the taxpayer and the government is a business agreement, though many seem oblivious to it.
You are paying for services that, when and if they drop, prompt people to consider alternatives. Smaller and less significant countries realize that attracting crypto entrepreneurs is a far more beneficial approach than simply stifling and aggressively taxing crypto.
The Idea Of Bitcoin City: Can A Crypto-Powered Economy Actually Work?
What will countries like El Salvador, Portugal, and other crypto-friendly hot spots look like in 10 years? Is it possible that they will become an attractive option for citizens currently in areas of the world already considered top-tier? I definitely think so! To be honest, many of the most sought-after areas in the world are currently extremely unattractive to me. Freedom is at the heart of what wealth and quality of life are actually about.
As I said, if you have the coast and basic services, you are in a good spot, provided you have freedom and contentment. The qualities that once defined the First World no longer do. They are now the defining points of up-and-coming alternative countries that have chosen to embrace change and encourage personal freedoms. Kingdoms rise and fall, and it appears as if we are busy watching the fall of a kingdom, while another looks set to rise.
Bitcoin Circular Economy Explained: How It Actually Works
Bitcoin circular economies are local or regional blockchain-based infrastructure systems in which Bitcoin is predominantly used as a medium of exchange. Such a model empowers users and business owners to transact in Bitcoin without needing a local or national currency. This can be a vital lifeline in countries where the national currency is heavily debased, such as Turkey or Venezuela.
South Africa has a very weak and unstable currency that has been in steady decline since the 1990s. However, smaller coastal towns such as Witsand have adopted Bitcoin as their currency. Witsand is a prime example of a Bitcoin circular economy. Residents refuel their vehicles and pay for groceries with Bitcoin. These transactions are obviously performed on the Lightning Network.
Given the Lightning Network’s speed and low transaction costs, it makes perfect sense. In other words, if you live in a coastal town like Witsand, there is no real need for the local currency. This is beginning to take place globally, as citizens and certain governments opt for a Bitcoin-based economic structure. It’s already working and is likely to become even more efficient in the years to come.
This Idea Isn’t Hopium – It’s Already Happening
There is more to this idea than simply a bunch of crypto enthusiasts trying to envision the future. Many have already left their homes to take up residence in friendlier areas. Digital nomads as a whole are also being incentivized to visit certain countries as well. This is not only for the crypto community but also for those not reliant on any specific location. This appears to be a growing trend because, at the end of the day, provided you can, you will go where you are treated best!
Why Bitcoin Adoption Is Still Not Exploding
Theoretically, Bitcoin makes sense. However, the average person has a very different, even negative, view of Bitcoin. Essentially, it is viewed as a speculative asset rather than a form of sound money. There still needs to be extensive education across a much broader spectrum before people awaken to the benefits of Bitcoin and a Bitcoin-based economy.
On top of that, there is a lack of clarity regarding the regulation and usage protocols of Bitcoin and other cryptocurrencies. You will note that countries that have moved forward in this regard have, for the most part, provided reasonable clarity and regulation regarding the crypto space. This is a key element of adoption, as many fear future consequences of participating in this parallel economy.
Final Thoughts
An economy not reliant on any particular jurisdiction means that countries welcoming its participants can ultimately see their economies grow by embracing a new technology that simultaneously creates a new economy. Ultimately, stubborn responses from the First World can enhance and accelerate the shift in global stratification. The First World does not necessarily have to suffer. However, how it chooses to respond to crypto will be the deciding factor.