Bitcoin & The Idea Of Financial Sovereignty
At the heart of Bitcoin’s motivation is financial sovereignty. Independence from a third party and very restrictive guidelines are how Satoshi envisioned Bitcoin to operate. His idea has always been to transfer value without friction or authorization, at any moment, from anywhere in the world. This ultimately creates financial sovereignty as there is no need for assistance or service from anyone else.
This obviously also invokes freedom, which is also at the core of foundational human desire and even necessity. It didn’t take long for this idea to be challenged, and we can see how every effort is being made to control it. Because Bitcoin must be mined or bought, it is much more difficult to control. However, governments can print national currency to buy Bitcoin. I have always believed that this would eventually happen to some degree.
Essentially, self-custody also provides an element of financial sovereignty. Bitcoiners who hold their BTC on a Trezor or Ledger device can operate independently of any third party. In other words, they don’t require an exchange or a bank to transfer funds, and they don’t need a custody solution, such as a vault or a bank, to store their Bitcoin. This was always the aim: complete independence of the current financial and banking system.
The Difference Between Rules & Control: Understanding How Power Really Works
We all require rules for society to function acceptably. However, rules do not necessarily require rulers. It has often been said that Bitcoin has rules but no rulers! This dynamic has caused DAOs to gain so much attention of late. Rules instill order and predictable expectations, while control ultimately equates to slavery. Rules dictate how something is used, while control limits who may use it.
The two are very different and have different agendas. Currently, we are seeing people excluded from financial services due to rules (controls), even though they are abiding by the predefined criteria (rules). Can you see the difference? This is currently an enormous problem for many people around the world who are suffering as a result of their leaders’ decisions. True sovereignty would remove you from these dynamics, enabling you to continue transacting.
Why Control Always Follows Money
One of the most interesting aspects of cryptocurrency and its journey is that when it was still relatively small, regulatory institutions and governments showed very little concern or urgency regarding regulation. It was ignored, which is usually how anything that is not a threat is treated. However, as the market cap began to expand into the trillions of dollars, the attitude shifted rather abruptly. As markets mature, they tend to attract big names and regulatory bodies.
Whether you are looking at Donald Trump or Larry Fink, the CEO of BlackRock, opinions shifted fast. Power tends to follow the money. It’s human behavior, which is why many Bitcoiners began seeking out alternative cryptocurrencies that they thought were less likely to be adopted by big corporations and banks. They knew that what follows is often controlled and chose to seek a currency less susceptible to manipulation, restrictive policies, and transactional limitations such as Monero.
Can Bitcoin Still Be A Sovereign Form Of Money?
With the continued regulatory threat and the blocking of addresses by certain exchanges and institutions, the question arises of whether BTC can still maintain its sovereign status. It seems as if rulers are limited only by their imagination in what they can achieve. This is somewhat concerning and is evidence of why a monetary network like Bitcoin is so essential.
Looking at current challenges, it appears that as a store of value, Bitcoin remains relatively sovereign in that self-custody is the equivalent of sending your money into space. Transactions, on the other hand, face certain hurdles, yet in many cases, restrictions are not all-encompassing. Let’s put it this way: BTC is definitely the most sovereign form of money we have right now.
What’s The Alternative? Exploring Smarter Systems Beyond The Status Quo
If you are not holding a sovereign form of wealth, you are completely reliant on your nation’s fiat currency. Usually, this is not the best, but it is still acceptable. However, as the world continues to erode in its ethics and moral code, the risk of restriction increases. Russian citizens are innocent! Ukrainian citizens are innocent, and yet they are expected to survive under the burden of restriction and exclusion. Would you not consider these citizens to be the equivalent of enslaved people now?
Their rights, power, and ability to transact and support themselves are removed. Government policies have enslaved them. That which is in essence created to preserve and support human life and livelihoods is now destroying them. Ironic at best, but still extremely sad to see, never mind experience. This is primarily why everyone should have a Bitcoin or other crypto allocation set aside as a backup plan, if necessary.
How To Hedge Yourself: Protecting Your Wealth In Uncertain Markets
Whether or not you believe in Bitcoin and its purpose, it is clearly revealing its importance in the modern world. I think many will begin to hedge their wealth with Bitcoin and other cryptocurrencies. Everyone needs insurance and a contingency plan, and Bitcoin appears to be the best option that we have. Even if you are somehow restricted, you can still hold and maintain your wealth.
Any asset in another’s hands is essentially not yours; if you are restricted, who holds it? This is what happens when you deposit funds into a bank account. Ultimate control is no longer yours, and transactional authority can be lost depending on various factors, including government policies. On the other hand, holding your own crypto is the complete opposite! If you are restricted in any way, who holds it?
The Best Ways to Store Your Sovereign Digital Assets: Security, Self-Custody, & Control
If financial sovereignty is important to you, so is self-custody, as it is the ultimate expression of it. Ideally, assets are held and controlled by you alone. Furthermore, a sovereign asset is usually decentralized and enjoys strong community support. A private, decentralized asset with limited transaction throughput and trading volume may not be ideal for someone who wants to transact frequently.
If you are a Bitcoiner, the Trezor Safe 3 and Trezor Safe 5 are good options due to their EAL 6+ Secure Element chips. For a broader altcoin portfolio, consider Tangem, which supports an extensive list of assets and blockchain compatibility. When purchasing directly from Tangem, use the code WK6ZP4 for a 10% discount. Another user-friendly solution is the Ledger Nano S Plus, along with the Ledger NanoX. These hardware wallets eliminate exchange-related and custodial risks, including the risk of losing access to assets.
Final Thoughts
We are currently witnessing such an acceleration in global chaos and unpredictability that it only makes sense to hold an asset that is ultimately within your own control. It is clearly a time to choose sovereignty over all else because, as we have already seen in Canada, Russia, and Ukraine, things can go horribly wrong incredibly fast! Not investment advice, but clearly food for thought in these troubled times.
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