Tag: Bitcoin

Donald Trump Is Not the Bitcoin President

Posted on by Lone Candle

“Trump’s Nashville speech discussed bitcoin interchangeably with “crypto,” but bitcoin is fundamentally different from other cryptocurrencies. It runs on a decentralized, peer-to-peer software network and issuance schedule that, by design, can’t be tampered with by centralized authorities. It provides a way to send value over the internet without trusting third-party intermediaries. Like the gold standard, it’s a neutral monetary system; unlike gold, it has no physical properties, making it harder to seize or censor. If bitcoin fully succeeds, governments will no longer be able to steal from their citizens by printing money, and they’ll no longer be able to cut people off from payment networks and banking services.

“Crypto,” on the other hand, typically describes a set of centrally issued tokens, usually administered by foundations, neobanks, and tech companies. Most “crypto” projects are outright scams or pyramid schemes; most have failed to find (or never looked for) real-world adoption.

The major exception is “stablecoins,” which have emerged as the crypto industry’s killer application. They work like casino chips: a stablecoin company issues $100 worth of digital dollar tokens and simultaneously backs them with $100 of “high-quality” assets, typically U.S. Treasuries. Stablecoins aren’t routed through the conventional banking system, so they move easily across borders and are readily accessible in parts of the world where the dollar is in high demand.

Stablecoins’ key innovation isn’t technical; it’s regulatory arbitrage. They mean dollars for anyone, with no rules. Like bitcoin, they’re a quasi-permissionless, internet-native form of money; unlike bitcoin, they rely on the U.S. dollar for their value and are almost entirely administered by companies.

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As early as 2018, millions of people in Iran, Turkey, Nigeria, and Argentina began using Tether as an “offshore” dollar that local authorities couldn’t easily confiscate. With stablecoins, a refugee in a war zone can access dollars just as easily as a London bank. A recent study from ARK Invest estimated that there are 200 million stablecoin holders, compared to a billion holders of paper dollars. As countries like Russia and Iran attempt to coerce their citizens into using collapsing local currencies, the people are increasingly turning to stablecoins, which are hard to ban.

There is significant bitcoin adoption in authoritarian countries and collapsing economies as well, but many prefer stablecoins to mitigate price volatility. Stablecoins track the dollar, while bitcoin floats. Like the dollar, stablecoins gradually lose value over time, but they don’t experience wild price swings.

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unlike bitcoin, stablecoins require users to trust the companies that issue them. The tokens can be frozen, inflated, or remotely confiscated—and if the company issuing them commits fraud, they can become worthless. They’re a useful tool, but they aren’t in the same category as bitcoin, which is essentially freedom money.”

https://reason.com/2025/09/12/donald-trump-is-not-the-bitcoin-president/

A Week of Failing To Pay With Bitcoin in El Salvador

Posted on by Lone Candle

“In September 2021, El Salvador became the world’s first country to adopt bitcoin as legal tender alongside the U.S. dollar. The vision was ambitious: According to Bukele, bitcoin would “improve the lives and the future of millions,” making it easier to access financial services where traditional banking is often out of reach.

To incentivize adoption, the government launched the Chivo wallet app, offering $30 in bitcoin to anyone who signed up. Bitcoin ATMs popped up nationwide and plans were announced for Bitcoin City, a tax-free, bitcoin-powered metropolis fueled by geothermal energy from a volcano. El Salvador was on its way to become a global crypto hub.

Yet my trip to El Salvador revealed a gap between the promise and the reality. At restaurants, hotels, and shops, my attempts to pay with bitcoin were met with confusion or outright rejection. Despite a 2021 law requiring businesses to accept bitcoin, every establishment I visited turned it down. Instead, I received puzzled looks from waiters, clerks, and cashiers who seemed more perplexed than prepared.

A recent survey conducted by Francisco Gavidia University in San Salvador found that 92 percent of Salvadorans don’t use bitcoin. This marks an increase from the 88 percent found in a similar study conducted by the Central American University, San Salvador last year.

Some locals shared their reasons for opting out. At Lake Coatepeque, one waiter told me he skipped downloading the app entirely because he “didn’t want to give his personal information to the government.” In Santa Ana, another waiter said he wasn’t interested in bitcoin because he “didn’t understand how it worked” and had “no intention of learning.” Others admitted they were scared by the technical glitches in the Chivo wallet.”

https://reason.com/2024/10/31/a-week-of-failing-to-pay-with-bitcoin-in-el-salvador/

Inheriting bitcoin is harder than it sounds

Posted on by Lone Candle

“The nature of cryptocurrency makes it complicated to pass down. Cryptocurrency is usually stored on the blockchain, a digital ledger that’s formed by a network of computers throughout the world that record transactions, including the exchange of cryptocurrency. People usually make these transactions by using public and private keys. Public keys work like bank account numbers, and serve as an address that you can use to send other people crypto. Private keys work like passwords, and are made of unique, extremely long strings of characters that unlock your crypto. Unlike other types of passwords, however, private crypto keys can’t be recovered once they’re lost or forgotten. That means that without those keys, people who are entitled to inherit their loved one’s crypto won’t be able to get it.”