In 2022, Bitcoin differentiates itself from Crypto – Bitcoin Magazine

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This is an opinion piece by Mickey Koss, a West Point graduate with a degree in economics. He spent four years in the infantry before moving to the Finance Corps.

2022 has started with a bang, especially in Canada. Whether or not you agree with the premise behind the Canadian truckers’ protest, I think most can agree that freedom of speech is a key right in modern Western democracies.

But when the Canadian government started cracking down on protesters by freezing bank accounts, people turned to Bitcoin to help them survive. Organizations like GoFundMe not only blocked protesters from receiving the money that had been raised, they even attempted to funnel the money to causes they aligned with. After an outcry, GoFundMe ended up refunding the money, but the message was clear: respect yourself.

However, Bitcoin has allowed truckers to circumvent these restrictions.

Source

Above is an excerpt from an article by the Motley Fool, written in March 2022. While I disagree with his conclusion or reasoning, the fact that the mainstream media was asking questions like this was a massive signal that maybe the standards are starting to catch up.

More recently, the Iranian government announced that it was freezing the bank accounts of women who refuse to wear the hijab, the traditional Muslim head covering, in public. This came after the threat of imprisonments and executions to quell the ongoing free speech protests there. As of December 8, 2022, one protester has already been executed by hanging by the Iranian government.

The fact is, no one will save you. Ethereum insists on being the internet’s new decentralized currency, and yet the protocol enforces Office of Foreign Asset Control (OFAC) sanctions on its base layer. It is becoming quite clear that Bitcoin may be the only easily transportable freedom money left. I think that distinction became all the clearer as 2022 continued.

Altcoin Bonanza goes down in flames

“The same technology that enables peer-to-peer money has enabled peer-to-peer scams.”

–Lyn Alden, “Swan Signal” episode 92

From Celsius to Three Arrows Capital, Luna, FTX, BlockFi, Voyager, and even Gemini, companies that sell altcoins have all felt pain in one form or another — leverage, rehypothecation, algorithmic Ponzi schemes, and more. It seems the biggest use case for crypto is to make quick money at the expense of others, while pulling standards like your exit liquidity. It’s like the tech boom of the 1990s.

One of the most interesting parts of this whole debacle were the accusations of a lack of bitcoin held by FTX after its balance sheet was revealed in bankruptcy filings. Whether the accusations are true or not, the fact that this is a legitimate question is enlightening. It appears to have started a fire. I think slowly but surely people are starting to see the difference and realize that bitcoin and crypto aren’t really the same thing after all.

The turning point of 2023

Bitcoin has differentiated itself not only from traditional banking in a significant way, but also from crypto.

The FTX debacle highlighted the need for self-custody: that your coins may not actually exist and the only way to know if they are real is to take custody of them. Bitcoin is now exiting exchanges en masse.

Rocky Wold on LinkedIn, accessed December 2022

Could this be a turning point for Bitcoin? Could people become massively aware of the importance of personal guarding? Only time will tell. I am optimistic that this trend will continue, taking power from centralized exchanges and their ability to impose censorship on behalf of hostile regimes. As far as I’m concerned, the more bitcoins in custody, the better.

If you are still hesitant to take care of yourself, I recommend watching some demos of BTC Sessions. It’s really not that difficult and the peace of mind is priceless. I lost almost everything earlier this year when Celsius exploded. Don’t be like me. Stop procrastinating and take ownership of your bitcoin today. Only then will you truly understand why and how it is different.

This is a guest post by Mickey Koss. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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