Does bitcoin fix everything? Reflections on a bitcoiner mantra

Key facts:
  • A healthy skepticism places us in a more realistic position.

  • To defend bitcoin, it is not necessary to exaggerate its virtues.

Among Bitcoin “evangelists”, there is a popular phrase that resonates like a mantra: “Bitcoin fixes it” (or “Bitcoin fixes this»).

For some, this phrase is an automatic solution to any problem that arises, such as a curious Fierabras balm financial. Global warming? “Bitcoin fixes it.” A lost soccer match? “Bitcoin fixes it.” Problems with your brother-in-law at family dinner? Well, maybe Bitcoin doesn’t fix that, but it might help.

Popular American bitcoiner Max Keizer has even reached say that if Bitcoin was created in 1998, the terrorist attacks of September 11, 2001 would not have occurred (sic).

For Max Keizer, if Satoshi had invented bitcoin in 1998, the 9/11 attack would not have occurred. Source: Max Keizer-Twitter.

But, as with anything in life, especially when it involves such complex topics as global finance and economic crises, some argue that this enthusiasm for Bitcoin’s healing power may be a bit of a stretch.

Entrepreneur HJ Hofkirchner, founder of Bitcredit, has joined this chorus of critical voices, arguing in a Tweet Despite what some may say, the digital currency created by Satoshi Nakamoto is not the magic wand that can solve all the world’s problems. “Bitcoin doesn’t fix anything; people do it,” she says. To illustrate his point, he cited several economic and financial cases that, according to him, Bitcoin has failed to fix.

Cyprus 2013

In 2013, Cyprus experienced a financial crisis, when the country’s two largest banks, Bank of Cyprus and Laiki, became insolvent. The European Union and the International Monetary Fund proposed a rescue package that included an unpopular measure of withdraw from bank depositsgenerating popular discontent and shocks in the financial markets. Bitcoin, despite being presented as an alternative to fiat currencies, failed to prevent or resolve the crisis at the national level.

Greece 2015

The Greece financial crisis in 2015 culminated in a referendum on whether or not to accept the terms of the European Union’s third bailout package. That period was marked by the severe austerity, bank closures and capital controls. It was not alleviated on a widespread level by the presence or use of Bitcoin.

Lebanon, Venezuela, Argentina

Lebanon, Venezuela, and Argentina have also suffered severe economic and financial crises in recent years, characterized by high inflation, falling currencies, and social unrest. Despite the fact that in these countries there has been a growing individual interest in bitcoin as a way to circumvent financial restrictions and preserve value, fundamental economic problems persist.

Yes, Bitcoin is a solution at the individual level

Faced with the fundamentalist claims of those who attribute to Bitcoin a series of “superpowers”” that exceed its real capacity, it must be remembered that bitcoin is a financial tool, not an omnipotent savior.

Its usefulness lies in its ability to provide secure, decentralized, and censorship-resistant transactions.. In addition, in the medium and long term, its holders (or hodlers, in bitcoiner jargon) have benefited from the increase in its price. However, bitcoin cannot alone fix entrenched socioeconomic problems, government mismanagement, or economic policy mistakes.

It is important to note that while Bitcoin may not be a panacea for global financial woes, yes it can be a vital tool for individuals and communities.

In countries with unstable economies and high inflation, bitcoin can provide a way to preserve value and transact in a secure, censorship-free financial environment. Circular economies, now known as “citadels”, are an example of how bitcoin can be used at the community level to build independent and resilient systems of exchange and value.

In economic crisis scenarios, where national currencies can lose value quickly and banking systems can restrict access to funds, bitcoin allows people to maintain control of their assets and operate outside of the traditional financial system. In this sense, it offers an individual and community solution to financial volatility and economic uncertainty. On the other hand, by allowing fast and low-cost international transactions, bitcoin can be a valuable tool for migrant workers who send remittances to their countries of origin, helping to mitigate individual and family economic difficulties.

Perhaps, in the future, things will be different and the “hyperbitcoinization” that many expect will bring with it a series of socioeconomic changes that will greatly improve humanity as a whole. But… what if that hyperbitcoinization never comes?

Bitcoin doesn’t fix everything, but it fixes a lot

In this frenetic dance between blind Bitcoin fanaticism and reasonable skepticism, it is easy to lose sight of the true nature and potential of this tool. Bitcoin does not eradicate systemic problems. But neither is it a minor toy or a complete it is sometimes portrayed by its most aggressive detractors.

Bitcoin offers a tangible solution for individuals and communities struggling amid economic crises and unstable financial systems. For those who feel excluded or marginalized by traditional financial systems, bitcoin can be a lifeline, a ray of hope, a boat in the middle of the economic storm.

So the next time you hear the phrase “bitcoin fixes it”, instead of falling into sarcastic laughter or fervent endorsement, think about the individuals and communities that bitcoin is really helping.

No, bitcoin doesn’t fix everything. But what if it fixes enough?

Disclaimer: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of CriptoNoticias.


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