JBL
JBL 7 minutes reading from Bitcoin

Bitcoin, Ethereum, 17/19: The Path Forward For Cryptocurrency Adoption

1/19 Asymmetry/protection in the midst of a crypto “lockdown,” with the imminent issuance of CBDSs. XMR

2/19

The closer we come to CBDC (Central Bank Digital Currencies) issuance, the greater the pressures from governments to regulate, tax (excessively) and ban any unregulated usage of crypto, a direct threat to the strategic CBDC system.

China’s CBDC spending surpasses 100 billion yuan - Central BankingChina’s CBDC spending surpasses 100 billion yuan - Central Banking

3/19

Governments are able to freely monitor transparent blockchains, such as BTC and ETH. Public ledgers where broadcasted transactions and signatures are easily linked to real world operators and individuals.

4/19

So why do people invest and own Bitcoin?

5/19

Well supposedly because it is a distributed network of nodes designed to create a transparent “decentralised” ledger with no centre point of authority. Deficient of the constant intervention and manipulation from central bankers.

6/19 But mostly because it’s cult driven crowd keeps it alive. Not necessarily a terrible thing (I'd love for it to succeed, although its success will become its demise imo), but anything involving money and promise tends to create these obsessive crowds. Its human psychology.

7/19 Even individually hyped stock like TSLA are cut from the same cloth (QE steroid growth), but at least I know Bitcoin won’t let me down with bad earnings.

8/19 When we face the situation where governments increase stricter measures in attempts to regulate and ban the uses of crypto,

where’s the path of least resistance for these digital degenerate crypto gamblers?

9/19 I can promise you from being involved in a few cycles it won’t be Gold or USTs or Stocks. These stubborn reserves of capital won’t relinquish and leave crypto but move to private and censorship-resistant transactions. Privacy Coins.

10/19 These are different from transparent blockchains and facilitate total anonymity. With the addition of stealth addresses, Ring signatures and Ring Confidential Transactions (Ring CT)

concealing the origin, destination, and quantity of the original transaction.

11/19

It allows for untraceable and private usage. Whilst still being open source, fungible and decentralised (still POW). Effectively how Bitcoin

should have been designed from the bottom up.

12/19 To me there is a non-zero chance these privacy coins like Monero ( XMR ) will enable the move of wealth from any transparent ledger (not necessarily crypto) to essentially off the grid. If that were to take place, I’d assume we’d see the adoption persist and accelerate.

13/19 Obviously I’d be surprised to see mass backlash to this and for many not take to it kindly (fuel to the fire), but as game theory suggests, there will always be some that will. These along with P2P exchanges will act as On/off ramps.

14/19 I have chosen Monero here as it was built precisely for this purpose and not selectively transparent like other alternatives. Given the choice, (outside of crypto natives) do you believe that most people would choose to have self-custody, essentially self-responsibility?

15/19 Typically, I’d say no but this is starting to change. We’ve seen what the pointy shoes over at PayPal tried to pass over our heads not a few weeks ago, misinformation fines (2500). Now shrugging it off as a mistake (We know it wasn't) after a backlash of deactivations.

16/19 There are countless other totalitarian examples i could've used, canadian truckers etc. Regardless the truth is we are moving to a more digital, more censored, more restrictive age and people need more anonymity and freedom.

17/19 These are very liquid and inefficient markets, so extremely easy to acquire a position. I would rather hold a tiny percentage of my NW and have them go to 0, then not hold any on my ledger, to me that is by far the greater risk.

18/19 Makes it much easier, especially now the crypto has become a lot more out of favour. This is an asymmetrical bet id be happy to start adding to and holding for years if needed. I have chosen a basket of privacy coins and will be happy to not be proved right. ARRR

19/19 If you have read this far you are probably as paranoid as I. Obviously none of this is investment advice. Only a small gamble that I think could pay off handsomely. Might go to 0, but it will help me sleep better at night. How long until I’m banned from twitter?

This post is based on this twitter thread.

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