In the early days of Bitcoin, a few idealistic individuals attempted to live entirely on the bitcoin currency. Nine years and an abundance of technological developments later, is an entirely closed-loop bitcoin economy possible, or even useful?
Join hosts Jonathan Mohan, Stephanie Murphy and Andreas M. Antonopoulos as they reflect on bitcoin’s evolution as a currency and commodity. In the early days, an era of retail adoption as merchants began to accept bitcoin from their customers seemed to point to a bright future for daily bitcoin use. The 2013 IRS addendum treating bitcoin as a commodity, rather than as a foreign currency, quickly made transactions a burden with onerous tax reporting requirements, dimming that retail bitcoin future.
In the time since, the crypto community has adopted a HODL mindset. Why spend bitcoin if it’s disinflationary in nature and will bring you more value in the future? Those idealistic individuals’ dreams of bitcoin as a daily currency may no longer align with bitcoin’s maturation.
Developments in layer 2 technology, like the Lightning Network, have allowed experiments in bitcoin as legal tender to be not only a possibility, but a pragmatic choice for governments like El Salvador’s. With news of Ukraine considering following in El Salvador’s footsteps, will clusters of closed-loop bitcoin life bloom around the world?
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Today’s show featured Andreas M. Antonopoulos, Stephanie Murphy and Jonathan Mohan. This episode was edited by Jonas, with music by Jared Rubens and Gurty Beats. Our album art is based off a photo by [email protected] on Unsplash, modified by Speaking of Bitcoin