Makers of 3D-printed guns operate by the motto, “Free men don’t ask permission.” They don’t ask the State for permission to bear arms. They don’t rely on gun manufacturers to make a gun that they’d like to see developed. In doing so, 3D gun printing functions parallel to, and outside of the legacy model of regulated manufacturers producing compliant and serialized guns that can only be bought through third-party licensed firearms dealers after passing a State background check.
A “Bitcoin circular economy” runs on the same principle. Free men don’t ask permission to transact with each other and don’t rely on the legacy third-party financial institutions that operate in tandem with State authorities.
In this article, I will define the Bitcoin circular economy, provide examples, describe its benefits and give advice on how to get started.
Defining The Bitcoin Circular Economy
A Bitcoin circular economy (BCE) is Bitcoin.
The title of the Bitcoin white paper is “A Peer-to-Peer Electronic Cash System.” The “system” is an economy consisting of peers in a network, trading with each other using bitcoin. You’re acquiring bitcoin by earning it or receiving it through donations.
“Circular” is a bit redundant. But it helps to describe Bitcoin economies where the participants trade frequently with each other, rather than describing the entirety of all Bitcoin transactions in the P2P network.
A common misunderstanding is the scale of this economy. A Bitcoin economy isn’t the size of a nation-state, replacing central bank-based economies. The minimum size of a Bitcoin economy is three participants. Three participants are a network, a system. A BCE is parallel to the fiat financial system.
One misunderstanding about Bitcoin economies is that they’re all or nothing.
“Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the…