Thread
Within the last few weeks, we’ve seen the problems with financial censorship and devaluation take center stage in the world, from Russia and Ukraine to Canada.
Nothing has highlighted more the need for Bitcoin as independent money enabling individuals to be their own bank 1/x
Nothing has highlighted more the need for Bitcoin as independent money enabling individuals to be their own bank 1/x
Make no mistake: Putin’s invasion of Ukraine is an inexcusable tragedy. It’s crushing to see the loss of life and what Ukrainians are going through.
It’s also critical to look at what’s happening w/ the money. Let’s start w/the Russians, where we see 3 main (bad) developments
It’s also critical to look at what’s happening w/ the money. Let’s start w/the Russians, where we see 3 main (bad) developments
1. Massive devaluation of the ruble caused by global sanctions against Russia’s banking system, wiping out people’s savings.
www.cnbc.com/2022/02/28/russian-ruble-dives-nearly-30percent-against-the-dollar-amid-sanctions-ukrain...
www.cnbc.com/2022/02/28/russian-ruble-dives-nearly-30percent-against-the-dollar-amid-sanctions-ukrain...
I’m hearing from other founders that their Russian employees are being forced to convert 80% of foreign payments into rubles (when they can receive money at all), so they can’t protect themselves against the devaluation. People are asking how to start paying employees in crypto.
2. Bank runs as people in Russia try to access their savings. Long lines at ATMs and banks, capital controls put in place to keep assets from leaving the country.
People can’t access their money, and there are risks of banks failing completely.
www.cnbc.com/2022/02/28/long-lines-at-russias-atms-as-bank-run-begins-ruble-hit-by-sanctions.html
People can’t access their money, and there are risks of banks failing completely.
www.cnbc.com/2022/02/28/long-lines-at-russias-atms-as-bank-run-begins-ruble-hit-by-sanctions.html
3. Calls for mass financial censorship of Russian citizens, including calls for a blanket freeze on Russian accounts at crypto exchanges. Luckily most large exchanges have not done a blanket ban.
Ordinary people in Russia, many of whom don’t support the invasion of Ukraine, are bearing the costs of their dictator’s crimes.
Massive devaluation of savings. Inability to access their own money. People shouldn’t be forced to live like this — they should have an exit option.
Massive devaluation of savings. Inability to access their own money. People shouldn’t be forced to live like this — they should have an exit option.
Let’s turn to Ukrainians. Hundreds of thousands have fled Ukraine. While they likely have better access to banking services (via intl. branches) than Russians, it’s worth noting that bitcoin held in self-custody would be easily transportable on the move across country borders.
Financial access issues & censorship aren’t only happening in far off dictatorships. Recently, we saw Canada shut off bank accounts of protestors and their supporters. Suddenly anyone who donated to a non-violent cause found themselves at risk of having their bank account frozen.
It doesn’t take much to imagine these tools being used against anyone who disagrees with those currently in power.
Financial freedom — the ability to access your money — has to be a fundamental right. To take it away should require individual charges based on due process.
It can’t be as easy as a keystroke to turn off the financial system for millions of people.
It can’t be as easy as a keystroke to turn off the financial system for millions of people.
Bitcoin allows people to preserve their livelihood in the face of censorship and devaluation. To maintain their right to financial freedom.
By holding their own keys, people don’t have to worry about bank failures or frozen accounts — they alone have control of their savings.
By holding their own keys, people don’t have to worry about bank failures or frozen accounts — they alone have control of their savings.
“So you want to let criminals & oligarchs avoid financial sanctions?”
No. But we shouldn’t allow mass financial censorship with the flick of a switch like we’ve seen in Canada and Russia. Targeted sanctions are still possible in Bitcoin, but mass censorship is not.
No. But we shouldn’t allow mass financial censorship with the flick of a switch like we’ve seen in Canada and Russia. Targeted sanctions are still possible in Bitcoin, but mass censorship is not.
Bitcoin’s value comes from being an open, permissionless system.
The Internet has enabled the dark web, but it’s also created immense value for the world — because it’s open and permissionless. Should we not have the Internet because some bad people use it to do bad things?
The Internet has enabled the dark web, but it’s also created immense value for the world — because it’s open and permissionless. Should we not have the Internet because some bad people use it to do bad things?
Bitcoin can help billions of people access an open, global financial system.
The value creation potential is immense precisely because it is permissionless. We cannot let it be hamstrung by allowing the right to hold our keys to be taken, or to slip away for convenience's sake.
The value creation potential is immense precisely because it is permissionless. We cannot let it be hamstrung by allowing the right to hold our keys to be taken, or to slip away for convenience's sake.
We as an industry must defend the ability to self-custody and educate country leaders on why it’s a fundamental right.
Bitcoin doesn’t fix everything, but it does offer much better control over your personal savings in times of crisis.
Bitcoin doesn’t fix everything, but it does offer much better control over your personal savings in times of crisis.
The importance of being your own bank has never been so clear. The technology to do so has never been as approachable as it is today.
Don’t give up your right to financial freedom. Hold your own keys, and help others do the same.
/fin
Don’t give up your right to financial freedom. Hold your own keys, and help others do the same.
/fin
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Mike Hobart @theemikehobart
·
Mar 3, 2022
Solid thread here