Yeah I see what you mean.
If the bitcoin protocol stays on its current technical trajectory very few people will ever have a UTXO. Most will and up using a layer two or three version of bitcoin with trust, privacy, and convenience tradeoffs.
Not necessarily the ideal state of affairs, but that's where we are today.
Anyone who opts to use shitcoins (CBDCs and fiat included) will just get poorer continuously until they learn their lesson.
That’s what I’m thinking too.. at that point do they even own Bitcoin if it’s on a layer 2 or three and they don’t own UTXO?
I fear if we could be just end up creating the very system we are trying to escape from because like you said these trade offs are introduced the more layers that are added.
Yeah I have had that concern as well. I do believe that bitcoin will make a dramatic improvement over the previous system, but there will still be rug pulls and scams for a long time to come.
I don't know what the legal structure will look like under a bitcoin standard, but I imagine we will gradually build a structure which makes it prohibitively risky to rug pull people with financial services.
Most people focus on the means of exchange and store of value elemets of bitcoin, but I think the most transofmational factor is the third element, means of accounting.
In my opinion, if a large segment of society begins to think and measure their lives denominated in bitcoin it will bring about a renaissance whether the hold on chain custody or not.
The main element I see as a problem is interest bearing loans. Usury.
I'm not sure how the credit market will adapt to the bitcoin standard, but I don't see how they can coexist.
Saylor and Saifedean recently debated this on his podcast.
Couldn’t agree more. The behavioral changes that come with BTC becoming a unit of account are going to be huge and incalculable. I hope we are around to see this happen.
