Covid, for many, was a wake-up call around personal sovereignty and security. A recognition that the system that we believed was there to protect and support us was, in fact, incredibly fragile. Supply chain shocks meant that people were unable to get essentials or have people over for general services, and then with the war in Ukraine there were energy shocks, and recently the majority of the World is experiencing a cost of living crisis. All of this has driven a rise in DIY, a do-it-yourself culture - with people baking their own bread, fermenting their own yoghurt, growing herbs for tea, making and mending clothes, doing house repairs, and learning the essentials of how to live a more self-sufficient lifestyle.
And so, on one of our recent videos (see below), Anja and I discussed how this DIY trend could have helped drive the surge in bitcoin adoption during 2020-2022 and how as we move into the future whether more people will want to claim sovereignty, not just over their homes, but over their money.
An so, in this post I want to explore why Bitcoin is so powerful as a DIY bank.
Bitcoin: A Decentralized Currency
Since its’ inception in 2009 Bitcoin has grown quickly and the concept of a decentralized digital currency is now a significant feature of global economic discourse. And in recent years Bitcoin has proved foundational in not only teaching citizens the essential concepts of the current financial system and the ways in which national currencies are given value, but the ways in which all people can take back power over their money.
Bitcoin offers a unique feature that sets it apart from traditional financial institutions: and that is the ability to function as a DIY (Do-It-Yourself) bank.
Due to its decentralized nature, innovative technology and self-custody wallets, the Bitcoin protocol empowers individuals to take back control of their financial affairs, emerging as a type of digital personal bank.
There are some key features to the Bitcoin technology that lend itself perfectly to this function.
Financial Sovereignty
One of the fundamental aspects of a DIY bank is financial sovereignty, which refers to the ability to have complete control over one's finances without relying on centralized institutions. Bitcoin, being a decentralized digital currency, allows individuals to become their own bank, providing full control over their funds. Unlike traditional banks, where transactions are subject to approval and intermediaries, Bitcoin enables users to manage their wealth independently.
Peer-to-Peer Transactions
Traditional banks act as intermediaries in financial transactions, but Bitcoin eliminates the need for intermediaries entirely. Bitcoin operates on a peer-to-peer network, enabling direct transactions between users, much like handing cash to another person. This feature enables fast, efficient, and borderless transactions without the need for third-party involvement or transaction fees.
Transparency and Security
While traditional banks often lack transparency, Bitcoin operates on a public ledger called the blockchain, which records every transaction ever made. This transparency provides a higher level of security, as it eliminates the possibility of fraudulent activities or unauthorized changes to the ledger. Additionally, Bitcoin uses advanced cryptographic techniques to ensure the security and integrity of transactions, making it a highly secure DIY banking solution.
Financial Inclusion
A significant advantage of Bitcoin as a DIY bank is its potential for financial inclusion. In many parts of the world, traditional banking services are inaccessible or limited. However, Bitcoin allows anyone with an internet connection to participate in the global economy, regardless of their location or socio-economic background. This empowers individuals who are unbanked or underbanked to store, transfer, and grow their wealth independently.
Investment Opportunities
Bitcoin not only functions as a currency but has the ability, much like gold, to offer a potential investment opportunity (not financial advice). Similar to how traditional banks provide savings accounts or investment products, Bitcoin allows individuals to invest in the digital currency itself.
And this potential for value-appreciation has attracted many investors; both serious and those looking for opportunities. This investment capability, albeit which carries risks, makes Bitcoin an interesting option for those looking to potentially grow their wealth in the long term and to support a diversified investment portfolio.
With all these powerful aspects, of financial sovereignty, peer-to-peer transactions, transparency, security, financial inclusion, and investment opportunities, Bitcoin empowers individuals to (finally) be able to take control of their financial affairs and become their own bank. DIY banking is here.
And as the world continues to explore, and grapple with, the potential of digital currencies, Bitcoin stands as an amazing example of the power of decentralized finance and the possibilities it brings for creating a more inclusive and accessible financial system, and bringing power and sovereignty back to an individuals' own wealth.
If you have any questions about this, or anything bitcoin-related, please send us a message or comment below (we would love to hear from you!)
Or watch our recent episode where we highlight our personal reflections on bitcoin as a DIY bank.
If you enjoy our video please do consider subscribing to our channel (on youtube or listen wherever you get your podcasts).
If you want to discover more about Bitcoin and the crypto space you can join our live monthly classes and gatherings, or you can browse our website to discover all our current offerings.
With all our bitcoin blessings,
Tansy, The Crypto Ethic Founder and Lead Coach
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