The bitcoin economy’s advantage is the lack of supervision and censorship, where “free people do not ask for permission to make transactions with each other.” This opinion was expressed in an article for Bitcoin Magazine by fintech entrepreneur Ragnar Liftrasir.
Speaking about bitcoin’s free economy, he drew an analogy with printing weapons on 3D printers, the creators of which use the motto “Free people do not ask for permission.”
“They don’t ask the state for permission to carry weapons. They don’t rely on manufacturers to make the weapons they would like to see,” Liftrasir writes.
According to him, this industry exists in parallel and outside the outdated model of regulated producers. The bitcoin circular economy (BCE) works on the same principle.
The first cryptocurrency itself is BCE. It consists of three participants and moves parallel to the fiat financial system. Unlike national currencies, where money and the holder’s identity are interconnected, bitcoin shares these concepts.
“Your credit cards, current account, and PayPal account start with your identity: name, home address, social security number, email, phone number, and more,” the entrepreneur notes.
This, in his opinion, has serious consequences: the state and third parties reserve the right to control access to payment services and censor trade.
“The bitcoin economy is not tied to personal information. This is a censorship-free economy,” Liftrasir explained.
The advantage of participating in BCE is the lack of third-party services that are compatible with KYC/AML procedures. Carrying out this supervision, third parties help governments monitor and censor the transaction and collect taxes from the cryptocurrency holders.
“When you participate in the bitcoin economy, you build relationships with people who value peer-to-peer cryptocurrency. You can interact with them, and not trade on third-party, KYC/AML-compatible exchanges,” Liftrasir said.
You can join the bitcoin economy by using cryptocurrency as payment or receiving donations, he added.
“BCE is an economy where trade thrives, free from surveillance, censorship, and dependence on third parties. Anyone can participate by earning, spending, donating, and buying bitcoin from those who do the same,” the author concluded.
Liftmaster previously served as President of the International blockchain real estate Association. In 2015, he stated that the use of blockchain in property rights management “will take the entire real estate industry out of the 18th century where it is now.”