THE EARN AND USE ECONOMY

Are giveaways helping Bitcoin?

Published by Donald Mulders on December 16, 2020

Hi Nick,

On 16/12/2020 you asked the following question on Twitter; What is more helpful for Bitcoin encourage usage or giving it away? This topic is simply too interesting to waste on Twitter, and deserves to be further explored. This is why I write to you.

I know you as a strong proponent of earning Bitcoin over getting or buying, as is evident from your Learn to Earn program. This is why your observant followers will likely understand the question as a criticism of Bitcoin giveaways.

Why I think you have a point.

Pay with Moneybutton or RelayX to continue reading.

I think you are correct in saying that many recipients of such giveaways will end up doing little or even nothing with the Bitcoin they receive other than hoping it will increase in value. As most recipients lack the knowledge of how or where to use Bitcoin, this is a reality. I also suspect that as most wallets display Bitcoin balances in a fiat currency notation, use is discouraged. The volatility of Bitcoin against fiat currency, where balances visibly increases and decreases, stimulates speculation. If Bitcoin is to become the foundation of an earn and use economy, I believe it is important to get a feel for the satoshi value itself.

Why I think you dont.

Still, I think giveaways have some use. It demonstrates that Bitcoin microtransactions are a possibility, something the majority of people are still unaware of. And having experienced that microtransaction at the speed of light is a possibility is a revelation for many. But this experience should certainly be completed in a subsequent revelation by having them experience the convenience of paying or earning in Bitcoin.

The case for using Bitcoin

Recently I helped an acquaintance who wanted to get rid of her BTC holdings. She was nervous about the introduction of KYC requirements and with the association of dark markets. She asked me to help convert her BTC back to fiat. Other than as a small innocent bet on potential appreciation, she saw no more value in holding BTC. In this process, for full transparency, I showed her step-by-step all the action it took and the costs of withdrawing from an exchange, the transaction costs to a wallet from a fiat exchange, and then the costs of switching it back to fiat. I took the opportunity to show her this polemics platform and how easy it could be to pay for online content with real Bitcoin using Moneybutton. I had plenty of time to do so because converting BTC to fiat takes a lot of patience. I didn't need much persuasion after that to convince her why BTC should no longer be considered Bitcoin. After my demonstration, this was self-explanatory.

Lets show them how

I am very curious about your experiences given your previous attempt to teach people how to earn Bitcoin. What have you learned from this yourself, what was the feedback you received on this, and what would you like to share with others about this topic. And in the spirit of this topic, we will of course put your reply behind a paywall. This way you can earn a little bit of Bitcoin, and it gives people who received bitcoin for free the opportunity to invest their bitcoin in useful knowledge.

Best regards and much respect,

Donald