In the crypto world, B.Y.O.B. does not stand for “Bring Your Own Beer”, but for “Be Your Own Bank”. Under this consideration, B.Y.O.B. represents the original mantra behind Bitcoin – the vision of Satoshi Nakamoto’s independence from state-run currencies. But freedom does not come without a price. This sentence is often used in a wide variety of contexts – including the universe of Bitcoin & Co.
Your own Bitcoin loophole
The 2008/2009 financial crisis gave the banking system a deep rift. Lehman Brothers bankruptcy was the biggest in world history. In 2008, the US government adopted a “rescue package” of 700 billion US dollars. In addition, the US Federal Reserve Bank launched the so-called “Quantitative Relaxation” and printed around 3.5 trillion US dollars as a result. This money ultimately comes out of taxpayers’ pockets. The population has no choice – the legal tender must be used (for example to pay the tax burden). The people are hostage to an economic Bitcoin loophole experiment of epic proportions. Here is the Bitcoin loophole review.
Bitcoin comes just in time. Thanks to Satoshi Nakamoto, there is now an alternative means of payment that people can use if they wish. Bitcoin offers each of us an opportunity: You can be responsible for your own money – your own bank. What’s the catch?
Don’t pay for the mistakes of others
Given the experimental monetary policy of the central banks, the advantage of Bitcoin is obvious. The amount of money in Bitcoin is given by the source code and cannot be arbitrarily changed. In Bitcoin, a state cannot decide to print several trillions. Confiscation of the population’s funds is also impossible. In this respect, Bitcoin is a safe haven: the rules are clear, no central authority can change them. That is why Bitcoin is independent of state money systems.
Bitcoin users are also independent of trustees. Apart from a missing publisher, users can also manage their money themselves. In short: B.Y.O.B. This protects against eventualities such as Lehman Brothers bankruptcy. Not to forget that many retirees lost their old-age provision at that time.
Thus: The own holding of the money extinguishes the counterparty risk. This means the risk of losing one’s money through mismanagement by another party (e.g. the bank). In addition, Bitcoin is independent of a central issuer of the currency. Bitcoins are automatically and impartially distributed according to the rules of computer code.
Buying Bitcoin alone does not offer independence. If the digital coins remain on a centralised exchange, nothing is gained. Only those who have sole control of the private keys have financial freedom.
“Forgotten password” is not an option in the Wild Crypto West
What a power! – be your own bank. The “disadvantage” is that you are responsible yourself. If you lose your private key, send a transaction to the wrong address or take bad security precautions, you are on your own. There are no responsible persons who can be asked for help. This circumstance requires that one is sufficiently familiar with the technology, that one can estimate the risk and that one protects oneself accordingly with back-ups.
So you are responsible for yourself. A disadvantage for all those who don’t know where is up and down – an advantage for all those who are up to the responsibility. BTC-ECHO has set itself the task of closing the gap as far as possible. That’s why we report news daily and place them in the overall picture.