Building a Bitcoin Circular Economy

[Suba]

A Bitcoin circular economy is a self-sustaining economic model where Bitcoin (in a community, such as in Bali, Indonesia, and Peru) is used directly to receive wages/income, or to spend and make other payments without first having to convert it to fiat currency, either IDR or USD. This creates a closed environment. For example, a supermarket employee receives his salary in Bitcoin and spends it at the store, eliminating the need for the employee to convert it to fiat currency.

Although Bitcoin circular economy transactions are increasing, they are only conducted between community users' wallets and therefore will not impact the crypto market.

There are several important components to building a Bitcoin circular economy, such as:
Adoption by local communities with slow growth rates.
Exercise only within a closed community cycle.
Education and literacy are essential for all community members.
Reducing community members' dependence on fiat currency.

 

[riberet19]

I think that with the fees and low scability of Bitcoin BTC this is only a dream, more people use BTC, more fees, lightning network is a mess, but if people want to pay this fees and other questions is good for me, but there is other blockchains better for this purpose.

 

[Suba]

I think that with the fees and low scability of Bitcoin BTC this is only a dream, more people use BTC, more fees, lightning network is a mess, but if people want to pay this fees and other questions is good for me, but there is other blockchains better for this purpose.

I agree with you that many other blockchains that offer low fees like Cardano, Solana, Dogecoin and even Nano network offer free fees, but why does the circular economy community prefer Bitcoin as a medium of exchange.

 

[riberet19]

I agree with you that many other blockchains that offer low fees like Cardano, Solana, Dogecoin and even Nano network offer free fees, but why does the circular economy community prefer Bitcoin as a medium of exchange.

Because NGU at the moment (number go up) the price, the brand about BTC and liquidity, because at the moment it works as hedge of inflation too, but this can change, Dogecoin is an inflacionary token, nothing changes with it vs their local currency, Solana is the same, Cardano is the same, the friction of BTC will not allow this for massive adoption, for small communities it can be viable for now, but if it become largely adopted in the future, it will have more and more friction, and if you want to pay a coffe with BTC, you have to pay 2$ for a 1.5$ coffe, this is antimonetary, I prefer to pay with Litecoin, Bitcoin Cash or even Monero, Limited supply, low fees and speed, nothing more.

the solution one BTC maxi would say "use lightning network" but lightning adds complexity and additional friction that a massive circular economy shouldn't require.