My Thoughts on Bitcoin Adoption - I Could Be Wrong, So Let's Discuss!

[Drawesome]

Hey fellow Satoshi followers,

I've been reflecting on Bitcoin's journey and despite our dreams, mass adoption hasn't happened (yet), and I'd love to get your feedback on this matter. Here's what I've observed, using El Salvador as an example, but I might be missing something, so I'd love some feedback.

1. Complexity
Bitcoin is complex; I think most of us will agree on that. Complexity has been reduced with new standards and protocols, a magical threshold of simplicity is unlikely without trusting a third party.
2. Advantage-seeking players - Are They Holding Us Back?
Some players might seem like they're supporting Bitcoin but might actually be slowing things down. Thay act as Bitcoiners but they don't have incentives for other players to come. Example: If I am a salvadorean that make money by recieving and offering service in BTC to tourist, should I keep the business to me or do I share my good luck to others?  I'm not blaming them; they have the right to act that way. But should we, as a community, try to promote more others new and small player to join the party?
3. What's Going on in El Salvador?
Having spoken to many people, and from my intuition:

• Bitcoin Circles: There's this illusion of adoption, but it's often confined to small circles. Bitcoin tourist being guide with same people who take them to the same places. There is no incentive for this local community to open.
• Merchant Compliance: Many merchants don't accept Bitcoin mainly out of ignorance or lack of economic incentive. They are not feeling the lost and the presure (yet)
• People use Dolar instead of Pesos, Bolivares or Lebanese Pound. That's why people can't value the big present they've been given (Obviously any goberment with a currency they can manipulate would't be so willing to make Bitcoin legal tender)

4. What Can We All Do?

• Incentivize Adoption in El Salvador and other local places: If a place doesn't accept Bitcoin, walk away and do not touch your FIAT. If you dealt with an employee , make sure the owner finally knows about the loose. Tourist are not numerous enought to put a pressure here, let's onboard salvadoreans in this.
• Educate and Engage: Let's  step out of the comfort zone and educate, give, and promote the entry of new local actors.
• Circular economy: It's great to embrace the HODL philosophy, but I believe a portion of our BTC should be used exclusively for consumption. Again, economic incentives drive adoption.

I know these are obvious points, and there's no magical solution, but it seems to be forgotten, and an attitude of "they will come when they have no other choice" or "just HODL and wait" prevails. This is not true. The future is not set in stone, and the collective result of all our individual actions will significantly determine Bitcoin's fate. If Bitcoin dies, we will lose the greatest hope for change we've had in centuries.

If you think Bitcoin is perfect, immortal, inevitable, etc., and that you can just HODL and wait, it's respectable that you do so, but it's not a thought that benefits the system, and I don't believe it should be reinforced or applauded.

Any thoughts?

Cheers

[1714917628]

1714917628

[UchihaSarada]

1. Complexity - Is It Just Me, or Is It Still Too Hard?
Bitcoin is complex; I think most of us will agree on that. Complexity has been reduced with new standards and protocols, a magical threshold of simplicity is unlikely without trusting a third party.

Bitcoin is not complex if you only buy bitcoin, store it in a self custody wallet and make transactions from your wallet.

It is easy enough to use it well without mistakes. It does not requires too much in storage if you use SPV wallet software like Electrum wallet. [1, 2]

Just use self custody wallets and if they are open source, you are doing good practice.

[1] https://electrum.readthedocs.io/en/latest/spv.html
[2] [Guide] Verify Electrum wallet

[Apocollapse]

1. It's complex if you learn the technical thing, but an Average Joe not have to learn that deeper, just learn the basic thing about decentralization.

2. Whales? no need to worry, they're not able to control Bitcoin price or hashrate.

3. I don't think business in El Salvador didn't accept Bitcoin, Nayib Bukele was force every business to accept Bitcoin as an alternative payment.

4. No need to teach someone about Bitcoin if they didn't even interested about decentralization in the first place.

[Drawesome]

1. Complexity - Is It Just Me, or Is It Still Too Hard?
Bitcoin is complex; I think most of us will agree on that. Complexity has been reduced with new standards and protocols, a magical threshold of simplicity is unlikely without trusting a third party.

Bitcoin is not complex if you only buy bitcoin, store it in a self custody wallet and make transactions from your wallet.

It is easy enough to use it well without mistakes. It does not requires too much in storage if you use SPV wallet software like Electrum wallet. [1, 2]

Just use self custody wallets and if they are open source, you are doing good practice.

[1] https://electrum.readthedocs.io/en/latest/spv.html
[2] [Guide] Verify Electrum wallet

Thanks for your comment. We all here are digitally educated individuals, but there is a vast digital divide. I believe this gap needs a different approach apart from education (no way people are going to learn math and no need for trust).

[20kevin20]

Is there no mass adoption yet? When is adoption massive enough for BTC to fit its definition?

Complexity isn’t necessarily a bad thing. It keeps mostly the interested users in BTC. If you aren’t interested in BTC itself, you’re gonna either buy through Revolut or you’re gonna skip the opportunity entirely.

Big players are a double-edged sword. BTC gets recognition but it also gets big players who’re in publicly for obvious reasons - money, and then fame. On the other hand though, it’s gonna be impossible to dimnish wealth inequality. Big players are gonna bite every single opportunity they see.

[Drawesome]

3. I don't think business in El Salvador didn't accept Bitcoin, Nayib Bukele was force every business to accept Bitcoin as an alternative payment.

Unfortunately, accepting BTC is the exception, not the rule. This isn't hard to verify. People who have actually gone out of what I call Bitcoin circles know

[komisariatku]

I think you forgot with "time". Yes, bitcoin takes more time for a new ecosystem to take place. Bitcoin is getting loved by people every day, the community is growing. Maybe now most people keep bitcoin as an asset and expect to profit from the increase in bitcoin prices. But on the way, when many people already have bitcoin then using bitcoin will be the next step. Mass adoption will occur. I think it's still in the introduction stage of bitcoin, there are still many people who don't understand about bitcoin. When the introduction phase is complete, the next phase is transactions using bitcoins, and the final phase is the mass adoption of bitcoins.

I think when the Fiat ecosystem was introduced, many people rejected and did not believe in fiat. You can imagine, gold was replaced with paper, it looks like nonsense. But after a long journey, everyone now believes in fiat and it has been adopted en masse. It's the same with bitcoin, fiat is paper that can be seen and touched whereas bitcoin is digital money that can only be seen on digital devices, that sounds like crap too. So just wait for bitcoin to become a new financial ecosystem, and bitcoin needs "time" to get there

[Hamza2424]

First of all, I'm not Stoshi's follower haha as it's a big word for me, you can say I'm Stoshi's concept supporter or appreciator whatever you like. Secondly, buddy Bitcoin is not at all concept everything is very agile and easy to understand. You just need to show some interest.

Hmm, I like some of the policies of El Salvador but at the same time, I think some of their policies are extreme whereas others can do better by learning from El Salvador. Also, I'm not sure about which type of players you are talking about and monopolies of what kind. For the sake of new players joining the party, I think most the people are aware of it they are waiting for something and I don't know what that thing is and for the wrong narrative against Bitcoin is actually in the favour of Bitcoin as it can be considered as free marketing by the central players like media and institutes (Governments).

[Faisal2202]

I really liked your points about why BTC is not being adopted on a mass level even in the country (El Salvador) where it is made a legal tender. The thing is I read some articles and the main point there government used to accept BTC as a legal tender as they were already on the verge of chaos in Financial status, and many local hesitate to send money from abroad due to high taxes and fees. So, in some articles I read the president or PM said that, one of the reasons is easy and cost-effective transactions.

But still, many merchants like you aforementioned, hesitate because the fee is more than the overall cost of the product. The thing is, El Salvador is just facing the worst crisis but it will turn into big profits and the economy of El Salvador will be stable again when the Price of BTC will reach $100k.

Another big reason is, BTC can not process millions of Transactions in shorter period of time. Let's say even if the whole people of El Salvador started to make transaction on BTC blockchain then the transaction will be so much in a day that BTC blockchain will take more than 10 days to process all of them. I talked on this issue like 2 to 5 times. But, the thing is mass adoption is only possible when the BTC could process transaction more fast than now.

[panganib999]

1. Complexity
Bitcoin is complex; I think most of us will agree on that. Complexity has been reduced with new standards and protocols, a magical threshold of simplicity is unlikely without trusting a third party.

Bitcoin isn't inherently complex, in fact it's so easy to use and setup even as a beginner in the industry. What's complicated though is the cryptocurrency industry and it only gets more difficult the more you invest your time and effort into it. Contrary to what the bitcoin maximalists wish, bitcoin is not the endgame for crypto, it's the gateway to the industry and this is what paints the illusion of bitcoin being a complex subject.

2. Monopolies - Are They Holding Us Back?
Some players might seem like they're supporting Bitcoin but might actually be slowing things down. I'm not blaming them; they have the right to act that way. But should we, as a community, try to promote more others new and small player to join the party?

I don't think the problem's with the adopters. The problem is with the people itself. A number of us here are content with how the industry works, cyclical and all that, and sometimes people even gatekeep this industry for some reason, not to mention large companies taking huge amounts of bitcoins for themselves and holding it without returning into the circulation, which inflates the price of bitcoin but at the same time discourages newbies who wish to invest on bitcoin.

3. What's Going on in El Salvador?
Having spoken to many people, and from my intuition:

• Bitcoin Circles: There's this illusion of adoption, but it's often confined to small circles. Bitcoin tourist being guide with same people who take them to the same places. There is no incentive for this local community to open.
• Merchant Compliance: Many merchants don't accept Bitcoin mainly out of ignorance or lack of economic incentive. They are not feeling the lost and the presure (yet)
• People use Dolar instead of Pesos, Bolivares or Lebanese Pound. That's why people can't value the big present they've been given (Obviously any goberment with a currency they can manipulate would't be so willing to make Bitcoin legal tender)

I don't want to burst your bubble but in El Salvador things aren't looking real great after the adoption of bitcoin. It was a drastic process that blindsided a lot of people and now they hate bitcoin in there, which drives the notion that good things come slow. In that regard we still got a long way before bitcoin becomes truly for the people, so perhaps pushing for adoption now wouldn't be the best idea. [/list]

[piercekieran99]

You raise a valid concern here. While some established players might appear to be supportive of Bitcoin, they might also inadvertently slow down its progress. It's essential to recognize that these players have their own interests and might not necessarily prioritize the principles that underlie Bitcoin's decentralized nature. As a community, we should actively promote and support new and smaller players in the ecosystem. Encouraging diversity and competition can lead to innovation and ultimately benefit the entire Bitcoin ecosystem.

[lassdas]

If a place doesn't accept Bitcoin, walk away and do not touch your FIAT.

Unfortunately, accepting BTC is the exception, not the rule.

^ Those two don't mix very well ^

I've been asking shops and merchants and service-providers for more than a decade about when they're going to accept BTC,
but guess what? They still don't and I can't even blame them.
Those that do have so few customers to actually use that payment-option, it's not worth the hassle.

Everyone treating Bitcoin just as an investment-asset trying to get rich (preferably quick) doesn't really help in that matter.

[hatshepsut93]

• Incentivize Adoption in El Salvador and other local places: If a place doesn't accept Bitcoin, walk away and do not touch your FIAT. If you dealt with an employee , make sure the owner finally knows about the loose. Tourist are not numerous enought to put a pressure here, let's onboard salvadoreans in this.

Have you tried boycotting fiat yourself? You'll very quickly start starving.

• Educate and Engage: Let's  step out of the comfort zone and educate, give, and promote the entry of new local actors.

This would just make Bitcoin look like a religious cult. Good inventions don't need evangelism. No one went door to door to promote television, the Internet or automobile. Poeple rushed to adopt them because they offered a clear advantage.

[Gyfts]

Bitcoin is complex; I think most of us will agree on that. Complexity has been reduced with new standards and protocols, a magical threshold of simplicity is unlikely without trusting a third party.

The technical aspects of Bitcoin are complex to someone that knows little about cryptography, sure. But I advise people, in order to use Bitcoin, you need to know nothing about cryptography or the technical aspects of the Bitcoin protocol. The barrier to adoption isn't necessarily education on Bitcoin technicalities. It isn't all that complex on the surface level.

2. Monopolies - Are They Holding Us Back?
Some players might seem like they're supporting Bitcoin but might actually be slowing things down. I'm not blaming them; they have the right to act that way. But should we, as a community, try to promote more others new and small player to join the party?

I agree with your other points but don't understand what you're saying here. What monopolies are you referring to? How does someone support Bitcoin and "slow things down" and what does that have to do with monopolies?

[WatChe]

There are many shortcomings of Bitcoin at the moment lets just accept it with open heart. Its because of these shortcomings bitcoin is finding it hard to make it to global adoption.

Apart from complexity there are few other things like price volatility and settlement time are of great concerns for merchants to adopt it as payment system. There are solutions like LN that kills the issue of settlement time but its not accept by the community.

Till the time these shortcomings are not addresses chances are rear for Bitcoin to make it to global adoption.

[Z-tight]

The thing is, El Salvador is just facing the worst crisis but it will turn into big profits and the economy of El Salvador will be stable again when the Price of BTC will reach $100k.

Why do you feel that the economy of El Salvador will become stable once BTC is $100k? Is it Because Nayib Bukele said on Twitter that El Salvador will be buying BTC's regularly, even if what he said is true and they have been buying BTC frequently, it does not mean their economy will be stable because there was a pump in the price of BTC, things don't work that way in economics.

Let's say even if the whole people of El Salvador started to make transaction on BTC blockchain then the transaction will be so much in a day that BTC blockchain will take more than 10 days to process all of them. I talked on this issue like 2 to 5 times. But, the thing is mass adoption is only possible when the BTC could process transaction more fast than now.

People don't just start making transactions, they are either making payments, sending funds to people or liquidating BTC to fiat, this is exactly how people use fiat, their bank's mobile app or any other payment option. I agree that BTC transactions are not instant, but miners don't care who is making the tx's or from where, what matters is the fee attached to it and with a fee of high or medium priority, your tx will be confirmed fast, though if the mempool is congested, the fee for high priority will increase.

[Drawesome]

Is there no mass adoption yet? When is adoption massive enough for BTC to fit its definition?

Complexity isn’t necessarily a bad thing. It keeps mostly the interested users in BTC. If you aren’t interested in BTC itself, you’re gonna either buy through Revolut or you’re gonna skip the opportunity entirely.

Big players are a double-edged sword. BTC gets recognition but it also gets big players who’re in publicly for obvious reasons - money, and then fame. On the other hand though, it’s gonna be impossible to dimnish wealth inequality. Big players are gonna bite every single opportunity they see.

Good point about what constitutes enough mass adoption. I should have clarified that I am referring to adoption not solely as an investment. This is precisely one of my main concerns. If Bitcoin is predominantly adopted as an investment, what if even those who espouse the Bitcoin philosophy are actually hypocritical players merely waiting for the price to reach a level where they can cash out to fiat? In terms of the Prisoner's Dilemma, if we don't consider the collective well-being of the system, the future is not good.

I think you forgot with "time". Yes, bitcoin takes more time for a new ecosystem to take place. Bitcoin is getting loved by people every day, the community is growing. Maybe now most people keep bitcoin as an asset and expect to profit from the increase in bitcoin prices. But on the way, when many people already have bitcoin then using bitcoin will be the next step. Mass adoption will occur. I think it's still in the introduction stage of bitcoin, there are still many people who don't understand about bitcoin. When the introduction phase is complete, the next phase is transactions using bitcoins, and the final phase is the mass adoption of bitcoins.

I think when the Fiat ecosystem was introduced, many people rejected and did not believe in fiat. You can imagine, gold was replaced with paper, it looks like nonsense. But after a long journey, everyone now believes in fiat and it has been adopted en masse. It's the same with bitcoin, fiat is paper that can be seen and touched whereas bitcoin is digital money that can only be seen on digital devices, that sounds like crap too. So just wait for bitcoin to become a new financial ecosystem, and bitcoin needs "time" to get there

All you say is very reasonable. But how much time do we have? Is the system heading towards the utopia that this logic suggests if we don't correct and influence some behaviors that do not favor that outcome? The ones who are highly motivated to react and influence are the advantage-seeking actors. In the FIAT world, it's evident; in the altcoin world, it's also very evident in most cases, but in Bitcoin, it's more subtle because they camouflage themselves within the philosophy of Bitcoin.

You raise a valid concern here. While some established players might appear to be supportive of Bitcoin, they might also inadvertently slow down its progress. It's essential to recognize that these players have their own interests and might not necessarily prioritize the principles that underlie Bitcoin's decentralized nature. As a community, we should actively promote and support new and smaller players in the ecosystem. Encouraging diversity and competition can lead to innovation and ultimately benefit the entire Bitcoin ecosystem.

This point is very important and far from trivial. We should always look at the incentives of the actors involved. It's often more reliable to observe where their incentives lie rather than what they defend in words. I don't believe there is ill will or a conscious effort to harm Bitcoin in the majority of these individuals. Sometimes, it could be mere self-deception.
I think some people (contents creators for instance) take on the role of a believer who positions themselves to "judge" and announce divine punishments for the others, I don't think is beneficial for the system, but for them to engage more followers.

[Blitzboy]

Right about Bitcoin's complexity. Its like teaching a toddler quantum mechanics, right? Bitcoin is difficult despite efforts to simplify it! Who even knows what a blockchain is? And decentralized? Most folks cant handle a decentralized dinner party! The rest of us try to enjoy our lunches... I agree that we should recruit more newcomers. Also, variety is the spice of life

El Salvador? It was all show and no go! Some businesses are 'Bitcoin-friendly', but most are still unsure what's happening on. What can we do? I support adoption incentives! We should prove to businesses that Bitcoin is worth accepting. As you say, we should walk away from places that don't accept Bitcoin. Simple! I can see why HODLing and waiting is enticing, but it's like watching the kettle boil—the longer you stare, the longer it takes!

[Sim_card]

1. I don't think that bitcoin is complicated to learn,all one need to do is to learn the basic of bitcoin, which is how to buy and sell,transfer from one wallet to another and how to keep your noncustodial wallet safe from hackers. The technical aspect is hard for those that are not computer programmers and non science people.
4.OP, you should also know that bitcoin isn't legal yet in some countries which will be a big challenge for bitcoiners to teach people about bitcoin in such country. What you said is nice but it can only be achieved in countries that bitcoin is legal and I believe that in those countries that cryptocurrency is legal the adoption is increasing day by day.

[_BlackStar]

I think when the Fiat ecosystem was introduced, many people rejected and did not believe in fiat. You can imagine, gold was replaced with paper, it looks like nonsense. But after a long journey, everyone now believes in fiat and it has been adopted en masse. It's the same with bitcoin, fiat is paper that can be seen and touched whereas bitcoin is digital money that can only be seen on digital devices, that sounds like crap too. So just wait for bitcoin to become a new financial ecosystem, and bitcoin needs "time" to get there

Fiat is a centralized currency that is completely government controlled - while governments cannot control bitcoin although they can introduce regulations for their users. The main barrier to mass adoption for bitcoin is government regulation - that is an undeniable fact.

You cannot expect all the world's governments to agree to adopt bitcoin until it reaches the level of adoption of fiat as legal tender. I hope that bitcoin is adopted as an alternative option that will not replace fiat as the main currency. While you can hope the passage of time - you can get governments to adjust their regulations on bitcoin, but I don't expect governments to fully agree to mass adoption of bitcoin.