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If Bitcoin is not a viable and legal and convenient alternative to the states fiat MoE monopoly then imo it has failed.
Governments have put in obstructions to prevent the free and convenient use of BTC as a MoE because they seek to protect ad preserve their rentseeking fiat debt slavery regime.
Talking about using BTC as 'the base asset on which fiat runs' as a solution is absolute and complete cop out sophistry bullshit.
Sounds like bulshit now, but this is where we are eventually headed. And no, it doesn't suggest that the government takes over Bitcoin or something; instead, it just does exactly what Bitcoin was designed to do: check inflation and currency debasement, and offer freedom and an alternative independent money to anyone at any time.
The Lightning network facilitates this, while the on-chain network enforces the standard and rules.
There are no bailout cos there is never a way to mint more than what exists (Thanks to proof-of-reserves systems). Any fraud fails instantly or fails in a short time. On the other hand, anyone can exit at anytime back to using Bitcoin and remain sovereign by simply exchanging value with Bitcoin via on-chain.
The volatility problem of Bitcoin to Fiat valuation makes this more realistic.
Find and read publications from Eric Yakes and the Epoch team, and you may grasp this more.
Bitcoin is useful to humans who are useful to the government that runs the Fiat system. This is some sort of correlation that will continue to exist with these two systems. However, if Bitcoin is integrated into the Fiat system, it checks the excesses of the Fiat system, while leaving an option of exit if the excesses remain unchecked.
There may be no better way to explain this. Just check out these resources:
- https://github.com/standardsats/fiat-channels-rfc
- https://standardsats.github.io/
- Find an Eric Yakes publication and read. It would clarify
What solution should we be looking for exactly?
The solution of making Bitcoin a legal tender or removing the taxation imposed on it as property?
What we can do is "Make Bitcoin the base asset on which Fiat runs." When Bitcoin is used in that sense, it cannot be taxed, but at the same time, it is not a legal tender and does not conflict with the government's legal tender. It just becomes an underlying asset moving fiat-denominated value across time and space.
This is already possible with the Lightning Network via Hosted/Fiat channels:
Here: https://github.com/standardsats/fiat-channels-rfc
Here also: https://standardsats.github.io/