As a permissionless store of value, bitcoin allowed me to escape the danger of a Russian invasion of Ukraine. And it can help you too.
To me, being a Bitcoiner means believing in free markets and voluntary exchanges. Bitcoin allows all exchange participants to benefit. But while we still live in a fiat- and state-dominated world, we sometimes face unprecedented threats and challenges.
This is my story.
I lived in the Ukrainian city of Kramatorsk (administrative center in the east of the country) until the Russian invasion of Ukraine began. As a Bitcoiner and remote worker, I decided to move to the western part of the country. Fortunately, Bitcoin provides the personal freedom needed to do things like this. While Gigi rightly states that “Bitcoin is time,” Bitcoin is also space and freedom of movement.
Last year, I joined the Bitcoin Magazine Ukraine team. However, my work was interrupted by a brutal attack by the Russian military on February 1, when they stormed my apartment building. In the attack, Russia used a mobile ballistic missile system known as the Iskander-K. According to the Russian defense ministry, its forces used the Iskander to target “military infrastructure,” but the reality of this attack is as follows.
Using this precision weapon, Russian forces attacked a residential building in Kramatorsk, which turned out to be where I lived before I moved. The result of using a hypersonic ballistic missile against an apartment building is predictable: complete destruction.
The attack killed four and seriously injured 18 people. The higher number of deaths was prevented by the evacuation of most of the residents and the professionalism of rescuers who saved many people, including a two-year-old girl.
“This is the most tragic event in Kramatorsk during this war since the attack on the railway station in April (when 60 people were killed),” journalist Alyona Hromova said at the time.
Bitcoin Vs. Real Estate As A Store Of Value
This case clearly shows that bitcoin is more effective as a store of value than real estate.
First, bitcoin is indestructible, even under the heaviest missile strikes. As long as you save the seed phrase correctly, you can always regain access to your coins. Physical property is more vulnerable and physical damage means you no longer have access to it.
Second, Bitcoin is a global monetary system and does not depend much on local conditions in different countries or regions of the world. In contrast, real estate makes its owner dependent on state conditions. In the case of war, for example, the liquidity and monetary value of real estate can drop dramatically.
Third, the supply of bitcoins is fixed, and changes according to an algorithm that cannot be changed by anyone. However, the supply of real estate can change, making it problematic as a means of long-term financial planning.
I lost my apartment and almost all my material possessions. However, I still have access to BTC.
The Real Implications of Bitcoin
I believe this story teaches some important lessons:
- We need hyperbitcoinization now more than ever. As long as governments can print money to finance aggressive military campaigns against other countries, a large percentage of the global population will live under constant threat and their health will deteriorate. Some authoritarian and totalitarian regimes even violate the most basic international agreements and deliberately target civilian populations. This is impossible under Bitcoin standards where all campaigns will be financed with real savings. In addition, the overall culture of Bitcoiners that respects private property rights will eliminate cases of large-scale aggression.
- We need to transition into a low time preference society. The fiat world system tries to maintain an atmosphere of fear and uncertainty that leads to high time options. And war is the most radical way to impose high time preferences on the population. In contrast, monetary stability and decentralization of power are crucial to promoting peace and prosperity through low time preferences. Only in such a situation can a sovereign individual emerge.
- Not all technology is created equal. Although we as Bitcoiners love innovation, we need to recognize that technology can be used in different ways. Governments often use technological achievements to create weapons of mass destruction and other instruments to violate people’s basic rights and freedoms. The fundamental differences in technology and their social and ethical implications must be communicated to the general public.
One More
We now know that bitcoin can survive, even in the face of missile attacks. In addition, Bitcoin can survive large blocker attacks, China’s mining ban, environmental anti-mining campaigns, central bank digital currency promotion and any attempt to destroy people’s freedom through coercion.
For centuries, philosophers have explained the causes of injustice and the optimal way to combat it. In the absence of practical tools, efforts to build a free and peaceful society failed. However, we now have a magic tool – Bitcoin – that brings together the informational and physical worlds. Bitcoin is a hope and a bridge to a better future for all free people.
After the missile attack, the author raised funds through the bitcoin wallet below to compensate for the losses, psychological and material, as well as to provide financial assistance to other victims of the attack, including those who have been physically injured. Your help will be greatly appreciated:
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This is a guest post byDmytro Kharkov. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.