I like when you are mentioning “the other four billion people.” In your opinion, what is the best practice for building exchanges? Personally I love bitcoin, but I’m not comfortable with these “central banks of bitcoin” that we call exchanges.
This question is about supporting the other 4 or 6 billion people, depending on how you count. The issue is, exchanges are very centralized and custodial, which means they hold bitcoin for people, and that represents a significant risk, not to Bitcoin itself, but certainly for Bitcoin users who can lose money.
We don’t have too many perfect solutions right now. There are a few small-scale decentralized systems. Local Bitcoins allows person-to-person cash transactions, and what cash has similar to bitcoin is that it is easily verifiable on presentation. It doesn’t depend on any counterparty. You hold it, you own it, right?
Exchanging cash for bitcoin is the most secure way to get bitcoin. But what about using it? How can you actually use virtual bitcoin?
The best way to get bitcoin is not to buy it. The best way to get bitcoin is to earn it through the expenditure of your labor.
Dedicate your labor to bitcoin and you achieve two goals at the same time:
1) You are earning bitcoin, from the people who can pay you in bitcoin.
2) You have removed your labor from the machinery of the state, which was using your labor to build bombs.
That’s my personal philosophy. Two birds, one stone. I’m in on the good side, and out of the bad side.