Bitcoin: Riding the Waves of 2018-2023’s Challenges and Opportunities
• Obi Nwosu predicted that Bitcoin would face attacks during the 2018 to 2023 period and it did, with the Celsius bankruptcy in July being the first sign.
• This highlighted the two realities for Bitcoin, “real” Bitcoin and “regulated” Bitcoin, with Coinfloor being sold in 2021 because it was too focused on keeping users in regulated Bitcoin land.
• Real Bitcoin is flourishing in the Global South and post-Soviet regions, with frontier towns emerging that combine renewable energy, Bitcoin mining, internet connectivity and community custody.
In 2020, Obi Nwosu, CEO of Fedi and a board member for ₿trust, predicted that Bitcoin would face attacks during the 2018 to 2023 period but would ultimately emerge successful by the end of it. Although it was not known at the time, this prediction would prove to be accurate and the events of the past few years have shown the importance of this period for Bitcoin.
The bear market of 2020 was a time of “cleansing” for the Bitcoin ecosystem, allowing it to refocus on its original mission of providing monetary freedom. This refocus was brought into sharp focus in July of 2021 when the Celsius bankruptcy occurred, a sign that the decentralized nature of Bitcoin was not being used in the manner that it was intended. This highlighted the two diverging realities that Bitcoin was facing, “real” Bitcoin and “regulated” Bitcoin.
Real Bitcoin was rising from the bottom up and was focused on the value it could bring to the world, while regulated Bitcoin was focused on price and was committed to achieving adoption through speculation. These two realities led to the sale of Coinfloor in 2021, as Obi Nwosu recognized that such exchanges were too often dedicated to trapping their users in regulated Bitcoin land. This was demonstrated in the months that followed, with the collapse of FTX and the regulatory fallout that followed, resulting in significant losses for many innocent people.
However, on the other end of the spectrum, real Bitcoin is flourishing in the Global South and post-Soviet regions, with innovation addressing the narrative that Bitcoin has no good use cases. This is seen in the emergence of “frontier towns” that combine renewable energy, Bitcoin mining, internet connectivity and community custody. These towns are a testament to the potential of real Bitcoin and provide a glimpse of the future of the cryptocurrency.
Ultimately, this period of 2018 to 2023 has been a challenging one for Bitcoin, but it has also allowed it to refocus on its core mission and to expand its reach beyond its traditional sphere of influence. As we move into the next phase of adoption, it will be interesting to see how the two realities of Bitcoin continue to evolve and how they ultimately shape the future of cryptocurrency.