Bitcoin
is
a
global,
decentralized
currency
that
is
beyond
the
control
or
guarantee
of
any
country.
Recent
months
in
the
Bitcoin
ecosystem
have
been
marked
by
a
fever
pitch
of
optimism
based
on
the
approval
of
Bitcoin
spot
market
exchange-traded
funds.
These
ETFs
are
driving
Bitcoin’s
adoption
into
the
mainstream
through
the
retirement
accounts
of
millions
as
well
as
the
portfolio
constructions
of
thousands
of
financial
advisors
and
institutional
investors.
The
ETFs
miss
the
point,
though.
Bitcoin
is
not
an
asset
to
hold;
it
is
a
currency
to
use.
Bitcoin
doesn’t
have
a
price,
it
has
an
exchange
rate.
The
future
of
bitcoin
is
not
that
of
an
asset
sitting
in
an
ETF
or
buried
in
one’s
backyard
in
a
hardware
wallet.
Currencies
are
meant
to
transact.
Zac
Townsend
is
the
CEO
and
co-founder
of
bitcoin-denominated
insurance
company
Meanwhile.
This
op-ed
is
part
of
CoinDesk’s
“Future
of
Bitcoin”
package
published
to
coincide
with
the
fourth
Bitcoin
“halving”
in
April
2024.
Though
day-to-day
payments,
like
buying
coffee,
are
not
a
great
use
for
bitcoin,
the
future
is
one
where
there
is
robust
economic
activity
denominated
in
bitcoin.
Bitcoin
will
shine
at
storing
value,
settling
large
payments,
conducting
financial
services,
and
more.
At
least
57
countries
in
the
world
had
inflation
rates
over
10%
last
year.
The
United
Kingdom’s
was
more
than
9%,
and
the
United
States’
was
over
8%.
For
residents
of
countries
with
a
history
of
inflation,
regime,
or
currency
risk,
the
day-to-day
volatility
of
the
exchange
rate
of
bitcoin
to
fiat
may
seem
a
lower
danger
than
the
decade-to-decade
fiscal
and
monetary
mismanagement
of
countries
all
over
the
world.
For
this
future
to
exist,
though,
companies
and
institutions
have
to
be
built
within
the
Bitcoin
economy.
Meanwhile
has
built
one
of
the
first:
a
fully-fledged,
regulated
life
insurance
company
denominated
in
bitcoin.
We
conduct
all
our
business
in
bitcoin.
We
are
regulated
by
the
Bermuda
Monetary
Authority,
which
lets
us
operate
on
a
modified
accounting
basis
with
bitcoin
as
the
unit
of
currency.
Read
more:
Jeff
Wilser
–
12
Future
Bitcoin
Scenarios:
From
Bullish
to
Bearish
We
operate
a
life
insurance
company
like
any
other.
But
instead
of
being
in
a
currency
with
depreciating
purchasing
power
—
like
dollars,
euros,
yen,
Swiss
francs,
or
pound
sterling
—
our
currency
is
bitcoin,
which
is
appreciating
as
a
store-of-value.
That
means
that
our
company
truly
operates
on
the
Bitcoin
Standard.
We
state
our
balance
sheet
and
income
statement
entirely
in
bitcoin.
Our
policyholders
pay
their
premiums
in
bitcoin,
and
we
make
guarantees
and
promises
in
bitcoin
–
agreeing
to
pay
all
claims
out
to
beneficiaries
entirely
in
bitcoin.
We
do
our
solvency
calculations
and
make
all
our
regulatory
filings
in
terms
of
bitcoin.
We
keep
our
insurance
reserves
denominated
in
bitcoin.
We
state
policy
values
and
do
all
our
actuarial
math
in
bitcoin.
This
approach
means
that,
as
the
saying
goes,
one
bitcoin
equals
one
bitcoin.
Our
policyholders
can
sleep
safe
knowing
that
exchange
rate
fluctuations
do
not
affect
our
business,
and
we
can
operate
knowing
that
we
can
meet
our
promises
for
the
same
reason.
Bitcoin’s
exchange
rate
has
fluctuated
between
$15,500
and
$70,000
over
the
course
of
operating
the
company,
but
our
balance
sheet
keeps
growing
in
bitcoin
terms
with
no
volatility.
We
are
just
one
of
the
first
companies
to
operate
in
this
way,
but
we
should
not
be
the
last.
Entrepreneurs,
builders,
bitcoin
(and
crypto)
natives,
and,
honestly,
much
of
the
world’s
population
will
increasingly
see
the
value
of
building
their
businesses
and
their
lives
on
the
Bitcoin
Standard.
Like
us,
that
means
they
can
stop
worrying
about
the
exchange
rate
of
bitcoin
to
the
dollar
today,
or
tomorrow,
or
next
month,
or
even
this
year
and
start
thinking
about
bitcoin
as
a
store-of-value
that
will
clearly
be
worth
more
in
the
decades
to
come.
