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2024-04-13 14:06:26

PaulAllen on Nostr: YMMV but I can probably count on one hand the number of bitcoin content creators I've ...

YMMV but I can probably count on one hand the number of bitcoin content creators I've heard cite a minimum value for moving your stuff off of the exchange. Matt suggests 1 million sats and I recently heard Andreas say the same.

Throughout this journey the most often repeated pieces of advice I've heard has been:

1) don't leave bitcoin on an exchange

2) don't store more in a hot wallet than you can afford to lose

3) don't re-use a receive address

I'm not questioning the wisdom in this advice but without including some sort of sat/fiat size recommendation (or an explanation for why it matters), it seems we've created a whole different problem in which new-coiners now have small amounts of sats stored on-chain, and the cost to move them could be substantial.

I know that privacy/security-conscious bitcoiners mean well when they cite best practices like these but without explaining the pros and cons, we run the risk of setting people up for failure.

At time of writing, the current value of 1M sats is almost $700 USD. You don't have to visit a garment industry sweatshop to find someone who considers that to be a lot of money. Even to a blue collar westerner for whom a loss of $700 might not be the end of the world, it still represents sacrifices made, and not only in terms of trivial spending on entertainment.

In the case of someone in a developing nation for whom $700 absolutely is a crapload of money, what are their options? Should they continue enduring the risks of custodial solutions until they've amassed 1M sats? One could argue it's these stackers specifically who can least afford to risk leaving sats sitting on an exchange or hot wallet. Would they be better off stacking one of Bitcoin's more affordable copycats which may be declining against Bitcoin but is still doing quite well against USD?

Part of me gets the impression that Bitcoin is becoming the crypto equivalent of a yuppie's toy: "If you have to ask, you can't afford it." But then part of me feels like this can't be the case since there's so much work being done on things like zaps, boostagrams, V4V music.

Either way, we need stop scaring the shit out of new-coiners by giving them the impression that they need to drop $300 on a hardware wallet with overnight shipping to a non-residential address on the opposite side of the continent because the DOJ is about to seize the $20 sitting in their Alby wallet.
#Bitcoin
Easy Ways To Get Your Bitcoin Off The Exchange
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