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Do you consider yourself to be a self-sovereign? You may want to think again after reading this blog!
In its simplest form, self-sovereignty involves oneself having control and ownership of their identity and finances. Self-sovereignty shares the same principles that underpin the foundations of living in a democratic society. Therefore, in the western world, self-sovereignty is considered to be present for the most part. But, when you break it down, how much self-sovereignty does one have? The blog will discuss this and explain why it is important to be a self-sovereign.
Firstly, we are already in a digital era that has transformed our lives for the good. This extends to communication, logistics, and how we work. However, these benefits come at a cost of giving up a large amount of privacy. Almost every website you go on, every bank you hold your money with, or every app you download, privacy is ultimately handed over to some extent. To clarify, this is by no means always a bad thing. As already mentioned, we receive lots of benefits, which at this moment in time clearly outweigh the opportunity costs associated with it. But, unfortunately, this can change and the consequence of not fully having ownership of your privacy or assets can be unnerving.
No one can truly foresee or even comprehend it happening until it does. In times of geopolitical tension or warfare, life gets stripped down to pre-industrial times where survival becomes the only important factor. Moreover, it is with great sadness that the recent events in Ukraine have illustrated this on full display. Further, since the Russian invasion of Ukraine, there have been thousands of Ukrainians fleeing the border and seeking refuge. The damaging result of this includes people leaving their property and struggling to claim their own money from ATMs.
Similarly, the problem stretches to the citizens of the country causing the destruction in the first place. As Russia receives sanctions in the form of the SWIFT banking system, there becomes a domestic rush to take out money before it gets switched off. A bank run has become a reality that has overnight given individuals no access to their own funds. Subsequently, it becomes a catastrophically tragic event that cuts off basic human necessities such as buying water and food. In short, a lot of the Russian population is not in favour of a war, yet are suffering the hardest with government sanctions. Crucially, it is these such events that make one question how you can avoid this.
It doesn’t necessarily have to be a geopolitical event that makes self-sovereignty so important. For instance, the current banking system, underpinned by fiat currency, categorically withholds control over your assets. Whether you believe it or not, at any given moment your bank account can be frozen, and your property can get seized. On the other hand, it could be argued that offloading security and responsibility to professionals is wiser than controlling yourself. But in reflection, the professionals have not acted so well recently. Meanwhile, many countries are debasing their currency at an alarming rate due to large amounts of debt and money-printing in the system. Ultimately, it is your choice where you put your money, but it’s worth considering the opportunity cost of ease and convenience versus control and self-ownership.
Just like all things, it’s not a clear-cut answer. It’s also not as straightforward as simply dropping everything at once. What is recommended is to look at the whole picture. After devastating scenes recently, it becomes apparent that you need an asset that cannot be seized, cannot be stolen, can be taken across borders easily, can be stored in your head. You want to own something that can keep its value no matter the circumstance nor do you want access to it getting revoked at the click of a button. Fortunately, there is one digital, hard, sound money that ticks every box mentioned. Bitcoin is freedom in more ways than one.
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