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Adam Back, the cofounder and CEO of Blockstream, argues that Bitcoin is permissionless "bearer" (holder) money. His comments come amid ongoing Bitcoin market volatility, which saw the leading coin drop to the $105,000 level
Adam Back claims Bitcoin embodies cypherpunk spirit
"Bitcoin is permissionless bearer money, in effect, a realization of the cypherpunks' bearer ecash ideas," Back wrote on X.
In essence, Back is saying, individuals do not need approval to use, send, receive or hold Bitcoin. Simply put, anyone with internet access can participate. Just download a wallet, generate a private key and you are trading BTC.
This is in contrast to traditional money, where individuals need to open a bank account and comply with regulations.
Bitcoin, as "bearer money," according to Back, means coin holders can control the private key to their wallet addresses. No intermediary can seize, freeze or claw back the funds unless they have access to the key.
In addition, a transaction is irreversible once confirmed on the blockchain. Back added that Bitcoin took on the cypherpunks’ vision of anonymous, untraceable, "bearer" digital cash.
Bitcoin's pseudonymous creator, Satoshi Nakamoto, solved the centralization problem using proof of work, a decentralized ledger, and no trusted issuer.
Adam Back pledges support for Bitcoin
The comments by Back highlight its support for the leading coin amid recent selling pressure. Bitcoin has faced intense volatility since October after hitting its all-time high (ATH) of over $126,000.
While retail and whale investors have shown reduced interest in BTC, Adam believes there is still hope for future rallies.
In early October, Back urged the Bitcoin community to ignore the misinformation and drama meant to distract them. Instead, he advised the community to focus its attention on strengthening the ecosystem.
Back also commented on Luxembourg becoming the first eurozone country to invest in Bitcoin. He described the development as "huge," even though the investment was relatively small at 1%.
Although the small investment is unlikely to move the BTC price, it shows that crypto is now a maturing asset viewed as a viable investment by nation-states.
For now, BTC is still facing outflows from both whales and the spot exchange-traded fund (ETF) market, as spotted by CryptoQuant founder Ki Young Ju.
Still, he encouraged investors and traders to buy the dip if they believe the macro outlook will restart inflows and overpower sellers.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team