Bitcoin’s decentralized structure and the importance it attaches to individual freedoms at its founding stage have become more intertwined with corporate interests and structures over time. Aaron Day, one of the first users of Bitcoin, evaluates this transformation with his own experiences. Day is one of the founders of the Daylight Freedom foundation, which advocates for financial sovereignty and individual freedoms. He also served as chairman of the Free State Project, based in New Hampshire. These initiatives with broad participation are based on individuals’ quest to independently create their own financial systems.
Queries Regarding the Main Purpose of Bitcoin
Although the decentralized and censorship-resistant structure that came to the fore in the first years of Bitcoin’s development has long been described as digital gold by the crypto community, according to Day, the meaning of this definition has changed over time. Stating that he started using Bitcoin in 2012, Day thinks that over the years, the system has become more open to the central structure and the influence of large financial institutions. Although he is referred to as a conspiracy theorist by some circles due to his harsh criticisms on social media, Day’s background in the field and the research he conducted at the Brownstone Institute add a different depth to his perspective.
Bitcoin Experience and Initial Conversion Process in New Hampshire
The state of New Hampshire, where Day lives and known for its slogan “Live Free or Die,” offered an environment where Bitcoin could be used in daily life 15 years ago. Several restaurants and stores were accepting Bitcoin as a direct payment method. The Free State Project, chaired by Day, encouraged individuals to live in the region for independence.
“At the events held in 2012, it was talked about that Bitcoin would be an alternative to central banks and that transactions would take place without the need for an intermediary. I was first introduced to this philosophy,” Day summarizes his initial interest in Bitcoin.
However, as transaction fees increased and confirmation times increased from 2017, Bitcoin lost its usability in payments, according to Day.
“Suddenly, the fees rose tremendously. Transactions extended from seconds to days, and it lost its basic function, which is to be used anywhere in the world without an intermediary,” he describes that period.
Transition from Intended Use to a ‘Value Storage’ Focused Structure
In its early years, Bitcoin was seen as a digital currency that could be used for daily expenses, but over time it began to evolve into ‘digital gold’ and a store of value. Day points out that this new narrative does not align with Bitcoin’s original purposes.
“Nobody was thinking of Bitcoin as a tool to just hold and put away. It wasn’t defined or used that way in the original whitepaper,” he emphasizes.
This period also coincided with the proliferation of Layer 2 solutions, especially protocols such as Segregated Witness (SegWit) and Lightning Network. These technologies aimed to reduce transaction costs and times. Although the developers defended this transition as a technical necessity, Day interpreted them as developments that detract from the foundation of the system.
Increased Corporate and Financial Influence
In the first stage of Bitcoin’s development, the Bitcoin Foundation, a non-profit organization founded in the USA and supporting open source developers, was at the forefront. However, when the organization ceased to function due to internal problems within a few years, the Media Laboratory digital currency initiative affiliated with the Massachusetts Institute of Technology began to provide financial support to the core developers of Bitcoin. While this is seen as an opportunity by some in the crypto ecosystem, Day sees this shift as an indicator of deepening corporate influences in the development process.
“Once MIT came on board, the same developers working on SegWit and the Lightning Network transformed Bitcoin from a peer-to-peer payment system into digital gold,” he opines.
Over time, Bitcoin has become directly linked to traditional financial infrastructures such as exchange-traded funds, institutional custody and national reserves. Day believes that Bitcoin’s new path moves away from its initial decentralization goals.
“At this point, it seems like the entire crypto has been captured,” he summarizes his thoughts.
