It’s amazing to me how many people still don’t understand Medium of Exchange and the adoption of money. This is hard to grasp for most large blockers, but medium of exchange is close to being irrelevant while money is being adopted in the store of value phase. Adoption of a new monetary asset does not happen by scaling Medium of Exchange. 👉 Medium of exchange happens once the asset has already been adopted through Store of Value. There are only 2 ways a new money can be adopted. ➡️ By Government coercion or force (FIAT) ➡️ Through a financial incentive Any new money that tries to gain adoption through medium of exchange will, and always has, failed. It’s a common misconception that David Chaum’s E Cash failed because of his bad business acumen. The truth is even the companies that adopted ECash and tried there best to promote it to their customers saw little to no adoption. Why ? 👉 In part because peer to peer private transactions didn’t and still do not have the demand the OG’s and Cypherpunks were hoping it would have. 👉 The second reason is the chicken and egg problem. Merchants didn’t want to adopt it since customers weren’t using it. And customers didn’t want to adopt it since merchants weren’t accepting it. 👉 When you rely on medium of exchange as an adoption tool you create a disincentive for early adopters. Everyone thinks they will wait till others have adopted it before adopting it themselves because what’s the benefit of adopting a money that no one else is using ? This is exactly what happened with eCash and other pre Bitcoin attempts at digital cash. 👉 However, When you rely on Store of Value for adoption, everyone is incentivised to get in early due to the financial incentive of early adoption. This creates a self fulfilling cycle of adoption and FOMO that creates adoption organically. Bitcoin will be adopted organically through the financial incentive its Store of Value properties create, and not through a top down push of Medium of exchange. But there is something even more important here which OG’s still dont accept, understandably so. 👉 Store of Value is a 100 times more important use case than Medium of Exchange. And no Im not exaggerating for hyperbole. The biggest issue with our monetary system is NOT the inability to transfer value digitally, the biggest issue by far, the one that affects peoples livelihoods and survival and prosperity, is the inability to store value and economic energy. Energy storage is a prerequisite for survival and replication and FIAT makes this untenable for most people. Solving this issue is by far Bitcoin’s biggest achievement. Anonymous peer to peer global trust less payments is the cherry on the cake, but not the actual cake. The benefits of Medium of Exchange that Bitcoin provides to Bitcoiners and OG’s like us, albeit significant, are small and ancillary for most normies and likely will be for the foreseeable future. While we are in the Store of Value phase, which IS the adoption phase, the incentive to transact in Bitcoin will be limited. People will NOT want to spend their Bitcoin at any meaningful scale while Bitcoin is growing at 40-50% CAGR. This is not a bug, it’s a feature. Once Bitcoin reaches meaningful adoption, say 50%, then people will organically start using it as a medium of exchange and merchants will accept it on their own. You wont need to convince them. And this is when the incentive for developers to build scalable L2’s will be highest and most likely to succeed, and not in the early days of the SOV phase. In the words of Michael Saylor, “The bigger trick is not to move a billion dollars from here to Tokyo, the bigger trick is to move a billion dollars from here to the year 2140”