Nick Szabo: “Bitcoin (BTC) Should Be Considered a Trustless Insurance!”

Updated

December 8, 2025

Gambar Nick Szabo: “Bitcoin (BTC) Should Be Considered a Trustless Insurance!”

Jakarta, Pintu News – American computer expert and legal scholar, Nick Szabo, recently expressed his view that Bitcoin should be considered as “trustless insurance”. According to him, storing Bitcoin independently is a wise move to protect oneself from extreme economic scenarios.

Bitcoin: Protecting Assets from Economic Uncertainty

Bitcoin offers a solution for those worried about the devaluation of fiat currencies such as the US Dollar (USD) or Euro (EUR). Szabo emphasizes that Bitcoin does not require trust in third parties such as banks or governments. By storing Bitcoin independently, no one can confiscate or inflate the value of the asset.

It provides a layer of protection that conventional currencies lack. In the context of a volatile global economy, Bitcoin serves as a bulwark.

Szabo describes Bitcoin as an effective insurance against possible hyperinflation or financial system collapse. By owning Bitcoin, individuals can reduce the risk of losing wealth due to unstable monetary policy or a financial crisis.

Two Views on the Future of Bitcoin

Why not both?

Wise institutions and individuals alike are putting increasing amounts of low-dilution bitcoin in their portfolios, securing their futures, and the futures of their heirs, against the future when fiat-denominated debts, including government bonds, must, inevitably,…
— Nick Szabo (@NickSzabo4) December 7, 2025

Szabo responds to Fred Krueger’s views on the future of Bitcoin, which are divided into two camps. The “dark side” sees Bitcoin as subject to capture, theft, or tight control. In this view, users cannot trust institutions or solutions that involve wrapped Bitcoin. In contrast, in the “Joe school”, Bitcoin is integrated into the banking system as high-powered money.

Storage solutions, wrapped tokens, and credit instruments will evolve, but with designs that ensure the necessary lack of trust. Szabo identifies with the Joe school, but still advocates self-storage of Bitcoin as the safest form of insurance.

Hybrid Model: Institutions and Individuals

In the model proposed by Szabo, financial institutions could add “low dilution” Bitcoin to their portfolios as a hedge against the inevitable dilution of fiat debt. This is triggered by changing demographics. Meanwhile, individuals are advised to hold their own Bitcoin as insurance against hyperinflation or system collapse.

This hybrid model allows for the benefits of both worlds: security and integration into the broader financial system. As such, Bitcoin serves not only as a speculative asset, but also as a stable and reliable financial tool in the face of economic uncertainty.

Conclusion

With Nick Szabo’s insightful look, it is clear that Bitcoin offers more than just an investment; it is a trustless insurance. In a world filled with economic and financial uncertainty, Bitcoin provides an option to preserve the value of wealth in a safe and self-sustaining way.

FAQ

Who is Nick Szabo?

Nick Szabo is an American computer scientist and legal scholar known for his contributions to the development of Bitcoin (BTC) and the concept of smart contracts.

What is Bitcoin?

Bitcoin (BTC) is the world’s first digital currency that operates without a central authority or bank. Bitcoin uses peer-to-peer technology to enable instant payments between users around the world.

Why is Bitcoin considered an insurance that lacks trust?

Bitcoin is considered a low-trust insurance because it does not require trust in third parties such as banks or governments to operate, thus providing more security against inflation and asset seizure risks.

What is “Joe’s school” in the context of Bitcoin?

“Joe’s School” is a look into the future of Bitcoin where the digital currency is integrated into the banking system as high-powered money, with storage solutions and credit instruments designed to minimize the need for trust.

What is the best way to store Bitcoin according to Nick Szabo?

According to Nick Szabo, the best way to store Bitcoin is through self-custody to ensure maximum security and minimal trust in third parties.

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