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Bitcoin, Banks, and the DSP Exchange

Dennis Dicker
Home and Community Care
Published in
6 min readJan 9, 2022

Bitcoin has been around fourteen years now, and in that time, it has gone from being an unknown digital currency to a globally accepted payment system. Many people see Bitcoin as a way to take control back from the banks, which they feel have been taking advantage of them for years. In this article, we’ll take a look at the rise of Bitcoin and how it’s threatening traditional banking institutions. We’ll also explore some of the pros and cons of using banks and Bitcoin as a payment option as well as introduce the DSPDAO and Optonome’s reward system. So without further ado, let’s get started!

In 2008, an anonymous person or group of people under the pseudonym Satoshi Nakamoto published a paper called “Bitcoin: A Peer-to-Peer Electronic Cash System.” This paper outlined a new form of digital currency that operates outside of government control or traditional financial institutions. As noted in the Bitcoin whitepaper, the reason for the whitepaper was to offer “an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.”

Trusted 3rd parties — what are they good for? A trusted third party is a person or organization that an individual may turn to in order to handle financial transactions such as purchasing property, buying stocks on margin, and others. Examples of a third party are banks, credit unions, any business with centralized governance.

Bitcoin is a digital currency that doesn’t rely on any central issuing authority. It’s decentralized, meaning that it can be used by anyone in the world. And because there’s no central authority controlling it, bitcoins are immune to government interference or manipulation. That makes them a very appealing option for people who want to keep their money outside of the traditional financial system. Bitcoin’s design makes it impossible for anyone to change the rules governing its operation without agreement from most of its users.

In contrast, banks can decide on their own what they want to do with your money and how much interest you’ll pay on loans, etc. Banks have been around for centuries, and many people believe that they are necessary for a healthy economy. For years, banks have been charging customers high fees and offering poor interest rates on deposits. In addition, the 2008 financial crisis revealed that the big banks were too large and complex to manage, and they needed a government bailout to stay afloat.

Let’s take a closer look at the pros and cons of trusted 3rd parties from a financial perspective as it relates to disadvantaged populations, here is my shortlist:

Pros

  • Banks offer a more personalized experience
  • Credit Unions are awesome because they are community-driven, have great customer service, and support so many local businesses. :)
  • Banks are a great way to access cash and make deposits. They have branches in easy-to-reach locations.
  • Banks and Credit Unions offer loans to purchase homes or cars
  • Customer Service is available if you have questions
  • High net worth customers can take advantage of financial product offerings

Cons

Bitcoin is a digital or “virtual” currency that allows people to securely and anonymously buy items and services over the internet. Transactions are tracked by computer code, rather than traditional currency such as dollars or euros. The creation of new bitcoins is regulated by complex computer code and is limited to a certain number per day. This process is known as bitcoin “mining”. The process of verification is an essential part of keeping the Bitcoin network running, and it’s rewarded with new bitcoins for everyone who participates.

Long overdue for mass adoption even 13 years ago, bitcoin is still in the early days! Real estate investors can appreciate this innovative technology because it offers them tangible assets which appreciate over time, something most stocks or bonds don’t offer anymore due to inflation risk from central banks printing more money out of thin air. And as someone who has invested heavily into real estate myself-I value stability; knowing what my investments are worth without any monthly fees attached helps me sleep better at night.

Bitcoin is a disruptive technology that’s changing how we do business. The Bitcoin network allows you to send and receive bitcoins within the electronic payment system, but it also charges fees for those transactions — all paid in bitcoin! Currently, miners are rewarded for securing the network with bitcoin and transaction fees, Later miners will be rewarded with transaction fees as the bitcoin rewards diminish to zero after 64 halvings.

With the adoption of bitcoin, subsequent cryptocurrencies have launched on various blockchain technologies such as Ethereum, Solana, Avalanch and many others. There are pros and cons to each network such as speed, fees, interoperability, etc. but that’s time for another article. What’s important is to note that only 5 years ago the market cap for crypto was less than $20B where today it sits at ~$2T or a 10,000% increase. Businesses and investors alike are making a very big move to decentralization and Optonome is no different.

Optonome’s Reward System

Like Satoshi Nakamoto said, “Coins have to get initially distributed somehow, and a constant rate seems like the best formula”. Optonome applied this “best formula” to home and community care, supporting adults with disabilities and older adults who are looking to age in place and this is what we came up with:

  • A reward system where clinicians can be assisted by the community to become home health care providers. Similar to those securing the network there is an initial investment that has an upfront cost with many parts. A clinician is someone who oversees the “mining operations” or in our community, the Direct Support Professionals.
  • A governance system similar to those who secure the network of bitcoin by mining but by having the clinicians be the overseers of the mining equipment or in this case overseers of DSPs providing services.
  • The DSPs do the work to secure the network with electronic visit verification (EVV) while being supervised by the clinicians, this ensures quality care. The current model does not work without it and you can google to find the problems in the industry. Read my 2018 Medium article on The Implications of an Industry in Peril!
  • By making the clinicians the overseers they each receive one vote on decisions within the network. This has already been going on the past year in the Optonome application. Clinicians directly oversee service delivery and are paid by 3rd parties.

We have since introduced the DSP Exchange which will be a decentralized exchange governed by these clinicians all over the country and soon to be the world. When each hour of service is provided in the Optonome application The DSP exchange gives those who provide the service an easy way to exchange their pay for NFTs in the marketplace. The Optonome application is currently centralized with me as the CEO and development team of 16 people with hopes to have the assets owned by the DSPDAO by the end of 2022. Like Bitcoin, it is possible to try and mimic the system but it won’t be the same. What we do know is, thanks to bitcoin and the advancements of blockchain we are really reshaping the future of home healthcare, for the better.

Bitcoin
Mining
Blockchain
Home Health Care
Nft Marketplace

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Dennis Dicker
Home and Community Care

Written by Dennis Dicker

12 Followers
Editor for

Self Made. Real Estate Mogul. Serial Entrepreneur. Computer Engineer. Logical Genius. Founder & CEO Optonome.com

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