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Tuesday

22 June 2021

Why Bitcoin, Not S***coin

Why Bitcoin, Not S***coin


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It’s the fabric that binds us.

The only thing that changes and evolved over time is what we use as money.

Today, because we have broken money, many of us hold different assets with different attributes in order to store value and protect our wealth.

But, with the emergence of a perfect money, that is immune to confiscation, inflation and corruption, that can be taken anywhere, anytime and sent or received by anyone for any reason, without requiring permission, we will see the monetary premium being stored in these other goods or assets diminish.

As Bitcoin transforms into a unit of account, through which all other goods, services and anything of value is measured, the purchasing power of a full bitcoin will trend toward heights that few could today fathom.

As more people realize that the product of their labor (i.e., their wealth, their savings and their money) is constantly being eroded, they are going to seek to store it in something that cannot be diluted.

In the same way you would not work all week only to accept salt from your employer as payment, as more time passes, less and less people are going to accept inferior government issued, or random-developer issued fiat money as payment for any of their goods and services.

In fact, future generations will look back on us today and wonder how, in the name of all that is sane, did we believe that measuring our wealth in a currency or money issued by some overlord, that devalued over time, ever made sense.

Bitcoin is superior to all other forms of money because it perfectly embodies every attribute of the meta-idea that is money.

Now, bitcoin emerges, as the alpha-omega of money, and it will strip all assets of their monetary premium.

Go ahead and measure any asset in the world against bitcoin, and you’ll find that it’s down anywhere between 90% to 99% since its inception, when priced in bitcoin.

Money, like language, has a convergent network effect, meaning that it’s most useful when on a common standard.

Because it’s the most important language of all, and because each individual wants to naturally select that which performs each function of money best, the hardest, soundest, most powerful money comes out on top.

Bitcoin will be the global standard, not because of some fiat decree or the force of the nation state, but through natural, market selection.

These are the result of the zero-to-one moment that occurred on January 3, 2009, with the Bitcoin genesis block.

We now have a perfect money and a perfect monetary network that anyone, anywhere can use and/or build on.

In 2017, we had the block-size wars with a faction of Bitcoiners who believed that transactional throughput on the base layer was more important than ensuring the network was as cheaply verifiable as possible.

Multiple forks of Bitcoin split from the main chain, and there was even an attempt by miners and large-scale exchanges to coerce the network into doubling the block size as part of some “reasonable middle ground.”.

It too failed, showing not only the resilience of the network to attack (whether internal or external), but the decentralized nature inherent in Bitcoin.

The citizens of the network, the node operators, rejected the corporate and overlord versions of bitcoin, and the HODLers put their money where their mouths were and backed Bitcoin, not some knock-off version.

In fact, it’s the only network on which you can be a first-class citizen that enforces the Bitcoin consensus rules for less than $100.

In fact, it’s about to get a whole lot worse because once it moves to proof of stake, the 32 ETH required to be a validator will price 99.9% of people out.

There are no node operators on these networks and the larger their blockchain grows, and the more junk they throw on it, the more it will require data-center-level operators to not just mine but actually store their blockchains, leading toward complete centralization.

The trade-offs made by Bitcoiners and the Bitcoin network have been naturally selected to ensure maximum decentralization and, as such, maximum aversion to change of any kind.

The Bitcoin network’s layered approach is in line with what works.

Finally, the layered nature of Bitcoin means that not only do the network effects get stronger and compound on themselves, but the network becomes more and more decentralized.

We introduce new layers to the network, each with their own skin in the game, making it ever more difficult for any participant, group or layer to have influence over another.

As mentioned in the decentralization section, one of Bitcoin’s core value propositions is that anybody, anywhere can verify the rules and status of the network, at any point in time.

I just happen to be in alignment (or consensus) with millions of others who are running the Bitcoin rules for themselves too.

It’s a network with rules, which we enforce as individuals and is made up of others who agree and enforce the same rules.

Anyone is free to go and make up their own Bitcoin rules or change them should they wish to?

They who change the rules will just “fork off” onto their own network, by themselves.

Something that happened with Bitcoin, that will never be replicated because it was a one-time, path-dependent event, is the disappearance of Satoshi.

It’s a common monetary standard, built on rules voluntarily enforced by each individual who is a part of the network.

You can always tell a crypto or legacy finance person by the irrational fear they have of just letting go and allowing people to decide for themselves, or their incessant need to want to control everything and their desire to be the ruler.

Bitcoiners will lock up their bitcoin in cold storage and never touch it.

They will work their asses off to generate more value in society so that they can store their new wealth in bitcoin, too.

In doing so, they are not only saving for the long term and lowering their personal consumption, but they are net producers that are ripping their economic input out of the legacy financial system.

Bitcoin is a transformation of money and finance in which we replace rulers with verifiable, transparent rules that anyone can voluntarily opt into.

They have an issuer, they have a foundation, they have a core group of operators who decide what the rules are.

They have their own plunge protection teams, boards and “key personnel.” The philosophical foundations upon which their technologies are built are no different to modern nation state government and central banking.

The world needs a money and monetary network that nobody can benefit from at the expense of another.

We do this because we know Bitcoin is the one shot that we have.

Bitcoiners are the most gallant, selfless, courageous and forthright people you will meet because they could very easily sell their souls to some shitcoin organizations and shill you some garbage because they’ve been around long enough and can earn a commission on it, but they won’t.

It’s the only community that gains nothing at an individual level when you buy bitcoin.

And the problem is people are so hell bent on trying to make it through and “win” the fiat zero-sum game that they will throw caution to the wind and burn through any amount of reputation, resources, time and energy just to “make a quick buck.”.

It’s a sad, nihilistic state of affairs, and one which Bitcoin changes at the core — but will take time.

There is nothing on earth today that’s going to have a more positive, long-term impact because nothing else changes the base incentives of the individual (and as such, their behavior) as Bitcoin does

You will say, “It’s ok, I can beat Bitcoin,” or, “I don’t need it,” or, “It can’t be that important.”

It matters not if you’re an individual, a community, an organization or a nation, you will only ignore Bitcoin at your own peril

The idea that the world is going to run on a bunch of different monies, issued by a million different people, is like assuming we’re all going to speak English to each other with a different number of vowels and consonants

It’s not only inefficient, but a categorically broken method of energy transmission that’s simply a remnant of a fiat money world

Yes, of course, but each of them will trend toward their moral value (zero) because any sucker that supports a new overlord will only impoverish themselves in the process, while their overlords and shitcoin heroes buy bitcoin, knowing it cannot be beaten

Bitcoin is stronger than ever today and its influence, economic mass and gravitas will only continue to grow

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