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Crypto News Updates

Bitcoin Illuminates Inflation In The Fog

Bitcoin disperses the fog which enshrouds the good work capital can produce if allocated in a sound manner.

Rule III: Do Not Hide Inflation in the Fog

A reimagination of “Beyond Order” by Jordan Peterson through the lens of Bitcoin.

Preface

This writing mirrors the exact chronological structure of “Beyond Order,” offering reflection through a Bitcoin lens. This is part 3 of a 12-part series. If you read the book, it adds a second dimension. All quotes credited to Jordan Peterson. All reflections inspired by Satoshi Nakamoto.

Those Damned Plates

“Do not pretend you are happy with something if you are not, and if a reasonable solution might, in principle, be negotiated. Have the damn fight.”

Governments assume the guise of the savior handing out trillions in stimulus money. When prices rise, they deny. Don’t pretend to be happy with your country’s monetary policy if you are not. The wealthy who already own assets get richer, the middle-class savers lose purchasing power, and the lower class watch the little they have vanish. The government is not here to save you. All currencies are being debased. Central banks are in a race to the bottom. The United States is printing with such intensity the Federal Reserve Bank of St. Louis (FRED) discontinued updates to its M1 Money Stock and M2 Money Stock charts. This censorship hides the unwanted in the fog.

Bitcoin gives the ordinary worker a fighting chance. Check out John Vallis’ podcast on Decentralized Grazing. His guests, UntappedGrowth and BitcoinAndCows, apply the Bitcoin ethos, restoring America’s soil bank, earning self-sovereignty and sidestepping fiat debt. His model forms a mutually beneficial trinity between investors, ranchers and landowners, who serve their own interests but create exponentially more fruit together through the wisdom of low time preference collaboration. That clears the fog. It puts the farmers and ranchers back to being caretakers of the soil instead of strip miners. This allows them to become stewards again because they are providing for themselves not just today but for tomorrow. Landowners by healing the land, herd owners by preserving the heritage cattle, and ranchers by doing the work. All together as one. It’s easier to aim at a brighter future when you step outside the fiat fog.

Have the damn fight, because you may not be able to take advantage of monetary debasement but monetary debasement is taking advantage of you. Adopt a Bitcoin state of mind and learn how to negotiate a better solution for yourself.

“Life is what repeats, and it is worth getting what repeats right.”

We are creatures of habit and routine. We use currency throughout our days. It’s worth getting the money right. When a better option presents itself with a low barrier to entry, it is your burden to bear if you do not seize that opportunity. An easy on-ramp is with the Fold App, a bitcoin rewards program for your fiat spending. Change your reward system: change your life without changing your day-to-day.

Just Not Worth the Fight

“It is difficult to win an argument, or even begin one, if you have not carefully articulated what you want (or do not) and need (or do not).”

Bitcoin exists in many layers of resolution. Figuring out where to start can be confusing. My breakthrough came from reading “The Internet of Money” series by Andreas Antonopoulos. It is a quick read that covers both the problem and the solution at a high level. Lay this foundation and you will be able to carefully articulate what you want and do not want.

“However, it is the easiest of matters, particularly in the short term, to ignore the prick of conscience and let the small defeats slide, day after day. This is not a good strategy.”

We all accept unfavorable status quos, including our money. In 2008, we were all taken aback when the government announced plans to print billions to stabilize markets. In 2020, billions became trillions. These stimulus plans are sold as short-term solutions conveniently omitting the detrimental long-term consequences. Like the fable of the boiling frog, we are being slowly boiled alive. No-coiners hypocritically claim the intellectual high ground. They complain about the unjust disparity caused by our monetary system and simultaneously plead ignorance to their participation as the accomplice looking for their handout. This short-term relief is not a good long-term strategy. It is desperate high time preference thinking. Recalibrate your lifestyle toward low time preference and you’ll be on your path to prosperity.

Corruption: Commission and Omission

“People generally believe that actively doing something bad (that is a sin of commission) is, on average, worse than passively not doing something good (that is the sin of omission).”

We all witnessed Wall Street commit crimes of commission against the r/wallstreetbets community over GameStop. It is bad enough that our money is being debased but GameStop adds insult to injury. When institutions collude in broad daylight, it inalienably exposes the asymmetrical game we all play just to stay ahead of inflation. Wall Street has created wealth for Boomers for decades, but their past success leaves them vulnerable to normalcy bias. What’s worked in the past no longer applies when something larger than Wall Street comes along. That thing is bitcoin. Bitcoiners have long memories and time continues to vindicate us. The internet never forgets and the writing is on the wall, continue ignoring bitcoin and trusting the bankers on Wall Street at your own peril. Here’s a snapshot of how it started and how it’s going.

Dancing on graves is, admittedly, unsportsmanlike conduct and a Bitcoin pastime. It is in poor taste, but I sympathize with the fact that Bitcoiners have endured years of ridicule by everyone. What can I say besides this is that we are all victims of our pride. Buy bitcoin if you prefer dancing on graves to becoming a cautionary tale. Refusal to add bitcoin to your portfolio to protect your pride (or staying on the sidelines because you take issue with Bitcoiners dancing on graves) is a lie of omission where you are both the actor and the victim.

What Is the Fog?

“…you are afraid that if you specify what you want precisely you will simultaneously discover (and all too clearly) what constitutes failure; you are afraid that failure is the most likely outcome; and, finally, you are afraid that if you define failure and then fail, you will know beyond a shadow of a doubt that it was you that failed, and that is was your fault.”

Kobe Bryant dominated because he knew our generation is “soft like Charmin.” Society is littered with leaders who actively minimize skin in the game while attempting to maximize gains. We’ve exchanged human courage for computed risk adjustment. Bitcoin is a terrifying proposition to those individuals who have built careers on shirking responsibility while still capturing upside. In Bitcoin, you are the backstop. Bitcoin has no FDIC insurance. Bitcoins have infamously been lost forever. Mistakes tend to be terminal. Bitcoin ownership is similar to gun ownership. It’s a serious commitment and the consequence of failure falls squarely on your shoulders. That level of full responsibility removes weak hands or calluses them — natural selection. As the Bitcoin adage goes, “Not your keys, not your bitcoin.” Buy a hardware wallet. Learn to use multisig service like Unchained Capital and reduce the finality of mistakes — take on the burden of responsibility and clear the fog.

“The fog that hides is the refusal to notice — to attend to — emotions and motivational states as they arise, and the refusal to communicate them both to yourself and to the people who are close to you.”

All investors misread markets leading to missed opportunities. The worst investors insist on staying on the sidelines after new information is revealed. We’ve all doubled down on a bad position to appease our pride. Are you certain bitcoin is a scam? Or are you certain your financial woes can be overcome by doubling down on fiat currency? Put your cards on the table and be honest with yourself.

“Best to find out what is true — best to disperse the fog — and find out if the sharp objects you feared were lurking there are real or fantastical. And there is always the danger that some of them are real. But it is better to see them than to keep them occluded by the fog, because you can at least sometimes avoid the danger that you are willing to see.”

There is no end to Bitcoin FUD. Mainstream media has celebrated Bitcoin obituaries since Bitcoin’s birth. To know the truth requires searching through the fog first hand. That is the best way to turn confusion into clarity. Part of clearing the fog surrounding bitcoin is knowing that owning bitcoin can be dangerous but not owning bitcoin can be deadly. Disperse the fog so you know if bitcoin can work to your advantage.

Events and Memories

“We want to know what happened but, more importantly, we want to know why. Why is wisdom. Why enables us to avoid making the same mistake again and again, and if we are fortunate helps us repeat our successes.”

It’s good to know what purpose bitcoin serves, better to know how it works, and best to know why bitcoin matters. “Why” takes you to the level of architecture. The architect recognizes invisible patterns and has the ability to modify intelligently without jeopardizing collapse. An -80% downturn is sufficient to shake out most who simply know “what bitcoin is” as well as “how it works.” Knowing “why bitcoin matters” is the only path to unshakeable conviction capable of HODLing through an -80% downturn. Bitcoin maximalists who understand why it matters hold for reasons beyond price. Fiat currencies are a blueprint for obsolescence. Bitcoin is a blueprint for predictable success: Plan B’s Stock to Flow model predictably traces halving cycles. Bitcoin creates positive feedback loops.

Do not hide inflation in the fog.

This is a guest post by Nelson Chen. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.

Source: Bitcoin magazine

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Crypto News Updates

Reimagine Your Life With Bitcoin

Part 2 of a series discussing the shared values between Bitcoin and Jordan Peterson’s newest book, Beyond Order.

Rule II: Imagine Your Life With Bitcoin, Then Aim Single-Mindedly at That

A reimagination of “Beyond Order” by Jordan Peterson through the lens of Bitcoin.

Preface

This is part 2 of a 12-part series. This work follows the chronological order of “Beyond Order.” Each piece represents one chapter and the corresponding subtitles below match the subtitles in the original work. If you own the book, it adds a second dimension. This writing mirrors the ideas in “Beyond Order,” offering reflection through a Bitcoin lens. All quotes credited to Jordan Peterson. All reflections inspired by Satoshi Nakamoto.

You can read part 1 here.

Who Are You — And Who Could You Be?

“You are something that is becoming…Everyone has that sense…that there is more to them than they have yet allowed to be realized. That potential is often obscured by poor health, misfortune, and the general tragedies and mishaps of life.”

We’ve all suffered financial setbacks: blindly following a friend’s investment advice, unexpected financial burdens or falling prey to a ponzi scheme. Repeated pain makes us jaded. The older we become, the more skeptical we become of anything sounding too good to be true. We are afraid of things that live beyond our comprehension. As negative financial experiences compound with age, we tend to retreat deeper into our comfort zone. The scars from pain and age merge into fear overriding our youthful sense of wonder and possibility. It’s no wonder younger generations are enamored by Bitcoin while older generations lean toward apprehension.

“But it can also be hidden by an unwillingness to take full advantage of the opportunities that life offers…Who are you?”

Fear is the natural initial reaction to what is new and foreign. But an unwillingness to explore this potential will at best stunt your growth and at worst leave you vulnerable, due to your static nature, as paradigms shift. Life offers an unlimited number of bad investment options, a limited set of good investment options and a scarcity of time to sort it out. So how do you separate the wheat from the chaff? How do you create a sensible model to evaluate Bitcoin?

“The stories we can neither ignore nor forget are unforgettable for this reason (amongst others): They speak to something we know, but do not know that we know. The ancient Greek philosopher Socrates believed that all learning was a form of remembering.”

Gold is an unforgettable story spanning thousands of years. Ask the average person “why is gold valuable?” and the common response is “because that’s the way it’s always been.” Hold a piece of gold in your hand and its allure is instinctual. Gold’s heft and shine captivates our attention, and attention is certainly worth something. Still, it is difficult for the layperson to explicitly verbalize the intangible principles that make gold valuable. Gold is something we know but do not know that we know. To seek the answer is to remember what took thousands of years to learn: scarcity, divisibility, fungibility, portability and difficulty to reproduce.

Saifedean Ammous shares the forgotten lessons of sound and unsound money in “The Bitcoin Standard.” Learn the principles of sound money and you will remember not only what made gold valuable for thousands of years, but why Bitcoin is and will be valuable for thousands to come.

“[Exodus] emerged as a product of imagination and has been transformed by constant collective retelling and reworking into an ultimately meaningful form that applies politically, economically, historically, personally, and spiritually, all at the same time. This is the very definition of literary depth.”

If you ever come across a Bitcoin maximalist, this individual exhibits the characteristics of the religious fanatic. Suspend your belief and imagine you witness a spiritual figure part the Pacific Ocean (like Moses parting the Red Sea), allowing you to walk through and exit the other side wiser, richer and freer; you emerge inspired by the knowledge that a better future has arrived. It would be hard for you not to obsessively retell and rework that story for the balance of your life. Especially if your aim is to assist your fellow man.

Whether you agree with it or not, the Bible is powerful because it exemplifies literary depth. Bitcoin is expressed across disciplines: technologically, politically, economically, historically and artistically. Categorical breadth and substantive depth are enduring characteristics of deeply meaningful stories. Bitcoin maximalists are fanatics because our existence has transformed our lives, and we are constantly retelling and reworking this ultimately meaningful story for the betterment of our peers.

The Emergence of the Unforgettable

“We may never put our finger on what has gone wrong. However, like children unfamiliar with a new game but still able to play it, we know that the rules are being broken.”

We play a game called capitalism using national currency. It’s not perfect but it’s the best economic game we know. We’ve all played Monopoly with a sketchy banker or a player who hides money under the table. It does not sit well. Even a child can sense unwritten rules are being violated and the game is not being played in good faith. It may happen once, but it’s unlikely to repeat because the player in question will suffer reputational damage and possibly be uninvited to future games. In other words, the story of their guilt will be told as a cautionary tale. The Monopoly Cheater, villain of this simple story, is repulsively memorable and must be retold because any violation of an unwritten rule attacks morality, decency and order at an individual and societal level. This negatively affects our individual conscience and cultural zeitgeist.

An alarming number of big banks, hedge funds and corporations exhibit characteristics of the Monopoly Cheater. Their injustices exposed and broadcasted many times over yet no meaningful punishment follows to reform behavior. As trust erodes, cynicism rises in its absence. When a child encounters a game run by cheaters, he or she seeks a new game with different players with higher moral standards. Bitcoin is money that can’t be cheated. We may not have the power to fix our incumbent game, but we can choose to join in a new game: Bitcoin fixes this.

“But the mere fact that social order reigns to some degree does not mean that a given society has come to explicitly understand its own behavior, its own moral code.”

It is hard to fathom a trillion dollars let alone understand where all the stimulus money goes. The “Money Printer Go Brrrr” meme serves as a cautionary satire of modern monetary policy. Lawyers will write rules and find loopholes to obfuscate transparency, enabling politicians to justify the creation of trillions of dollars without pause. We know the Cantillon Effect skews the game to favor those closest to the printing press. Stimulus money is a paradox: we recognize people are in need yet this form of delivery feels morally questionable and possibly hazardous. These violations of unwritten rules attack our psyche and corrupt our society. These trillion dollar stimulus packages may be legally approved yet it doesn’t take a lawyer to know our social contract is being abused. Our society is doing things even it no longer understands. If you think bitcoin is made out of thin air, try justifying the mechanics of governments making trillions of dollars.

Materia Prima: Who You Could Be (I)

“Materia prima — Latin for the ‘primal element.’ The alchemists regarded the materia prima as the fundamental substance from which everything else — matter and spirit included, equally — emerged, or was derived.”

The five elements in the Vedas include bhūmi (earth), jala (water), tejas (fire), marut (air) and shunya (zero). “The Saylor Series” by Robert Breedlove and Michael Saylor examines human history through the five primal elements from an engineer’s perspective. There is no scarcity of energy in the universe, only our ability (or lack thereof) to harness and channel it. Nature’s elements are raw, uncontrolled forces of chaos. Humans have engineered solutions to bring order to that chaos, turning them into predictable systems of utility. Our ability to integrate with materia prima is in proportion to our prosperity. Bitcoin is a monetary energy network that covers space and time.

Polytheism Into Monotheism, and the Emergence of the Virtuous Hero: Who You Could Be (II)

“The Mesopotamians brilliantly intuited that the highest god — the highest good — involved careful attention (the multiple, head-circling eyes of Marduk) and effective language (the magic words of Marduk, capable of generating a cosmos), in addition to the courage and strength to voluntarily confront and overcome chaos, the unknown.”

The Enuma Elish (translation: When on High) is the oldest known hero myth dating back 4,000 years. Who cares? Clearly America’s most powerful leaders who make our rules and our money. After all, Marduk is symbolically printed in plain sight on every dollar bill. Marduk is the highest god (Annuit cœptis) fighting for the highest good (top of the pyramid) who uses his head circling eyes to see everything (the all-seeing eye).

The Enuma Elish should be taken seriously precisely because its wisdom still applies to this day. Annuit cœptis is Latin for “providence has favored our undertakings.” Put another way, our most powerful watch over those who are committed to something meaningful. Why are all these symbols on our money? Because this timeless wisdom explains what is required to survive when faced with the unknown. No-coiners are faced with this exact predicament with respect to Bitcoin. Do you turn and run? Or do you act like Marduk and voluntarily confront what is new and unknown with clear eyes to make sense of your fear?

Here is a clue: Bitcoin personifies Marduk’s key characteristics. Bitcoin is a transparent network. Each full node serves as a metaphoric all-seeing eye, monitoring the network for anomalies. Bitcoin is the highest form of money ever invented. With respect to magical language, Satoshi had the courage to propose the Bitcoin white paper then later implemented it in code (computer programming language); something our ancestors would certainly compare to magic.

The Enuma Elish tells the story of a war among gods that ends when Marduk attains victory uniting the fractured parties. The Latin phrase “E pluribus unum” means “Out of many, one.” The phrase is inscribed on our coins, included within the Great Seal of the United States and is the motto of the United States Marines. The power to unite at a time when everything is unraveling is worth exploring despite the risk. Bitcoin has the power to unite because no one has the power to manipulate it and everyone has access to it. Bitcoin represents the highest good.

Hero, Dragon, Death and Rebirth: Who You Could Be (III)

“That which you most need to find will be found where you least wish to look.”

We are born into a world that normalizes Keynesian monetary policy. All governments follow the tenets of Keynesian economics: the belief that government intervention can stabilize the economy. This means governments expand or contract the money supply in an attempt to control the economy under various circumstances. On the surface, it seems to have its merit, yet we know money that is easily reproduced violates sound money principles and inevitably leads to unintended consequences.

We are all conditioned to believe our government has the capability to effectively manipulate money resulting in better outcomes. History shows the contrary. Bitcoin is founded on Austrian economic principles — the counterbalance to Keynesian economics. The Mises Institute continues in the spirit of great Austrian economic thinkers like Friedrich Hayek, Ludwig Von Mises and Murray Rothbard. To find what you most need, you may need to deconstruct ideas you were born into, and that is not a place most people wish to look.

How to Act

“Aim at something profound and noble and lofty.”

Bitcoin is a candle in the darkness that exposes a known truth: our money is broken. Government experts insist on debasing our hard-earned money because these events were unforeseeable. We are all passengers on the Titanic and Bitcoin is Noah’s Ark.

Imagine Your Life With Bitcoin, Then Aim Single-Mindedly at That

This is a guest post by Nelson Chen. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.

Source: Bitcoin magazine

Categories
Crypto News Updates

Jordan Peterson’s New Book And Bitcoin

Part 1 of a series discussing the shared values between Bitcoin and Jordan Peterson’s newest book, Beyond Order.

Rule I: Do Not Carelessly Denigrate Governments Or Bitcoin

A reimagination of Beyond Order by Jordan Peterson through the lens of Bitcoin.

Preface

This is part 1 of a 12-part series. In an imaginary Venn diagram of Bitcoin and Beyond Order, this writing would reflect the shared values contained in the center. All quotes are credited to Jordan Peterson. All reflections are inspired by Satoshi Nakamoto.

Loneliness and Confusion

Recall the first time you tried explaining how Bitcoin works. Remember, humbly, how much you didn’t know. Looking forward, the only way to make sense of profound subject matter is to discuss it openly and figure out what you don’t know. You will feel exposed, vulnerable, or embarrassed—good. That signal is your precursor to growth. Don’t waste that opportunity. Follow through by seeking the answers. Expose your ignorance through conversation. That takes courage, not stupidity. Blind spots will appear, illuminating your learning path. Rinse and repeat—it becomes cathartic.

Join the conversation on Twitter or Clubhouse to immerse yourself in the community. If you’re not sure whom to follow, I made this Twitter list, Bitcoin Starter Pack, to give you a head start.

Sanity As A Social Institution

“What we deem to be valuable and worthy of attention becomes part of the social contract…”

Bitcoin is a digital organism that maintains a decentralized consensus. This is valuable and worthy of attention because it is by far the cleanest known implementation with respect to governance and money. This is why it’s possible for Bitcoin to be the mutual money of enemies. Traditional organizations are structured in pyramid-shaped hierarchies. The shape of Bitcoin’s hierarchy is a three-circle Venn diagram representing nodes, miners, and developers. It’s fitting that Travis Kling chose the three-circle ikigai, a Japanese concept that means “a reason for being,” as his brand. Bitcoin’s gravitas draws from the Borromean rings, an ancient mathematical pattern representing the sacred trinity, meaning “three are one.”

Systems of centralized trust are societal norms. America’s founding fathers knew the importance of weaving checks and balances through our power structure to decrease the possibility of corruption and tyranny. Our forefathers knew that dissipating centralized power would come at the cost of decision-making speed. This new social contract was an intentional design choice to benefit individuals. Bitcoin is a technological continuation of this American spirit, and this is why it is imperative to run a Bitcoin full node. Running a full node is the act of hoisting the flag, and it grants the owner full membership in the Bitcoin social contract.

Two quick-start full node services for the non-technical crowd are Umbrel and MyNode. The more adventurous can set up a node from scratch via Bitcoin Core. If you feel out of your league setting up something so in-depth, check out BTC Sessions’ node setup tutorials on YouTube.

The Point Of Pointing

“We compete for attention personally, socially, and economically. No currency has a value that exceeds attention.”

The internet we know today—the “internet of communication”—removes barriers to entry, enabling the best content creators to rise to the top of the attention economy based on merit. Bitcoin is the “internet of money” because it takes the shackles off of money. It gives everyone open access to a superior form of money that offers freedom and fairness. If you thought the internet of communication reshaped our lives, imagine what happens when the internet of money takes center stage.

If you are puzzled by the term “internet of money”, Andreas Antonopoulos explained it best in his “Introduction to the Internet of Money.”

“The words we employ are tools that structure our experience.”

Code is the language of programming. Bitcoin is code, an invisible product of imagination, that offers an upgrade path spanning the digital and physical worlds. Bitcoin’s proof-of-work (PoW) design connects the physical and digital worlds through energy input . PoW interlinks the digital world with the analog world for the first time, resulting in a transparent, verifiable trust network between these worlds. This digital trust tool has profoundly restructured our experience.

There is a voluminous amount of writing about Bitcoin by deep thinkers. These works are anchored to historical, biological, and mathematical fundamentals. The wisdom these writings offer has the capacity to meaningfully transform politics, economics, philosophy, and history. To ignorantly deny Bitcoin is to cling to an unbearable present because you fear the unknown potential that this technology offers the future.

I found inspiration in these works:

At What Should We Point?

“… there are unlimited problems… but there are a comparatively limited number of solutions that work practically, psychologically, and socially simultaneously.”

Bitcoin’s discovery of digital scarcity was a precious, one-time phenomenon. It offers a solution that works practically, psychologically, and socially for the greater human good. The Bitcoin network has operated uninterrupted for over 12 years, the highest uptime of any internet-based application ever created. The enigmatic origin story of Satoshi Nakamoto yields the timeless myth of Bitcoin’s “virgin birth.” The ability to achieve such enormous online and in-person Bitcoin communities with $0 marketing budget is the envy of any tech founder. Bitcoin combines digital scarcity, unprecedented reliability, and a remarkable narrative. It is the rare solution that applies to a spectrum of problems.

Although it is known as an online phenomenon, don’t miss the opportunity to connect with the physical side of Bitcoin. David Bailey, CEO of BTC, Inc., hosts Bitcoin 2021, the largest Bitcoin gathering in the world.

“Institutions have evolved to solve problems that must be solved for life to continue. They are by no means perfect—but making them better, rather than worse, is a tricky problem indeed.”

America was founded to solve the problem of religious freedom. The implementation at the social level separates church and state. America’s core tenets include liberty, individual sovereignty, and equality for all (amongst many others). At its core, Bitcoin is the continuation of these tenets. Separation of money from state deepens America’s core tenets on a global scale. Both America and Bitcoin aim to reduce conflicts of interest, reduce ease of corruption, thwart tyranny, and decentralize power. In the same spirit as America, Bitcoin solves a tricky problem without changing fundamentally American values. Neither governments nor Bitcoin are perfect, but only Bitcoin offers individuals and governments alike an upgrade path that works at scale.

Bottom Up

“Piaget suspected… that games undertaken voluntarily will outcompete games imposed and played under threat of force, given that some energy that could be expended on the game itself… has to be wasted on enforcement.”

The persistent criticism about Bitcoin regarding the massive energy expenditure of its mining is understandably infuriating. Without deeper analysis, this statement seems infallible on its surface. Nic Carter debunks these claims in “The Frustrating, Maddening, All-Consuming Bitcoin Energy Debate” and “The Last Word on Bitcoin’s Energy Consumption.” Ross Stevens also has some prescient foresight into the possibilities that Bitcoin brings to energy markets.

Ironically, Bitcoin soaks up “energy of last resort,” such as trapped energy. In other words, the highly competitive nature of Bitcoin mining means that only those with access to the cheapest energy survive. As counterintuitive as it sounds, Bitcoin actually helps at both ends of the energy spectrum. Bitcoin miners are a net positive for the adoption of green energy tech (sans government subsidies), and Bitcoin mining offers an application for trapped energy that could otherwise be wasted, which can be seen in Adam O.’s work on powering Bitcoin mining operations with gas flares.

Bitcoin is a 100% voluntary opt-in monetary system without the threat of force. Bitcoin mining does consume a massive amount of energy when posed as a single number , hash rate. However, this univariate analysis lacks depth to such a great extent that it misses the forest for the trees. Bitcoin mining is so competitive that it prices out inefficient, expensive energy markets and prices in the most efficient, lowest-cost energy inputs, such as green energy and trapped energy.

But isn’t Bitcoin mining still wasting energy on rule enforcement? Bitcoin miners sacrifice something valuable (energy) to ensure randomness in who gets to create the next block—a critical component of decentralization. Enforcement of the rules occurs at the level of full nodes. Relative to Piaget’s position, the distinction is that the energy expended in Bitcoin is 100% voluntarily committed to the fair play of the game itself—it is the carrot, not the stick. These qualities give it the best chance to unite the largest community on earth , the internet, from the bottom up.

The Utility Of The Fool

“The Fool… his strength is precisely his willingness to risk such a drop; to risk being once again at the bottom. No one unwilling to be a foolish beginner can learn… Jung regarded the Fool as the precursor to the Redeemer, the perfected individual.”

A pleb is the Bitcoin equivalent of the archetype of The Fool. In my book, Pleb_BitcoinTINA is the king of plebs. He’s the consummate Fool, and I call him this in the most loving, admirable spirit. He is incredibly knowledgeable, yet he humbles himself with the label of pleb rather than crowning himself a king. His brash approach on social media constantly puts him at risk of being wrong on a very public stage. Sticking your neck out as the Fool requires courage and bravery, with the aim of becoming the Redeemer. This is the way.

Bitcoin can be daunting to newcomers. Stay humble and be grateful that there are so many Bitcoin veterans like NVK and Jimmy Song who are accessible via Twitter, Clubhouse, and podcasts. Assume the spirit of the consummate pleb and know that you’ll never HODL alone.

The Necessity Of Equals

“It is good to be a beginner, but it is a good of a different sort to be an equal among equals. It is said, with much truth, that genuine communication can take place only between peers. This is because it is very difficult to move information up a hierarchy.”

The internet has become the domain of a two-headed dragon: fake news and censorship. Bad actors have manipulated big tech by reverse engineering tech’s highly tuned algorithms with fake news. This has turned the previous structures of order into highly flammable chaos. Tech giants are responding by wielding their centralized power to become the arbiters of the truth and censor speech. This chaos blurs the lines between what is true and what is not true, making it difficult to establish the correct information within a hierarchy. In an effort to restore order, censorship is employed, adding another dimension of complexity: who gets to be the arbiter of truth?

I do not have a solution for the above issue, although proposed solutions like Sphinx Chat offer a glimpse into how we may restore genuine conversation on the internet. Paul Itoi of Sphinx Chat has made the case that future generations will have a chilling response to free applications. Today, the vast majority of the internet is free, which invariably means that the product being sold is you. Sphinx Chat is a pay-to-play decentralized chat app that runs over the Lightning Network. Sending messages requires satoshi micropayments. Connecting to the user’s own node or using a shared node restores the balance of power by giving ownership and control to the user. The pay-to-play system makes it costly to spam the network, and node ownership makes conversations censorship-resistant, all without central authority. Sphinx Chat is not a silver bullet, but it does move us closer to genuine conversation between peers, which could help to restore order from chaos.

Top Dogs

“The position of Top Dog, when occupied properly, has as one of its fundamental attractions the opportunity to identify deserving individuals at or near the beginning of their professional life, and provide them with the means of productive advancement.”

The deep works listed above rose to the top through peer validation and consistent effort. Thus, they constitute proof-of-work through high-quality content aimed at helping fellow Bitcoiners and newcomers level up. The internet may treat users as equals, but it is not free from hierarchy. The Top Dogs in Bitcoin earned their reputations by being reliable, trusted sources of desirable information. On the internet, Top Dog status can only be earned through competency. The plebs continuously validate our Top Dogs like nodes checking the validity of blocks submitted by miners. No one on the internet can coerce you into following them, and the same principle exists in Bitcoin. Because Top Dogs cannot purchase or coerce their positions, there are no popular tyrants on the internet or in Bitcoin (several have tried and failed).

Top Dogs are validated by the community through proof of competency (i.e., game recognizes game). The most competent community members are best positioned to lift others who are deserving. The competent are unlikely to promote anything that lacks merit, as it would risk damaging their hard-earned reputation and position in the hierarchy. Pomp, Preston Pysh, Pierre Rochard, Stephan Livera, and Marty Bent are a few Bitcoiners who act as positive templates. Plebs validate their continued quality, and in return, these Top Dogs continue delivering value to the community. This is a healthy hierarchy of advancement based on legitimacy and competency. Patience, my plebs—our time will come.

Social Institutions Are Necessary, But Insufficient

“The solutions of yesterday and today, upon which our current hierarchies depend, will not necessarily serve as solutions tomorrow. Thoughtless repetition of what sufficed in the past—or, worse, authoritarian insistence that all problems have been permanently solved—therefore means the introduction of great danger when changes in the broader world makes local change necessary.”

We’ve enjoyed an era of great prosperity and peace. This is a massive human achievement we often take for granted. Governments and institutions must be credited for sustaining an environment of orderliness that has nurtured this success. That said, we are at the point where the world is beginning to spin off its axis. Printing more money is the thoughtless repetition of what sufficed in the past. We are nearing the endgame and require a phase shift—a narrative call for heroic action.

We all agree that life is moving too fast, common sense is unraveling, inequality is rampant, and insane is becoming the norm. The trillions of dollars being printed alleviate immediate pain but accelerate foundational disintegration. Bitcoin offers a real solution to this chaos for which meaningful solutions are hard to come by. Its capacity to accurately store time and effort in the form of equitable money cannot be overlooked during this era of easy, infinite money creation. This offers a predictable, universally agreeable anchoring point that slows down time, reveals the truth, offers monetary equality, and restores sanity through transparency.

In our age of cynicism, it is easy to write off any solution that sounds too good to be true. But how do you know that Bitcoin is not the solution? If you cannot come up with a better alternative that aims for the long-term betterment of humanity, it may behoove you to suspend your skepticism and do your own research (DYOR). Bitcoin may just be the glass half full in a world running on empty.

The Necessity Of Balance

“A functional social institution… can utilize the conservative types to carefully implement processes of tried-and-true value, and the creative, liberal types to determine how what is old and out of date might be replaced by something new and more valuable. The balance between conservatism and originality might therefore be properly struck.”

Our tried-and-true institutions are gradually adopting Bitcoin. The list gets longer by the day and includes institutions like PayPal, Square, Visa, J.P. Morgan, and Goldman Sachs. This institutional adoption of Bitcoin, a creative new idea, is the balance being struck between the conservative and out-of-date and original, more valuable ideas.

“… begin with an expansion of conscious wisdom: the articulated realization that conservatism is good (with a set of associated dangers), and that creative transformation — even of the radical sort — is also good (with a set of associated dangers)… and of being able to recognize when the balance has swung too far in one direction.”

Bitcoin is a catalyst that can unite and expand our conscious wisdom. Change is coming, and we are collectively negotiating how to integrate the best aspects of our institutions with radical new ideas like Bitcoin. That said, the involvement of both parties ensures mutual, honest cooperation. This means calling out institutions if they attempt to co-opt or undermine Bitcoin. In fairness, this also means that institutions need to call out Bitcoiners who attempt to raze institutions under the false pretense that they are purely malevolent and have nothing good to offer whatsoever.

“Intelligent and cautious conservatism and careful and incisive change keep the world in order.”

This is the way.

Personality As Hierarchy And Capacity For Transformation

“How, then, is the personality that balances respect for social institutions and, equally, creative transformation to be understood? It is not so easy to determine… For that reason, we turn to stories.”

There was nothing easy about America’s achievement of independence from Great Britain during the American Revolutionary War. Yet, the Declaration of Independence was generated by the conflict, and it contains foundational insights about democracy, religious freedom, and the separation of church and state. The words of that living document honor the best components of the United Kingdom’s governance model in addition to the desirable, new, creative elements that made the founding of America a bold transformative act. The Bitcoin story is 12 years old and has been anything but easy. The first 10 years represented its birth and survival, and the theme of the next decade will be its integration with and transformation of society.

“Great stories are about characters in action, and so they mirror the unconscious structures and processes that help us translate the intransigent world of facts into the sustainable, functional, reciprocal social world of values.”

America did not throw out the baby with the bathwater in writing the Declaration of Independence. In contrast, transformation through integration is what makes the American Revolution a great and complete story. Bitcoin’s “virgin birth” and the mysterious status of Satoshi Nakamoto are no coincidence. Bitcoin paid homage to gold by adopting its time-tested property of value, but it transformed the concept of gold by adding the ability to transport it anywhere instantly—teleportation. Bitcoin’s creation was therefore a mythological act of alchemy. How’s that for a great story? 

This is a guest post by Nelson Chen. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.

Source: Bitcoin magazine