Crypto News Updates

The End Of Bitcoin’s Beginning

We are fast approaching sovereign state adoption as game theory plays out in front of bitcoiner’s eyes.

This really feels like the “suddenly” part. A lot of work went into Bitcoin Beach over the last year to inspire El Salvador to make Bitcoin legal tender this week, but to the public this happened incredibly fast. The live announcement at Bitcoin 2021, the law being passed by a super-majority of the Legislative Assembly of El Salvador a few days later, and that same night the President was asked if El Salvador is considering mining on Twitter spaces. The next day he tweeted about a volcano mine:

In 2017 I remember seeing predictions that corporations would slowly get involved after the next halving, and maybe nation states would get involved in the cycle after that, and maybe by 2030 a central bank. I think it’s undeniable that we have crossed over into a new era of the Bitcoin story where the stakes are much higher. The first nation state is here and they are moving fast. By default all other countries are now subject to the Bitcoin game theory and opportunity cost that individuals and corporations have been facing. In the last few days it’s been hard to keep up with the new Latin American politicians adding laser eyes.

With the higher level of adoption comes more powerful enemies. In the last month Elon Musk has tweeted misinformation about Bitcoin mining which resurfaced the energy FUD that has been debunked for years.

We got this from Elizabeth Warren on June 9:

It’s insane to think that someone in her position could be that unintelligent and or uninformed.

At least she’s self aware:

Trump called Bitcoin an outright scam:

We also got this brainlet suggesting we make open source code illegal:

Finally the equality loving humanitarian IMF chimed in:

This is a lot of noise and no signal but it’s important to know your enemy. We say Bitcoin deserves better critics and it does, but in terms of their ability to shift the narrative, spread misinformation, and slightly delay hyperbitcoinization, these are some worthy opponents.

It really feels like the “Beginning” chapter of Bitcoin’s history is over. I don’t know what this next chapter is called or how long it will last but it feels much more serious, like it’s not a game or experiment anymore.

It’s hard not to view the events of the last week through the lens of The Sovereign Individual. Countries like India and China that ban themselves from Bitcoin will harm their citizens by cutting them off from an inevitable innovation in freedom and financial inclusion with the worldwide economy. At the same time, as countries follow El Salvador’s lead, Bitcoiners will actually be able to live like Sovereign entities, crossing borders into whichever country offers the most favorable conditions. Nayib Bukele was openly answering unscripted questions from Bitcoiners on a Twitter space, and the “Bitcoin For Countries” playbook is being open sourced and shared with any nation that needs it. It feels very clear that the world is naturally trending towards the information age that was outlined, and Bitcoiners are leading the charge through all fiat roadblocks.

Meeting people at the Bitcoin 2021 conference really confirmed for me that we are on the right side of history. It’s great that we’ll get rich along the way, but Bitcoiners genuinely care about fixing a lot of the problems created by the fiat world. I saw 12,000 people inspired to help strangers across the globe who are unbanked, oppressed, or victims of the fiat monetary policy ripple effect. In the battle for freedom and property rights, Bitcoin is one of our most important tools. If you still think of it as just another investment you should listen to Alex Gladstein’s talk or watch Jack Mallers’ speech delivered at the 2021 Bitcoin conference.

The dominoes are falling and it’s an honor to stand with the plebs in the fight for truth.

We are winning. Don’t give them a fucking inch.

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

Source: Bitcoin magazine

Crypto News Updates

Bitcoin: The Ultimate Opportunity Cost

Upon realization of Bitcoin’s true value, one must reconcile their economic opportunity cost with their new reality.

Attention, fellow bitcoin wealthy plebs; I’ve been summoned to write about the corn, and there is one topic that’s constantly in the back of my mind, creeping into every decision:

The Bitcoin opportunity cost.

Whether you’ve just started your journey down the rabbit hole or you’re already telling billionaires to “have fun staying poor,” by now, you’ve learned about the functions and characteristics of money. This is one of the first things about Bitcoin that stood out to me, as I hadn’t learned about it before. The money a society uses should function as a store of value, a medium of exchange, and a unit of account. Diving deeper, I learned about money’s different characteristics (scarcity, divisibility, transferability, etc.) and started to understand how societies grade money based on these characteristics to decide which forms of it are more desirable than others. 

Many have come to the conclusion that Bitcoin earns the best overall grade on the characteristics-of-money test, and this makes it the best form of money ever (cc: @thisisbullish). I fully subscribe to the thesis that bitcoin the asset is currently functioning as the best store of value in existence, and that this delays bitcoin from fulfilling the other two functions of money. Why would people use bitcoin to exchange value at scale when it is serving as the best store of value right now? In the future, when Bitcoin’s volatility calms down and global adoption is above 80 percent, people won’t feel like they’re giving up generational wealth when they use bitcoin as a medium of exchange, and then Bitcoin the network will shine. This is all to say that we are still very much in the adoption phase, and we are lucky to be here this early.

If you agree with that thinking, you may have entered into a new wormhole mindset in the last few years, as I did. When you go down this wormhole, you stop thinking about bitcoin as an investment, which implies you’re trying to exit at some point after squeezing out more money than you put in. Instead, you start to think about Bitcoin as the money, which exists in a better system that improves incentives, trade, friction, efficiency, saving, time preference, freedom, innovation, politics, and community. Once you get to that point, the opportunity cost of not owning Bitcoin creeps into every single decision.

Today, money managers use the risk-free rate of treasury bills to calculate opportunity cost of financial decisions. This calculated yield basically represents the maximum amount of money you could make without taking any risk, and decisions should be weighed against this.

If you factor in the 2.3 percent annual government-targeted inflation rate via the Consumer Price Index (CPI), then most interest rates are already negative.

Now factor in the CPI being a farce.

Now factor in that nothing is risk-free and this yield is subject to a counterparty that operates like a failing business.

Finally, you have an opportunity cost that can’t ever be verified or agreed upon. As a result, we can’t trust the benchmark against which most investment decisions are calculated, and this leads to complete mispricing of assets.

Say you’re a bank and your group of investment analysts, pictured below, ignore all of that.

You are using the absolute worst-performing “risk-free” investment available as your opportunity cost. Bitcoin is basically a social experiment to see what happens if you try using the best-performing asset of all time as your opportunity cost instead.

Bitcoin Magazine’s @nikcantmine wrote about how he weighed his personal Bitcoin opportunity cost against college tuition. I went to college, and I can justify it because, in my opinion, it was a great time and I hadn’t heard of Bitcoin yet. But if I had, I probably would have made the same decision as Nik. In my mind, most purchases won’t outperform Bitcoin, so if I’m buying something, it better give me a large amount of enjoyment, and if I’m ever selling Bitcoin, it better be in exchange for large amounts of time. I’m not sure if it’s a blessing or curse to be at the point where every single decision, financial or otherwise, comes down to “Hey man, you should probably have more bitcoin instead.”

In summary: enjoy the ride, $500,000 is bearish, pleb forever, team surferjim, pray for Miami.

Thanks to @BTCization for the nod.

Play me off.

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

Source: Bitcoin magazine