Why Bitcoin, Not Shitcoin

Hint: Beyond Bitcoin it’s all Shitcoin

  • Economic
  • Philosophic
  • Moral

The Economic Rationale

On a long enough time frame, every single government issued money, cryptocurrency, stock, bond, property or asset of any kind will trend toward zero when priced in the hardest, most liquid, sound money that’s ever emerged.

Money is the cornerstone of all civilization.

It’s how we store the & exchange the product of our labour, and subjectively measure our individual inputs into society.

Money is the biggest market

There is no larger segment of the global market. Not energy, not food, not transport, not government, entertainment, healthcare or anything else.

Economic Necessity

As more people realise the product of their labour (ie; their wealth, their savings & their money) is constantly being eroded, they are going to seek to store it in something that cannot be diluted. Bitcoin is the best possible option. It is accessible all around the world, and can be stored as pure, unadultered, unconfiscatable information.

Bitcoin is perfect money.

Bitcoin is superior to all other forms of money because it perfectly embodies every attribute of the meta-idea that is money. It’s open source; always on; not just fixed, but known in supply; verifiable by anyone; voluntary; permissionless; digital and directly rooted in the second law of thermodynamics. As a result, it performs the functions of money flawlessly.

  • It’s the perfect store of value:
    I know exactly how much I have in relationship to the whole, and I know that it cannot be diluted, altered or co opted.
  • It’s the perfect medium of exchange:
    I can send what I want, to whom I want, whenever I want and there is no power in the universe that can stop me from doing so.
  • It’s the perfect unit of account:
    I can measure all other goods and services in Sats and as the purchasing power grows, it’s pure digital nature means we can continue to sub-divide the units to measure smaller & more fractional goods & services, forever.
Original that definitely needed updating. lol

The best money always wins.

There is no outcome where Bitcoin loses, because the best money always wins by the sheer force of natural selection and survival.

The longer the chart, the worse it looks for the USD.
This is a log chart, so the fall doesn’t look as drastic but you can see USD has devalued many order of magnitude against Bitcoin

Convergent Network Effects

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

  • The protocol stack that represents the internet, ie; TCP/IP, HTTP
  • The gauge on train tracks (which was the same gauge on Roman chariots)
  • Shipping container sizes
  • Vowels and consonants in any particular language

The Philosophical Rationale

The economic case for bitcoin stems from the philosophy of Bitcoin and the principles it embodies.Bitcoin is about a move away from “rulers” and toward “rules.”

  1. Digital scarcity
  2. Autonomous consensus
  3. Digital immutability

Decentralization

The word “decentralized” gets thrown around a lot, but it doesn’t mean much outside of the context of actual control or cheap verifiability at the level of the individual.

Layers

Nature scales in layers. Engineering scales in layers. All human cooperation scales in layers. Communication networks, energy transmission media and all other networks we’re aware of scale in layers.

Censorship Resistance

When people talk about decentralization, they fail to realize that this is actually a means to a more important end.

Verifiability

As mentioned in the decentralisation 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.

Verifiability → Decentralization → Censorship Resistance

Individuality

Bitcoin is not democratic. It’s purely anarchic.

Voluntary

Bitcoin is a force of nature that emerges in a vacuum of force and coercion.

No Head Of The Snake To Cut Off

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

  • Bitcoin emerged as a zero-to-one innovation
  • At a time when something like this was thought impossible
  • It was planted during the 2008 global financial crisis, with a deep, clear message
  • It was picked up by the early cypherpunks and libertarians
  • It was dismissed, ignored, disparaged and ridiculed by everyone else
  • It continued to spread under the radar
  • It was used on Silk Road, which proved it could not be stopped
  • Its proof of work grew, as did the number of nodes, HODLers, believers and the infrastructure needed to move people out of fiat and into bitcoin
  • The creator disappeared and left it to the world, to do with as we wish

The Moral Rationale

The moral case stems from the philosophy of Bitcoin.

Rules, Not Rulers

Bitcoin’s raison d’être is the elimination of rulers who can make arbitrary mandates that benefit one group at the expense of another.

Warriors not cheap opportunists

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

0 to 1, not 1 to N.

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

Toxic Heroes

Bitcoiners are called toxic, assholes, bigots, intolerant, amoebas and every other name under the sun, by everyone. We adopt each of those names and transform them into memes. We’re like insult-recycling machines. The ultimate in an antifragile community.

Bitcoiner
Shitcoiner

Time & Waste

Bitcoiners recognise that the greatest plague to humankind is waste. Waste in terms of the natural resources and energy we use, and the time spent using them.

  • Time
  • Energy
  • Natural Resources

In Closing

Bitcoin is profound and unique, not for any single reason listed above (notice I barely even touched on the technological reasons), but because it is all of them combined.

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Host: Anchor.fm/WakeUpPod, Editor @ bitcointim.es and Founder @ amber.app. Bitcoin, Money, Psychology, Philosophy, History, Entrepreneurship & Thinking

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Aleksandar Svetski

Host: Anchor.fm/WakeUpPod, Editor @ bitcointim.es and Founder @ amber.app. Bitcoin, Money, Psychology, Philosophy, History, Entrepreneurship & Thinking