As the rising third power in the world, India has the potential to be the center of a new Aligned Movement — an upgrade to the Non-Aligned Movement that aligns every neutral country behind Bitcoin and decentralized crypto protocols. balajis.com/add-crypto-to-…
Crucially, Crypto Capital isn't anti-American or anti-Chinese for that matter.
There are Woke Americans & Crypto Americans, Crypto Chinese & Communist Chinese.
The Crypto American is much closer to the average Chinese hodler than to Warren, Trump, or Xi Jinping.
N custodial wallets are hubs and the M citizens are spokes.
If a user of wallet 1 sends a transaction to a user of wallet 2, then the transfer looks instant on their screens.
Bulk settlement happens later on-chain between wallet 1 and 2.
Let’s say there are N=10 popular custodial wallets & they all do bulk settlement with each other every 24 hours. That’s N*(N-1)/2 = 45 pairwise on-chain Bitcoin L1 transactions per day, which is feasible.
Also, add in N daily on-chain transactions with the state’s Bitcoin fund.
If I’m reading this right, all economic agents that are technologically capable of receiving BTC as payment *must* accept it as payment — though instant conversion to USD is made available to anyone who doesn’t want to take price risk.
The state of El Salvador has just mandated that all merchants in a country of 6.4M people accept BTC (with instant conversion for those who don’t want price risk).
This is a legal flippening. From “banning” Bitcoin to mandating it.
The new listing decision is making a cryptocurrency your government’s legal tender.
Cryptonetworks are attaining the scale (millions of holders) & resources (billions of dollars) to start conducting foreign policy.
Like digital proto-states, negotiating with nation states.
There are advantages for both decentralized and semi-centralized networks in this process.
A decentralized network can just be adopted. Any country can just stockpile BTC.
But a semi-centralized network, or a DAO, can offer billions in listing fees to incent national adoption.
Companies like Tesla, Amazon, and Google have negotiated with governments for some time. There are carrots & sticks on both sides. And often there is a binding promise of investment, made by a (centralized) CEO.
Cryptonetworks can now do similar things with on-chain commitments.
If this is true, then a small country like Tuvalu (which gets a big chunk of revenue from the .tv domain name) could declare #BTC (and ETH!) to be legal tender.
The benefits would easily be worth billions.
So: could we legally crowdfund a prize for the first country to do this?
“Under the current deal…Verisign pays Tuvalu around $5 million per year for the right to administer .tv. For a nation whose annual domestic revenues tend to hover around $60 million, this is a substantial benefit.” washingtonpost.com/video-games/20…