Politicians, normies and MSM-pundits call #Bitcoin "Virtual Money", but it is actually the VERY OPPOSITE of that!

Bitcoin is really a huge step in the process of (RE-)DE-VIRTUALIZATION of Money!

The process of money virtualization had already started very long ago.
The first step of money virtualization was COINAGE. Money was still a physical token, but its market value was often driven by INFORMATION printed on it, more then by metal content (especially when political power mandated that, or when people didn't independently verify).
The second step of money virtualization was SEIGNIORAGE, where the increasingly huge, long-term decoupling between face-value and metal-value of coins (before just due to accident or fraud) was accepted and normalized as the typical business model for the coinage provider.
The third step of money virtualization was CUSTODY. Money was not a physical token anymore, it had instead become INFORMATION support (banknotes) used to represent it and (hopefully) redeem it. But there still was some level of reality behind the representation: reserves.
The fourth step of money virtualization was FRB, where the increasingly huge, long-term decoupling between circulating banknotes and actual reserves (before just due to accident or fraud) was accepted and normalized as the typical business model for the custody provider.
The fifth step of money virtualization was FIAT MONEY, where the redeeming was "suspended" (as a "temporarily" measure, of course🤭🤫), turning money into pure INFORMATION, conveyed by physical bearer instruments, without any residual connection with physical commodities.
The sixth and last step of money virtualization was DIGITAL FIAT, where even physical bearer instruments were gradually restricted, moving INFORMATION to identity-based central ledgers. Increasing censorship and exclusion, and decreasing costliness for monetary expansion.
7/n (n=7)

It may come to you as a surprise, but...well...BITCOIN FIXES THIS!

#Bitcoin effectively DE-VIRTUALIZES money, completing the cycle, bringing it back to physical scarcity (difficulty-adjusted PoW) and bearer control (private cryptographic keys).

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More from @giacomozucco

Feb 23

Not sure who could find this interesting, but since some people asked me about it, here's a very quick thread about my "complicated relationship status" with the Swiss Confederation, in light of recent events.



I moved to (Italian) Switzerland from Milan with my family in 2016. Back then I considered the Confederation as a dream of market freedom, power decentralization, institutional competition, property right protection. In 2018 my family moved back to Milan, but I stayed.


Reality never compares to idealized dreams, of course. Some Swiss things are very weird and frankly socialist: monstrous commercial protectionism, hysterically draconian driving regulation, no space for homeschooling/unschooling for kids. But overall it was decent.

Read 15 tweets
May 13, 2021
For #Bitcoin newbies:

💸Energy consumption by the network does NOT depend on the NUMBER of transactions!

📈Energy consumption is a COST for miners: they will always try to REDUCE it increasing efficiency!

🪙 Keynesian monetary policies cause POLLUTION: hard money FIXES that!
A couple more (advanced):

⛏️There CANNOT be, even in theory, anything "cheaper" than Proof of Work, for the same amount of SECURITY!

⚡️Every COST is ultimately paid in consumption of free ENERGY from environment, there really aren't alternatives (only inefficient deviations).
(Tweets inspired by this utter bullshit here: )
Read 4 tweets
May 7, 2021
@btkicio @umbertoravizza Ok, quick thread here.

There are 2 different issues in Bitcoin: privacy & censorship-resistance (connected but not the same). The former is about attackers not being able to cheaply spy on you. The latter about attackers not being able to prevent you from spending sats.
@btkicio @umbertoravizza ...
The connection is due to the fact that intelligence about you can be used to hurt you in retaliation for your transactions (including the one to your future self: saving/hodling). This threat is just a fear-based kind of censorship. But let's just consider the latter.
@btkicio @umbertoravizza ...
Since day 1 of Bitcoin, there was only the problem of discretionality of tx inclusion: miners can chose to generate "empty" (ie coinbase-only) blocks, preventing people from transacting onchain (and thus also creating friction for settlement of offchain transactions).
Read 18 tweets
Dec 23, 2020
Ok, everybody had some fun hating on @Ledger for the leak. Sure, they were sloppy, & it's good that many new (& some old) users are (re)discovering the importance of privacy in #Bitcoin (here's my 2-part article about this fundamental topic: bitcoinmagazine.com/articles/a-tre…).
Still, I see 2 (opposite) kinds of weird take circulating about the lessons learned. The first kind consists of people minimizing the security risks involved in having your personal identity & addressed publicly associated with some #Bitcoin possession. Their argument goes:
"There are many vocal Bitcoiners showing off their real identities on Twitter every day already, like that moron @giacomozucco, so what if my name is associated with some HWW purchase?". The point is that criminals (of both the legal & illegal kind) love low hanging fruits.
Read 10 tweets
Sep 18, 2020

Hard Times create Strong Tools.

The invention of TCP/IP, with its fundamentally decentralized and censorship-resistant design, was at least partially driven by the adversarial mood of the Cold War and the nuclear scare.

Strong Tools create Good Times.

The general optimistic mood of the turn of the century, when people were celebrating the "end of history" and the "dot com revolution", was at least partially driven by the success of the Internet in connecting the world.

Good Times creat Weak Tools.

The lazy reliance on convenience and trust contributed to weakening the Internet: while SMPT is theoretically decentralized we mostly depend on Gmail today, and the same goes for DNS, localization, social networks (like this one I'm using now).
Read 8 tweets
Mar 20, 2020
For your delight: (yet another🥱) #covid19 thread

I'll try, for once, to post a few tweets that are as politically & ethically neutral as possible (but I still think fascists suck!) and only deal with *NUMBERS* (thanks @andhans_jail for the gif).
For some reason, most of my Twitter timeline seems now full of a weird version of "Price Technical Analysis", taking random data-points, projecting lines (often curve, sometimes ECCCCHXPONENTIAAAAAL!!!!), extrapolating magical functions, predicting trends, etc.
I will try not to directly discuss this tendency, here (even if I could, since many people, including me, may consider this kind of forecasting as too unreliable to be used as a foundation for important personal strategies & choice on it, ...
Read 24 tweets

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