22 things I learned since falling down the Bitcoin Rabbit Hole. 🐰
With serious hat tips to @Breedlove22 @saylor @saifedean @SahilBloom @dergigi @johnkvallis @JeffBooth @PrestonPysh @nic__carter @knutsvanholm
With serious hat tips to @Breedlove22 @saylor @saifedean @SahilBloom @dergigi @johnkvallis @JeffBooth @PrestonPysh @nic__carter @knutsvanholm
1/ First Principles
I've always thought from first principles, though i never knew that there was a name for it, and that it's a discipline that is widely used.
In the below thread @SahilBloom explains the concept better than i could.
I've always thought from first principles, though i never knew that there was a name for it, and that it's a discipline that is widely used.
In the below thread @SahilBloom explains the concept better than i could.
https://twitter.com/SahilBloom/status/1329458583537397765
2/ Second-Order Thinking
Second order thinking is closely aligned to cause & effect. This form of thinking is all around us, and it's especially true for politicians and central bankers who tend to think along a short term horizon.
Second order thinking is closely aligned to cause & effect. This form of thinking is all around us, and it's especially true for politicians and central bankers who tend to think along a short term horizon.
https://twitter.com/sahilbloom/status/1342126994683617280?lang=en
3/ Time Preference:
I first read about the relationship between money and time preference from @saifedean in The Bitcoin Standard.
"The way to freedom is by avoiding the trap of upgrading your lifestyle every time you make more money." @Breedlove22
I first read about the relationship between money and time preference from @saifedean in The Bitcoin Standard.
"The way to freedom is by avoiding the trap of upgrading your lifestyle every time you make more money." @Breedlove22
https://twitter.com/anilsaidso/status/1337181051127394309
4/ What Money is
I previously would have said that money is the means through which we earn, save & transact. But money is way more profound than that.
@saylor @Breedlove22 & @JeffBooth contributed a whopping 19 part series of money exploration on YT.
youtube.com/playlist?list=…
I previously would have said that money is the means through which we earn, save & transact. But money is way more profound than that.
@saylor @Breedlove22 & @JeffBooth contributed a whopping 19 part series of money exploration on YT.
youtube.com/playlist?list=…
5/ Properties of Money.
I learned about the properties of money, and that the money with the best properties always outcompetes those with less. #ThisIsTheWay
I learned about the properties of money, and that the money with the best properties always outcompetes those with less. #ThisIsTheWay
https://twitter.com/Cocopoppyhead/status/1540694057956933632
6/ Hard Money vs. Soft Money
@saifedean taught me that Hard money is money whose supply is hard to produce, so you can’t just make more of it, while soft money is the opposite. Hard money also has better properties than soft money, thus is better money
@saifedean taught me that Hard money is money whose supply is hard to produce, so you can’t just make more of it, while soft money is the opposite. Hard money also has better properties than soft money, thus is better money
7/ Money is energy
Hard money must be rooted in unforgeable costliness (something expensive to produce) - such as energy. Bitcoin is the first technology to capture & monitise the worlds liquid energy and store it through time. @saylor taught me this.
Hard money must be rooted in unforgeable costliness (something expensive to produce) - such as energy. Bitcoin is the first technology to capture & monitise the worlds liquid energy and store it through time. @saylor taught me this.
https://twitter.com/DocumentingBTC/status/1481762814494711808
8/ Space & Time
Bitcoin is the first time in history that we’ve been able to send money through time - @saylor @Breedlove22
The Avg. lifespan of fiat currencies is 27 yrs. The £ is the oldest & has lost 99.5% of purchasing power. They all fail
Bitcoin is the first time in history that we’ve been able to send money through time - @saylor @Breedlove22
The Avg. lifespan of fiat currencies is 27 yrs. The £ is the oldest & has lost 99.5% of purchasing power. They all fail
https://twitter.com/SwanBitcoin/status/1375531035899875331
9/ Counterfeiting and inflation are the same thing
🚩Inflation is legal counterfeiting.
🚩Counterfeiting is illegal inflation.
🚩So central banking is organized crime.
🚩Inflation is legal counterfeiting.
🚩Counterfeiting is illegal inflation.
🚩So central banking is organized crime.
https://twitter.com/breedlove22/status/1443265111200657409?lang=en
9/ The Economic Machine
I learned from @RayDalio how the economic machine works. Ray shows the driving forces behind the economy and explains why economic cycles occur by breaking down concepts such as credit, interest rates, leveraging and deleveraging
I learned from @RayDalio how the economic machine works. Ray shows the driving forces behind the economy and explains why economic cycles occur by breaking down concepts such as credit, interest rates, leveraging and deleveraging
10/ Climate Change
Climate Change cannot be solved from within an economic system that requires inflation.
This is a lesson from @JeffBooth & something all #climatechange activists ought to learn - otherwise, they will continue making costly mistakes.
Climate Change cannot be solved from within an economic system that requires inflation.
This is a lesson from @JeffBooth & something all #climatechange activists ought to learn - otherwise, they will continue making costly mistakes.
https://twitter.com/JeffBooth/status/1415335182610042883
12/ Stranded Energy
From the real @nic__carter I learned about stranded energy - which is energy located in remote regions with no access to the grid. Bitcoin miners seek out stranded & otherwise wasted energy to help power the network & communities.
From the real @nic__carter I learned about stranded energy - which is energy located in remote regions with no access to the grid. Bitcoin miners seek out stranded & otherwise wasted energy to help power the network & communities.
13/ Inflation is worse than we thought
With the exception of pretty much all fiat economists, everyone knows that inflation is bad. @allenf32 & @JeffBooth taught me that inflation erodes and destroys the fabric of society, but there is another option.
With the exception of pretty much all fiat economists, everyone knows that inflation is bad. @allenf32 & @JeffBooth taught me that inflation erodes and destroys the fabric of society, but there is another option.
https://twitter.com/allenf32/status/1522500003926876161
14/ Technology is deflationary
Fiat economists believe GDP growth & inflation are indicators of wealth. But the only thing driving growth in the world today is easy credit / debt, which is fighting a losing battle against deflation, caused by technology
Fiat economists believe GDP growth & inflation are indicators of wealth. But the only thing driving growth in the world today is easy credit / debt, which is fighting a losing battle against deflation, caused by technology
15/ Energy Grids.
@ShaunEnergy on @WhatBitcoinDid taught us all how energy grids actually work. Politicians & climate activists are uninformed in believing renewables can power a grid fully.
Also listen to @thetrocro, @level39,
@jyn_urso @DSBatten
whatbitcoindid.com/podcast/bitcoi…
@ShaunEnergy on @WhatBitcoinDid taught us all how energy grids actually work. Politicians & climate activists are uninformed in believing renewables can power a grid fully.
Also listen to @thetrocro, @level39,
@jyn_urso @DSBatten
whatbitcoindid.com/podcast/bitcoi…
16/ Central banking is corrosive
Consider the case of a winemaker who must react to the central bank doubling the money supply to “save the economy”.
Knowing the value of each dollar has declined 50% due to inflation, he realises he has three options:
Consider the case of a winemaker who must react to the central bank doubling the money supply to “save the economy”.
Knowing the value of each dollar has declined 50% due to inflation, he realises he has three options:
1. Continue selling his wine for $20 & make a loss.
2. Continue selling his wine for $20 - using cheaper ingredients, decreasing the production cost & the quality of his wine.
3. Double the price to $40, to get the same value for his wine as he did before
breedlove22.medium.com/masters-and-sl…
2. Continue selling his wine for $20 - using cheaper ingredients, decreasing the production cost & the quality of his wine.
3. Double the price to $40, to get the same value for his wine as he did before
breedlove22.medium.com/masters-and-sl…
17/ Bitcoin is the only valid blockchain.
A blockchain is a decentralised digital ledger of transactions that can be verified & doesn't require trust. However, all cryptos are centralised and require trusted third parties to work - so they should simply use a database instead.
A blockchain is a decentralised digital ledger of transactions that can be verified & doesn't require trust. However, all cryptos are centralised and require trusted third parties to work - so they should simply use a database instead.
18/ NFTs cannot work
Why? Because they only contain a reference to an item, and not the item itself.
@dergigi explains this concept so eloquently by talking talks about maps and territories.
Why? Because they only contain a reference to an item, and not the item itself.
@dergigi explains this concept so eloquently by talking talks about maps and territories.
https://twitter.com/dergigi/status/1425202171071639554
19/ ALL Altcoins are ponzis
@woonomic & @coryklippsten clearly show that every cryptocurrency fails against #bitcoin.
Out of 20,000 cryptos, only one has ever hit an ATH in BTC terms three or more years after its first ATH vs BTC. Doge from the Elon pump. That's it.
@woonomic & @coryklippsten clearly show that every cryptocurrency fails against #bitcoin.
Out of 20,000 cryptos, only one has ever hit an ATH in BTC terms three or more years after its first ATH vs BTC. Doge from the Elon pump. That's it.
20/ Fiat is a ponzi too
I learned from Mr Math himself @FossGregfoss that fiat is a ponzi and that it cannot be tapered. No matter what lies politicians, economists and central bankers spin.. Maths disagrees.
I learned from Mr Math himself @FossGregfoss that fiat is a ponzi and that it cannot be tapered. No matter what lies politicians, economists and central bankers spin.. Maths disagrees.
21/ Bitcoin & the metric system
The introduction of the standardized meter was the first attempt to design a universal length system for humankind. #Bitcoin with it's capped supply of 21 million represents the first & only economic measurement system of humankind.
@Breedlove22
The introduction of the standardized meter was the first attempt to design a universal length system for humankind. #Bitcoin with it's capped supply of 21 million represents the first & only economic measurement system of humankind.
@Breedlove22
22/ Bitcoin is our only hope
If we want to green the planet, promote equality & fairness, help the developing world, reduce the size of governments, give property rights to everyone and potentially set about a new renaissance.
Then we should embrace the hardest money of all
If we want to green the planet, promote equality & fairness, help the developing world, reduce the size of governments, give property rights to everyone and potentially set about a new renaissance.
Then we should embrace the hardest money of all
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