2/ Among other things, money solves a coordination problem. Trading a single good against others solves the combinatorial explosion of a barter economy. It is a scalability solution that allows coordination across large groups of people.
3/ The two basic forms of money are ledgers (made of information) and physical tokens (made of atoms). Physical tokens keep track of themselves. Ledgers need someone who is in charge.
3/ How did he do it? He dove down the rabbit hole, quickly and deeply. Bitcoiners know that all roads lead to Bitcoin maximalism. For some, it's a long and rocky path. For GigaChad it's a 5 minute ride in his rocket car.
2/ We often forget how far we have come, and how difficult the most basic stuff used to be. In Bitcoin, some of the basic stuff is still difficult.
Pete in 1991: "What is an IRQ?"
Peter in 2020: "What is an XPUB?"
3/ But also in Bitcoin we have come far: BIP32, BIP39, BIP44, BIP141 - all of them make Bitcoin easier to use. We take them for granted, but we shouldn't. A lot of thought and hard work went into these improvements, leading to better UX in the end.
1/ Now that the Chad money is coming in, let's look at what moving to a bitcoin-denominated balance sheet might mean.
On inflows, outflows, balance sheets, and how a circular orange future might resolve the points of contention in #Bitcoin
2/ In essence, every economic actor needs to have an economic inflow to survive. This is true for individuals, companies, and even states.
A healthy actor has more inflow than outflow, resulting in a positive balance. Spending is necessary for survival or growth.
3/ Most economic actors sell goods and services to generate inflow. Sooner or later, what they earn is spent again on other goods and services. A payment is simply a moment in time where one is given what is due for goods or services.
I recently finished The Price of Tomorrow by @jeffbooth. The book gives a good introduction and overview in regards to the two grand themes that are currently playing out: the rise of AI and the downfall of fiat money.
Quick thread in case you want to dive deeper.
2/ In regards to AI and exponential progress, I highly recommend @waitbutwhy's lengthy two-part blog post from 2015. It does a great job of explaining what's going on and is quite thorough (if you can't be bothered to buy any of the books below).
3/ If you want to dig even deeper there is probably no better book than The Singularity Is Near by @raykurzweil - it's a bit dated and can seem outlandish at times, but the general concepts presented in the book are as relevant as ever.
3/ Flashback to 2006: "Nearly every country issuing this passport has a few security experts who are yelling at the top of their lungs and trying to shout out: 'This is not secure. This is not a good idea to use this technology'" news.bbc.co.uk/2/hi/programme…
2/ Bitcoin taught me more about money and finance than all of my previous education combined. It encouraged me to look behind the curtain and face my financial ignorance. (h/t @aarontaycc@BitcoinDunny for not making me feel alone)
3/ I learned about inflation and the catastrophe of hyperinflation. To quote Hayek: "I do not think it is an exaggeration to say history is largely a history of inflation, and usually of inflations engineered by governments for the gain of governments."
1/ Working on my next piece. Went full on "don't trust, verify" by calculating the projected bitcoin supply myself - here are some things my end-of-year drunken self found interesting:
2/ Bitcoin will catch up to the stock-to-flow ratio of gold after the next halving, some time in 2020. @saifedean pointed this out in The Bitcoin Standard iirc, but seeing it in my own calculations was cool.
3/ Bitcoin will be exponential "harder" than gold after that, being twice as hard after the next doubling. Exponentials are insane, as always. In the year 2050 (approx) Bitcoin will be 125x as hard as gold. After that it will get infinitely hard quickly 🍆