Vijay Boyapati Profile picture
Tu ne cede malis, sed contra audentior ito
Alexander Ainslie Profile picture Bill OuYang Profile picture Steven Brachman Profile picture Lisa Francois Profile picture Rollo Tape Profile picture 10 added to My Authors
27 Jul
1/ Bitcoin and gold are on the rise. A thread explaining why.

All monetary goods are in constant competition with each other to attract the pool of global savings. They compete primarily on the attributes that make for a good store of value:…
2/ Fiat monies, while being inferior on the standard attributes that make for a good store of value, have one advantage over market based monies: you are paid interest to hold them. This interest can be paid because the sovereign claims seigniorage over their money.
3/ In effect, a state can pay interest on the money it issues because it parasitically profits from the productivity of the population over which it claims dominion. States also use the interest rate in a counterproductive attempt to keep their national economies growing.
Read 10 tweets
23 Jun
1/ In their embryonic form many species appear alike. But imprinted in their various DNAs is the code that will evince their great differences in the fullness of time.

A thread on the great debate about what #Bitcoin is and why only one of the two major visions makes sense
2/ In its first few years #Bitcoin appeared to be both a disruptive payment rail (near zero transaction fees) and a promising store of value (dramatically increasing in value over time).

Yet written in the code that powered its network were rules that guaranteed only one outcome
3/ #Bitcoin's "consensus rules" are the set of rules agreed upon by all computers running on the Bitcoin network. Only those computers abiding by these rules are accepted as a part of the network. Perhaps the most famous rule is the number of bitcoins that are created per block.
Read 15 tweets
11 Jun
1/ Nature abhors a vacuum and it's the same with power vacuums.
2/ When the State makes something illegal that is in high demand (or abandons the provision of justice) it's saying there is no power structure to enforce property rights in this sphere, creating a power vacuum.
3/ The power vacuum is usually filled by a strongman, kingpin or drug Warlord who metes out his own justice according to his strength and guile. He becomes a monarch in his little economic fiefdom.
Read 4 tweets
8 Jun
1/ At a time when many are being called upon to educate themselves, it would avail us all to reflect on the difference between education and indoctrination.

Education is a descriptive endeavor (describing what is), whereas indoctrination is normative (describing what should be)
2/ The line between education and indoctrination is often blurred to suit the purpose of those doing the "educating".

A subtle shift from describing the world as it is to what needs to change often signals the abandonment of pedagogical intent for an intent to control.
3/ In one of my favorite @paulg essays, he describes the problem with identity encroaching on the pursuit of truth.

When ideological views become entangled in education the ability to discover truth is diminished or destroyed entirely.
Read 7 tweets
3 Jun
1/ The CEOs of today's information gatekeepers (Facebook, Google, Twitter) are charting a perilous path between Scylla and Charybdis. On the one hand they face the ultra left-wing politics of their employees. On the other the plurality of users who don't share those politics. 👇
2/ Of these CEOs, Sundar - Google's CEO - is in the weakest position. He does not have the internal credibility of a founder, nor the credibility of a CEO who has tranformed the company, as Satya Nadella has at Microsoft.
3/ In a recent mass-walkout by Google employees, Sundar appeared weak and the employees had the audacity to demand representation on the company's board of directors, among a number of other extremely left-wing demands.
Read 9 tweets
11 May
1/ On the eve of #Bitcoin's quadrennial supply shock, inquiring minds are wondering whether the so-called "Bitcoin halving" is "priced in". In this thread I will explain that it is not and it cannot be priced in. 👇
2/ It is important to understand that #Bitcoin is not a traditional financial asset and cannot be priced as such.
3/ In finance the term "priced in" refers to whether information that affects future potential cash flow of a revenue generating asset or company has been properly discounted into the current valuation, factoring in things like interest rates.

Yet #Bitcoin has no cash flows...
Read 12 tweets
24 Jun 19
1/ The #Bitcoin block reward halving is less than a year away. How does the halving interact with Bitcoin's recurrent hype cycles, is it the cause of Bitcoin bull markets and what can we learn from past halvings?

Let's explore these questions in a thread 👇
2/ Every ten minutes (approximately) a fixed number of bitcoins are produced by #Bitcoin miners to compensate them for their job of verifying and ordering transactions. Because miners operate marginal businesses they tend to sell most of their mined bitcoins to pay their expenses
3/ Miner selling creates a constant downward pressure on #Bitcoin's price. Without new money entering the market, Bitcoin's price would decline.

At a BTC price of $10,000 approximately $14 million dollars must enter Bitcoin to offset the downward selling pressure.
Read 10 tweets
20 Jun 19
1/ We are in the early stages of a new #Bitcoin bull market. Let's explore what we know about such bull markets based on observations from the four major hype cycles that Bitcoin has already undergone. A thread 👇
2/ Bull markets start off relatively slowly because of an overhang of potential supply. Firstly, some who bought at higher prices in the prior cycle and are looking to be "made whole" so they can escape their positions, plus whales who wished they had cashed in near the top.
3/ Before it is clear the bull market has begun, there is a period of steady accumulation as "weak hands" are liquidated and replaced by "strong hands" who have long term conviction in the value of #Bitcoin.
Read 11 tweets
4 Jun 19
1/ How many times did you have to hear about #Bitcoin before you were ready to acquire some or, at least, explore its significance? This number of "touchpoints" is an important factor in the process of Bitcoin's monetization.

Let's explore the idea of touchpoints in a thread: 👇
2/ We now know that the process of #Bitcoin's monetization is occurring in a series of hype cycles where the magnitude of each cycle is defined by the people "reachable" in that cycle. Which people defined the prior cycles? 👇

3/ The first hype cycle in the #Bitcoin market was dominated by cryptographers and cypherpunks who were already primed to understand the importance of Satoshi Nakamoto's groundbreaking invention.
Read 13 tweets
16 May 19
1/ Five years from now it will be widely recognized that the major financial players in the "cryptocurrency space" (mostly exchanges) made a strategic error in pursuing a horizontal business opportunity rather than a vertical one.

A thread 👇
2/ The simplest and most obvious profit opportunity for exchanges today is to list as many cryptocurrencies as possible (the "horizontal" strategy) and collect fees on the trading that occurs between them. This naive strategy is a mistake in the long term.
3/ There is an opportunity cost to supporting many (sometimes hundreds of) cryptocurrencies. Engineering time needs to be devoted to making sure each project is free of bugs & trojan horses, isn't prone to easy 51% attacks and in dealing with idiosyncratic blockchain APIs.
Read 10 tweets
25 Feb 19
1/ I HODL the #LNTrustChain torch. The lightning network is a profoundly important development in the history of #Bitcoin. Thread 👇
2/ The lightning network allows for the eventual transition of #Bitcoin from an incipient store of value (as it is now) to a generally accepted medium of exchange (i.e., to become a fully fledged global money).
3/ I'm deeply grateful for @hodlonaut for creating the torch to help promote the lightning network and increase its capacity.

When I wrote the Bullish Case for Bitcoin I knew LN would be important but did not know it would grow this quickly. I'm more bullish than ever.
Read 8 tweets
14 Jan 19
When I wrote The Bullish Case for Bitcoin I was blown away and humbled by the number of translations of it that people volunteered to write.

The one I most hoped for was a Korean translation. Now we have it! Thanks so much @HyungmokJoh!…
Part 3 of @HyungmokJoh's Korean translation of the Bullish Case for Bitcoin is now available:…
Read 4 tweets
10 Jan 19
The 10 years ago today in #Bitcoin was a three part series. Here are the three parts in case you missed the earlier ones: 👇
Read 4 tweets
8 Jan 19
1/ 10 years ago today, Satoshi Nakamoto released version 0.1 of the #Bitcoin software. About two days later, the brilliant cryptographer Hal Finney (RIP), had downloaded Satoshi's code and was also running it, increasing the node count of the Bitcoin network to 2.
2/ As with many things related to #Bitcoin, Hal grokked its significance immediately.
3/ Today there are over 10,000 nodes running the Bitcoin software, dramatically increasing its resiliency and guaranteeing its revolutionary monetary policy.
Read 4 tweets
3 Jan 19
1/ 10 years ago today, in an unknown location, a mysterious figure whose identity is still unknown, tapped a key on his keyboard, spurring his CPU into action.

In doing so, Satoshi reified his vision for a decentralized digital cash that he'd published 3 months earlier.
2/ The fan in his computer began spinning to keep the CPU, burning from the burden of work it had been given, from overheating.

The CPU in Satoshi's computer was searching for a special pattern, much like a digital needle in a haystack, that would secure #Bitcoin's first block.
3/ Here is that needle:


It is the hash of Bitcoin's "Genesis Block", which created the first 50 bitcoins ever to be mined (by a quirk of Bitcoin's protocol these 50 bitcoins can never be spent).
Read 11 tweets
21 Dec 18
1/ I'm so excited to see this documentary about The Great War. Most people have little or no knowledge of the first World War, despite it being historically far more significant than the second. It spelled the end of the old European order.

2/ It also spelled the end of the classical gold standard, which had brought prosperity to much of the world during the 19th century. The world had finally escaped the Malthusian Trap only to enter a century of statism, fiat money and mass murder.
3/ Part of the disinterest in the Great War is the antiquated footage we have of the events. We see the past as a series of snapshots of soldiers awkwardly goose-stepping at 16 frames per second, making it harder for us to empathize with their struggles. It seems a caricature.
Read 5 tweets
20 Nov 18
1/ Understand that as we explore the depths of the bear market, HODLers will be faced by an unremitting barrage of "I-told-you-so's". Your conviction will be tested both financially but emotionally.

Survive and you will be battle-hardened for the next cycle.
2/ It's normal and natural to feel despair. You will be surrounded by it from people invested in or paying attention to this market because we are at the darkest phase of the hype cycle.

3/ But winter will not last forever. The first blossoms of spring will show themselves in the years to come. There will be significant increases and institutionalization of the liquidity channels to Bitcoin in the next year.

Read 4 tweets
1 Nov 18
1/ #Bitcoin is the container ship of value transfer and storage. It's meant for large value transfers among untrusted parties.

Trying to shoehorn Bitcoin into a payment system for buying coffee is like trying to deliver a single Amazon package using a massive sea vessel.
2/ A monetary system is always built in layers, and Bitcoin is meant to be the base most layer, where the most trust in settlement is required.

The Lightning Network, built atop Bitcoin, is like the last-mile delivery service that gets that small package to someone's doorstep.
Read 2 tweets
31 Oct 18
1/ 10 years ago today (Fri 6:10pm 2008-10-31 UTC) Satoshi Nakamoto announced the creation of #Bitcoin to the cryptography mailing list. Satoshi's creation is the most important innovation to money (itself the most important good in any society) in a thousand years.

A thread 👇
2/ When the Bitcoin network launched in 2009, very few people understood its significance. Today, ten years later, Bitcoin's market capitalization stands at over 100 billion dollars.

The great Hal Finney RIP, the first person to receive bitcoins from Satoshi, grokked its import:
3/ Never in the history of the world had it been possible to transfer value between distant peoples without relying on a trusted intermediary, such as a bank or government.

Nakamoto’s invention  allowed this for the first time ever.
Read 9 tweets
29 Oct 18
1/ I discovered an interesting potential case of Twitter censorship. I was trying to find an old tweet of mine and for the life of me no search that I did would unearth it. @TwitterSupport. I had to use Google (lol) to find the tweet on Twitter.
3/ This search should clearly return the tweet as a result:…
Read 6 tweets
28 Oct 18
Marianne has the economics completely backwards. The higher the velocity of money the less it's valued.

The fastest money is that which is hyperinflating and treated like a hot potato. No one holds it for long for fear their savings will disappear.
Read 3 tweets