When someone decides to hold gold or any other asset for a monetary purpose, they make a clear and conscious choice to use it for its wealth storage properties instead of as a useful commodity. Rather than creating electronics parts or jewelry, holding a gold bar puts gold’s monetary properties to work. While this decision may appear innocuous, this can bring harmful economic consequences. Large numbers of people storing their value in a specific commodity with hopes of wealth storage often leads to extreme waste and speculative bubbles.
…onetary and property systems, because bitcoin opened the door for competition and created a market. This also shapes our understanding of what Bitcoin is NOT: a competitor to VISA or PayPal. It competes with local governments, legal systems and property rights — the fundamental layers of the existing stack — not with the payment processors that sit on top of it.
That is the key innovation of Bitcoin: It detaches property rights from the legal system and the monopoly on violence. For the first time, we can have property that does not rely on a local authority to enforce and protect. It is easy to conceal, defend, divide, move, and verify — all by yourself, granting you the highest level of personal sovereignty.
…is is my favorite starting point for thinking about Bitcoin. It is more than “fiat vs sound money”. Bitcoin proponents are driven by a collective interest in exploring how we can evolve money for a better society, and how we can make the global financial system more stable and distributed. The creators of Bitcoin didn’t see how they could contribute to fixing the holes in the current sys…
…ned for the vast majority of our lives to find, adopt and execute on some kind of master narrative. Some story that is complicated enough to respond to life but simple enough to be managed. Some framework of assumptions, axioms, truths, truth making and authority that takes the absolutely overwhelming complexity of the modern world and allows us poor apes some easy way to move forward in a coordinated fashion.
The habit of seeking authority is not merely a product of Blue Church training. It is, in fact, one of the more hard wired aspects of being human. We are a social animal and we are constantly on the lookout for people to watch and learn from. In many ways, this capacity is the “secret of our success” and the foundation of culture itself. H…
Similarly, as long as we all agree that “free trade is a good idea”, or that “borders should be protected,” or that “healthcare is a human right,” or that “people should be treated equally,” or that “carbon emissions lead to global warming” then the still enormously difficult job of designing and implementing policies based upon these assumptions and frameworks can be managed and the ship of state moved forward. (“Stroke!”)