The One Amazing Value of Bitcoin that Everybody Overlooks
Bitcoins prophecy revealed
Here is my thesis. Bitcoin is created for the next economic and financial crisis. A very clear fact that almost everybody in the cryptospace is overlooking while reaching for the moon.
When Wallstreet tumbles down, when inflation starts to make deep cuts in national spendings, and yes, when big banks start to shake, then Bitcoin will have its epic moment of grand glory. Because of the root of Bitcoin, the first amendment, the protocols of its network. The flag of its core value. Which is: never to let chancellors bail out banks again. It’s so simple, it's written clearly in the genesis block. Not in un-decodable developers language but in plain, clear, simple English! And this moment of supreme glory is coming closer and closer. Soon nobody in the world will doubt Bitcoins value anymore.
The Story of Bitcoin
Where does Bitcoins story start? Exactly, During the last worldwide economic and financial crisis. In fact, 20–30 years earlier to give credit to all the open-source volunteers that built on the dream of solving mathematical puzzles like the Byzantine Generals problem, resolving in the double-spending issue. But it wasn’t till January 3rd, 2009 that the soon to be mythological Satoshi Nakamoto pressed a button that will change the life of all of us forever. And much sooner than we think, dream or hope for. Before disappearing into oblivion and our children’s history books, Satoshi created one single Block. One to rule them all. Well, that’s not true because all blocks in a blockchain are containing the same validating information. But the first block probably was the most important one. It was the genesis block.
This genesis block contains the DNA of Bitcoin. The protocols are worked out by many developers before Satoshi. It was like he was there to put it all together in this big odd Japanese head. He worked vigorously in his little apartment in California, feeling the fever of a lifechanging event in sight.
Outside the seeds for Occupy Wallstreet are sawn. More and more people queuing in line for give-away food packages, people that recently lost their jobs, or even worse, their house. When Satoshi walks back home with his Chinese takeaway, he notices them. Silent victims of unbound institutional greed. The subprime mortgage looked too good to be true. No payments the first year, but then the guillotine of monthly too high to afford mortgage payments tightened and soon the unavoidable sale of the house. Now they are to blame, they have been too greedy. It was Gods punishment for grabbing too high, for wanting to have a life and a home that so many others had with seemingly no effort. At the same time, the inventors of all those very untransparent financial products are laughing their Wolf of Wallstreet asses off. Nobody would go to jail later.
It made Satoshi angry. Seeing these poor people lining up for some overdate Walmart food made him grab his bible. Peter Vallentyne’s “Libertarianism”. Human resources must be spread equally, the pyramid structure of current systems are destroying humanity, people must be free but not harm other people.
Sitting at his small desk with a beer and his Fu Yong Hai, he switched on his dell laptop, checking messages on metzdowd.com before sending an encrypted mail to Hal Finney. Even when he only lived a few blocks away. Earlier that year, the cypherpunk Hal Finney wrote in one of his anonymous remailers:
“ The computer can be used as a tool to liberate and protect people, rather than to control them”
This had caught Satoshi’s attention. It was a good feeling to have a peer living so close, but they only met for a game of pool on Sundays. The rest of the communication was encrypted online, while the whitepaper was reaching its final stages.
Encrypted Email to Hal Finney, 21th October 2008
I am approaching the end of the paper. All so good so far. Soon it will be time to send it into the world. The paper reflects the protocols perfectly. I can see a clear future, must have inherited that from my father who was a pilot in the war. This is another war, Hal. It is the point in history where technology will do justice. We are preparing the safe haven for the poor standing in line for food. For the victims of raw capitalism, the middle class that pays for the crooked gambling bankers. It has to stop Hal, the system will fail times and times again and the people bleed for it. The single point of failure will die, the double-spent is solved, the middlemen can go to sleep. It is time Hal, it is time.
ps. I am doing this for my daughter. She deserves a better financial life, not living as a debt slave paying her outrageous student loan for the next 25 years. You know that I will have to disappear, or they will make me disappear. There will be a new crisis Hal, but that one, around 2020, will be more massive. After this 2008 one, nobody will be punished, everybody will get away again. The same people that know the trick will leverage, and this time even more. I am not to judge this dear Hal, it is the way things go. We did this all together, I am just the executor. And I will pay my price. But no banker will be bailed out again. I can see it so clearly Hal, even as my eyes are growing weary from looking at those small letters and numbers on the screens all day. People will have an alternative and they will grab it with both hands, even when they understand nothing of what we are making right now. The trust will vanish completely with the next crisis. It’s only that much that people can take, or lies they can hear. The trustless system is the key. And we are creating it. I will watch this play out from my little safe haven. You know what I am talking about. You are always welcome. But please bring no phones.
It is only roughly 3 months after the release of Bitcoins whitepaper, on metzdowd.com, that Satoshi creates the first Bitcoin genesis block on January 3rd of 2009. From this initial Bitcoin network software, the first 50 Bitcoins are mined, now representing a value around $500.000,-. Hal Finney is the first person ever to receive some of those Bitcoins. He dies in 2014 from the complications of ALS and cryopreserves his body.
The Powerful Prophecy of Bitcoin
Many people debate that the value of Bitcoin is in its scarcity: only 21 million Bitcoins will ever be mined. This is written down in the protocols. Other people argue that Bitcoin will become the new digital store of value in a coming technological era. The marketcap of real gold is 7 trillion, the market cap of Bitcoin under 200 billion. Still, a long way to go. The whitepaper itself suggests Bitcoin become a digital peer to peer electronic cash system.
Satoshi, the mystic of modern money, created a smokescreen with the announcement of the peer to peer electronic cash system. He succeeded in creating a dispute in the community around this value. Some people hard forked and created Bitcoin Cash. But this is all beside the point. The direct value of Bitcoin is right in front of us. It will be more direct, powerful and disruptive than anybody could have imagined.
Bitcoin alone will make big banks fail in the next world wide economic and financial crisis. For the simple reason that a revolutionary alternative money has been created, tested and will be fully functional and scalable when needed
Banks won’t be simply too big to fail anymore since in 2008 there wasn’t a real alternative. And now there is.
For a moment, imagine a world where big banks won't be saved, where they will actually go bankrupt. Imagine a world where the system itself goes bankrupt. Imagine a world where the dollar will be disconnected from oil and will hyperinflate and America will go bankrupt and Trump to jail. Imagine a world where expensive middlemen in expensive buildings with expensive cars will come crashing down since they will become fully obsolete. Imagine a world where corruption has ended and the banking cartels are playing blackjack in their refugee huts.
In that world, we still need to exchange value, count our sheep, and store our savings. The centralized forces in charge of FIAT have failed us. Misused our trust too long, printed too much money. But that would not have been a problem. In the next 2020 crisis, new lies would have distracted many of us again. But people are not blind. Around the time of the big disruptions in 2020, there is a clear alternative. A bridge built from the crisis of 2008, from the mind of one man. A system where we won’t have to give away our trust again to systems where one man can be the single point of failure. In 2020, a massive migration will take place. And the network will be ready. We, the people, will be ready.
Lucien Lecarme, august 23rd, 2019