Bitcoin naysayers are missing the point entirely
It’s either that or a serious case of sour grapes
I spend a lot of time listening to podcasts. Not just any podcasts mind; podcasts about Bitcoin and cryptocurrencies.
I relish the prospect of listening to really clever people talking about technology, and it must be said the caliber of the people (mostly white, middle class privately-educated Ivy League graduates) in the bitcoin space is remarkable.
Their eloquence, their intelligence, their forward looking natures, mixed with a healthy dose of libertarianism resonates strongly with my core values of small government, sound money and freedom to live one’s life as one chooses, without interference. If you meet a fan of bitcoin, chances are they will be as sound as the money they love to promote.
I enjoy washing my brain almost daily with the ideas held in the minds of these Silicon Valley bright sparks
Sure, there’s a little banker-bashing at times, but I fully expect them to come round to the logical conclusion that I have arrived at over the years; blame the system not the people. Things are easier to understand when you understand the fact that people act in selfish ways to improve their lot in life.
It’s not the bankers who are bad, but their paymasters in government. Remove the government monopoly on money and bankers would be forced to behave properly or face the negative consequences of their poor decision making. You can’t blame people for being human; for playing the game in the way that serves them best, and making hay when the sun shines. But I digress.
Bitcoin is the leading edge
I enjoy being on the leading-edge of thought, and it seems to me that bitcoin currently represents a lot of the leading-edge of thought, and has attracted the brightest minds who also love the leading edge. I’m sure there are great strides being made in other fields of technology. I’m sure Tesla are doing some pretty awesome stuff with batteries and extra-orbital rockets, but unlike bitcoin core, Elon Musk is not an open source project (his twitter rants aside), and there’s no fun if he’s not sharing. I’ll have to wait until I buy one of Tesla’s cars to see what all the fuss is about….
If you meet a fan of bitcoin, chances are they will be as sound as the money they love to promote.
I also love the sound philosophy that dwells in every bitcoin maximalist, and enjoy washing my brain almost daily with the ideas held in the minds of these Silicon Valley bright sparks. I find it easy to see why Bitcoin will be a huge deal for humanity, and not just to OG’s.
Haters gonna hate
All of which makes me wonder: Why do Bitcoin detractors have such derision for the project. Are they bitter and twisted, or can they really not conceive of why Bitcoin might be considered valuable? How are those outside the cult immune to its Death Star-like tractor beam?
The crypto cat is out of the bag. Bitcoin cannot be uninvented, and due to its decentralised nature it cannot even be stopped
As I explained in Don’t be a no-coiner your whole life, in order to understand the question that Bitcoin is trying to answer, you need to have a good understanding of monetary economics, fractional reserve banking, and the debt money system which peaked a few years back and is slowly starting to unravel before our eyes.
Digital assets have huge benefit in the disintermediation of the banking and finance sector. As we saw recently with the ICO boom of 2017, the process of investing in the companies of the future will be open to all, if people hold cryptoassets like Bitcoin, they will be able to invest in the technologies, corporations and start-ups of the future.
Early investment (pre ICO) has been the reserve of the ultra wealthy and their agents in banks, but it is about to be democratised. Capitalism is about to become a global grass roots proposition just as occurred when the stock market was opened up to ordinary retail investors.
The state causes inequality
The current political and financial system in the UK and USA promotes statism, cronyism and the pooling of power and wealth in the hands of a select few. One of the contributing factors is governments’ monopoly on the money supply. Far from creating a stable playing field, unsound government money creates the income inequality that the majority of the world’s commentators have been complaining about since at least 2008.
But what happens when the plebs are allowed to choose their money, where they can shun inflationary money – which by the IMF’s own admission affects the poorest people the worst – in favour of sound money? What happens when the poor can easily preserve their wealth, when they can participate in the investment of the next Tesla or Über, rather than it being restricted to investment bankers and their clients? What happens to their return on investment when the financial middle men are no longer required?
Ordinary people can not only start to easily store their wealth themselves without fear of inflation eroding their nest egg, but more importantly entrepreneurs can be the beneficiaries of the investment they require to kick start their businesses and serve humanity.
More entrepreneurs equals a more abundant society. Government never created anything of value, entrepreneurs did it all, and when you open up funding to the grass roots level, you put these creative types to work and the world becomes a more productive richer, place.
Banking as an arm of government
There is something of a misconception that banking is a Wild West capitalist system, where banks stand to win big and lose big. But we don’t have capitalism in the UK and USA. We have cronyism instead. Banks are effectively an arm of the civil service, an extension of the fiat money central banking model, and while there is significant upside to their behaviour, there is no noticeable downside. When the shit hits the fan, banks are always bailed out by government.
Have you ever wondered why no bankers went to jail after the 2008 shenanigans? It’s because they had government breathing down their neck every step along the way up to the financial crisis, telling them what to do, as they created the conditions for the bust. Bankers’ reckless behaviour was being checked and signed off by government. How can you be punished when you have followed all of the rules and regulations?
If you consider Bitcoin to be a Ponzi scheme that is ultimately going to zero, I have a question for you: Our debt based fiat money system is on the ropes, and the government monopoly on money has done more to increase inequality than anything else.
Banking is not immune to disruption
All other industries have been disrupted by the internet. The last remaining industry is money and banking and it will shortly be replaced by something far better. If you think this isn’t Bitcoin, then can you tell me what else you had in mind? And don’t give me the old ‘I like blockchain, but I don’t like Bitcoin’ line. Bitcoin is the blockchain that matters when it comes to money.
Whether they know it or not, the ordinary people who make up the economy have been asking for a sound form of money, fit for the digital age, and this is precisely what they have been given in the form of Bitcoin. Now that it is here, many of those who benefitted hugely from the old system are decrying Bitcoin’s value to society.
The genie is out of the bottle. Bitcoin cannot be uninvented. We cannot unlearn what we have learned. Due to its decentralised nature it cannot even be stopped. If governments try to crack down on Bitcoin, full nodes will just fork the bitcoin blockchain and create a new consensus.
Like skeptics of the horseless carriage in the early 20th century, crypto naysayers will be run over by technological progress whether they like it or not.
Bitcoin is a juggernaut, it doesn’t care if you like it or not, it doesn’t have feelings that you can hurt, and it cannot be lobbied. If you don’t like it, you can lump it. It just is. There will only ever be 21 million bitcoin created. How many of those 2.1 quadrillion Satoshis have you staked your claim to?
In life, wealth accrues to those who recognise value. The fiat money system has devalued money, but sound money like Bitcoin holds great appeal to those who understand the problem it solved. That contingent grows every year. You may not value it, but take a moment to consider those who do, and the level of their commitment to the cause, and ask yourself whether they are completely mad, or whether they might be on to something.
Holding on for dear life
Take a moment to consider the rock hard resolve of the HODLers. Over the last six weeks Bitcoin has dropped £2,000 or over 40%. If you’re a Bitcoin OG sitting on over 1,000 BTC, this last drop would have cost you £2m. If you have 100BTC (and if you do, lucky you) you would have lost the value of a small apartment. Are these people idiots for HODLing, or might they be on to something? I guess we’ll have to wait to find out.
The world is about to undergo a huge shift in wealth as populations everywhere wake up to the benefits of a far sounder form of money than their weak politicians have provided, but also gain access to the wealth creation opportunity that is early investment in game changing technologies.
When the transition to sound money occurs, there will be no need for taxpayer funded bailouts, governments’ influence will gradually wane, bitcoin and crypto will avert the rampant march of socialism and the incessant growth of the state and its excessive taxation.
Those who recognise the significant benefits of the better form of money will be rewarded with gains, while those who don’t will experience losses. It’s how the system used to work. After forty years of funny money, things are about to get real again.