The Wonder of Bitcoin — The real way Bitcoin can change your life.

In 1993 the Institute of Noetic Sciences published a report detailing 3,500 cases in the medical literature of people who had cured themselves of so called “incurable” diseases.[1] Impressive? Yes but not anything nearly as impressive as the ability of people to create currencies. What do I mean by this?

In the 3,500 cases of people healing the incurable overwhelmingly their most important act was to change their mental attitude. People cured themselves by changing what they believed about themselves and the world. Their success is a testament to the power of belief to transform lives.

Yet currencies go far beyond that.

[1] https://library.noetic.org/library/publication-bibliographies/spontaneous-remission

There are currently around 180 fiat currencies, not to mention crypto.[1] Not a single one is backed by assets of any kind. Yet each has value. Where does that value come from? We know it is not an inherent property of the currency, like the weight of a barrel of oil, because that value can change, often second by second.

The obvious and yet universally overlooked fact is that price and value are human creations. In any market, price is the product of the collective belief of buyers and sellers. Nothing else. They may take factors such as supply and demand, government policies, interest rates and trading conditions into account. But at the end of the day each market participant comes to a decision (belief) as to about what they consider the price should be.

[1] https://www.travelex.com/currency/current-world-currencies

This is the key point: price and value are functions of belief. They are internal to an individual, not an external feature of the world such as the size of New Mexico or the weight of a coffee sachet.

Price is a function of belief.

Price is a function of belief.

Price is a function of belief.

Price is a function of belief.

If this has sunk in let us move on…

As part of its Quantitative Easing program the Bank of England has to date purchased GBP 435 billion of government debt, in effect injecting this amount of new money into the economy.[1] How did it do this? By placing an entry for this amount into a ledger and calling it “reserves”. In effect this is no different than in the next ten minutes me creating 435 billion new ERC 20 or Waves tokens. But the BIG difference is that while my tokens would probably be considered worthless, each new pound sterling created by the Bank of England has the same value as every other pound already in existence.

[1] https://www.bankofengland.co.uk/monetary-policy/quantitative-easing

The Bank of England

The actions of the Bank of England look like magic but they aren’t. They are simply a demonstration of the power of collective belief on a massive scale — a scale so large that no one usually steps back far enough to see probably the most outstanding demonstration of the reality-making ability of belief on Earth today — money.

Nothing else is so obviously without inherent value yet imbued with such value that billions of people spend most of their lives dedicated to acquiring as much as possible. If you ever doubted the power of belief look no further than your own desire to earn more money.

So, in the most unexpected of all places, we are confronted with the most compelling evidence of the ability of human belief to create reality. Collective belief is creating value and we are doing it on a galactic scale. Let us take a few deep breaths and feel the most profound appreciation of the creative ability that comes from being human!

Next let us recognise that the collective belief that sustains the value of, say, the British pound, is for the most part unconscious.

We are for the most part unaware of our participation in this collected belief. We simply accept that the pound has value because others believe it has value.

This un-awareness is the same as the un-awareness of the 3,500 people documented by the Institute of Noetic Sciences who put their faith in their doctor until their doctor told them that their disease was incurable. Once pronounced incurable most people simply accept the belief of a trusted authority like their doctor and die. Only 3,500 people decided NOT to accept that belief. In that moment they woke up to their own creative abilities. They saw that what they believed was not a “given” handed down by an authority or by tradition, but something they had control over. They chose to live.

“Your disease is incurable and you are going to die.”

Is there a similar wake-up call taking place in relation to money? Is this what Bitcoin is really about — people waking up to their innate creative abilities?

Bitcoin is a piece of cryptographic code with a current value of around $7,000 per “coin”. The wonder of Bitcoin is that it is the first time people have imbued a currency with such value without the decree of government and without any underlying asset.

The price of Bitcoin is the purest expression of the way belief creates price the world has ever seen. 
 
 Bitcoin has value solely because enough people believe Bitcoin has value. Without the usual trappings that surround a national currency that is clear for all to see.

Some of the beliefs that underlie Bitcoin’s value may include:

· A means of exchange without the need for a centralised authority

· Greater autonomy and self-determination

· No inflation

· Greater personal freedom and autonomy

· Anonymous

· Outside regulatory control

· A safe investment.

The key thing Bitcoin may be teaching us is to wake-up to the fact “We did this”. We created this value. If we can do this, what else can we do?

Becoming conscious of our abilities enables the possibility that they can be harnessed to create what we want. Remaining unconscious of the power of belief simply projects the power onto a third party such as the Bank of England or the Federal Reserve.

As consciousness grows so our institutions will change to reflect what we now believe in. 3,500 people choose to realise what they believed was up to them. When we start to realise just how outstandingly successful we have been in giving the world’s currencies (fiat and crypto) value, we will start to use this new found power to create new, inspiring, better things.

Bitcoin Enhanced is one example of this wake-up call. We are building the first in a new class of crypto-currency that tracks the returns of investment strategies without the fiat risks associated with holding underlying assets. Join us!

But do not be fooled into thinking that the value exhibited by currencies is the same as vapourware. It is not. There is a dynamic and mechanism to belief which I will share with you in my next post.