Bitcoin Times Ed 3.

“You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete”

Buckminster Fuller

Breakthroughs, that step-change our lives for the better, invariably come from something that most people couldn’t see. Our belief of how the world should exist and operate is shaped from looking backwards, not forward, so it makes sense that new paradigms that change everything — face resistance in our minds. Because most people don’t see them, breaking through an existing paradigm needs to provide enough compelling value for users to disrupt an old paradigm. Apple’s iPhone for instance, didn’t copy the market leader, Research in Motion’s Blackberry design of needing a keyboard or selling to businesses who required RIM’s security. It created a digital interface when that wasn’t ‘needed’ and created an entirely new platform that changed the industry as a result. Along the way, the Blackberry died, unable to compete with the value for users, that was now increasing exponentially on Apple’s platform.

A 10x strategy — be a big fish in a small pond first.

When creating new technology companies, a framework I use to understand if something has an ability to win is ‘the 10x advantage’. Meaning that, unless a new company (the challenger) can deliver a 10x advantage to the market, it has no chance of creating escape velocity and becoming a new category leader. While a 10x advantage does not guarantee the success of a challenger, it greatly enhances its probability.

  1. With success comes many new entrants (copycats or slight innovations) that enter the market to compete (confusing the market as to benefits).

Technology has changed the rules

Exponentially advancing technological gains bring efficiency. That efficiency is deflationary. Moving exponentially and into all industries which means prices should be falling on almost everything.

  1. The existing fiat monetary system (the monopoly) requires inflation and consequently, it needs manipulation to remain viable.

The Breakdown Phase:

A) Because the system, as it is designed today, creates unnatural inequality, social unrest and loss of faith, a rise in the merits of socialism and centrally planned economies will predictably emerge and become more popular with citizens. They will gladly transfer control to more government and policy makers to fix the problem. Ironically, they will do so without the knowledge that the problem was created by the policymakers on both sides of the political aisle in the first place; all by ignoring free markets.

The challenger (bitcoin) perspective.

A system design that allows humanity to move from scarcity to abundance.

  1. Attempt to stop it. To do so would require a coordinated fashion since individual countries trying to stop Bitcoin’s advance would lead back to #1 by creating an additional incentive for early-adopting countries.

Where does economic value come from?

We can look at the overall economy in a free market as a sum total of trillions of continuing experiments competing to create value for us. An endless swarm of innovation and experimentation by entrepreneurs driven to succeed with money as a measurement of that success.

Entrepreneur, Technology Leader, Author of The Price of Tomorrow — Why Deflation Is the Key to an Abundant Future (http://thepriceoftomorrow.com)

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store