The Bleeding Edge: The Human Brain Often Ignores Second Order Effects

By Dr. Chris Kacher of Hanse Digital Access, KJA Digital Investments and Virtue of Selfish Investing on ALTCOIN MAGAZINE


Mainstream media is designed to shock. This comes at the expense of ignoring deeper truths. The mainstream typically only provides cursory first order levels of understanding. The closer one gets to revolutionary, bleeding-edge technologies that defy the way things have always been done, the greater the deep thought that is required so one can understand the second and third order effects of such game-changing technologies.

“There are almost no exponential growth technologies. CRISPR? Nothing there.”

Hello? Technologies abound — AI, 3-D printing, AR/VR, trillions of sensors/IoT, CRISPR, and smart cities among numerous others that are all on the S-curve. As one example, CRISPR enables high school students to perform synthetic bioengineering in their homes. An excellent documentary on CRISPR was released called Unnatural Selection. Indeed, biohacking is moving from the physical into the digital domain. But all technologies are double-edged swords. Unlike computer viruses which control or crash computers, controlling or crashing a human with a CRISPR-engineered virus has far darker implications. There’s no reboot. On the other hand, just as with a computer, a human being can be reprogrammed or anti-viral CRISPR technologies designed to effectively remove the offending engineered virus. Most anything can be undone.

“Apps are pretty pointless. I only need a few apps on my phone.”

Meanwhile, the world thrives on app usage. Apps are essential to efficiency and efficacy. Around one billion Chinese use WeChat and Alipay for many everyday tasks including paying for groceries. Apps simplify while making life far more efficient. There’s a reason why there are millions of apps now in existence and why the renowned, deep thinker Naval Ravikant said app coders are the gatekeepers. Businesses often live and die by the apps that platforms such as Apple and Android allow.

“The days of bitcoin and decentralized exchanges (DEXs) are numbered. The most powerful governments have always maintained control.”

Deep failure to connect the dots here. Decentralized tech such as p2p file sharing has thrived. No reason why bitcoin and DEXs won't. Just because governments have had a monopoly on the control in the past does not mean this will be true in the future. We saw how the U.S. government could not stop p2p file sharing. We know what happened to bitcoin when various countries including China and Russia attempted to ban it. I have been a proponent of bitcoin since Jan-2013 when I bought my first bitcoin just above $10. I have discussed its strengths, weaknesses, and price projections HERE. A growing number of DEXs tap into deep pools of liquidity so they can approach or even improve on price compared to large centralized exchanges. Here is a report by highly regarded Kyle Samani that underscores the importance of DEXs — the network effect is the capital, not the code. Open source code/smart contracts enable 10x growth over conventional methods. “When all forms of value transfer — currencies, commodities, bonds, equities, etc. — are powered by a permissionless and censorship-resistant API on an open ledger with generic, universal, reusable, and composable smart contracts, it becomes at least 10x easier to build financial services.”

“Decentralized technologies are overrated.”

While the word ‘decentralized’ has been abused and overpromised, decentralized platforms remain one of the largest evolutionary tsunamis on the horizon. They will empower the individual while taking power away from a central authority. We have already seen this with p2p BitTorrent file sharing, bitcoin, Wikipedia, decentralized publishing, and alternative news media sources among many others. Decentralized tech puts power into the hands of the individual while removing power from authoritarian control as well as making things far more efficient thus will win the economic race. As a few of many examples, in the future, you will be able to lend out the hard drive space (Filecoin), CPU processing power (Golem), and wifi bandwidth you aren’t using for tokens which can then be exchanged for bitcoin.

Government And Law — Slow Herd Animals, Ethics In Question

At Cryptofin, a question was put to the audience as to whether the audience thinks the law fails to keep up with the pace of technology. A number of hands went up which was met with disdain from some of the panelists which, in turn, was met with disdain from us at some of the panelists.

Decentralized Tech: P2P BitTorrent And Bitcoin

As for the belief that bitcoin will eventually meet its demise, that DEXs are strictly fringe, and that DAOs and dApps are questionable at best, failing to see how such technologies are revolutionary to the way things have always been done. I have noted that peer-to-peer file sharing since Napster was shut down in 1995 continues to thrive despite billions of dollars of taxpayer money thrown at court cases aimed at shutting down Pirates Bay equivalents. I was told that this was just copyright law, not having to do with control of fiat which the U.S. government would take far more seriously. Well, the U.S. government has its heavy artillery at illegal file-sharing since 1995 yet p2p is a multi-headed hydra. Cut off one Pirates Bay and ten more materialize.

U.S. Government Not Infinitely Powerful

Despite what some think, the U.S. government is not the end-all, be-all entity with infinite control. If they were to illegalize bitcoin, bitcoin is decentralized so good luck with that. Even lawmakers in the U.S. are starting to realize an effective ban on bitcoin would be incredibly difficult if not impossible. The U.S. Senate Committee on Banking, Housing, and Urban Affairs held a hearing on cryptocurrency and blockchain technology regulation earlier this year. The conclusion was that the U.S. would not be able to succeed in banning bitcoin because it is an open-source, decentralized, global innovation that moves borderless and frictionlessly everywhere on the planet. Anyone can use it where there is an internet connection.

Old School Beliefs On Bitcoin

In the meantime, despite the positive conclusions cited above made during the U.S. Senate Committee’s hearing earlier this year, one remaining old school Congressman Brad Sherman went on an anti-bitcoin and cryptocurrency rant at Facebook CEO Mark Zuckerberg’s congressional hearing regarding Libra.

Dollar’s Reserve Currency Status At Risk

Sherman also voiced his concerns that the U.S. dollar will lose its reserve currency status due to bitcoin, stating reserve currency status enables the U.S. to influence other countries’ policies and actions through the use of economic sanctions. I wrote in a prior piece that petrodollars are one of the key ingredients to the dollar maintaining reserve currency status. The U.S. dollar has been the world’s dominant currency since the 1920s. But central banks are investigating how national digital currencies can allow for faster, cheaper money transfers across borders thus are viable alternatives to the U.S. dollar. Such would be embraced by nations concerned about the dollar’s outsized influence on the global economy.

Blockchain DAOs, DApps, And DEXs

As concerns platforms, while centralized platforms offer more convenience than decentralized ones, both will co-exist as decentralized platforms make more economic sense with each passing year. Still, when it comes to privacy and economics, if history is any guide, only a smaller subset of people want privacy over convenience and lower cost. The Chinese are willing to give up their privacy for convenience via centralized apps such as Alipay used by 900 million Chinese and WeChat used by 1.1 billion Chinese to make digital payments instantly among other common tasks. Likewise, Amazon’s AWS centralized services offer both convenience and cost with customer service, at least for now.

Comic Relief — How To Stop Bitcoin

In a comical display of argument ad absurdum, old school types may still believe that you cant trade bitcoin if there’s no electricity. Well if we have no electricity, we are in a lot more trouble than worrying about bitcoin. Even so, such views fail to realize that bleeding-edge tech already addresses the no-electricity issue. The same goes for ISPs that would be instructed to block bitcoin usage. One can just use a VPN to overcome any ISP blocking. Such old school types have even suggested a global government ban on the internet to get rid of bitcoin. No problem. Mesh networks that can provide an open-source software initiative solve that issue. In fact, mesh networks have been the solution during natural disasters when mains points of communication go down.

New Vs. Old School Thinking

But such has always been the way. Fresh, creative minds often are more likely to connect the dots in a way the old-schoolers fail to do. At the World’s Fair in the year 1900, old-schoolers were antagonistic and fearful towards the latest that technology had to offer. The brain tends to become more set with age, thus the adage “you can't teach an old dog new tricks” well applies. Not to be ageist but the stereotype holds true. The biggest breakthroughs in technology and the world of art are often made before the age of 40. That said, a growing number of today’s 50–70-year-olds were yesterday’s 30–40-year-olds as vast improvements in health, nutrition, and biohacking reign down o’er us. Halting and even regressing age both physically and mentally are here NOW and are only improving… with age. ;)

Old School Government Vs. Stem Cell Pioneer

Unfortunately, game-changing innovations have typically been met with fear and disdain, subjecting the inventors to ridicule, ruin, incarceration, and even death. Galileo anyone? Yet the number of old school flat-earthers are abundant in today’s world as public education breeds those who can't think for themselves thus can be easily controlled via mainstream media.

Sadly, Not The Exception

Those on the fringes with major breakthroughs when it comes to a bleeding-edge tech who overstep their bounds when it comes to big business and big pharma can end up in a 6-foot cell or 6 feet under. A few friends of mine in this class who are still okay who made or are making their own discoveries which threaten big pharma or big business work under the radar. Fortunately, the eventual transfer of power from centralized entities to the individual will enable all brilliant minds to shine.



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Hanse Digital Access, KJA Digital Asset Inv. & VSI

TriQuantum Technologies: 1) construction equity cap raise using blockchain, 2) Quantum Poodle Cryptofund, 3) NFTs/DeFi.