Money, Bitcoin and Freedom
Thoughts on Life, Liberty and Property, Notes from Bitcoin is Freedom Technology with Robert Breedlove and Javier Milei's speech at Davos
Our future of prosperity is dependent on the individual having guarantees to life, liberty and property so that he is incentivized to work hard to provide the best products at the best prices as an actor in a free marketplace.
The idea that capitalistic free markets are bad things is a false narrative. Capitalism has given rise to the most prosperous nation and time in human history.
How can we protect free markets and the incentive structure as opposed to the coercive nature of collectivism? Sound Money and Price Signals are two factors that give the intrinsic way to determine value, the state of ones guarantees and a shared understanding of prosperity.
So what is Money?
Money is an emergent property of trade. Most exchangeable thing is money.
Moneyness is degrees of liquid.
There are varying degrees of liquidity and therefore varying degrees of the effectiveness of money.
Intent to use it in exchange. We have this invention, this conceptual technology that facilitates a medium of exchange, a language of value representation of ones energy inputs. Indication of one’s past work, favors and the output is one’s optionality in the free market.
Capital or Good, Intrinsic Value. Industrial Use. For the majority of modern human civilization, the most moneyness has been gold.
Why Gold?
Scarce, Hold Value across Time. Requires energy to extract. Durable.
What is Money.
Honest Money - Gary North
Principles of Money
5 properties of good money.
1. Divisible
2. Durable
3. Recognizable
4. Portable
5. Scarce
Monetary Metals
Gold was the most scarce.
Humans defer to having one agreed upon, money protocol vs several.
Gold became Gold (as we know it).
Enter Bitcoin
DIGITAL GOLD
ONE ANALOGOUS TO GOLD
Money as an adjective.
There is now a better, new form of money.
Better money technologies out there in the form of cryptocurrency.
Our Current Money system is broken.
There are flaws in the existing money system.
How did we go from Gold to Fiat US Dollars
Fiat meaning, no commodity behind it.
One Protocol
One Gold Standard.
Portability was there however not without costs.
Monetary Metals DO Work.
Processes to move them are expensive, high risk.
Physically. It is actually hard to move.
Modern era 2020’s, digital, global economy yet we have to move and secure physical metals… for our Globalizing Economy in the digital realm.
Monetary Metals are a hamstring of the progress of global.
What is the fastest you can move money in the modern age?
We created redeemable notes
Portability is key.
Economy of Scale to be gained.
Ledge entry's by bank.
Overcome the warehouse receipts to Gold.
Introduction of counterparty risk in Gold
Can't over issue the reserve papers.
Custodian has incentive to issue more paper.
Becomes a Fractional Reserve.
Paper instead of Gold Reserves.
You can print money to the event of the fractional reserve.
Banks operating honestly, something happens, how do we raise additional funds.
Well we have these customer Gold reserves on deposit.
Seize Gold. 6102 private. Gold were seized. FDR. 1932-1933
Put all the Gold in one place. Becomes a fractional reserve.
More and more over time.
Fund whatever it is we need, use a gold back currency and fractional reserve to print money.
What are US dollars today.
Fiat Currency that used to be redeemable for Gold.
Can print unlimited amounts.
Giant pyramid scheme
One group can print the money that everyone has to use.
Gov is producing losses in a monopolistic manner by printing paper.
Externalizing that loss via Inflation.
By Force
Forced to use US Dollars in legal tender laws.
Forced to pay taxes in US Dollars.
By Will
Transactions can be frozen, surveyed.
Not private, not property, can be seized.
The problem is fiat is not property
Subject of the state.
People cannot cast a vote of no confidence.
Sell this currency and redeem it for Gold.
Perpetually subject and siphoned by the Federal Reserve Bank.
The opposite of Austrian economics.
Very fundamental coercive, nature of printing and passing on losses to others.
What we need is incorruptible money at scale.
Physical Gold or Bitcoin it is.
Scalable
Decentralized
Final Extinguisher of Debt
Settlement of public / private debts
Fed Reserve is actually, potentially counterparty risk.
True Bearer Asset is. Bitcoin. GOLD.
100% EQUITY OF THE ASSET. PROPERTY.
CP RISK IS EXPRESSED IN THE INFLATION OF THE ASSET.
What has the least counterparty risk?
A Digital Bearer Asset.
Possible to anyonomize.
It is Digital Private Property.
Bitcoin is digital private property.
Preserve purchasing power over time. Build onesselve over time.
Why not the Gold backed currency?
Have to trust someone will not issue it.
Fiat is the end state of any Gold Standard.
Requires trust in human beings to scale.
Free Market the best tool for the job…
Proof of Work (Energy) backed Bitcoin.
US Treasury Note backed USDC.
Commercial Paper backed Tether.
The market of money.
The use of knowledge in society.
The nature of knowledge itself.
Pure capitalism.
Free Markets are the best generators of wealth.
Central Planning of Money.
Central Banking is anticapatalistic exclusive license, institution.
Bitcoin is Life, Liberty, Property protected.
Bitcoin
21M
POW
Digital
The cohered assemblance if it. All the ingredients of BTC.
Difficulty adjustment algorithm.
Responding to human efforts every 2 weeks to acquire more Bitcoins.
Importance of Proof of Work.
Restrain money supply, without expenditure of energy.
Find and refine Gold.
Restrained its supply.
US Dollar is 1 SQL DB at Fed Reserve
Can create new units of USD without expanding energy.
The money we use.
Can print new money that others are forced to work for and coerced to pay taxes in.
A fundamental difference is POW.
New units of Gold. NEW UNITS OF
BITCOIN.
PROOF OF WORK IS IMPORTANT TO PROTECT THE INTEGRITY OF THE MONEY.
BITCOIN MONEY.
ASICS MINE BTC.
EXPEND MACHINES
CREATING LOTTERY TICKETS TO WIN THE NEW BTC.
THE GLOBAL GAME.
GET CHEAP ENERGY, GET CHEAP ASICS
PROVIDES SUPPLY INTEGRITY
GAME BECOMES MORE OR LESS DIFFICULT AS MORE OR LESS HASH RATE IS COMING ONLINE.
PURSUIT OF BITCOIN CAPITAL PRODUCTION.
Difficulty adjustment algorithm is responding adability to human efforts to ever receding horizon.
Difficulty adjustment is based on hashrate.
Critical value prop.
Gold had a predictable supply. Perfect predictability.
Bitcoin, one can audit the supply by running your own node.
Money is pure optionality in the marketplace.
Bitcoin has perfected it. Governing coordination of money game.
Bitcoin is money that cannot be printed.
Money printing / inflation is theft.
Our remedy has been to print.
6-8 Trillion printed in the last few years.
Money printing.
Failure of Central Banking and Fiat is the Bullcase for BTC.
Weaker currencies collapse into stronger currencies.. into the US Dollar.
Expression demand for one money.
Derivative of Gold. Echo of redeem-ability of Gold.
East Coin - China Yuan
West Coin - USD
Decentralization factors :
Rules changes
Mining Centralization.
Printing is not the answer. Monetary Issuance. Hyperinflation. Leads to Poverty.
Empirical Proof is Argentina.
These factors do not guarantee success.
“Don’t be intimated either by the political caste not by parasites who live off the state. Do not surrender yourself to a political class that only whats to perpeturate itself in power and keep their privaliges. You are the social benefactors, you are the hero’s, you are the the creators of the most extraordinary period of prosperity we have ever seen
Let noone tell you that your ambition is immoral. If you make money, it’s because you offer a better product at the best price, thereby contributing to the general well-being.
Do not yield to the advanced of the state. The state is not the solution, the state is the problem itself. You are the true protagonist of the story.” - Javier Milei
--
Dom Steil Computing LLC.
Bitcoin, Blockchain Technology
2140