It is much easier for a new capital good to enter the Bitcoin economy than to join the conventional economy because the power of a completely unrestricted free market is the best gas pedal of human ingenuity.
But let’s take a step back and consider a different concept, one in which information itself is literally valuable.
Value of information
I think it’s no secret that having a lot of information about an event has always been considered valuable. Information is inherently the resolution of uncertainty. I believe everyone would be willing to pay if we came across a newspaper from the future in 2009 that said Bitcoin would be worth tens of thousands of dollars. It is valuable information that would make you a millionaire.
The smallest unit of information is called a bit. It is a simple «Yes» or «No» answer. A single bit can be valuable, representing the answer to a specific question, such as whether a game is rigged in a player’s favor. If you know the answer to this binary question, a successful bet can bring you a generous reward.
This kind of information has an indirect value, but with the advent of Bitcoin, information has literally become valuable. Let me say right away that this is a very abstract concept, and it is rather complicated to realize its meaning.
You may have heard the saying, «Not your keys, not your bitcoins,» meaning that possessing the private keys to a particular Bitcoin address means owning those bitcoins. In Bitcoin, there is no difference between knowledge and possession.
Indirectly valuable information can be converted into something valued in various ways, such as betting on player «A» if you know he will win. When information becomes an asset – money becomes a language. Information and money are the two core tools driving communication and interaction in the modern economic system. It will test every free speech law in the world because you can now claim ownership through communication in a way that has never been possible before. The boundaries between knowledge and possession are now forever blurred. The world will never be the same again.
Communication has always been the key to progress. But now, it has become the key to the opportunities opened up by an innovation called Bitcoin, and the potential wealth lurking in this territory is simply incomprehensible.
Combining concepts
Now, let’s combine these two concepts into one – a finite set of tokens representing a potentially infinite future economy where tokens are nothing more than simple information transferred between people anywhere in the world.
The invention of Bitcoin is more significant than anything imaginable because it can move humanity in a matter of years to a Type 2 civilization on the Kardashev scale, where the most tradable and most valuable commodity exists, not subject to confiscation. Where will this lead to? When you can’t know who has what amount of a resource, you can’t take it away. End Violence and war, and there is no way to enrich yourself except by offering something of value in return! It is impossible to realize the significance of this.
At this point, humanity can be compared to cave trolls trying to imagine Boston Dynamics.
Central banks are and always have been a heinous crime against all of humanity, a war crime, if I may say so.
Thanks to Bitcoin, everyone can free themselves from oppression and bypass unjust economic systems by destroying their weapons. After all, in a world with a finite and infinitely valuable resource, uncontrolled printing of currencies becomes useless because no one needs those currencies anymore.
Bitcoin balances our understanding of the world between the material and the imaginary even more than we realize. That makes it rewarding. As Niels Bohr said, «If quantum mechanics doesn’t seem weird and lousy to you from the start, then you haven’t understood it yet.» The same can be said for bitcoin. The main thing you need to realize right now is that Bitcoin already exists and is gaining more and more momentum. There is no way out of the rabbit hole, and it seems bottomless, but daring to go down is the best thing you can do with your time.
Bitcoin is a tool for maximizing personal sovereignty and freedom, and bitcoiners are your brothers and sisters in arms who want the best for themselves and encourage you, in turn, to want the best for yourself. Bitcoin is not controlled by central banks or governments, and that’s fine.
THE BEST MONEY ALWAYS WINS
There is no outcome in which Bitcoin would lose because the best money always wins due to natural selection and survival. Gold and silver won the millennia-long monetary war. Bills of exchange backed by gold, then crushed silver. Gold was then defeated by its leviathan, the currencies of nation-states. Now, Bitcoin is emerging as the alpha omega of money. It will strip all assets of their monetary premium. It has been happening for 15 years in a row.
Measure any physical resource in the world against Bitcoin and you will find that it has fallen in price against Bitcoin by 90—99% in that time.
And this is just the beginning! Bitcoin hasn’t started sucking the air out of higher assets yet.
Fig.3 Correlation of the dollar and bitcoin exchange rate
The longer the chart, the worse it looks for the US dollar.
usdebtclock.org. This link shows the US debt online.
Fig.4 U.S. National Debt
It is a logarithmic graph, so the fall seems not so sharp. But we can see that the dollar has depreciated by an order of magnitude against bitcoin.
Fig.5 Historical USD/SAT indicators
Consider the chart in Fig. 6. It shows the cycles of every main reserve currency worldwide. And it looks to be around 100—110 years. Given that after two world wars, the dollar replaced the pound sterling as the world’s primary currency, we can conclude that we can prepare for a change in primary reserve currency.
Fig.6 Graph of the transition from one reserve currency to another
If we look closely at this graph and remember what happened when one reserve currency changed to another, we find that it did not happen by itself. It was always accompanied by the extinction of the issuing state* of the currency, by war, or by its ruin. In all cases, the next reserve currency in the world was chosen to be the one whose country benefited from the war, as it became more powerful, and its money began to be in high demand.
«Bitcoin is about property rights. It is the technology to provide property rights to eight billion people for the first time in human history. And that’s life, liberty and property» – Michael Saylor.
Saylor explains that half of the world has no hope of accumulating property while the other half takes risks with their property. Bitcoin is a technology that gives everyone the right to personal sovereignty and their own property.
Trust is more expensive than gold
The complete abandonment of the gold standard occurred between 1976 and 1980, when all countries, including the United States, gradually abandoned the gold standard, allowing their currencies to float freely in international currency markets.
If we had still used the