The Bitcoin Power Shift

Just as the individual control of fire changed the balance of power between nature and humans, the individual control of energy to validate the monetization, transfer, and storage of value, changed the balance of power between ordinary citizens and their nation-states.

Bitcoin’s Proof of Work turns energy into a generic entry fee to preserve miner anonymity and block-winner unpredictability. This factor prevents anyone from monopolizing Bitcoin’s monetization, transfer, and store of value protocol. As monetary monopoly dies off so does inflation -the hidden tax, it imposes on individual income.

SLIDE 2

Energy extraction, conversion, or delivery efficiency confers a decisive advantage in Human Resource Competition Dynamics [RCD1]. Maximizing its value is key to increasing living standards as the global population approaches 8 billion.

Today’s most dominant states are the first who identified higher-density energy sources or learned to maximize the efficiency of energy conversion, extraction, or delivery. Likewise, states who adopt Bitcoin’s impregnable autonomy to deploy resources instantly, globally, and inexpensively will become the world’s most energy efficient.

SLIDE 3

Bitcoin turns energy into an immutable unit of account by priming individual self-interest to reach simultaneous, secure, and irreversible consensus, prior to registering bookkeeping entries on a ledger, shared among innumerable, unrelated, and globally disseminated parties.

Every 10 min. Bitcoin owners get a verified, updated, and auditable copy of the digital ledger that replaces every constraint previously precluding individuals from instantaneously transferring or personally storing their money, without requiring permission from the state or its banking agents.

SLIDE 4

By subtracting human control from our civilization’s notional money concept, Bitcoin prevents public and private bureaucrats from seizing and allocating value according to their interests. As ensued recently in VENEZUELA:

A country where Keynes’ most popular stealth-confiscation tools (inflation, currency devaluation, and interest rate manipulation) were expressly deployed by the state to embezzle the country’s total annual economic production, plus all excess economic value (savings) previously accrued by private citizens and entities during the 20th century.

SLIDE 5

Using a simple Reductio ad Absurdum argument, where Venezuela serves as the “absurdum” every nation-state on earth is likely to finish at, shows why Keynesian economics and central banking are untenably detrimental to human survival.

In contrast to fiat money and the deeply centralized abstractions calling themselves “crypto,” Bitcoin’s dominance will spread, as individuals realize it is the only monetary system, whose processes do not depend on anyone’s regulatory permissions, electrical power, human teams, cloud servers, miners, nodes, etc.

For instance, as word of Bitcoin spread over the past decade, guess which country reached the world’s fourth-largest Bitcoin trading volume in 2018? -the original year of this post's publication-

SLIDE 6

Bitcoin’s algorithm comprises a cluster of first-ever applications of the most innovative, previously unrealized mathematical, digital, financial, and other disciplines’ inventions. One of its peak implementations is a world-changing innovation that adds a sense of finality to the apex monetary system ever created.

Triple-Entry Bookkeeping, the accounting system meant to remove Centralized Trust, Double-Entry Bookkeeping’s unavoidable byproduct was not even known until Bitcoin’s activation validated it, 20 years after Tepper Prof. Yuji Ijiri invented it.

Bitcoin's equally far-reaching significance is providing the only safe conduit for switching from Second-Entry to Triple-Entry Bookkeeping.

The last time civilization met such a change, State and Church split.

SLIDE 7

While Single-Entry Bookkeeping started along with civilization 5,000 years ago, Double-Entry Bookkeeping planted the seeds of Capitalism, when Frai Pacioli formalized it in the 15th century. Triple-Entry Bookkeeping (TEB) will revolutionize the world, 500 years later, through Bitcoin.

Centralized Trust reached a point beyond which, it could only subsist, under a mantle of central bank monetary maneuvers, collusive practices, and concealed gate-keeping constraints. Yet, it wasn’t until famed cryptographer Ian Grigg issued his 2005 paper, that TEB became known.

Four years later, Satoshi put it to work.

SLIDE 8

As Bitcoin's coinbase reward and transactional fees motivate potential miners to increase the grid of nodes, network effects increase Bitcoin's difficulty adjustment and make it more expensive to waste resources, confirming invalid ledger entries.

In time, whether Bitcoin's price rises or not, grid growth persistently funds a larger asymmetry between the cost of hacking its ledger and the cost of validating it. On top, having no tangible entities to intimidate legally or physically, decidedly increases the likelihood of Bitcoin’s perpetuity. [2]

SLIDE 9

Extrinsic factors can centralize any digital ledger, unless 1. It can expand the number of validations and nodes performing them until reaching difficulty levels, high enough to deter attacks, 2. There are no internal human attack surfaces, and 3. Executing a change to its code requires very high consensus levels.

Such a ledger would’ve had to expand unseen for years. Its key designer/s would’ve had to fully vanish, and major changes would have already required levels as high as were made necessary by The Blocksize War.

Guess which is the only coin in the universe that fits the bill? [3]

SLIDE 10

As a 19th-century political genius, philosopher, and scientist, Max Weber said “it is not true that good can follow only from good and evil only from evil, but that often the opposite is true. Anyone who fails to see this is, indeed, a political infant.”

Thus, why Galileo, was only recently pardoned by the Church (1992). Like our 15th-century forefathers, one might expect, our current bureaucratic overlords won’t let monetary gains from seigniorage slip away from their grip, without a fight. They will soon find a way to declare it illegal and prosecute citizens for using it.

FOOTNOTES

[1] RCD (Resource Competition Dynamics) within the context explained here -make sure to check the summary's opinion note.

[2] Only an Immutable , Non-Systemic, Individually Controlled currency can efficiently replace Monetary Central Planning.

[3] Only Bitcoin fits all three requirements.