ExponentialApe on Nostr: “How #Bitcoin Augments and Expands a Coherent Understanding of the State of ...
“How #Bitcoin Augments and Expands a Coherent Understanding of the State of Reality, through the Computational Power of a Market Based Economy”
Through money the market based economy functions as a computational model for reality. Computation simply offers a means of translating the inputs and outputs of one complex system into an understandable data format for another. In the case of the economy and money, it means translating the inputs of reality into an output human beings can understand. We call this data output, price. Human beings are computationally bound as individuals, but reality itself is computationally unbounded. This limits what any one human can know about reality; but through money, the economy leverages the computational power of every human participant in the economy, transcending this limitation. The computational system of the economy, distills vast amounts of information into the data format of price. Price itself is a low resolution picture of all the inputs of reality that went into its computation, but that’s a feature not a bug. It compresses the data inputs of reality to a point that even a computationally bound individual human can understand. It extends the state of reality that can be known to any one human, albeit at a lower resolution. It enhances the ability of a computationally bound human to coherently navigate a reality of irreducible computational complexity.
Through price and markets, money allows the truth of the state of reality to guide an individual’s actions, without the computational overload of knowing the full state of underlying reality. For example, if there is a rice shortage on the opposite side of the world and people are starving to death, the demand for rice will increase. Through price and markets using money, this demand for rice will drive the price of rice up, signaling market participants to produce and exchange for more rice. Market participants would know the truth, that more rice is needed, without ever having known that people were starving due to a rice shortage on the other side of the world. Money enhances the ability of individual humans to know the basic truth of the state of reality by reducing the number of data points required for its understanding, thus augmenting the scope of knowledge that directs human action. The use of true money elevates the individual’s understanding of the state of reality through a reduction of the computational load required for that understanding. Money does not provide a higher-resolution map of reality, but it does provide a wider framing, allowing for directional truth to be more fully known and action to be more intelligibly directed.
However, like any other computational system or model, money and the market based economy’s computational translations are only as reliable as the medium used to carry out those computations. If the medium of money cannot reliably be measured in terms of itself, all computational translations can and will be corrupted, which distorts the ability of the human beings relying on these computations to see the true state of reality. One unit of money must always equal one unit of money as measured in relation to itself. Distortions in the money misguide the actions of its users by misrepresenting the state of reality. It causes a fundamental distortion of the understanding of reality for all market participants. Money is an incredible technology, but the importance of its integrity cannot be overstated . Money is a medium through which computational translations for the state of reality can be made. Through price, these translations inform and direct the action of human beings and ultimately human civilizations. If the money is corrupt, every computational translation and action informed by these computations becomes corrupted. With each distorted computation, the information as represented in price, which informs and directs human action, becomes exponentially disconnected from the actual state of reality.
This is where Bitcoin comes in. Bitcoin is a thermodynamically sound money, meaning it’s a closed and complete system which insulates it from external interference, thus it’s protected from becoming corrupted or manipulated. In other words, one Bitcoin will always equal one Bitcoin. Money is a storage medium for information, required by the market based economy, for the computational translation of reality. Bitcoin preserves the ability of the economy to coherently compute and translate the state of reality for human beings. Bitcoin preserves and enhances the integrity and fidelity of people’s understanding of reality by protecting the integrity of the economy’s computations. It unlocks the ability for the market based economy to perform coherent computation with a veracity humanity has never known. Ultimately, through the market based economy, Bitcoin expands humanity’s ability to more fully understand reality and intelligibly direct its actions.
Through money the market based economy functions as a computational model for reality. Computation simply offers a means of translating the inputs and outputs of one complex system into an understandable data format for another. In the case of the economy and money, it means translating the inputs of reality into an output human beings can understand. We call this data output, price. Human beings are computationally bound as individuals, but reality itself is computationally unbounded. This limits what any one human can know about reality; but through money, the economy leverages the computational power of every human participant in the economy, transcending this limitation. The computational system of the economy, distills vast amounts of information into the data format of price. Price itself is a low resolution picture of all the inputs of reality that went into its computation, but that’s a feature not a bug. It compresses the data inputs of reality to a point that even a computationally bound individual human can understand. It extends the state of reality that can be known to any one human, albeit at a lower resolution. It enhances the ability of a computationally bound human to coherently navigate a reality of irreducible computational complexity.
Through price and markets, money allows the truth of the state of reality to guide an individual’s actions, without the computational overload of knowing the full state of underlying reality. For example, if there is a rice shortage on the opposite side of the world and people are starving to death, the demand for rice will increase. Through price and markets using money, this demand for rice will drive the price of rice up, signaling market participants to produce and exchange for more rice. Market participants would know the truth, that more rice is needed, without ever having known that people were starving due to a rice shortage on the other side of the world. Money enhances the ability of individual humans to know the basic truth of the state of reality by reducing the number of data points required for its understanding, thus augmenting the scope of knowledge that directs human action. The use of true money elevates the individual’s understanding of the state of reality through a reduction of the computational load required for that understanding. Money does not provide a higher-resolution map of reality, but it does provide a wider framing, allowing for directional truth to be more fully known and action to be more intelligibly directed.
However, like any other computational system or model, money and the market based economy’s computational translations are only as reliable as the medium used to carry out those computations. If the medium of money cannot reliably be measured in terms of itself, all computational translations can and will be corrupted, which distorts the ability of the human beings relying on these computations to see the true state of reality. One unit of money must always equal one unit of money as measured in relation to itself. Distortions in the money misguide the actions of its users by misrepresenting the state of reality. It causes a fundamental distortion of the understanding of reality for all market participants. Money is an incredible technology, but the importance of its integrity cannot be overstated . Money is a medium through which computational translations for the state of reality can be made. Through price, these translations inform and direct the action of human beings and ultimately human civilizations. If the money is corrupt, every computational translation and action informed by these computations becomes corrupted. With each distorted computation, the information as represented in price, which informs and directs human action, becomes exponentially disconnected from the actual state of reality.
This is where Bitcoin comes in. Bitcoin is a thermodynamically sound money, meaning it’s a closed and complete system which insulates it from external interference, thus it’s protected from becoming corrupted or manipulated. In other words, one Bitcoin will always equal one Bitcoin. Money is a storage medium for information, required by the market based economy, for the computational translation of reality. Bitcoin preserves the ability of the economy to coherently compute and translate the state of reality for human beings. Bitcoin preserves and enhances the integrity and fidelity of people’s understanding of reality by protecting the integrity of the economy’s computations. It unlocks the ability for the market based economy to perform coherent computation with a veracity humanity has never known. Ultimately, through the market based economy, Bitcoin expands humanity’s ability to more fully understand reality and intelligibly direct its actions.