acv on Nostr: I hated being put on the spot so often as a Bitcoiner in my circle and failing to ...
I hated being put on the spot so often as a Bitcoiner in my circle and failing to remember all the less obvious features of Bitcoin, that I wrote up 5 facts about Bitcoin that I always want to try to communicate, if they can make it through all 5.
1. Neutral Transaction/ settlement Layer
Most obvious is the fact that Bitcoin is a credibly neutral global transactional network. Government Resistant and Adversarial in design. Permissionless, Trustless settlement across space and time (monetary policy is the time dimension).
2. Better Money (Inflation resistant monetary policy)
In the store of value aspect, we've never had a money that was even temporarily as good as Bitcoin, as you must always account for and consider the future evolution of a system. The market is forward looking, as they say. It is both harder than gold and faster and cheaper than physical paper dollars.
3. The best collateral that has ever existed.
Instant global settlement of any margin calls, for the lender, while the borrower gets to keep it via non-custodial multi sig or decentralized borrowing, like a Mortgage where you get to live in the house and collateralize, both. Furthermore, It is not possible (in the correct technical setup, chosen by the participants) to re-hypothecate it, preventing a debt bubble and collapse leading to devastating margin calls. This is not the case with mortgages, see 2008. The Fed now has liquidity powers, so there's infinite temporary money to allow the market to figure out how wrong it is, but this is fundamentally still possible. It can be wrong again easily, leading to Fed intervention again.
4. Bitcoin is an economic battery. A place to put excess energy.
In the sense that Bitcoin are created, ONLY from burning electricity doing work, you can burn any electricity you have that you would otherwise lose, storing it as Bitcoin. It can then be teleported to any market and purchase any other good. Most green power technologies are unreliable and transient and so your community needs an always on system of some kind, which if demand is low, during the initial settlement or seasonally, etc. you'll have expensive losses from running that always on system, as well as spikes of the green power. Project costs become more reasonable if your logic includes trusting Bitcoin for the 30-50 year life of a power plant.
5. Bitcoin is a weapon that penetrates authoritarian control.
We can teleport Bitcoin into places where it would otherwise be impossible or expensive to get a person to provide money or gold or guns to people. All we need is to deliver them internet service, like we used to do with Radio Free Europe in WW2. They will do the rest themselves. People can use it to build a resistance or to simply escape their governments and we can liberate the world with it.
1. Neutral Transaction/ settlement Layer
Most obvious is the fact that Bitcoin is a credibly neutral global transactional network. Government Resistant and Adversarial in design. Permissionless, Trustless settlement across space and time (monetary policy is the time dimension).
2. Better Money (Inflation resistant monetary policy)
In the store of value aspect, we've never had a money that was even temporarily as good as Bitcoin, as you must always account for and consider the future evolution of a system. The market is forward looking, as they say. It is both harder than gold and faster and cheaper than physical paper dollars.
3. The best collateral that has ever existed.
Instant global settlement of any margin calls, for the lender, while the borrower gets to keep it via non-custodial multi sig or decentralized borrowing, like a Mortgage where you get to live in the house and collateralize, both. Furthermore, It is not possible (in the correct technical setup, chosen by the participants) to re-hypothecate it, preventing a debt bubble and collapse leading to devastating margin calls. This is not the case with mortgages, see 2008. The Fed now has liquidity powers, so there's infinite temporary money to allow the market to figure out how wrong it is, but this is fundamentally still possible. It can be wrong again easily, leading to Fed intervention again.
4. Bitcoin is an economic battery. A place to put excess energy.
In the sense that Bitcoin are created, ONLY from burning electricity doing work, you can burn any electricity you have that you would otherwise lose, storing it as Bitcoin. It can then be teleported to any market and purchase any other good. Most green power technologies are unreliable and transient and so your community needs an always on system of some kind, which if demand is low, during the initial settlement or seasonally, etc. you'll have expensive losses from running that always on system, as well as spikes of the green power. Project costs become more reasonable if your logic includes trusting Bitcoin for the 30-50 year life of a power plant.
5. Bitcoin is a weapon that penetrates authoritarian control.
We can teleport Bitcoin into places where it would otherwise be impossible or expensive to get a person to provide money or gold or guns to people. All we need is to deliver them internet service, like we used to do with Radio Free Europe in WW2. They will do the rest themselves. People can use it to build a resistance or to simply escape their governments and we can liberate the world with it.