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For years, as I have discussed the value prop for seizure-resistant, non-sovereign??like with noobies, I have always had to caveat it with "we don't think about it in the Western world too much bc our money, banking system, and law typically work well"
2/ Bitcoin's value in the Western world has NEVER been more obvious thanks to the last ~ 2 years.
Reminder, it has ALWAYS been valuable to those less fortunate living under authoritarianism or double-digit inflation (over half the world)
Half the World Lives With Double Digit Inflation
3/ Now, Westerners are getting their taste: - 10%+ inflation for many (screw the official CPI numbers) - Bank accounts being inexplicably closed @haydenzadams@PeterMcCormack
- Govt freezing funds and threatening companies TruckersForFreedom
- ~25% M2 debasement in ~2 years
4/ Will this be the wake up call?
Will people FINALLY learn that fiat is an unbacked, faith-based system forced on its citizens under the threat of violence from a small group of elitists using it to preserve their power and influence?
MT on Twitter
5/ Reasons fiat money should not be your ONLY money:
- Fiat monies (government-issued money) can and DO outright fail. - Fiat monies are not flawless. @RayDalio@JeffBooth@GeorgeSelgin
-Fiat possess bad store of value properties - DESIGNED to lose 2%+ of its purchasing power every year - Are govt-controlled meaning they are confiscatable, censorable, and do not provide you with full autonomy on how to spend it. @BitcoinMagazine@DocumentingBTC
- They enable very little privacy for the user & are easily surveilled.
- Fiat is one way in which govts control & oppress citizens.
Council Post: Implications Of Hong Kong’s New Security Law (And How To Protect Your Business)
8/ - Fiat money enables the Cantillon Effect whereby the first people to receive the newly created money (banks) see their incomes and purchasing power rise relative to those further down the money-printing line.
9/ Think about a game of Monopoly wherein you were secretly gifted an extra 1,000,000. You would be at an extraordinary advantage due to the extra purchasing power, but also before the rest of the players could price your new money into the overall pot.
- Fiat is trust in governments and humans, Bitcoin is trust in math and cryptography.
- The current economic system is designed to only work if the citizens constantly spend and the overall debt increases with time (high time preference vs. low time).
-Fiat money supply is infinite and those that create the money benefit the most (seigniorage).
-You do not have full control nor access to your money in a bank when storing it in a bank. @surferjimw
12/ Wondering how BTC fixes these issues?
Well, at its core, money’s primary function is to preserve the product of a person’s time and labor (value to the economy) so that they may spend it at the time of their choosing and in the manner they so choose.
13/ Money is the way in which communities coordinate their time, skills, & efforts. This preservation of easily transferable, widely accepted human capital across time allows for more efficient use of capital (investment) & the specialization of members of a community. @MartyBent
14/ A money that is successful in accomplishing this generally contains certain characteristics. These traits are highlighted below and compared across the different types of money used in recent history. @real_vijay
15/ BTC is...
Decentralized: There is no central entity that can censor txs, charge fees, alter the existing rules, or be extorted by governments or bad entities. There is no Federal Reserve of Bitcoin to manipulate the money supply. There is no board of directors. @PrestonPysh
16/ Bitcon is... Censorship-resistant: No one can dictate what you choose to do with your money. Bitcoin is apolitical. If you want to conduct a transaction and have paid the small miner’s fee, the network will process it.
17/ BTC is... Immutable (irreversible): This is critical to any system in which value is being transferred. Users want to be certain that when they send 10, that tx will be processed, their recipient will receive that??& that the tx can never be reversed in the future. @robustus
18/ BTC is... Permissionless: Anyone can exchange BTC with anyone, anywhere, & anytime. The BTC protocol, for the first time in history, allows users to ?? money like we currently send packets of data. It is the digital equivalent of sending a 5 bill across the globe. @danheld
19/ bitcoin is... Impossible to counterfeit/digital scarcity: Before BTC, everything digital (pictures, files, etc.) could be duplicated at no cost. If you received a picture & then sent it to a friend, you didn’t send the actual picture, but rather just a copy of the original.
20/ ... You still had a version of the picture in your possession. Due to this reason, the concept of digital money did not work without a central middleman, but luckily, bitcoin solved this dilemma known as the “Double-spend problem.”
21/ BTC is... 21 M capped supply: BTC is truly revolutionary bc it is the world’s first instance of digital scarcity. Only 21 million bitcoin will ever exist, of which ~90% has already been issued. There has never been an asset, especially digital, with provable finite scarcity.
22/ BTC is... Predictable and Transparent: There will only ever be 21M BTC created based on a predictable & known supply schedule that is always & forever publicly verifiable and auditable. No government can change that. This is paramount to the value of bitcoin!
A fixed supply that everyone knows ahead of time is far more egalitarian than an infinite supply of money that is created behind closed doors by a small group that decides where it goes.
This post is based on this twitter thread
