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Jerry Bature
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I finished the second version of my book!

## The Praxeology of Privacy

### Economic Logic in Cypherpunk Implementation

Austrian economists theorize but cannot build. Cypherpunks build but lack theory. This book synthesizes both traditions into a unified strategy for making the state irrelevant.

Three axioms. Twenty-one chapters. One conclusion: cheap defense defeats expensive attack. When theft becomes unprofitable, the state withers.

Public Domain. v0.2.0. Published on Nostr.

Thanks a lot to Stephan Kinsella and Eric Voskuil for their tough feedback on the first version, please join them in demolishing the logic of this second edition and help me make the arguments better!

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Table of Contents

Preface

Austrian economists theorize but cannot build. Cypherpunks build but lack theory. This book synthesizes both to make the state irrelevant.

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Part I: Introduction

Chapter 1: The Nature of Privacy

Privacy is selective disclosure, not hiding. Breaking adversary observation through the OODA loop is strategic defense. Cheap privacy defeats expensive surveillance.

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Chapter 2: Two Traditions, One Conclusion

Austrian economics and cypherpunk practice converge independently on privacy's importance. Theory explains why; code demonstrates how. This book synthesizes both traditions.

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Part II: Philosophical Foundations

Chapter 3: The Action Axiom

The Action Axiom proves privacy is structural to human action. Deliberation is internal; preferences are subjective; information asymmetry is inherent.

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Chapter 4: The Argumentation Axiom

Argumentation ethics demonstrates self-ownership through performative contradiction. Denying it while arguing presupposes it. Privacy rights follow directly from self-ownership.

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Chapter 5: The Axiom of Resistance

The Axiom of Resistance assumes systems can resist control. Mathematics, empirical evidence, and similar systems support this well-grounded but non-self-evident assumption.

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Part III: Economic Foundations

Chapter 6: Information, Scarcity, and Property

Information is non-scarce and cannot be property. Privacy is protected through self-ownership, physical property rights, and voluntary contracts, not intellectual property.

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Chapter 7: Exchange Theory and Privacy

Privacy enhances exchange by protecting deliberation and enabling negotiation. Surveillance distorts prices and chills transactions. Better privacy means better functioning markets.

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Chapter 8: Capital Theory and Entrepreneurship

Privacy infrastructure is capital requiring present sacrifice for future capability. Entrepreneurial discovery drives innovation. Markets coordinate heterogeneous privacy tools most effectively.

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Chapter 9: Monetary Theory and Sound Money

Sound money emerges spontaneously from markets, not decrees. Bitcoin implements digital soundness with fixed supply and censorship resistance; privacy requires additional tools.

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Part IV: The Adversary

Chapter 10: Financial Surveillance and State Control

Financial surveillance enables state control through observation. CBDCs complete the architecture. Privacy breaks the OODA loop at observation, making theft unprofitable.

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Chapter 11: Corporate Surveillance and Data Extraction

Corporate surveillance extracts behavioral data for prediction products. State and corporate surveillance are deeply entangled. Markets are responding to growing privacy demand.

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Chapter 12: The Crypto Wars

The Crypto Wars pit states against privacy technology. Mathematics ignores legislation. Developers face prosecution. The fundamental conflict is permanent and intensifying.

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Part V: Technical Implementation

Chapter 13: Cryptographic Foundations

Cryptography provides mathematical privacy foundations: encryption, hashing, and digital signatures enable trustless verification. Implementation bugs and human error remain the weakest links.

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Chapter 14: Anonymous Communication Networks

The internet leaks metadata. VPNs help locally. Tor distributes trust through relays. Mixnets defeat global adversaries. Choose tools matching your threat model.

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Chapter 15: Bitcoin: Resistance Money

Bitcoin solves double-spending without trusted third parties. Sound money enforced by code. Base layer privacy requires additional tools like Lightning and coinjoin.

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Chapter 16: Zero-Knowledge Proofs

Zero-knowledge proofs enable verification without disclosure. SNARKs, STARKs, and Bulletproofs make different tradeoffs. Deployed in Zcash and rollups; broader adoption developing.

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Chapter 17: Decentralized Social Infrastructure

Nostr solves identity capture through cryptographic keys users control. Relays compete, moderation is market-driven, and the protocol extends beyond social posts.

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Part VI: Praxis

Chapter 18: Lessons from History

DigiCash, e-gold, and Silk Road failed through centralization and poor OPSEC. Bitcoin succeeded through decentralization, open source, and properly aligned economic incentives.

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Chapter 19: Operational Security

Operational security prevents adversaries from gathering compromising information. Threat modeling guides defense. Human factors are the weakest link. Perfect OPSEC is impossible.

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Chapter 20: Implementation Strategy

Start with honest assessment. Build progressively from basics to advanced. Find community. Privacy is not a destination but ongoing practice. Progress matters.

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Chapter 21: Building the Parallel Economy

The parallel economy grows through counter-economics. Cheap defense defeats expensive attack. When theft becomes unprofitable, the state withers. Build. Trade. Resist.

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It's becoming difficult to survive on the web. Almost everything require permission to access. All I'm left with is freedom technologies. At least the internet is still working.

The current state of the web is choking me. I can't breath without Nostr+ Sats. My profound gratitude goes to all the FOSS builders around the world. Thank you for your efforts to making the world a better place. Thank you for sharing your valuable knowledge with me so that I can learn. Indeed I feel blessed, and I don't take it for granted. I've met beautiful people on Nostr, and this has helped me regained my mental health and humanity.

May this new year bring blessing, joy, peace, prosperity, abundance, and security to you and your loved ones.

Long live Nostr! Long live Bitcoin!! Long live the Builders!!!

This is brilliant. Thank you for the wake up call.

Life is a gift. Enjoy it to the full. Spend bitcoin on Nostriches.

Good morning Nostriches

So, economics, life in general, is a game. The game is called transaction. It could be played with oneself or with others. This game is characterized by time that should be served to every player in equal amount and money that can be acquired with the time given. In other words, "time is money, and money is time." This means the quality of your life depends on money.

But what if this game can be rigged? What if there are some players who could cheat and not allow others to do the same? Knowing fully well that this game has been rigged against you, what will would you do? (This rigged game/money is called fiat)

Also, imagine that you've discovered a new game/money. would you still continue to play the old rigged game? (This new game/money is called bitcoin).

Life is a monetary game that humans can never stop playing. Fiat is an unsound money that causes chaos and break relationships. Bitcoin is a sound monetary game that organizes the world in good shape. If this game of life can't be stopped, and if at all this game is essential for human growth and flourishing, then bitcoin is the kind of game worth playing and...dying for.

I just can't think of doing anything else other than Bitcoin in order to make the world a better. From my perspective, Bitcoin is the new mission. And, I'm already on my way.

An economy run on fiat is full of pain, misery, and death. An economy run on Bitcoin is full of life, liberty, and happiness.

"1. We experience value through products and services that gives us value, instead of trying to understand the intricate details of the plumbing that gives rise to those products and services, and

2. Money is the foundation layer that gives rise to everything else.

Therefore, when money breaks down, standing your ground when the ground gives way will provide little in the way to safety."

https://www.jefbooth.ca/post/finding-signal-in-a-noisy-world

There were two reasons only why I was severely poor and needy:

1) I was ignorant of economics (i.e., Austrian economics), and

2) I was ignorant of money (i.e., sound money)

Being exposed to the Bitcoin space gave me the opportunity to learn about these important aspects of life.

Not that I'm as rich as Satoshi Nakamoto now, but that I'm able to turn my life around away from the destruction of bad economic thinking (Keynesian) and unsound money (fiat), I am forever grateful for whoever invented bitcoin.

I am now very bullish and very hopeful for a better future, tomorrow and beyond.

THE ONLY WAY BITCOIN CAN HELP YOU, AND THE WORLD, IS TO USE IT. IF MAJORITY OF THE PEOPLE COMPLAINING ABOUT THE CURRENT STATE OF WORLD WILL PREFER TO USE BITCOIN THAN THE FIAT "MONEY", THE WORLD WILL CHANGE OVERNIGHT. STOP COMPLAINING, STOP PROTESTING ON THE STREETS AND START USING BITCOIN. TALK YOUR NEIGHBORS INTO USING BITCOIN AS A NEW OF OF POLITICAL PROTEST. STOP WASTING YOUR TIME ON POLITICIANS. YOUR USING OF BITCOIN WILL CRIPPLE THE CRIMINAL ACTIVITIES OF THE OVERLOADS/TYRANTS AND AT THE SAME TIME MAKE THE WORLD A BETTER PLACE. YOU DON'T NEED THEIR PERMISSION TO USE BITCOIN.

#GlobalSouthArise

#BitcoinIsFreedom

THE ONLY WAY CENTRAL BANKERS COULD KEEP YOUR MONEY "SAFE AND SECURE" IS SIMPLY TO LEND OUT NINETY OR MORE PERCENT OF IT, AND KEEP THE INTEREST TO THEMSELVES. THERE IS JUST NO ALTERNATIVE WAY. AND, WHEN YOU DECIDE TO DEMAND ALL YOUR MONEY, THEY SIMPLY SAY NO. THIS IS HOW "SAFE AND SECURE" YOU ARE WITH THE CENTRAL BANKS.

BITCOIN IS MONEY!

BITCOIN IS AN HONEST SYSTEM SIMPLY BECAUSE ANYONE CAN VERIFY HOW IT WORKS.

Bitcoin has replaced humans in telling the truth. Whether you like it or not bitcoin forces you into telling and accepting what is true. It's the only truth machine we have.

Freedom speech!

This speaks to me a lot.

Thank you for sharing.

The politicians and the central bankers force the rest of society to use their fiat "money" while inflating it to infinity, causing chaos and pain in the world. While they enjoy the good things life can offer on earth, the poor and oppressed are left wishing and praying, day and night, for an afterlife.

If your are down the ladder in the fiat system, looking for a better life on earth, and if you are and honest person who doesn't want to get corrupted by fiat, only bitcoin can give you a better life on earth. Join the network, stack sats. And keep stack for the rest of your life.

STAY HUMBLE, STACK SATS

There are no shortcuts in Bitcoin. Bitcoin is scary. Why? Because it is a system that is completely new and operates in the digital realm and exacts its effects in the physical realm. Bitcoin, unlike fiat, is many things coupled together into one piece. Call it a puzzle.

Bitcoin is, unlike fiat, among many things: economics, money, computer science, philosophy, sociology, psychology, game theory, physics, geography, and so on. Now, imagine breaking down these fields into various components and still have to learn them even further deep down. This is scary, especially to someone who must have gone through the fiat educational system. It will take a curious and couragious mind to take this Bitcoin's difficult path, unlearning most of the fiat trash and the way. Imagine a man with all his BSC and PhD, going down the Bitcoin rabbit hole, unlearning and learning down the hole. This is scary. It's even more scarier to a man without formal education.

But here is the best thing about bitcoin: it is a NETWORK. A network with it's own ingrained sets of rules. Rules without rulers. In this network, you can focus solely on that which interests you. Solve problems that are peculiar to you and your environment. As long as you remain in the network, you'll be fine. The best antidote for Fear, Uncertainty, and Doubt, is to remain within the network, stacking sats and educating yourself. It takes humility to do this!

When it comes to bitcoin, one thing I seriously enjoy doing, besides stacking sats, is educating MYSELF. YES MYSELF! In the current market noise and clown world confusion(yes, FUD), nothing is more important than the sats, the Bitcoin network, and I. And, in actual sense, my personal bitcoin education is more important than simply the sats. The sat is just the "thing."

#STACKSATS

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