https://m.youtube.com/watch?v=gA0egjZcRB0
Jim Simons Trading Secrets 1.1 MARKOV Process
How is #bitcoin going to scale?
The same way all other monetary systems have
Except that this time we have cryptography on our side
will it be trustless?
barring a 0 to 1 innovation - no
all scaling solutions are optimizing for fundamental tradeoffs
but we will be able to remove a lot of "mal-trust" in the same way we will remove "mal-investment"
everyday we trust people to provide services for us
By doing so we can specialize in various trades
In economics the people we trust for goods and services are referred to as agents
Trusting agents in other trades and giving ourselves time to specialize in our own trades is the greatest enabler of economic wealth since the dawn of man and largely what separated homo sapiens from our common ancestors
so trust is like really really good
but only when our interests are aligned with agents
when there is a conflict of interest things always end up bad
because money is the most desirable good, financial history is littered with conflicts of interests between agents and those trusting them
So we have this agency problem with money
and fiat money is the epitome of it whereby the agents of the system privatize profits and socialize losses
Now #bitcoin needs to scale it's own financial system and we're encountering similar problems of legacy systems
But now we have cryptography - which changes quite a lot actually
Just as #bitcoin used cryptography and properly aligned incentives to reduce trust in base layer money...a similar approach can be used to reduce trust in scaling layers
#bitcoin is not a perfectly trustless system
When you trust that #bitcoin will not change it's not just math and software but also properly incentives you trust
Try arguing against #bitcoin FUD without discussing how perfect the systems incentives are aligned
Incentive alignment is innovation and it was one of the key innovations that separated #bitcoin from it's predecessors
This is a critical point when it comes to scaling
Banking systems were the scaling mechanism for gold enabled by the printing press
these systems worked well when they were free from government interference but it didn't take long for government to learn how to control them and create conflicts of interest
If you want more detail check this out: yakes.io/bitcoin-bankin…Banking systems were the scaling mechanism for gold enabled by the printing press
these systems worked well when they were free from government interference but it didn't take long for government to learn how to control them and create conflicts of interest
If you want more detail check this out: https://yakes.io/bitcoin-banking-systems-full-reserve-vs-free-banking/
I believe #bitcoin will follow the same pattern of history but resist centralized control
This is because the #bitcoin will be able to leverage unique properties of a digitally native system such as:
- The internet: moving information instantly
- software: automating functionality that removes unnecessary agency
- P2P competition: for the first time in modern history you can exit the financial system and participate in a P2P online economy
- Unilateral exit: some protocols will allow for trustless exit of the system into P2P systems
- Cryptography: having the option to conceal information and identity of economic behavior
- information transparency: service providers and centralized interference will much more challenging to go undetected
No banking system in history has had any of these properties
I believe their combined result will be a system so efficient, dynamic, private, & transparent that it can't be captured or controlled
These unique properties will align incentives in a way that history has not seen
Many are focused on trustless/trust-minimized systems and that is great and I hope they proliferate
but 0 to 1 innovations may be necessary for these systems to be competitive with trusted systems
that's why I think trust optimization should be a priority as well
I believe eCash systems such as fedimint and CashuBTC will play a large role in this because:
1) they can optimize trusted custodians for various use cases
2) they use eCash which doesn't have a blockchain
eCash has all the benefits of cash in a wallet as well as a paypal account
no blockchain means scalability is limited to the latency of the internet or federation
but you have to trust in a mint that creates it for you - like a bank - when you send it #bitcoin
Why wouldn't the eCash mint rug me?
Great question. This is a perfect example of using cryptography and incentive alignment to take a banking function and optimize it's trust nature
.@callebtc theorized this specific scheme w/ origins from the Scrit project
gist.github.com/callebtc/ed522…
By setting an expiration date on eCash issued by a mint we can effectively automate bank runs
This creates a probabilistically certain outcome of catching a cheating mint WHILE STILL allowing users to remain private
that is innovation
Just as #bitcoin pushed the marginal cost of verifying money to near zero
This eCash scheme can push the marginal cost of automating bank runs to near zero
which changes the incentives of everything
They create a probabilistically certain outcome that a cheating mint will eventually get caught
They reduce the cost of implementing bank solvency verification to near zero
That means these methods can be cheaply and easily implemented in eCash wallet software
And that means we’ve created incentives aligned against pursuing fractional reserves
This isn't a perfect technological solution but it is one that aligns incentives
and it is from these types of solutions that I expect much of #bitcoin scaling will occur
Self-custody for all monetary use cases is a serious consideration - but shared custody may be
But creating a system with incentives aligned to resist any form of centralized capture is likely
This story will be trustless and trusted but most importantly - trust optimized
Here's the detail behind a lot of this: https://yakes.io/banks-without-bankers/
I want to believe there is a way to end poverty for everyone in some stroke of humanity, Some great show of compassion that the world unites around, And somehow we defeat the protected class.
The more I take this idea and see it in my everyday life through the lense of Bitcoin, The more I realize the wealth and inequality gap is filled by, And only crossed by access to bitcoin, And knowledge about the network.
Most people come to bitcoin not because of some inherent intelligence they are born with, Not some genius moment of inspiration, Not by their own intellect. People come to bitcoin begging and pleading for their suffering to end, In some desperate search for meaning when they have realized everything they have tried has chewed them up and spit them out. When every vector of upward social mobility has rejected them and they have nothing left.
Taylor Swift is not buying bitcoin, Taylor Swift is happy in her delusion, And the protected class is happy to keep her there. The people who have the means to fulfill their desire will continue to prove indifferent to the people who need help most, And Bitcoiners can only change the world, Use case by use case. Bitcoin trains you to enter the world of global financial resources with an independent mindset, Where you only need a computer and a pass phrase to access your money once every ten minutes and after six confirmations.
Bitcoin proves the way to change the world is to change yourself. But that is insular to the people who never had the chance to develop wasteful habits with inflationary currencies. People who can not understand currency devaluation can not understand the need for personal sovereignty. Some people do still live quite happily on the resources provided to them by nature.
Sounds like they side with Trump because the whole system is based on fraud and debt anyway. Fuck Donald Trump, There is no way everyone has an equal opportunity to become white collar criminals and he is basically the reason New York is for patriotic upper middle class yuppie assholes to feel cultured and interesting, And the corporate private equity class to hide from ordinary people. If you have any self respect as a bitcoiner you know these people don’t care about you or you would just be rolling over your debt like the rest of the boomers. Donald Trump is exactly the problem bitcoin solves.
How is this not clear by now? Yet many insist on trading...
nostr:npub13msqaqdlu36jezl937x5t57c0l530t20t56r8apwche4xj6sz26qe92cs0 
I think this is almost true, But spending bitcoin vs spending dollars is the trade off. Bitcoin tether pair creates a hyper capitalist loop of compounding profits. So ideally you never spend the bitcoin, And custody is the only cost o doing business. You still earn and spend dollars to survive but the lions share of your profits and portfolio are bitcoin tether trades. Your life still gets expensive against inflation, Because living expenses are priced in dollars. The moment you start living on your bitcoin is the moment you start slipping back into inflation induced poverty.
Hot take: AI, Like a dog, Has no concept of time, Or human suffering. So AI is at this point like a talkative dog that knows a lot about a lot of things but has no way to apply that knowledge to real life situations. Good dog.
A lot of people miss opportunities because they look like hard work.
🚨 My spook detector is 99% sure this isn't a normal Lightning node
Ah my. You should see how it looks stateside. Your average shadowy supercoder usually doesn’t qualify for the 5 billion dollar loan to start a new mining corporation.
I thought somehow Bitcoiners would be super liberal like people that I met in clubs traveling, Turns out they are hyper capitalist and far more competitive than corporate boot lickers. Cutthroat like criminals but intelligent like government workers. If your problem is that you are not rich bitcoin definitely does not make it easier to feel rich. You feel like you need to live as cheap as possible to preserve capital but think as efficiently as possible to grow capital. I wish conferences could last more than two days but it seems like people get what they are after in about that much time.
Telling the Palestinian people “Bitcoin fixes this” fees like a cruel joke right now.- nostr:npub1gdu7w6l6w65qhrdeaf6eyywepwe7v7ezqtugsrxy7hl7ypjsvxksd76nak
The Apollo also looks like hot fire. Or a future care fire, Either way, Looks very hot.
So, If you route over tor, Wallet of satoshi still works in America. Get you one of these and you can route all your traffic over tor. Plus plug in your node so you can achieve maximum privacy. Easily connect to WiFi even in public with no snooping on your activities. 
At least you don’t wear Patagonia vests and slacks.
