I love the utility of #ChatGPT, but i hate sharing everything with #OpenAI.

But UX trumps all else for me, in some ways. The fact that I can use voice mode and actually SPEAK to the thing (while doing something else!) is amazing.

It’s also nice to have different modalities.

Just as there isn’t a right or wrong way to compose a melody - pluck a guitar, hum it, or use a keyboard/mouse in a DAW - there isn’t a BEST way to interact with an #LLM.

Sometimes I want to be surgical (use keyboard); sometimes I just need to rant and rave (speak!).

¯\_(ツ)_/¯

#introductions

I’m a low-grade polymath, blue-collar autodidact.

I work with my hands, which leaves my ears free to listen to audiobooks and podcasts.

I wasn’t nihilistic per se, but definitely kinda “meh” about the future until I got infected with BTC.

Optimistic about the future we are creating with unstoppable open networks.

Bitcoin + AI = !?!?!

https://evolensart.com/article-invisible-chains.php

I made a thing:

https://evolensart.com/article-thank-god-for-bitcoin.php

“Invisible Chains”

***

“The greatest dangers to liberty lurk in insidious encroachment by men of zeal, well-meaning but without understanding.”

— Louis D. Brandeis

### **Introduction: The Spectrum of Possibilities**

Let’s be honest: the world we’re stepping into looks nothing like the one we’re leaving behind. For the first time in history, we’ve got a couple of technologies on our hands—Bitcoin and Artificial Intelligence (AI)—that aren’t just changing the game; they’re rewriting the rules entirely. If you’re still thinking about these in terms of what came before, you’re already missing the point. These aren’t just shiny new tools; they’re tectonic shifts, and the ground under our feet is still trembling.

Bitcoin, with its promise of decentralized finance, is more than just digital money. It’s a shot across the bow of the entire financial system, a system that has been running on fumes for too long. AI, on the other hand, is like that all-seeing eye we’ve always dreamed of—or feared, depending on your perspective. It’s poised to redefine everything from how we work to how we think. And when these two forces collide? Buckle up, because the ride’s going to get wild.

But before we go any further, let’s get one thing straight: we’re not here to peddle utopian dreams or dystopian nightmares. The future, as the saying goes, is already here—it’s just not evenly distributed. Some of us are already living in the world Bitcoin and AI are creating, while others are still trying to figure out what the hell just happened. That’s the reality we’re dealing with—a mosaic of possibilities, some bright, some dark, but all interconnected.

This isn’t just another tech revolution; it’s a philosophical one. We’re talking about technologies that cut deeper than any policy debate or political squabble. They demand that we reconsider the fundamentals—what it means to be free, to work, to earn a living. These aren’t questions that fit neatly into left or right, conservative or liberal. They’re questions that transcend all that noise. And if we’re going to get this right, we need to start thinking about these things from the ground up.

So, let’s dive in. We’re going to explore the best and worst of what’s possible, map out the mosaic reality we’re already living in, and reflect on what it all means. If you’re looking for easy answers, you’re in the wrong place. But if you’re ready to engage with the big questions—questions that are going to shape the world for generations to come—then let’s get started.

Worst-Case Scenario: A Dystopian Future

As we stand at the precipice of unprecedented technological change, it’s worth contemplating the darker possibilities—the scenarios where things don’t just go wrong, but go horribly wrong. We’re talking about a future where Bitcoin, despite all its revolutionary potential, never fulfills its promise, and where AI, instead of being a tool for empowerment and creativity, becomes a mechanism of control and manipulation on a scale we’ve never seen before.

First, let’s consider the failure of Bitcoin. Imagine a world dominated not by a decentralized, open financial network, but by Central Bank Digital Currencies (CBDCs)—digital cash controlled entirely by governments. In this world, Bitcoin’s potential for financial sovereignty and decentralization is squashed by heavy-handed regulation, sidelining it as a fringe technology while CBDCs become the standard. Every transaction is tracked, every dollar is programmable, and your financial freedom becomes nothing more than an illusion.

This isn’t some distant dystopia; it’s a reality that’s already taking shape. Consider the recent trucker protest in Canada, where individuals who peacefully petitioned their government for redress found their bank accounts frozen, their access to funds cut off. This was a clear and troubling display of how financial control can be wielded as a weapon to stifle dissent and enforce conformity. Now, imagine that on a global scale, with CBDCs giving governments the ultimate tool of financial repression. It’s a world where freedom is sacrificed on the altar of control, where your financial life is no longer your own.

But that’s just one side of the coin. The other side is what happens with AI—a technology so powerful that it could reshape every aspect of our lives. In the worst-case scenario, AI doesn’t become the great equalizer; it becomes the great oppressor. Imagine a world where the immense capabilities of AI are monopolized by a few powerful corporations or government entities. Instead of being tools for creativity, empowerment, and individual freedom, AI systems are turned into instruments of control.

Think about the amount of personal information people already share online, often without a second thought. It’s beyond Big Brother’s wildest dreams. Now, add AI to the mix—AI that can analyze, predict, and manipulate human behavior on a massive scale. In this world, surveillance isn’t just pervasive; it’s subtle, insidious, and incredibly effective. It’s one thing to have news anchors subtly influence public opinion, but it’s a whole different ballgame when AI is incorporated at every level, shaping the narratives, filtering the information you see, and even subtly manipulating your emotions and thoughts.

This dystopian future is one where control isn’t imposed with brute force; it’s achieved through nuanced, almost invisible mechanisms. AI, in the hands of a few powerful actors, could become the ultimate tool of manipulation, nudging entire populations towards conformity, suppressing dissent before it even has a chance to take root. The diversity of thought, the vibrancy of human creativity, and the freedom to chart your own course—all these things could be eroded, replaced by a homogenized reality dictated by those who control the AI.

When you put these threads together—Bitcoin’s potential stifled, AI’s power monopolized—you get a picture of a future where the fundamental promise of technology is turned on its head. Instead of ushering in an era of greater freedom and opportunity, these technologies become the chains that bind us, the tools that enforce a new kind of tyranny.

The most chilling aspect of this dystopian future isn’t just the loss of freedom; it’s the fact that it could happen so quietly, so gradually, that we might not even realize it until it’s too late. We’re already living in a world where digital life offers unprecedented convenience and connectivity, but also unprecedented vulnerability. The amount of data we share—willingly or not—combined with the power of AI to process and exploit that data, creates a scenario where control can be exerted not just overtly, but subtly, in ways that are almost impossible to detect.

This is the real nightmare scenario: a world where Bitcoin fails to fulfill its promise of financial sovereignty, where AI becomes a tool of control rather than empowerment, and where the vast potential of these technologies is harnessed not to liberate us, but to enslave us in ways that are difficult to see and even harder to resist.

If we don’t recognize these dangers now—if we don’t take steps to ensure that these technologies serve humanity rather than control it—we could find ourselves in a world where the future we’ve been promised turns into a future we desperately want to escape.

### **Best-Case Scenario: A Utopian Vision**

Now that we've faced the darkness, let’s turn our gaze to what’s possible if we get this right. Imagine a world where Bitcoin and AI fulfill their promise, not just as tools, but as transformative forces that reshape society for the better. This is the future where the ideals of decentralization and open-source technology aren’t just theoretical—they’re the foundation of a new era of human freedom and innovation.

In this best-case scenario, Bitcoin isn’t just another financial instrument—it’s the backbone of a new, decentralized economy. Gone are the days of centralized control over money, where governments and banks can inflate away your savings or deny you access to the financial system. Instead, we have a global, peer-to-peer network that allows anyone, anywhere, to participate in the economy on equal footing. It’s a world where financial sovereignty isn’t just for the elite; it’s for everyone.

But Bitcoin is just the beginning. When we pair it with AI—particularly open-source AI—we unlock even greater potential. AI becomes a tool not just for the few who can afford proprietary systems, but for anyone with the creativity and drive to use it. It’s a democratization of knowledge and power, where innovation isn’t confined to corporate labs, but happens in garages, basements, and remote villages.

This is a world where energy, once considered a limiting factor, becomes a new kind of currency. Bitcoin’s unique ability to monetize stranded energy sources—whether it’s excess solar power in the desert or untapped hydroelectric potential in a mountain village—creates a virtuous cycle. Energy is turned into money, money is used to build infrastructure, and that infrastructure generates more wealth. It’s a system that incentivizes green energy production and drives sustainable development, all while breaking down the barriers that have kept billions out of the global economy.

And let’s talk about access. In this future, the combination of Bitcoin and open-source AI creates a world of maximal freedom and choice. People aren’t locked into monolithic systems run by megacorporations or governments. Instead, they have a rich tapestry of options—free and open-source solutions existing alongside commercial products, each offering something different. Whether it’s a decentralized financial app built on Bitcoin or an AI tool designed to help farmers in developing countries, the possibilities are endless.

The beauty of this future is its diversity. It’s a world where different people, with different needs and values, can choose the tools and systems that work best for them. It’s a world where technology serves humanity, not the other way around. And it’s all made possible by the principles of decentralization, transparency, and openness that Bitcoin and AI embody.

And here’s the thing: this isn’t about some misguided pursuit of “equity,” that all-too-popular buzzword on the political left. Equality of outcome is a fantasy, a fool’s errand. Why? Because people aren’t clones. We’re different—different in our talents, our ambitions, our values. Forcing everyone into the same mold, pretending we can all have the same outcomes, is not just unrealistic—it’s downright destructive. It ignores the very things that make us human.

What we should be striving for, instead, is equality of opportunity—a world where everyone has the chance to succeed, where the barriers to entry are as low as we can make them, and where innovation and effort are rewarded. But let’s be real: even equality of opportunity is something we can only approach, never fully achieve. It’s an asymptote, a goal to keep reaching for, knowing we’ll never hit it perfectly, but that we must keep trying nonetheless.

This is the promise of Bitcoin and AI: a world where opportunity is as widespread as possible, where diversity of thought and action drives progress, and where individuals have the freedom to chart their own course. It’s a future worth fighting for, and it’s within our grasp if we’re willing to embrace it. Let’s not waste our time chasing impossible dreams of making everyone the same. Let’s focus on what really matters—giving everyone the tools and the freedom to be their best, whatever that looks like for them.

### **Bitcoin as a Check Against Runaway AI: Anchoring the Digital to the Physical**

We’ve already discussed Bitcoin’s unique ability to monetize stranded energy through its proof-of-work consensus mechanism, but let’s dive deeper into what makes Bitcoin truly special—and how it might be our best defense against runaway AI or any other centralizing force.

At its core, Bitcoin is tied to the physical world in a way that few other digital systems are. The proof-of-work mechanism, often misunderstood or criticized, is what anchors Bitcoin to reality. Every Bitcoin mined requires real-world energy, making it a digital asset with a direct link to physical resources. This isn’t just a technical detail; it’s a fundamental feature that gives Bitcoin its resilience and its ability to serve as a check against any entity—AI or otherwise—that might seek to amass too much control.

Now, imagine a world where AI systems become increasingly powerful, potentially threatening to centralize resources and decision-making on an unprecedented scale. Without a robust check, there’s a risk that these systems could outmaneuver human controls, concentrating power and resources in ways that could undermine individual autonomy and freedom. But Bitcoin, with its decentralized and distributed nature, provides a formidable counterbalance to this risk.

Here’s why: ownership and control of Bitcoin are distributed among millions—eventually billions—of individuals and economic actors. Each of these actors holds their Bitcoin behind public/private key cryptography, with self-interest guiding their actions. This widespread distribution means that no single entity, not even a powerful AI, can easily centralize control over the network or the resources tied to it.

In essence, Bitcoin’s architecture ensures that power remains diffuse. Any attempt by a centralizing force—be it a runaway AI or a government—to control the network would be met with resistance from millions of independent actors, all acting in their own self-interest. This isn’t a coordinated effort; it’s the result of the natural push and pull of decentralized systems, where the incentives are aligned to prevent any one actor from gaining too much control.

This distributed ownership and the physical anchoring of Bitcoin make it a practical check against the potential dangers of centralized AI systems. By tying the digital world to the physical one, Bitcoin ensures that no matter how advanced or autonomous AI systems become, they remain grounded in a reality where power is inherently distributed and difficult to consolidate.

Bitcoin isn’t just a digital currency; it’s a safeguard against the concentration of power. It’s a mechanism that ensures that even as AI grows in capabilities, the resources it needs to function remain under the control of a diverse, global network of human actors. This decentralized control serves as a counterweight to any force that might seek to dominate the system, making Bitcoin not just a financial tool, but a critical component in maintaining the balance of power in an increasingly digital world.

As we move forward, this role of Bitcoin as a check against runaway AI and other centralizing forces will only become more important. It’s yet another reason why understanding and nurturing these technologies is essential—not just for economic freedom, but for preserving the very structure of our society in the face of rapid technological change.

### **The Mosaic Reality: A Mixed Global Landscape**

If you’ve been paying attention, it’s clear that Bitcoin and AI aren’t just futuristic concepts—they’re active, transformative forces already reshaping our world. The future, as William Gibson famously put it, is here—it’s just not evenly distributed. And that’s exactly what we’re seeing: a mosaic reality where the impact of these technologies varies dramatically depending on where you are, who you are, and what resources you have at your disposal.

In some parts of the world, Bitcoin is already a lifeline, providing financial stability where traditional systems have failed. Take Venezuela, where hyperinflation has rendered the local currency nearly worthless. Here, Bitcoin isn’t just a speculative asset—it’s a means of survival, a way for people to preserve their wealth and transact in a global economy that would otherwise be closed off to them. In places like these, Bitcoin is already fulfilling its potential as a decentralized, censorship-resistant financial network.

Meanwhile, in more developed economies, Bitcoin is still largely seen as a speculative asset—a digital gold, if you will. While some are using it to hedge against inflation or diversify their portfolios, its true potential as a tool for financial sovereignty and decentralization has yet to be fully realized. Regulatory uncertainty, combined with a lack of understanding, has kept Bitcoin on the fringes of the mainstream financial system, at least for now.

AI, too, is painting a complex picture. In Silicon Valley, AI is driving the next wave of innovation, with startups and tech giants alike racing to build smarter, faster, and more capable systems. These technologies are transforming industries, from healthcare to finance to entertainment, creating new opportunities and new challenges along the way. But while some reap the benefits, others are left behind, either because they lack access to the technology or because they’re caught in the crossfire of rapid change.

And then there’s the rest of the world—places where the promise of Bitcoin and AI is still more theory than reality. In many developing nations, access to these technologies is limited by infrastructure, education, or simply the lack of capital needed to get started. The result is a patchwork of outcomes, where some regions are leaping ahead while others struggle to keep up.

This uneven distribution of technological progress isn’t just a quirk of history—it’s a fundamental challenge we need to address. The mosaic reality we’re living in means that while some are stepping into the future, others are being left behind. And this divide isn’t just about technology; it’s about opportunity, power, and ultimately, freedom.

But here’s the thing: the fact that these technologies are unevenly distributed today doesn’t mean they always will be. The regions that are early adopters of Bitcoin and AI are not just beneficiaries—they’re proof of concept. They demonstrate what’s possible when these technologies are embraced, and they can serve as examples for the rest of the world.

The successes—and failures—of these early adopters will shape the broader narrative of how Bitcoin and AI are integrated into the global landscape. They’ll influence policy, investment, and innovation, creating a ripple effect that will eventually reach those who are currently on the margins. But this will only happen if we recognize the mosaic for what it is—a snapshot of a world in transition, where the future is being written one piece at a time.

This mosaic reality isn’t just a technological issue; it’s a human one. It challenges us to think about how we can ensure that the benefits of Bitcoin and AI are shared as widely as possible, without falling into the traps of centralization or control. It forces us to confront the fact that the future we want—a future of decentralized power, economic freedom, and technological empowerment—isn’t going to build itself. It requires effort, vigilance, and a commitment to making sure that no one is left behind.

As we navigate this complex landscape, we need to keep our eyes on the bigger picture. The mosaic reality of Bitcoin and AI is both a challenge and an opportunity—a chance to build a future that’s as diverse and dynamic as the world we live in. The pieces are already in place; it’s up to us to put them together in a way that benefits everyone.

### **Navigating the Future: Small Course Corrections, Big Consequences**

Let me be upfront about something: I’m not an expert. I’m just a humble layman, watching Bitcoin and AI maybe a little closer than the average person, but without any illusions of deep expertise. I don’t have a PhD in computer science or a background in cryptography. What I do have is a decent ability to put pieces together, to see the writing on the wall, and to understand the stakes. And let me tell you, the stakes couldn’t be higher.

As an American, I’ve grown up in a world where the left-right, conservative-liberal divide has shaped our politics and policies. But here’s the thing—those divides are becoming increasingly irrelevant when it comes to Bitcoin and AI. These technologies are so transformative, so fundamentally disruptive, that clinging to old political identities is like trying to navigate the ocean with a map of the desert. It’s not going to get us where we need to go.

We need to recognize that small course corrections made today—whether in policy, regulation, or even in public perception—will have massive consequences down the line. We’re dealing with forces that are still in their early stages, but they’re growing rapidly. A wrong turn now, no matter how minor it might seem, could snowball into something catastrophic. Conversely, the right small move could set us on a path toward a future that’s more equitable, free, and prosperous for everyone.

Let’s start with Bitcoin. The most important thing the United States could do right now? Leave it the hell alone. Seriously. Just let it exist. Bitcoin is a force of decentralization, a check against the concentration of power, and an opportunity for financial sovereignty on a global scale. The last thing we need is for the government to start messing with it, throwing on layers of regulation that could stifle its potential.

But if we’re talking about doing something proactive—something that would really grease the wheels—it’s this: make Bitcoin-to-dollar transactions non-taxable events. That’s it. One small policy change that could have a huge impact. It would normalize Bitcoin as a currency, not just a speculative asset, and would integrate it more deeply into the economy. It’s a simple move, but one that could make all the difference.

And let’s not forget the missed opportunities. Just recently, President Biden vetoed bipartisan legislation that would have made it easier for banks to custody Bitcoin on their customers’ behalf. This could have been another huge step forward, allowing people to use the infrastructure they’re already comfortable with—letting banks hold Bitcoin just as they hold cash or stocks. Bipartisan support shows that this isn’t about left or right; it’s about common sense. And yet, Biden shut it down. As someone who has been a lifelong liberal, who has voted left my entire life, this was a wake-up call. This year, I’m voting Republican because I think the left is getting it wrong on this issue. They’re missing the forest for the trees, and it’s too important to ignore.

And it’s not just Biden. Elizabeth Warren, someone I used to admire tremendously, has been a vocal critic of Bitcoin. I once believed she was looking out for the little guy, but her stance on Bitcoin has made me rethink everything I respected about her. Either she fundamentally doesn’t understand Bitcoin, or she’s cynically opposed to it for reasons that don’t sit well with me. Neither possibility is comforting, and frankly, I’ve lost all respect for her on this issue. I don’t consider her an ally anymore.

Now, let’s talk about AI. We’re already seeing its utility and necessity across a wide range of industries. Commercial AI is here to stay, and that’s not a bad thing—innovation needs to be driven by competition, by the pursuit of economic goals. But here’s the kicker: we’ve got to make sure that open-source AI alternatives continue to exist. This isn’t just about keeping options on the table; it’s about ensuring that the power of AI remains distributed, accessible, and resistant to monopolization. The best approach? Again, don’t over-regulate. Don’t try to box AI into a corner with heavy-handed policies. Instead, focus on maintaining an environment where open-source projects can thrive alongside commercial ones. Give people the freedom to innovate, to experiment, and to build the future on their own terms.

The bottom line is this: these technologies are too important to get wrong. They’re going to shape the future in ways we can’t fully predict, but we can certainly influence. The decisions we make now—whether it’s how we treat Bitcoin or how we regulate AI—will echo through the decades. If we try to control them too tightly, we risk killing the very innovation that makes them so powerful. If we let them flourish, we open the door to a future of unprecedented freedom and opportunity.

So, let’s be smart about this. Let’s recognize that the old political divides aren’t going to help us here. Let’s focus on what really matters: creating a world where technology serves humanity, not the other way around. Let’s make the small course corrections that could lead to big, positive changes down the road. Because if we don’t, the consequences could be far more than we bargained for.

### **Conclusion: The Stakes and the Path Forward**

As we wrap up, there are a couple of crucial points to emphasize—points that should guide our thinking as we navigate the intersection of Bitcoin and AI.

When it comes to AI, the real danger isn’t the technology itself, whether we’re talking about AI, superintelligent AI, or AGI. The biggest threat is how governments and corporations might use the fear of AI to justify draconian policies. These policies could lead to censorship, pervasive surveillance, and the manipulation of public opinion—an erosion of the freedoms that we hold dear. It’s not the machines we need to fear; it’s the people who might exploit them for control.

Jeff Booth, in his insightful book *The Price of Tomorrow*, makes a compelling case that technology should be a deflationary force. As we get better at doing things, as technology improves, the cost of goods and services should decrease, moving closer to the marginal cost of production. This is how a healthy economy should function—technology making life easier, faster, cheaper, and better for everyone. But we don’t have that right now. We have a broken monetary system based on fiat currency, which inflates and quietly robs the populace.

Bitcoin changes that. In a world where Bitcoin is fully embraced, technology can serve its proper role as a deflationary force, driving down costs and increasing prosperity. This is why a world with AI and no Bitcoin is the worst possible future for us—it’s a future where the benefits of technology are hoarded by a few, while the masses continue to suffer under inflation and economic manipulation. But a world with both AI and Bitcoin? That’s the best possible future—a future where technology drives prosperity for all, not just the few, where economic freedom is paired with technological innovation.

With Bitcoin, the greatest risk is that we fail to embrace it. Bitcoin represents an unprecedented opportunity for financial sovereignty and decentralization—a check against the concentration of power. But if we don’t recognize its potential, if we stifle it with unnecessary regulation or fail to integrate it into our financial systems, we risk missing out on a tool that could empower individuals and safeguard our freedoms in a digital age.

The future is uncertain, but one thing is clear: the decisions we make now will determine whether these technologies become forces for freedom or tools of control. Let’s make sure we get it right.

nostr:npub1h8nk2346qezka5cpm8jjh3yl5j88pf4ly2ptu7s6uu55wcfqy0wq36rpev nostr:npub1s05p3ha7en49dv8429tkk07nnfa9pcwczkf5x5qrdraqshxdje9sq6eyhe

### Introduction: The Law of Bitcoin Valuation

**The Law of Bitcoin Valuation:** *The future value of Bitcoin will always exceed your expectations, even when you adjust your expectations to account for the Law of Bitcoin Valuation.*

**Hofstadter’s Law:** *It always takes longer than you expect, even when you take into account Hofstadter’s Law.*

“It’s tough to make predictions, especially about the future.” —Yogi Berra

At first glance, the Law of Bitcoin Valuation might seem like a clever tautology, a self-referential quip that hints at Bitcoin’s unpredictable nature. But when you pair it with Hofstadter’s Law, a deeper and more nuanced truth emerges—one that makes the Law of Bitcoin Valuation more than just a precept, but a practical reality.

Think of it like this: in mathematics, when you take a number and square it, it grows significantly. Cube it, and the growth is even more dramatic. Raise it to the fourth power, and the increase is exponential. Now apply that concept to Bitcoin. It’s easy enough to look at a price chart, maybe even on a logarithmic scale, and try to extrapolate the value. But Bitcoin is far more complex than a simple price curve.

Bitcoin isn’t just a line item on a financial chart; it’s a multidimensional phenomenon with layers of utility, influence, and adaptability that go far beyond what’s immediately visible. It touches so many aspects of technology, economics, and society that its true value is not merely a function of its market price. Bitcoin operates with internal feedback loops, flywheels that build and maintain momentum, and a host of reinforcing mechanisms that make its growth more than linear or even exponential—it’s multifaceted and dynamic, ratcheting up in complexity and value over time.

What we’re going to explore in this paper is how Bitcoin’s value proposition extends into these multiple dimensions, compounding in ways that defy traditional methods of valuation. Simply put, Bitcoin’s future value will always outstrip your expectations because it operates on levels that aren’t fully captured by a mere price chart, no matter how sophisticated your analysis.

And here’s where Hofstadter’s Law makes its entrance: the value that Bitcoin promises will manifest, but it will do so on a timeline that tests the patience of even the most ardent believers. This interplay between Bitcoin’s compounded, multidimensional growth and the inevitable delays in its realization is what makes the Law of Bitcoin Valuation so compelling—and so frustratingly accurate.

So, as we dive into this exploration, keep in mind that Bitcoin’s value isn’t just about where the price is headed next week, next year, or even in the next decade. It’s about understanding the profound, multi-layered impact that Bitcoin is having on our world, and why, no matter how high you set your expectations, Bitcoin is likely to exceed them in ways you haven’t yet considered.

If you think you’ve got Bitcoin figured out, think again. The reality is far more complex, challenging, and ultimately, rewarding than you’ve prepared for. The Law of Bitcoin Valuation guarantees it—and Hofstadter’s Law ensures you’ll be waiting longer than you’d like to see it happen.

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Section 1: Hofstadter’s Law and Bitcoin

Hofstadter’s Law, with its wry observation that “it always takes longer than you expect, even when you take into account Hofstadter’s Law,” is more than just a clever aphorism—it’s a fundamental truth about complex systems. And if Bitcoin is anything, it’s complex. From its inception, Bitcoin has defied traditional timelines, navigating a landscape fraught with technical challenges, regulatory obstacles, and market volatility. Yet, it’s precisely this tortuous journey that has forged Bitcoin into the resilient, decentralized network we see today.

The brilliance of Bitcoin lies not just in its design but in how it handles adversity. Like any transformative process, Bitcoin’s growth has been neither linear nor predictable. It has faced countless setbacks, from the collapse of exchanges like Mt. Gox to outright bans in major economies like China. Each of these challenges could have spelled the end for a lesser technology. But for Bitcoin, these obstacles have been opportunities—forcing innovations that strengthen the network and reinforce its value.

This is where Hofstadter’s Law meets the Law of Bitcoin Valuation. Every time Bitcoin encounters a delay or a setback, it emerges stronger, often in ways that surpass what even the most optimistic proponents had anticipated. This isn’t just about Bitcoin’s price recovering after a dip; it’s about the network evolving in response to challenges, becoming more secure, more decentralized, and more valuable with each iteration.

The lesson here is that Bitcoin’s value isn’t just about where it stands at any given moment; it’s about the long, unpredictable path it takes to get there. Bitcoin’s progress may be slower than you expect, but when it finally does break through, it does so with a force that leaves previous expectations in the dust. In this way, Hofstadter’s Law doesn’t just apply to Bitcoin’s timeline—it’s integral to understanding why Bitcoin’s future value is consistently underestimated.

To appreciate Bitcoin fully, you need to recognize that its growth is driven by a process that is as much about overcoming adversity as it is about technological innovation. Bitcoin’s recursive nature—where each challenge begets a stronger, more robust network—ensures that its ultimate value will far exceed what any of us can predict. And while it may take longer to get there, the end result will be a value proposition that transcends our current understanding.

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### Section 2: Bitcoin’s Fractal Nature and Substrate Neutrality

Bitcoin isn’t just a digital currency or a piece of software—it’s an entity that embodies the very principles of evolution. Imagine an organism that can adapt to any environment, no matter how hostile or unfamiliar. That’s Bitcoin: it’s a protocol that, much like a living system, finds ways to embed itself into every nook and cranny of our world. And just like a fractal pattern, Bitcoin’s influence replicates itself at different scales—technological, cultural, and philosophical—each reinforcing the others.

At its core, Bitcoin is substrate-neutral. This means it doesn’t care where or how it exists, as long as it does. It can live on your laptop, on a piece of paper, in a hardware wallet, or even as a sequence of words stored in your mind. It’s money, but it’s also software, culture, and philosophy—all rolled into one. This adaptability allows Bitcoin to sink its teeth into various environments, influencing them and being influenced in return, much like an evolving organism that thrives through interaction with its ecosystem.

Consider this: Bitcoin can be transmitted over the internet, via radio waves, or even across a blockchain satellite network. It can be stored physically as a QR code on paper or memorized through a seed phrase. This ability to transcend traditional boundaries, to exist and operate in multiple forms and modalities, is what gives Bitcoin its incredible resilience. It’s everywhere and nowhere, a pervasive force that is as difficult to pin down as it is to suppress.

Bitcoin’s fractal nature is what makes it so powerful. At every level—whether individual transactions, the global financial system, or even broader cultural movements—Bitcoin’s influence is felt. It’s a network that grows stronger with each new participant, each new use case, and each new adaptation to its environment. And because it operates across so many different dimensions, its value isn’t tied to any one factor; it’s a sum greater than its parts.

This cross-modal adaptability is also what enables Bitcoin to resist external pressures. Governments can ban mining or try to regulate exchanges, but Bitcoin just adapts, finds new ways to exist and thrive. It’s this evolutionary robustness that ensures Bitcoin’s long-term survival and growth. The more you try to confine it, the more it slips through your fingers, finding new forms and new ways to assert its presence.

So, when we talk about Bitcoin’s value, it’s not just about price charts or market cap. Bitcoin’s true value lies in its ability to exist across multiple planes of reality—technological, cultural, philosophical—and to influence each one in ways that reinforce and amplify its overall impact. This isn’t just a currency or a protocol; it’s a living system, constantly evolving and expanding its reach, ensuring that its value continues to grow in ways that far exceed our expectations.

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### Section 3: Bitcoin’s Antifragility and Critical Inflection Points

To understand why Bitcoin’s value will always exceed expectations, we need to look at how it behaves under pressure. Nassim Taleb introduces the idea of antifragility—systems that don’t just withstand stress but actually grow stronger because of it. This concept perfectly encapsulates Bitcoin’s journey through a series of critical inflection points, each of which has tested the network’s resilience and, in doing so, has reinforced its long-term value and viability.

Think of antifragility as the opposite of fragility. A fragile system breaks under stress, while a robust one can withstand it. But an antifragile system doesn’t just survive; it uses stress as fuel for growth. That’s Bitcoin. Every time Bitcoin faces a challenge—whether it’s a technological hurdle, a regulatory crackdown, or a market collapse—it doesn’t merely endure. It adapts, evolves, and emerges stronger than before.

One of the most striking examples of Bitcoin’s antifragility is the collapse of Mt. Gox in 2014. At the time, Mt. Gox was the largest Bitcoin exchange in the world, handling the majority of Bitcoin transactions. Its sudden implosion, which resulted in the loss of hundreds of thousands of Bitcoins, could have easily been the death knell for a nascent and fragile network. But instead of collapsing, the Bitcoin community adapted. The crisis led to innovations in wallet security, the emergence of decentralized exchanges, and a renewed focus on personal custody. The result? A stronger, more resilient Bitcoin ecosystem that is far less reliant on centralized entities.

Another pivotal moment came in 2021 when China, which had long been the epicenter of Bitcoin mining, imposed an outright ban on the practice. Overnight, the Bitcoin network’s hash rate—a measure of its computational power—plummeted by nearly 50%. But what could have been a catastrophic blow instead became a testament to Bitcoin’s decentralized nature. Mining operations quickly relocated to more favorable jurisdictions, and within months, the network’s hash rate not only recovered but reached new highs. This demonstrated that Bitcoin isn’t just resistant to attacks—it’s antifragile. Attempts to stifle it only make it stronger, pushing the network to innovate and diversify.

These inflection points aren’t just historical anecdotes; they are proof of concept for Bitcoin’s antifragility. Each challenge that Bitcoin has faced has been a catalyst for growth, forcing the network to adapt in ways that make it more decentralized, more secure, and ultimately, more valuable. This is why Bitcoin’s value is so difficult to predict—because it’s not static. It’s a living, evolving system that thrives on chaos and uncertainty.

When we talk about the Law of Bitcoin Valuation, this is a key element: Bitcoin’s value isn’t just a function of its current state; it’s the product of its capacity to grow stronger in response to stress. It’s not enough to understand Bitcoin as a stable, predictable asset—because it’s not. It’s antifragile, meaning that its most significant growth often occurs in response to its greatest challenges.

So, as we look forward, we can expect Bitcoin to continue this pattern. Future crises will come—whether they’re technological, regulatory, or market-driven. And each time, Bitcoin will adapt, using the pressure to fuel its evolution and enhance its value in ways that, yet again, will exceed our expectations.

---

### Section 4: Bitcoin’s Early Adoption and the Dawn of Cultural Shift

Despite all its advances, Bitcoin is still in its early days. The reality is that most people on the planet haven’t yet grasped what Bitcoin is, let alone the transformative potential it holds. If you were to stop a hundred random people on the street and ask them about Bitcoin, chances are you’d be hard-pressed to find even one who truly understands what it’s all about. But that doesn’t mean the change isn’t happening—it’s just that, as William Gibson once said, “The future is already here—it’s just not very evenly distributed.”

Bitcoin’s adoption cycle is still in its infancy, and while the percentage of people who hold Bitcoin is growing, it remains a fraction of the global population. This gap between the potential of Bitcoin and the current level of understanding and adoption is both a challenge and an opportunity. It’s a challenge because it means Bitcoin’s full impact has yet to be realized on a global scale. But it’s also an opportunity, because it suggests that we’re only just beginning to see the cultural and societal shifts that Bitcoin is capable of driving.

As Bitcoin continues to gain traction, it’s not just financial systems that are being transformed; it’s our very conception of value, autonomy, and power. Bitcoin is gradually shifting the way we think about money—not just as a medium of exchange, but as a store of value that is decentralized, deflationary, and outside the control of any single entity or government. This shift is subtle, but it’s profound, and it’s already beginning to influence how people interact with power structures in the digital age.

Right now, the cultural impact of Bitcoin is still nascent, confined mostly to early adopters, technologists, and those who see beyond the surface of speculative investment. But the seeds of a broader revolution are being planted. As more people begin to understand the implications of a decentralized, permissionless financial system, we’ll see a gradual but unstoppable shift in how societies organize themselves, how governments interact with their citizens, and how individuals think about their own financial sovereignty.

This is the dawn of a new cultural era—one that’s being driven by Bitcoin’s underlying principles of decentralization, transparency, and autonomy. And while it might not be immediately visible to everyone, the ripples of this change are starting to spread. The idea that money doesn’t have to be controlled by governments, that value can be stored and transferred without intermediaries, is radical. And like all radical ideas, it will take time to fully permeate society.

But make no mistake: the future is coming. It’s just not evenly distributed yet.

---

### Section 5: Bitcoin as an Exit—The Evolution Beyond Fiat Currency

For most people today, Bitcoin’s value is still measured in terms of dollars, euros, or yen. You look at the price chart and think, “Okay, my Bitcoin is worth this much in fiat currency.” And for now, that’s true. You can swap Bitcoin for dollars at a given rate and use those dollars to buy goods and services. But what happens as that rate climbs higher and higher? What happens when Bitcoin’s value is no longer just a number on a screen but something that fundamentally changes how we think about and use money?

As Bitcoin’s price increases, the dynamics of its interaction with fiat currencies will inevitably change. Right now, if Bitcoin is trading at $50,000, it’s relatively easy to swap between Bitcoin and dollars. There’s liquidity, and plenty of people are willing to make the trade. But what happens when Bitcoin is worth $1 million? Or $10 million? At that point, exchanging Bitcoin for dollars becomes a different proposition entirely—not because the mechanics of the exchange are different, but because the very idea of what those dollars represent is shifting.

As Bitcoin’s value climbs, it’s not just that your dollars might buy less—it’s that fewer people are going to want dollars in the first place. The demand for a currency that loses purchasing power every year will pale in comparison to the demand for an asset that not only holds its value but increases in purchasing power over time. This isn’t just speculation; it’s a reflection of the underlying economic forces at play. As Bitcoin continues to prove itself as a superior store of value, the appeal of holding dollars or other fiat currencies will diminish.

This is where the true shift begins to take shape. At $50,000, Bitcoin is still largely a speculative asset—a way to potentially increase your wealth in terms of fiat currency. But at $10 million, Bitcoin becomes something entirely different. It’s no longer just an investment; it’s an alternative system. It’s an “exit” from the traditional financial structures that have dominated the world for centuries.

At this stage, the idea of trading Bitcoin for fiat becomes less relevant. Why trade something that’s consistently appreciating for something that’s consistently losing value? As more people come to this realization, the role of fiat currencies in the global economy will start to wane. Bitcoin, by contrast, will grow not just as a store of value, but as a medium of exchange and a unit of account—a true currency for a new era.

This shift won’t happen overnight, but it’s already underway. And as it accelerates, we’ll see a new kind of economic freedom emerge—one where individuals are no longer tied to the whims of central banks or government-controlled currencies. Bitcoin offers an exit, a way to opt out of the fiat system and into something more stable, more predictable, and ultimately, more empowering.

---

### Transition Section: The Evolution of Technology Adoption—Bitcoin’s Path from Curiosity to Necessity

The trajectory of technological adoption is often predictable: what starts as a curiosity becomes a luxury, then a universal utility, and finally a necessity. This path has been followed by countless innovations throughout history, from electricity to the internet. Bitcoin, as a fundamentally transformative technology, is following the same curve.

In its earliest days, Bitcoin was a curiosity—a novel experiment in decentralized digital currency, understood by few and embraced by even fewer. Early adopters were those with a deep interest in cryptography, economics, or the fringes of the tech world. For these pioneers, Bitcoin was a fascinating idea, something to explore and experiment with, but not yet something with practical, everyday value.

As time went on, Bitcoin began to move into the realm of luxury. It became something that the wealthy or tech-savvy might hold, not necessarily because they needed it, but because they saw its potential as a store of value or as a hedge against traditional financial systems. At this stage, Bitcoin was still not essential—something akin to a high-end gadget or a rare collectible, valuable but not necessary.

But we’re now witnessing Bitcoin’s shift into the next phase: a universal utility. As its adoption grows and its utility becomes clearer, Bitcoin is transitioning from a luxury to something that more and more people find essential for preserving wealth, securing transactions, and protecting their financial sovereignty. This is a crucial turning point in the technology adoption curve, where Bitcoin moves beyond being a choice for the few and starts to become a viable option for the many.

Already, we’re seeing a microcosm of this in the behavior of certain Bitcoin holders. There’s a growing number of people who, regardless of the current exchange rate, simply refuse to trade their Bitcoin for fiat currency. For them, Bitcoin isn’t just an asset; it’s a philosophy, a new form of money that they believe in so deeply that they’d rather hold it than spend it on anything that can be bought with dollars or euros. This mindset is a harbinger of what’s to come as Bitcoin continues to move along the adoption curve.

As Bitcoin shifts into the final phase—becoming a necessity—this trend will only intensify. What was once a curiosity will have become an integral part of daily life, not just for the wealthy or tech-savvy, but for everyone. And when Bitcoin reaches this stage, it won’t just be an option; it will be a requirement for anyone who wants to participate in the economy of the future.

This progression sets the stage for understanding how Bitcoin will integrate with other emerging technologies, like AI, to form the foundation of a new economic ecosystem. As Bitcoin becomes a necessity, its role in the digital economy will expand, driving innovation and creating opportunities that are beyond the reach of today’s fiat-based systems.

---

### Section 6.1: The Rise of AI Services and the Need for Instant, Secure Payments

Imagine you’re running an AI startup. Your company provides cloud-based AI services, processing complex data or offering advanced machine learning algorithms on demand. Business is good, and your services are gaining traction. But as with many startups, you’re operating on tight margins. You have costs—significant ones—such as server time on platforms like Amazon Web Services (AWS), salaries for your team, and ongoing development expenses. However, you’re making a profit, and things are looking up.

Then one weekend, everything changes. Your service goes viral. Maybe it’s a tweet from a high-profile influencer, or maybe a large corporation decides to test your product at scale. Whatever the cause, by Monday morning, you’ve got a $50,000 AWS bill waiting for you. This is great news on one hand—your service is in demand! But there’s a catch: your customers paid with credit cards, and those payments might take 30 days to fully process. Worse, some of them could be reversed or disputed, and a significant portion might never make it to your account due to chargebacks.

This isn’t just a hypothetical scenario—it’s a reality that many startups face. The lag between providing a service and actually receiving payment can create serious cash flow issues, especially when the costs are immediate, and the revenue is uncertain. In the time it takes for your payments to clear, you’re on the hook for that $50,000 bill. If you don’t have the capital to cover it, your company could be in serious trouble, despite the surge in demand.

Now imagine a different scenario. Instead of relying on traditional payment methods, which are slow, reversible, and fraught with potential disputes, your customers pay with Bitcoin. The moment a transaction is made, it’s final. There are no chargebacks, no delays, and no third-party intermediaries taking a cut or holding up the process. You get paid instantly, securely, and in full, the moment your service is delivered.

With Bitcoin, that $50,000 AWS bill is no longer a threat to your business’s survival. The funds are available immediately, and you can pay your expenses without waiting weeks for your money to clear. This kind of financial security isn’t just a nice-to-have for startups—it’s a necessity for survival in a competitive and fast-moving tech landscape.

As AI services become more prevalent, the need for a payment system that matches the speed and finality of these services is critical. Bitcoin provides that system, enabling startups and businesses to operate without the constant fear of cash flow crises caused by slow or uncertain payments.

---

### Section 6.2: Autonomous AI Systems and the Case for Bitcoin

As AI systems become increasingly autonomous, performing tasks that once required direct human oversight, a new question emerges: what kind of currency would an AI system "prefer" to use? While AIs don’t have desires or preferences in the way humans do, they operate within certain constraints and requirements dictated by their human creators. When you consider these constraints, the answer becomes clear—Bitcoin is the most logical choice for an AI to use as a medium of exchange.

Think about it: What is an AI going to do with a bar of gold? It’s heavy, inert, and completely useless in the digital realm where AI operates. A stack of dollar bills is no better—AI systems can’t physically handle cash, and even if they could, those bills would need to be deposited into a bank account, which might require human identification or even a visit to a physical branch. This just doesn’t make sense for a system designed to function independently and efficiently in the digital world.

Similarly, a traditional bank account tied to fiat currency poses problems. Banks operate on a system that’s inherently human-centric, with requirements for identification, manual oversight, and often, geographical constraints. AI systems are designed to work at a speed and scale that far outpaces human processes, making the slow, bureaucratic nature of traditional banking a poor fit for autonomous operations.

Bitcoin, on the other hand, is perfectly suited to the needs of autonomous AI systems. It’s digital, borderless, and doesn’t require human identification or intervention. Transactions are fast, secure, and final—exactly what’s needed for AI systems that might be executing thousands, or even millions, of transactions per second. And because Bitcoin is programmable, it can be integrated directly into the operations of these systems, allowing them to function autonomously and efficiently.

From a practical standpoint, if an AI could "want" something—speaking metaphorically, of course—it would want Bitcoin. Not because it has desires like a human, but because Bitcoin aligns perfectly with the operational needs of AI systems. It’s the only currency that makes sense in a digital world where speed, security, and decentralization are paramount.

But it’s not just about the needs of the AI systems themselves. It’s also about the humans who create and operate these systems. As AI becomes more integrated into our daily lives, people will increasingly delegate certain tasks and responsibilities to these systems. Whether it’s managing finances, optimizing supply chains, or even negotiating contracts, these AI systems will need the ability to transact on their human operators' behalf.

By endowing AI systems with Bitcoin budgets, humans can ensure that these systems have the financial autonomy they need to operate effectively. This doesn’t just streamline processes—it also opens up new possibilities for innovation and efficiency, allowing AI systems to interact with each other and the world in ways that were previously impossible.

In this way, Bitcoin becomes more than just a currency for humans—it becomes the financial infrastructure that enables the next generation of AI systems to function and thrive in a fully digital economy.

---

### Section 6.3: Bitcoin as a Practical Check Against Runaway AI

As AI systems advance towards greater autonomy, the concept of runaway artificial intelligence—an AI that could potentially surpass human control—raises significant concerns. While this scenario remains largely speculative, it’s critical to consider how such intelligence might interact with the world’s economic and resource-based systems. Here, Bitcoin plays a unique and crucial role as a check against the potential for runaway AI to gain unchecked control.

Bitcoin’s value is intrinsically tied to the real world. Unlike fiat currencies, which can be created at will, or other digital assets that might be produced without significant cost, Bitcoin’s supply is permanently capped at 21 million. No more Bitcoin can be created beyond this limit, introducing a concept of absolute scarcity that is unprecedented in the realm of currencies.

Currently, we are in the subsidy era, where new Bitcoins are being unlocked over time as miners validate transactions and secure the network. It’s important to note that these Bitcoins aren’t being “created” from nothing—they are part of the pre-determined supply that was established when Bitcoin was first launched. This unlocking process is driven by the proof-of-work mechanism, where miners expend real-world energy and utilize specialized hardware to solve complex cryptographic puzzles. In return, they earn the privilege of adding new blocks to the blockchain, which includes a reward in the form of transaction fees and a diminishing block subsidy until the final Bitcoin is unlocked.

This means that acquiring Bitcoin requires either mining, which involves significant resource expenditure, or obtaining it from someone else who already holds it. You cannot simply print more Bitcoin or generate it without cost—it must be earned through work, either directly or indirectly. This creates a fundamental connection between Bitcoin and the real world, where the currency’s existence is tied to the physical act of energy expenditure.

Now, consider a future where Bitcoin has become the primary global currency, with its distribution secured by robust public-private key cryptography. The world’s resources would be controlled through the distribution of Bitcoin, held securely by millions of individuals and entities. Any runaway AI seeking to dominate the global economy would face a formidable challenge: it would need to gain control over a significant portion of the world’s physical resources to accumulate enough Bitcoin to exert influence.

But the challenge for runaway AI doesn’t stop there. Bitcoin’s decentralized distribution across billions of economic actors, each acting in their own self-interest, creates a natural defense against centralization. Even if a runaway AI attempted to orchestrate a 51% attack, it would require not only computational power but also physical control over the world’s energy sources and hardware infrastructure—a near-impossible feat given the decentralized and global nature of Bitcoin mining.

Moreover, the intrinsic human element in the Bitcoin ecosystem acts as an additional layer of security. With billions of people holding and transacting in Bitcoin, each with their own economic motivations, any attempt by a runaway AI to subvert the system would meet with resistance from a vast network of actors who are collectively incentivized to protect the integrity of the network. This decentralized self-interest acts as a powerful check against any single entity, human or machine, attempting to gain undue control.

In this way, Bitcoin’s design doesn’t just make it a robust currency—it makes it a practical check against any potential runaway AI. The need to expend real-world resources to mine Bitcoin, combined with its finite supply and distributed ownership, creates a barrier that ensures even the most advanced AI remains grounded in a system that is inherently resistant to centralization.

---

**[Recapitulation]**

We’ve taken a journey through the Law of Bitcoin Valuation, a principle that boldly states: “The future value of Bitcoin will always exceed *your* expectations, even when you adjust your expectations to account for the Law of Bitcoin Valuation.” This concept is deeply intertwined with Hofstadter’s Law, which reminds us that “it always takes longer than you expect, even when you take into account Hofstadter’s Law.” Together, these laws form a framework for understanding why Bitcoin’s trajectory is so difficult to predict—because it’s operating on a different level, fueled by recursive growth and a broad array of transformative impacts.

We’ve explored how Bitcoin’s value isn’t just about price charts or market speculation. It’s about Bitcoin’s multifaceted nature—its roles as money, software, culture, philosophy, and more. This multi-modal system, with its inherent resilience and adaptability, ensures that Bitcoin is more than just another digital asset; it’s an evolving, decentralized life form that’s continuously adapting and growing stronger over time.

We’ve also examined Bitcoin’s role as a check against runaway artificial intelligence, with its proof-of-work mechanism tying it to the real world, making it incredibly difficult for any single entity—human or machine—to dominate. Bitcoin’s decentralized distribution across billions of economic actors creates a natural, robust defense against any attempts at centralization or subversion.

At this point, however, a question might linger in the minds of some: *Is Bitcoin truly the ultimate solution, or will it be replaced by something else?* Is Bitcoin just the MySpace of digital currency, with a “Facebook” waiting in the wings to take over? This next section provides a clear answer.

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### Section 7: Why Bitcoin Is the Revolution—Not Just a Phase

To understand why Bitcoin isn’t just another passing trend, we need to dig into its foundational attributes—attributes that make it not just a contender, but the definitive solution in the realm of digital currencies. Bitcoin isn’t the MySpace of digital money; it’s the eukaryotic revolution in the world of finance. Here’s why.

**1. Proof-of-Work: The Immutable Bedrock**

Bitcoin’s proof-of-work mechanism is more than just a way to secure transactions; it’s what ties Bitcoin to the real world. Unlike other consensus mechanisms like proof-of-stake, proof-of-work requires actual physical resources—energy and hardware. This makes Bitcoin intrinsically resistant to manipulation. You can’t just print more Bitcoin, and you can’t fake the energy expenditure required to mine it. This grounding in physical reality ensures that Bitcoin remains a robust, immutable system, resistant to centralization and corruption.

**2. First-Mover Advantage and Network Effects**

Bitcoin was the first cryptocurrency to achieve widespread adoption, and this first-mover advantage has established it as the gold standard. With millions of users, miners, and nodes worldwide, Bitcoin’s network effect is unmatched. The more people use and secure the network, the stronger it becomes. This creates a self-reinforcing loop where Bitcoin’s value and security increase as more people adopt it. This isn’t something that can easily be replicated by a new cryptocurrency; it’s the result of years of development, adoption, and trust-building.

**3. Absolute Scarcity and Decentralization**

Bitcoin’s supply is capped at 21 million, and this absolute scarcity is a feature, not a bug. Unlike fiat currencies, which can be printed indefinitely, Bitcoin’s fixed supply ensures that it will remain a deflationary asset. As demand for Bitcoin grows, its value is poised to increase. But more importantly, this scarcity is combined with a decentralized structure. No single entity controls Bitcoin, and this decentralization is key to its resilience. It’s not just the most secure and scarce digital asset—it’s the one that’s least likely to be co-opted by any central authority.

**4. The Eukaryotic Revolution in Finance**

Much like the eukaryotic revolution in biology, which gave rise to complex life forms by incorporating simpler organisms, Bitcoin represents a paradigm shift in finance. It’s not just a new kind of money; it’s an entirely new way of thinking about value, trust, and autonomy. Other cryptocurrencies might come and go, but they will either be absorbed into Bitcoin’s ecosystem or rendered irrelevant by its superior architecture and network effects. Just as eukaryotic cells became the foundation for all complex life, Bitcoin will become—or perhaps already has become—the foundation for a new, decentralized financial system.

**5. The Noise of Alternatives**

It’s tempting to think that some new cryptocurrency or blockchain project might replace Bitcoin, just as Facebook replaced MySpace. But this analogy misunderstands what Bitcoin is. Bitcoin isn’t a social network that can be easily out-innovated. It’s a fundamental breakthrough in how we understand and secure digital value. Alternatives may offer improvements in niche areas, but they lack the robustness, security, and network effects that make Bitcoin unparalleled. In essence, everything else is just noise—interesting experiments that will either complement Bitcoin or fade away.

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### Final Recap and the Laws Revisited

We began this journey with two deceptively simple but profoundly insightful laws. First, the **Law of Bitcoin Valuation**: “The future value of Bitcoin will always exceed *your* expectations, even when you adjust your expectations to account for the Law of Bitcoin Valuation.” Second, **Hofstadter’s Law**: “It always takes longer than you expect, even when you take into account Hofstadter’s Law.” These two principles are more than just clever observations; they provide a framework for understanding the incredible, and often underestimated, potential of Bitcoin.

As we’ve explored, Bitcoin is not merely a digital asset or a speculative investment. It is a multi-faceted, decentralized system that touches on technology, philosophy, economics, and beyond. From its proof-of-work mechanism that grounds it in physical reality to its absolute scarcity that ensures its deflationary nature, Bitcoin is designed to be resilient, secure, and fundamentally different from anything that has come before.

Bitcoin’s evolution has been marked by recursive growth and the unexpected ways in which it integrates into various aspects of life. Whether it's serving as a check against runaway artificial intelligence, offering a robust and decentralized monetary system, or simply evolving as a cultural and technological phenomenon, Bitcoin consistently surpasses expectations.

Yet, what’s crucial to understand is that this journey isn’t about some abstract or collective expectation—it’s about *your* expectations. The Law of Bitcoin Valuation is personal. It tells you that no matter how well you think you understand Bitcoin, it will surprise you. Whether you’re a skeptic who doubts its longevity or a believer who dreams of its potential, Bitcoin will exceed what you think is possible.

Hofstadter’s Law complements this by reminding us that while Bitcoin will outperform your expectations, it will also do so on its own timeline, often taking longer than you’d like. This interplay between these two laws—your expectations being exceeded and the timeline being longer than anticipated—creates a tension that’s essential to understanding Bitcoin’s unique place in the world.

In essence, Bitcoin is not just another technological innovation; it’s a revolutionary force that’s reshaping our understanding of value, trust, and autonomy. It’s easy to look at Bitcoin’s price chart and think you’ve grasped its worth, but that’s just scratching the surface. Bitcoin’s true value lies in its ability to constantly adapt, grow, and integrate into new systems in ways that are both unexpected and profound.

As we’ve seen, from its role as a currency for AI to its function as a safeguard against centralization, Bitcoin is much more than a passing phase. It’s the bedrock of a new, decentralized financial system that is here to stay, and it will continue to surprise and exceed expectations for years to come.

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### The Footnote: Practical Wisdom

In the face of Bitcoin’s complexity and the vast potential it holds, there’s a piece of practical advice that has become a mantra within the Bitcoin community: *Stay humble and stack sats.* It’s a simple yet profound meme that encapsulates the essence of the journey we’ve discussed.

The traditional financial adage is “don’t invest more than you can afford to lose.” But in the world of Bitcoin, we think about it differently: it’s not about investing—it’s about *saving* in a new kind of system. When you choose to hold Bitcoin, you’re opting out of the old system and stepping into a new one. And while the potential rewards are immense, the wisdom of that old adage still applies: don’t rush in too fast.

Bitcoin isn’t just a speculative asset—it’s a tool for financial sovereignty. And with sovereignty comes responsibility. It’s crucial to ensure that what you save is *secure*—not just from external threats, but from your own potential mistakes. A small amount of Bitcoin, secured properly, is far more valuable than a large amount that you end up losing because you didn’t take the time to understand how to protect it.

This is why the advice to *stay humble and stack sats* is so powerful. It reminds us to approach Bitcoin with a mindset of patience and diligence. Accumulate small amounts consistently, and take the time to learn how to secure your holdings. Use hardware wallets, understand private keys, and make sure that your Bitcoin is safe—especially from yourself. There’s no rush. The journey of Bitcoin is long, and its value will continue to grow, exceeding your expectations.

In this way, the mantra “stay humble and stack sats” is more than just a meme; it’s a foundational principle for engaging with Bitcoin responsibly. You don’t need to make a big splash to benefit from Bitcoin’s growth. Slow and steady wins the race. By gradually accumulating and securing your Bitcoin, you’re positioning yourself to benefit from its long-term potential without taking unnecessary risks.

So, as we conclude this exploration, remember this: Bitcoin’s value will continue to exceed your expectations, but only if you approach it with humility and care. Stack sats, secure them wisely, and let Bitcoin do the rest. The journey may take longer than you expect, but the destination will be worth it.

Here's a structured agenda for the BASED Party administration, detailing concrete steps and goals for Day One, the First 100 Days, the First Year, and the First Term:

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### **BASED Party Administration Agenda**

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**1) Day One:**

**Executive Orders:**

- **Bitcoin and Financial Freedom:**

- Issue an executive order to exempt peer-to-peer Bitcoin-to-dollar transactions from being classified as taxable events.

- Mandate the creation of a task force to identify and streamline regulations that hinder the adoption and use of Bitcoin.

- **Law and Order:**

- Issue an executive order to reinforce support for law enforcement, prioritizing federal grants for police training programs focused on community engagement and de-escalation techniques.

- Initiate a review of federal criminal justice policies to identify areas where reforms can promote fairness and equity.

- **Energy Independence:**

- Issue an executive order to fast-track the approval process for new nuclear power plants and small modular reactors (SMRs).

**Cabinet Selections:**

- Nominate a Cabinet that reflects the BASED Party's commitment to financial freedom, technological innovation, law and order, and national sovereignty.

- **Secretary of the Treasury:** A pro-Bitcoin advocate committed to financial innovation and economic stability.

- **Attorney General:** A law-and-order leader who supports criminal justice reform while upholding the rule of law.

- **Secretary of Energy:** A strong advocate for nuclear energy and environmental sustainability.

- **Secretary of Homeland Security:** An individual committed to securing borders while implementing fair and rational immigration policies.

- **Secretary of Commerce:** A pro-business leader with a focus on promoting innovation, particularly in AI and FreedomTech.

**Legislative Initiatives:**

- **Bitcoin and Digital Assets:** Propose legislation to enshrine the rights to own, use, and transact in Bitcoin, and to ensure that Bitcoin-to-dollar transactions are not taxable events.

- **Nuclear Energy Expansion:** Propose a bill to allocate federal funds for the development of advanced nuclear technologies, including the construction of new nuclear power plants.

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**2) First 100 Days:**

**Legislative Goals:**

- **Election Integrity:** Introduce a comprehensive Election Integrity Act, which includes measures for secure voting systems, voter ID laws, and transparent election processes.

- **Ranked Choice Voting:** Propose legislation to implement Ranked Choice Voting (RCV) nationwide, ensuring fairer and more representative elections.

- **Term Limits:** Push for a constitutional amendment to impose term limits on members of Congress.

**Policy Implementation:**

- **Bitcoin Education:** Launch a nationwide financial literacy campaign focused on Bitcoin and the benefits of decentralized finance.

- **Criminal Justice Reform:** Work with Congress to pass criminal justice reform legislation that addresses systemic issues while strengthening community safety.

- **Environmental Policy:** Begin the process of modernizing existing nuclear facilities and integrating nuclear energy into the national energy grid.

**Cabinet Actions:**

- **Treasury Department:** Begin developing a regulatory framework that supports Bitcoin and other digital assets, ensuring that innovation is not stifled by outdated laws.

- **Department of Energy:** Start awarding grants and contracts for the construction of next-generation nuclear power plants and SMRs.

- **Department of Homeland Security:** Implement stronger border security measures while initiating reforms to streamline legal immigration processes.

**Executive Orders:**

- **Regulatory Reduction:** Issue an executive order requiring that for every new federal regulation, two existing regulations must be eliminated. Begin an immediate review of all current regulations to identify those that can be removed.

- **Fiscal Responsibility:** Implement a federal hiring freeze to reduce government bloat and begin a review of federal programs for potential spending cuts.

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**3) First Year:**

**Major Goals:**

- **Balanced Budget:** Work with Congress to pass a budget that achieves fiscal balance by cutting unnecessary spending, with a commitment to reducing government expenditures by at least 1% each year.

- **Nuclear Energy Leadership:** Position the United States as a global leader in nuclear energy by completing the approval of multiple new nuclear power plants and setting the groundwork for a carbon-neutral energy future.

- **FreedomTech Development:** Support the development and adoption of FreedomTech by funding open-source projects and establishing protections against censorship and surveillance.

**Legislative Achievements:**

- **Criminal Justice and Police Reform:** Enact comprehensive criminal justice reform that balances law enforcement needs with civil liberties and fairness.

- **Energy Independence Act:** Pass the Energy Independence Act, which includes provisions for expanding nuclear energy, reducing reliance on foreign energy, and incentivizing private sector innovation in energy technologies.

**Regulatory Framework:**

- **Bitcoin and Digital Assets:** Finalize and implement a regulatory framework that makes the U.S. the most Bitcoin-friendly country in the world, attracting innovation and investment in the digital assets space.

- **Environmental Stewardship:** Implement policies to promote the development of nuclear energy as a cornerstone of environmental policy, including funding for research into next-generation reactors and waste management solutions.

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**4) First Term:**

**Strategic Objectives:**

- **Global Financial Leadership:** Establish the United States as a leader in the global digital economy, with Bitcoin and decentralized finance at the forefront of our financial system.

- **Energy Independence:** Achieve significant milestones in making the U.S. energy-independent through a massive expansion of nuclear power and other sustainable energy sources.

- **Restoring Constitutional Governance:** Reinforce the principles of constitutional governance by ensuring that the federal government operates within its means and respects the rights of states and individuals.

- **Election and Political Reform:** Successfully implement Ranked Choice Voting nationwide, establish term limits for Congress, and secure the integrity of future elections.

**Long-Term Policy Goals:**

- **Digital Rights and FreedomTech:** Ensure that the U.S. remains a bastion of digital rights by protecting privacy, supporting open-source software, and fostering an environment where FreedomTech can thrive without undue government interference.

- **Balanced Budgets:** Achieve sustained fiscal discipline by maintaining balanced budgets and continuing to reduce government spending year over year.

- **Regulatory Reduction:** Have a measurable impact on reducing the regulatory burden on American businesses and citizens, with a focus on fostering innovation, particularly in emerging technologies like AI and Bitcoin.

**Legacy:**

- **A New Era of American Innovation:** Leave behind a legacy of innovation, freedom, and prosperity by championing the transformative potential of Bitcoin, nuclear energy, and FreedomTech, while ensuring that the principles of democracy, sanity, and effective governance guide every decision.

BASED Party Platform:

Bitcoin Advocates for Sane and Effective Democracy

Introduction:

The BASED Party is a coalition of Americans who believe in the principles of financial independence, common sense governance, and the preservation of individual freedoms. We advocate for policies that empower citizens, respect the rule of law, and ensure that democracy remains a true reflection of the people’s will. Our platform is built on six core pillars: Financial Freedom, Restoring Sanity, Effective Democracy, Law and Order, National Sovereignty, and Fiscal Responsibility.

1. Financial Freedom:

We believe in the transformative power of Bitcoin as a path to financial sovereignty for every citizen. The traditional financial system often fails the average American, while Bitcoin offers a secure, decentralized alternative.

• Support for Bitcoin: We advocate for policies that recognize and protect the right to own, use, and transact in Bitcoin, including the right to run a Bitcoin node.

• Simplified Bitcoin Transactions: We support streamlining regulations to make Bitcoin transactions simpler and easier. Specifically, we advocate for the removal of burdensome tax obligations on Bitcoin-to-dollar transactions, ensuring that peer-to-peer transactions between Bitcoin and dollars are not classified as taxable events. This would significantly enhance the utility of Bitcoin as digital cash.

2. Restoring Sanity to Public Policy:

The BASED Party stands for a return to common sense in governance. We reject polarizing ideologies and prioritize practical solutions over ideological purity.

• Respect for Tradition: We value cultural and national traditions that foster unity and pride.

• Balanced Policies: Governance should be driven by what works, not by narrow political agendas.

• Free Speech: We protect free speech, opposing cancel culture and the silencing of dissenting voices.

3. Effective Democracy:

True democracy respects the voice of the people and holds power accountable. We aim to revitalize our democratic institutions to make them more transparent and representative.

• Election Integrity: We support secure voting systems and transparent election processes to ensure every vote counts.

• Ranked Choice Voting: We advocate for Ranked Choice Voting (RCV) to ensure fairer, more representative elections.

• Term Limits: We support term limits for Congress to prevent the monopolization of power by career politicians.

4. Law and Order:

A safe and orderly society is essential to a thriving nation. The BASED Party believes in upholding the rule of law and ensuring that our communities are protected from crime and violence.

• Support for Law Enforcement: We support law enforcement officers with the resources and training they need, while also advocating for fair and just criminal justice reform.

• Community Safety: We support proactive measures to address the root causes of crime and provide opportunities for at-risk individuals.

5. National Sovereignty and Energy Independence:

The BASED Party believes in protecting America’s borders, economy, and energy independence to ensure the prosperity and security of its citizens.

• Border Security and American Jobs: We support strong borders and policies that protect American jobs from unfair foreign competition.

• Nuclear Power: We unequivocally support nuclear energy as the most effective solution for achieving carbon neutrality and ensuring energy independence.

• Environmental Stewardship: We advocate for nuclear power’s role in reducing greenhouse gases and advancing towards a carbon-neutral future.

6. FreedomTech and Protection of Rights:

The BASED Party supports the development and proliferation of Free and Open Source Software (FOSS) and “FreedomTech”—tools that enhance personal sovereignty, privacy, and computational freedom.

• Protection of Rights: We stand firmly for the protection of individual rights, including free speech, self-defense, privacy, and digital rights. We oppose any government actions that infringe upon these fundamental freedoms.

• Support for FreedomTech: We advocate for the development and use of tools that empower individuals and oppose restrictions on personal energy use and computation.

• AI as a Tool for Empowerment: We believe AI has immense potential as a tool for individual empowerment, creativity, education, and development. However, the greatest danger posed by AI—or even potential AGI—does not stem from the technology itself, but from how governments and corporations might exploit fear of these technologies. Under the guise of regulation, they may seek to stifle competition, protect their economic interests, censor dissent, or manipulate public opinion. Therefore, while we support commercial innovation in AI, it is crucial that open-source alternatives exist and flourish. These alternatives serve as a necessary check against overreach, ensuring AI remains a force for personal and collective freedom.

7. Fiscal Responsibility:

The BASED Party is committed to reducing government bloat and ensuring that taxpayer dollars are spent wisely. Responsible fiscal management is key to a prosperous future.

• Ongoing Spending Reductions: We propose reducing government spending by at least 1% each year indefinitely.

• Balanced Budgets: We advocate for immediately implementing balanced budgets and maintaining this discipline indefinitely.

• Regulatory and Legislative Reduction: For every new law or regulation proposed, two existing ones must be removed to trim down the regulatory state.

Conclusion:

The BASED Party stands for a future where America is strong, free, and united. We believe in a government that serves the people, respects individual freedoms, and upholds the principles of democracy. Join us in this fight for a better America—one that is based on the values that make our nation great.

I need go-to Orange pilling material in Spanish!

New coworker, from Cuba. Doesn’t like communists ha ha ha.

I am capable of googling, hoping to hear from somebody with first-hand experience who is bilingual lol

Single-issue voter

**Criticism 1:**

“AI cannot make art because AI does not have a brain and brains are literally magical."

- **Rebuttal:** If you believe the brain is magical beyond the physical laws of the universe, then we fundamentally disagree. Human creativity, whether brilliant or banal, emerges from the same physical processes that govern all matter, including the technology we create. Good day to you.

**Criticism 2:**

"That's not art. You are not an artist, and you should feel bad."

- **Rebuttal:** Stop being such a pretentious snob. Art is a human universal, an expression inherent to our species, regardless of the medium or method. Celebrating skill and professional accomplishments in art is wonderful, but remember, we are all evolved apes making our mark on the world, whether we're flipping burgers, welding, or using software to create.

**Criticism 3:**

"Okay, fine, it's art, but it's shitty art (and you should feel bad)."

- **Rebuttal:** The quality of the art doesn't determine whether it's art. From my toddler's SpaghettiO sauce doodles to the Sistine Chapel, all expressions are valid forms of art. Get off your high horse, you snob.

**Criticism 4:**

"Okay, fine, but you're cheating because you're not physically manipulating a medium (and you should feel bad)."

- **Rebuttal:** To argue that art must involve physical manipulation of a medium is to ignore the vast array of legitimate creative processes that don't. Whether it's conducting an orchestra, using digital tools like Photoshop, animating films like Toy Story, or composing music entirely on a computer, all these practices are undeniably forms of art. If you think otherwise, you might want to reconsider your definition after a moment of reflection, you walnut.

**Criticism 5:**

"Okay, fine, you don't have to interact physically, but there's no skill in what you do (and you should feel bad)."

- **Rebuttal:** The reality, from my personal experience, contradicts this. I'm transparent about using the same tools that anyone can access for less money, yet people choose to pay me $50 for a set of four images. Clearly, there's a recognized skill in how I use the tool to achieve desired results, you walnut.

**Criticism 6:**

"Fine, it takes some skill, but it's just work. You're just a hired gun. You're just a systems administrator (and you should feel bad)."

- **Rebuttal:** To dismiss it as mere 'work' and not 'true artistry' because it involves a machine seems to circle back to our initial discussions about what constitutes art and the source of creativity. Does the involvement of technology in the creative process diminish the emotional and artistic value of the output? If we've come to accept that there is skill involved and that these skills contribute to the final artwork, why do we devalue it simply because part of the process is mechanized? Reflect on how far we've come in our understanding of art's boundaries and who gets to define them…

PART 3 OF X

A. Continuity

Chapter 3: Competence

In this exploration of the continuum of human tools and artifacts, we extend the concept of mechanical competence to include the broader spectrum of "physical competence." This encompasses all entities within the physical universe, from organisms to artifacts, showcasing the diversity of competences, both with and without comprehension.

Physical Competence: The Broadest Spectrum

Physical competence represents the capacity of any entity within the physical universe to interact with its environment effectively. This includes the innate behaviors of animals, the growth patterns of plants, and the mechanical operations of human-created devices. Each of these entities, whether organic or synthetic, demonstrates competencies that enable survival, reproduction, or functionality within their respective ecosystems.

Human beings, with their cognitive abilities, exhibit a high level of comprehension, which allows for the creation of tools that extend these competencies. However, the broader category of physical competence includes many forms of life and technology that operate effectively without what we would recognize as comprehension. For example, a cicada's life cycle, driven by genetic programming and environmental cues, exhibits a form of biological competence without our understanding of cognitive awareness.

Exploring Comprehension Across the Spectrum

While humans possess a clear sense of comprehension, the cognitive states of other animals, such as dogs or insects, remain a subject of scientific inquiry and philosophical debate. This uncertainty prompts us to consider the various levels of comprehension that might exist in nature. Just as we cannot definitively claim understanding in these creatures, we also recognize that our most advanced technologies, like calculators and AI programs such as ChatGPT, operate on principles of mechanical competence without human-like comprehension.

These technologies, designed to perform specific functions, do so with efficiency and reliability, mirroring the programmed behaviors seen in many biological organisms. Thus, mechanical competence in technology parallels biological competences in nature, both shaped by evolutionary or design processes to fulfill particular roles effectively.

Mechanical and Physical Competence as Extensions of Evolutionary Processes

Viewing mechanical competence as a subset of physical competence allows us to appreciate the seamless integration of human inventions into the natural world. Just as the web spun by a spider is an expression of its biological competence, so too is a colander an expression of human mechanical competence. Both are solutions to environmental challenges—whether catching prey or draining pasta—and both are fruits of evolutionary or innovative processes.

Reflecting on the Continuity and Diversity of Competence

As we reflect on the continuity across these competencies, we see a unifying principle: all are adaptations to the challenges posed by the environment, whether through natural evolution or human ingenuity. This perspective encourages a deeper appreciation of the diverse ways in which the world around us functions, highlighting the interconnectedness of all physical and mechanical competences.

Up Next in Chapter 4: "Communication" - We will delve into the development of communication from primitive systems to complex digital networks, further exploring how these systems demonstrate both mechanical and physical competences in transmitting information across various mediums.

PART 2 OF X

A. Continuity

Chapter 2: Cousins

In exploring the interconnectedness of life on Earth, Richard Dawkins' concept of the extended phenotype illuminates the intricate web that connects biological evolution to human technological and artistic creation. This chapter further refines this understanding by examining how even the simplest tools like colanders represent an early form of mechanical competence, akin to what we now term artificial intelligence.

The Extended Phenotype and Mechanical Competence

Every technology developed by humans—whether it's a stone axe, a colander, or advanced computer algorithms—can be viewed as an extension of our genetic heritage. These tools embody the concept of the extended phenotype, where human ingenuity extends beyond the physical self to influence the environment. By recognizing this, we can appreciate that a colander is not merely a kitchen tool but a rudimentary form of artificial intelligence, designed to offload cognitive or physical labor, thereby enabling humans to engage in more complex tasks.

This perspective challenges us to redefine our view of what constitutes artificial intelligence. By adopting the term "mechanical competence," we acknowledge that all tools, from the simplest to the most complex, are part of a continuum of human invention aimed at enhancing our interaction with the world. This shift from seeing AI as a separate, almost mystical entity to understanding it as a point on the continuum of human tool-making demystifies AI and aligns it with our evolutionary journey.

Debunking Artistic Elitism and Embracing Universal Creativity

The act of creation, whether in forming a colander or coding an algorithm, is a fundamental human trait, pervasive across all cultures and epochs. It transcends the arbitrary divisions between art, technology, and science. Just as a spider spins a web or a beaver builds a dam, humans create tools and artworks as natural expressions of their biological and cognitive capabilities.

Recognizing that creating art is not an elite activity but a universal human behavior helps break down the barriers often erected by those who view artistic creation as a rarified realm. Each human-made object, no matter how functional or mundane, carries an aesthetic dimension, reinforcing the idea that art and utility are often intertwined.

Synthesis of Human Endeavors Through Mechanical Competence

As we conclude this chapter, the synthesis of technology, art, and science becomes apparent. The introduction of the concept of mechanical competence helps us see that these distinctions are more about social and political contexts than about fundamental differences in the nature of these activities. By viewing all human creations—whether a colander, a painting, or a software program—as fruits of the Tree of Life, we embrace a holistic view of human ingenuity.

This realization not only deepens our appreciation for the diversity of human creativity but also underscores the continuity that links us with the rest of the natural world. It fosters a greater respect for how deeply interconnected our lives are with the tools we create and use, highlighting the seamless blend of biology and technology in every human endeavor.

Up Next in Chapter 3: "Competence" - We will explore the concept of 'competence without comprehension' in both natural systems and AI, highlighting how this notion extends our understanding of mechanical competence in human evolution and tool use.

PART 1 of X

Book treatment: "'C' Is For Competence"

A. Continuity

Chapter 1: Cosmos

"Yes, we have a soul, but it's made of lots of tiny robots." - Daniel Dennett

In the grand cosmic narrative, every tool crafted by human hands and every thought sparked within the human mind unfolds under the same celestial canopy of physical laws. Whether it is the brain itself—a marvel of natural selection, pruning the tree of possibility in the vast forest of biological design space—or the simplest tool, like the wheel, all are bound by the finite nature of matter, energy, space, and time. This fundamental continuity connects the realm of the stars with the artifacts and thoughts of human endeavor.

Let us consider this continuity not just as a series of scientific truths, but as a poetic reflection on our place in the universe. Each tool, from the flint to the smartphone, from the abacus to the supercomputer, is a testament to our quest to extend our reach beyond our grasp, to manipulate our world and understand the cosmos. These tools are the external manifestations of our internal cognitive faculties, both evolved and designed to navigate and reshape our environment.

Imagine, if you will, a simple map of all possible inventions—each point a potential tool or idea. Human creativity, driven by both necessity and curiosity, moves along this map in an exploratory dance, guided by the physical realities of our world. The laws of thermodynamics, of quantum mechanics, of gravity—they set the rhythm for this dance. Understanding these laws doesn't constrain our creativity; rather, it channels it. It tells us how to move effectively, ensuring that our steps align with the rhythms of reality.

And what of our brains, these curious engines of thought composed of uncountable connections and signals? Here, too, we see a kind of tool, evolved over millennia to think, dream, and create. If we consider that we have a soul and it's made of lots of tiny robots, each neuron, each synaptic connection, is one of these robots, each playing its part according to electrochemical laws. Our minds are ensembles of these robots, exploring the design space of ideas—another map, not of geography, but of concepts.

As we move forward, remember this continuity: everything is connected under the same laws of physics, whether it is the orbit of planets or the flow of information through a neural network. Understanding this helps demystify the tools we create and the art we produce, placing them within the broader tapestry of the universe’s unfolding story.

Up Next in Chapter 2: "Cousins" - exploring the evolutionary parallels between biological organisms and technological advancements, reinforcing the natural progression of AI as an integral part of this ongoing narrative.

#BlueCollarBitcoin

MidJourney:

we are disabling use of “Donald Trump” and “Joe Biden” in all prompts, as well as filtering any images that depict them.

Joe:

Hold my beer.

::stares in semantic shadow, intentionality laser, and horizontal gene transfer::

Thank you so much!!!

I still consider myself a noob (class of 21!), but ready to my part to carry the ball forward.

💪

In the vast expanse of a laboratory, a solitary Petri dish sits, its surface barely touched by the microscopic inhabitants within. A single bacterium, seemingly insignificant in its solitary existence, marks the beginning of an extraordinary journey. As time unfurls, the population within the dish undergoes a remarkable transformation, doubling in size every fleeting four hours. Yet, for much of the experiment’s duration, the dish remains deceptively empty, a quiet canvas awaiting its masterpiece.

In a mere fraction of the experiment’s entirety, a pivotal moment arrives. In the blink of an eye, the Petri dish appears to explode with life, its once vacant surface now teeming with a bustling population of bacteria. It’s a moment of revelation, a sudden realization of the explosive growth that had been quietly unfolding, unbeknownst to the observer.

In a parallel universe, far removed from the confines of the laboratory, another phenomenon is underway—one that mirrors the dynamics of the bacterial explosion, but in reverse. In the realm of Bitcoin mining, an issuance schedule unfolds, dictating the gradual diminishment of rewards over time. With each halving cycle, the rate of new Bitcoin creation dwindles, asymptotically approaching zero.

Yet, despite the inevitability of this scarcity, the realization has yet to fully set in for many. The photons have hit the eyeballs, but the brain has yet to process the implications of what has already transpired. In both the laboratory and the realm of Bitcoin, the explosion has already occurred, yet the profound implications of this transformation have yet to be fully grasped.

Bitcoin, the digital currency that has captivated the world’s attention, operates on a meticulously designed issuance schedule. From its inception, Bitcoin’s creator envisioned a system where new coins would be gradually introduced into circulation, mirroring the dynamics of precious metals like gold.

At the heart of this system lies the concept of halving cycles, where the reward for mining new blocks is halved approximately every four years. This deliberate reduction in issuance serves as a mechanism to ensure the scarcity of Bitcoin over time, akin to the diminishing returns of a finite resource.

As each halving cycle unfolds, the rate of new Bitcoin creation diminishes, approaching an asymptote of zero issuance. This phenomenon is akin to watching the Petri dish of bacterial growth in reverse, where the explosive expansion gives way to a gradual dwindling of resources.

Despite the mathematical certainty of Bitcoin’s issuance schedule, the broader perceptions surrounding its scarcity often fail to align with reality. While many have heard of Bitcoin, few truly grasp the extent of its scarcity and the implications for the future of finance and society.

The realization of Bitcoin’s absolute scarcity has yet to fully set in for the masses. It’s a paradigm shift unlike any other—a fundamental reshaping of our understanding of value and scarcity. And as the world grapples with this newfound reality, the implications are profound and far-reaching.

As Bitcoin’s price commands headlines and market attention, it’s essential to distinguish between its price and its true value proposition. While the price of Bitcoin represents the real-time signal of market sentiment and investor behavior, its true value proposition transcends mere fiat currency equivalents.

At the heart of Bitcoin’s value proposition lies the meme: “1 BTC equals 1 BTC.” This simple yet profound statement encapsulates the essence of Bitcoin’s value as a store of wealth. For those who understand this principle, the goal is not to maximize fiat currency gains but to accumulate more Satoshis—a unit of Bitcoin—over time.

Despite Bitcoin’s explosive growth and widespread adoption, more than 90% of the total supply is already in circulation, distributed among private keys and held by a diverse array of individuals and entities. On-chain data provides insight into the behavior of Bitcoin holders, revealing that over 70% of the supply has remained dormant for over a year.

Within this subset of Bitcoin holders lies a subculture of believers—those who have embraced Bitcoin’s true value proposition with unwavering conviction. For them, Bitcoin is not merely a speculative asset to be traded for fiat currency at opportune moments. Instead, it represents a one-way exit from the fiat monetary system—a hedge against inflation and an insurance policy against the erosion of purchasing power.

Despite the significance of this minority of Bitcoin holders, their steadfast commitment to hodling their Bitcoin is often overlooked or underestimated by mainstream narratives. Yet, it is this intransigent minority that forms the bedrock of Bitcoin’s resilience and permanence—a testament to the enduring power of decentralized, peer-to-peer digital currency.

As the broader market grapples with the implications of Bitcoin’s scarcity and its role in reshaping the future of finance, it’s essential to recognize the distinction between its price and its true value proposition. While the former may fluctuate wildly in response to short-term market dynamics, the latter remains immutable—an immutable beacon of hope in an uncertain world.

While it’s tempting to equate the dollar price of Bitcoin with its purchasing power, this simplistic view fails to capture the true essence of Bitcoin’s value proposition. Yes, Bitcoin can be exchanged for fiat currency on various platforms, but its value extends far beyond mere dollar equivalencies.

Central to understanding Bitcoin’s true value proposition is recognizing the distinction between money’s fungibility and Bitcoin’s ethos. While money, including Bitcoin, is indeed fungible in its ability to be exchanged for goods and services, the underlying philosophy of Bitcoin transcends mere monetary transactions.

For the intransigent minority of Bitcoin holders, exchanging their Bitcoin for fiat currency is not the end goal. Instead, Bitcoin represents an ethos—a philosophy—a peaceful revolution against a broken, corrupt, and dishonest monetary system. It’s an opt-out mechanism—a one-way exit from a system that perpetuates inequality and injustice.

Bitcoin is more than just a store of value, medium of exchange, or unit of account. It’s a movement—a movement that seeks to divert capital from net takers to net producers, to empower individuals to take control of their financial sovereignty and future.

In this light, valuing Bitcoin into the future requires a shift in perspective. Rather than assuming an eternal exchange rate between Bitcoin and fiat currencies, we must recognize the potential for Bitcoin to become the predominant medium of exchange in a new paradigm—one based on sound money principles and individual sovereignty.

For blue-collar workers and individuals seeking financial security, the path forward is clear: work, contribute to society, live within your means, and save your excess in Bitcoin. It’s a simple yet powerful ethos—a rabbit hole that extends far beyond mere dollar prices and monetary transactions.

As Bitcoin continues to challenge the status quo and reshape the future of finance, its true value proposition will become increasingly evident. It’s not just about the dollars and cents—it’s about the principles and values that Bitcoin represents—a beacon of hope in a world fraught with uncertainty and injustice.

The meme “you don’t change Bitcoin, Bitcoin changes you” encapsulates the profound transformation that occurs when individuals interact with Bitcoin. This sentiment rings especially true in the context of recent developments, such as the introduction of Bitcoin exchange-traded funds (ETFs).

Bitcoin, as a decentralized and immutable protocol, remains unchanged by external forces. It is indifferent to the whims of ETFs or the machinations of regulators. Instead, it exerts its influence on the external environment, reshaping the landscape in its image.

The introduction of ETFs is not a victory for Bitcoin; rather, it is a recognition of Bitcoin’s inevitable ascent. After years of resistance and attempts to stifle its growth, the external environment has come to realize that Bitcoin cannot be stopped. Instead, it must be accommodated and integrated into the existing financial infrastructure.

In this sense, Bitcoin is akin to a benign invasive species, altering the environment in which it thrives. Much like the eukaryotic revolution that transformed the early history of life on Earth, Bitcoin’s proliferation introduces new dynamics and selection pressures, paving the way for a more robust and resilient financial ecosystem.

The externality of Bitcoin extends beyond mere financial transactions; it encompasses honesty, sound money principles, and lower time preferences. These benign growths permeate society like a maximally fractal mycelium, embedding themselves in the hearts, minds, and souls of individuals.

As Bitcoin continues to entrench itself in our society, it will reshape the choices available to us, guiding humanity towards a future characterized by greater transparency, accountability, and integrity. It’s a transformative journey—one that promises to redefine the very fabric of our existence.

In the laboratory of life, where ideas collide and paradigms shift, Bitcoin stands as a beacon of hope—a testament to the power of decentralization, resilience, and human ingenuity. Through the lens of the bacterial explosion in reverse, we have glimpsed the transformative journey of Bitcoin, from humble beginnings to a global phenomenon.

As we reflect on Bitcoin’s journey, it’s essential to recognize the disparity between perception and reality regarding its scarcity and value proposition. While many may fixate on the dollar price of Bitcoin, its true value extends far beyond mere monetary equivalencies. Bitcoin represents an ethos—a philosophy—a peaceful revolution against a broken and corrupt monetary system.

In the face of unprecedented challenges and resistance, Bitcoin remains steadfast and unyielding. It is a force of nature—a benign invasive species—reshaping the environment in which it thrives. With each passing day, Bitcoin entrenches itself deeper into the fabric of society, guiding humanity towards a future characterized by transparency, accountability, and integrity.

As we stand on the precipice of a new era, let us embrace the transformative power of Bitcoin and the values it embodies. Let us heed the call to action and join the ranks of those who have embraced Bitcoin’s ethos—a journey that promises to redefine the very essence of what it means to be human.

In the end, Bitcoin is more than just a digital currency; it is a symbol of hope—a beacon of light in a world shrouded in darkness. And as we navigate the uncertain waters of the future, let us remember that the true value of Bitcoin lies not in its dollar price, but in the ideals and principles it represents—a testament to the enduring spirit of human innovation and resilience.

Practical Takeaways for Newcomers to Bitcoin

0. Rule Number Zero: Don’t Trust, Verify

• Before diving into Bitcoin, it’s crucial to adopt a mindset of skepticism and critical thinking. Verify information independently and don’t rely solely on trust.

1. Rule Number One: Bitcoin Only

• When selecting an exchange to buy Bitcoin, prioritize platforms that exclusively offer Bitcoin trading. Avoid exchanges that dilute their focus by offering a plethora of other cryptocurrencies, as this may indicate a misunderstanding of Bitcoin’s unique value proposition.

2. Not Your Keys, Not Your Coins

• Understand the importance of controlling your private keys when holding Bitcoin. Choose exchanges that allow you to withdraw your Bitcoin to your own private wallet, ensuring full control and ownership of your coins.

3. Not Your Keys, Not Your Coins

SERIOUSLY!!!!!!!!!

4. Accumulating Bitcoin: A Three-Step Approach

• Dollar-Cost Averaging (DCA): Regularly invest a fixed amount of money into Bitcoin over time, regardless of price fluctuations. This strategy helps mitigate the impact of market volatility.

• Buy the Fuckin Dip (BTFD): Take advantage of price dips to increase your Bitcoin holdings. Buying during periods of market downturns can yield favorable long-term results.

• HODL: Embrace the ethos of holding onto your Bitcoin for the long term. Avoid succumbing to short-term market fluctuations and maintain a strong conviction in Bitcoin’s value proposition as a store of wealth. Adopt the “don’t save more than you can afford to ‘lose’” mentality, with a subtle shift: it is precisely because every satoshi is FOREVER. Making predictions are hard, especially about the future. On the one hand: the rational desire to accumulate as many sats as possible. On the other: if an unforeseen emergency or life change requires you to “dip in” to your BTC savings to cover expenses, you might be forced to sell at a (fiat-denominated) “loss”. Bitcoin security includes security yourself.

By adhering to these principles and following a disciplined approach to accumulating Bitcoin, newcomers can navigate the world of cryptocurrency with confidence and resilience. Remember, the journey to financial sovereignty begins with a single Satoshi.

Further Exploration: Navigating the Bitcoin Rabbit Hole

1. Bitcoin: An Open-Source, Permissionless Protocol

• Bitcoin offers individuals the freedom to explore and experiment within its ecosystem. As an open-source, permissionless protocol, virtually anything is possible. However, with this freedom comes the responsibility to exercise caution and prudence in one’s actions.

2. Great Power, Great Responsibility

• With the ability to control and safeguard their own wealth, Bitcoin users are entrusted with a significant level of power. This power also entails a corresponding level of responsibility. Unlike traditional financial systems, there are no bailouts or safety nets in the world of Bitcoin. Users must take proactive measures to secure their funds and protect their financial sovereignty.

3. Building Trust in a Trustless System

• While Bitcoin operates on principles of trustlessness, establishing trust among individuals remains essential, especially when it comes to managing one’s Bitcoin holdings. Finding trusted friends or family members who are knowledgeable about Bitcoin can provide invaluable support and guidance. Additionally, adhering to the previously mentioned heuristics, such as utilizing Bitcoin-only exchanges and prioritizing self-custody, can serve as effective safeguards against scams and fraudulent schemes.

4. Gradual Progression: From Novice to Expert

• Navigating the complexities of Bitcoin security can be overwhelming, especially for newcomers. It’s essential to approach the journey with a mindset of gradual progression. Starting with basic security measures, such as single-signature air-gapped hardware wallets, provides a solid foundation for beginners. As users become more comfortable and experienced, they can explore more advanced techniques, such as geographically distributed multisignature setups. The key is to proceed at a pace that feels comfortable and manageable, prioritizing security and peace of mind.

By embracing the principles of responsibility and gradual progression, individuals can embark on a journey of exploration and discovery within the Bitcoin ecosystem. While the rabbit hole may seem daunting at first, it offers endless opportunities for growth, learning, and empowerment.

Bitcoin: Inevitable and Transcendent

Bitcoin’s existence is as inevitable as the laws of mathematics and the principles of cryptography. Its borderless, ethereal nature ensures its persistence, as it transcends physical boundaries and exists solely as information—a pure idea that cannot be extinguished.

As long as there are individuals who desire the continued existence of Bitcoin, it will endure. Its simple yet robust game plan—producing a new block every 10 minutes, maintaining a capped supply, and ensuring ownership distribution through public and private key cryptography—ensures its resilience.

Unlike other cryptocurrencies, Bitcoin’s success is over-determined, stemming from its immaculate conception, proof-of-work mechanism, network effects, Lindy effects, and first-mover advantage. These factors create a virtuous cycle wherein increased adoption leads to greater utility and value, further reinforcing Bitcoin’s dominance.

While one can study the technical intricacies of Bitcoin—the mining process, transaction signing, supply schedule—there are truths about its essence that transcend mere technical understanding. Much like Gödel’s incompleteness theorem, there are depths of truth within Bitcoin that elude full comprehension.

Even as we descend towards an event horizon of truth, delving deeper into the mysteries of Bitcoin, we simultaneously spiral upwards and outwards across the cosmos. Bitcoin serves as a catalyst for human advancement, propelling us up the Kardashev scale towards a future defined by sovereignty, freedom, and abundance.

In the grand tapestry of existence, Bitcoin stands as a beacon of hope—a testament to the boundless potential of human innovation and the enduring quest for truth and enlightenment.

I want to start a podcast.

Yes, another fucking bitcoin podcast. (h/t nostr:npub1cj8znuztfqkvq89pl8hceph0svvvqk0qay6nydgk9uyq7fhpfsgsqwrz4u)

I think there is a unique and interesting synthesis that comes from a triple lens of:

1) Evolution

2) Artificial Intelligence

3) Bitcoin

I am a blue-collar autodidact, with a deep interest in cosmology, physics, evolution, intelligence (natural and artificial), and the philosophy of the mind. Biggest influence: Daniel Dennett.

To start with, I would probably focus on the sort of “bitcoin 101” series, especially given the influx of noobs we’re probably going to see over the next year or two.

But I’m also working on several book projects that overlap these topics and various ways.

PLENTY of opportunities to make essays/videos/podcasts about a given topic that would function as a book chapter, or vice versa.

I did not have any formal qualifications, but i think:

All three of these fields (evolution, AI, bitcoin) are layered, subtle, and interconnected enough, that there may be a niche for the “informed everyman” to communicate the nuances and interconnections of the topics with ACTUAL experts, and provide value for a general audience.

Here is a kind of introductory essay.

I would be thrilled, humbled, and honored if I could get any honest feedback on the ideas, writing, delivery, etc.

The video is shit, you can just listen to the audio lolol

https://youtu.be/sW92lQ4fSVM

That soundtrack SLAPS!!!