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Replying to Avatar Max

I finished the second version of my book!

## The Praxeology of Privacy

### Economic Logic in Cypherpunk Implementation

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

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

Public Domain. v0.2.0. Published on Nostr.

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

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Table of Contents

Preface

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

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Part I: Introduction

Chapter 1: The Nature of Privacy

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

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Chapter 2: Two Traditions, One Conclusion

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

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Part II: Philosophical Foundations

Chapter 3: The Action Axiom

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

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Chapter 4: The Argumentation Axiom

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

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Chapter 5: The Axiom of Resistance

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

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Part III: Economic Foundations

Chapter 6: Information, Scarcity, and Property

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

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Chapter 7: Exchange Theory and Privacy

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

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Chapter 8: Capital Theory and Entrepreneurship

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

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Chapter 9: Monetary Theory and Sound Money

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

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Part IV: The Adversary

Chapter 10: Financial Surveillance and State Control

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

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Chapter 11: Corporate Surveillance and Data Extraction

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

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Chapter 12: The Crypto Wars

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

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Part V: Technical Implementation

Chapter 13: Cryptographic Foundations

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

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Chapter 14: Anonymous Communication Networks

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

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Chapter 15: Bitcoin: Resistance Money

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

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Chapter 16: Zero-Knowledge Proofs

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

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Chapter 17: Decentralized Social Infrastructure

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

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Part VI: Praxis

Chapter 18: Lessons from History

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

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Chapter 19: Operational Security

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

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Chapter 20: Implementation Strategy

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

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Chapter 21: Building the Parallel Economy

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

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Congrats! This is an awesome read. ⚡️🫡

Nice. Worth reading! 🔥

nostr:naddr1qqgrvvpjx33kgvtrxgen2vfcvcurjqgkwaehxw309aex2mrp0yh8qunfd4skctnwv46qyg9ha45tqck7dd9p9egl6559c8s7pmgw2y5vm2f6kyd5z594tmfjlspsgqqqw4rs4vh7ae

Sourdough with butter: proof that carbs are the real MVP of comfort food. 🫡

Replying to Avatar Purple Painter

Merry Christmas my nostr:npub1c0rnyyhmdnvg6xkvrrmgf8rxp3r28jtjhad8vmze8rgxf87aed7qlltlvg

Homies!

nostr:note16u8e5zmwl7h089sqyjqxnv9andjnx7aac879ju0hqx5c043psdeqkp2qn4

Merry Christmas, Happy Holidays! 🎄🎅🌟

Replying to Avatar cuban

Merry Christmas, Happy Holidays! 🎄🎅🌟

Every generation gets one asset that redefines wealth.

Your grandparents had land.

Your parents had stocks.

You have #Bitcoin.

Don’t fumble it.

Build Wealth.

#Bitcoin is Wealth.

Slowly, silently build your Wealth.

Stay humble & stack sats.

⚡️⚡️⚡️

Ever wonder why a company buying thousands of Bitcoin doesn’t pump the price?

Let’s break it down 👇🧵

When a corporation wants BTC, they don’t smash market orders on Coinbase.

They call an OTC (over-the-counter) desk — a private service that matches big buyers & sellers off-exchange.

Think:

🐋 meets 🐋

No noise. No slippage.

Let’s say a company wants to buy 5,000 BTC.

Doing that on an exchange would cause insane price slippage.

So they go OTC.

The desk quietly finds a seller, or maybe a miner, maybe a fund, and they settle off the books.

Here’s the key:

🟥 OTC trades don’t touch public order books

🟩 That means no visible price movement

Even if it’s a $250M buy, it doesn’t affect the price, unless the OTC desk runs out of sellers and has to go to the open market.

So what does move the price?

✅ Spot market buying (on exchanges)

✅ Leverage getting liquidated (longs/shorts)

That’s when you see price rip or dump.

OTC doesn’t do that. It’s stealth mode.

Ironically, OTC buying is super bullish, it means whales are accumulating.

But it doesn’t show up until later…

When supply dries up

👇

…and buyers are forced to go public.

That’s when green candles appear 🕯️🕯️🕯️

Also: leverage wrecks the market faster than anything.

A $50M OTC buy? No price move.

A $5M long getting liquidated? Market nukes.

Because it cascades through exchange order books instantly.

So next time you see:

🚨 “Strategy bought 5000 Bitcoin”

…and price doesn’t move?

Now you know why:

➡️ It was OTC

➡️ No price impact

➡️ But supply is tighter, and that matters later

Final takeaway:

🔹 OTC = Quiet accumulation

🔹 Exchanges = Price discovery

🔹 Leverage = Instant volatility

Smart money moves first.

Price follows after.

Stack wisely 🧱

⚡️⚡️⚡️

When Bitcoin hits 1M per coin, 1 satoshi will be worth 1 cent.

When Bitcoin hits 100M per coin, 1 satoshi will be worth 1$

When Bitcoin hits 1 BILLION per coin, fiat probably won't exist.

⚡️⚡️⚡️