The weekends are for diving deeper into the #Bitcoin rabbit hole.
Expansionary monetary policy, which involves increasing the #money supply, results in a loss of purchasing power for the currency over time. In response, producers may choose to keep prices fixed but reduce costs by substituting higher quality inputs with lower quality ones. Unfortunately, this leads to a decline in output quality while profit margins remain constant. Ultimately, society and consumers suffer the consequences.
As a solution to this problem, #Bitcoin offers money that cannot be debased thanks to its fixed supply.
#Fiat vs. #Bitcoin: the battle for monetary dominance.
Fiat #money is regulated and issued by central banks. Bitcoin, on the other hand, is decentralized money that operates on a peer-to-peer network without a central authority controlling it. Every 10 minutes, new Bitcoin is issued, and its issuance is reduced by half approximately every four years. This event is known as the halving. The issuance is programmatic and objective, unlike Fiat, which has arbitrary issuance. Miners expend energy in the form of electricity and capital to group transactions and post them onto the blockchain, a public ledger that records all Bitcoin transactions since its creation. This exercise is called mining. While the exact supply of Fiat is impossible to determine, Bitcoin is capped at 21 million, which means there will never be more Bitcoin.
Fiat transactions' settlement time varies, and bank transfers, credit and debit card payments typically require a few business days to settle fully. Their settlement time is affected by holidays, weekends, and translation volumes. Bitcoin transactions, on the other hand, are settled every 10 minutes to an hour, which is the time it takes to mine a block and add additional blocks for confirmation (i.e., best practice is six blocks). Bitcoin is a monetary system that is open 24/7, 365 days a year, whereas traditional banking systems are usually open between 9:00 AM to 5:00 PM, 260 days a year.
To transact in our current Fiat monetary system, you typically have to disclose personal information as per government decree in order to comply with KYC and AML rules. This results in the large number of the population being unbanked with limited access to financial services in certain countries, mainly the underdeveloped or developing ones that are ruled by oppressive and corrupt governments. There are approximately 1.4 billion unbanked people in the world. Bitcoin is permissionless, meaning it does not require any identification. All you need to do is set up a wallet, and you can begin to transact. Transactions on the Bitcoin network are pseudonymous, meaning they are not 100% anonymous and can be traced back to you with the proper technology. However, they do not reveal any personal information. Anyone can audit all the transactions recorded on the blockchain given its public nature, but the identities behind the Bitcoin addresses are typically anonymous.
Inflation has become a major talking point these days. Central banks worldwide are at war with inflation. Inflation destroys the purchasing power of a currency over time. Basically, your hard-earned money buys less. Inflation is a result of having more dollars in an economy with the amount of goods remaining stable. As more dollars pursue a relatively stable amount of goods, the price of these goods increases. Inflation is a consequence of the expansion of the money supply by central banks. Bitcoin, on the other hand, has a fixed supply and is designed to be deflationary. Given its absolute scarcity, it is built to preserve value over time, making it an ideal savings tool compared to Fiat, which loses value over time. The dollar, for example, has lost over 90% of its value since 1971, the year the world moved to a Fiat standard and no longer allowed the conversion of dollars to gold.
Regarding accessibility, Fiat money is limited by borders and FX regulations, making cross-border transactions complex and costly. Bitcoin, however, is borderless. It allows you to transfer value across the globe at the speed of light without the need to go through middlemen.
Fiat has served its purpose as an experiment that has gone on for too long. It is time to move towards a commodity-based monetary system. However, this time we should consider using a digitally native asset such as Bitcoin. Bitcoin has similar characteristics to gold, but it also improves upon them, particularly in terms of decentralization and transportability. These are two of the main flaws of gold, which tend to centralize over time, ultimately leading to Fiat money, and its difficulty in moving around for final settlement.
The devaluation of #money leads to the devaluation of society.
#Bitcoin cannot be debased through the increase of its supply.
Therefore, a society on a Bitcoin standard will prosper.
#Bitcoin is a permissionless network, which means that individuals have the freedom to use it in any way they choose. While this is a fundamental aspect of Bitcoin, it is important to acknowledge that the way in which it is used can have both positive and negative implications. While opinions on what constitutes a "good" or "bad" use of Bitcoin may vary, it can be argued that engaging in experimental endeavors that expend valuable resources and result in a denial-of-service attack on the main chain, such as the use of ordinals and inscriptions, do not significantly contribute to the broader goal of Bitcoin adoption, namely, establishing sound money for everyone and separating money from the state. Therefore, such activities can be considered comparatively unproductive.
We should reserve layer 1 for settlement purposes and focus on building on top of it for other use cases. The ultimate value of Bitcoin lies in its ability to enable decentralized financial transactions and reduce reliance on centralized authorities, and any activity that undermines this objective could be, and maybe should be, considered detrimental.
Just a thought.
Take control of your wealth and become a sovereign individual by self-custodying your #Bitcoin, eliminating counterparty risk and confiscation concerns. Don't let banks gamble with your money - history shows they engage in risky activities, exposing you to substantial losses.
To gain a comprehensive understanding of #Bitcoin, it's vital to go beyond its monetary value and potential returns. Instead, it's important to consider the broader impact it can have on society. Adopting Bitcoin could pave the way for significant progress and growth for humanity. This is because it has the potential to shift us from a high time preference, consumption-based economy driven by debt to a low time preference economy based on savings.
Despite its importance, the significance of Bitcoin as sound #money is often underestimated, and not well understood by many. This notion is fundamental as the soundness of money has a substantial impact on our society. By embracing Bitcoin, we have the opportunity to shape the future of money and in doing so the future of our civilization.
The creation of #Bitcoin has revolutionized the ability to self-custody one's hard-earned #money. Many fail to grasp the true empowerment that comes with being solely responsible for storing your own financial wealth. It's a fundamental right that we should embrace. Some may argue that it's inconvenient, but this highlights a deeper issue within our society - the reluctance to shoulder individual responsibility and the desire to delegate it to others. However, by entrusting anyone other than yourself, you're essentially rolling the dice with your hard-earned money. Money that was earned by spending valuable time and energy that you'll never get back.
Why take the risk?
Unmasking #Bitcoin's defense: understanding the resilience of the network against attacks.
Every system, including Bitcoin, has vulnerabilities that can be exploited. Let's examine each potential attack and how the Bitcoin network defends against them.
We'll start with the most widely known vulnerability, the 51% Attack. In this scenario, a single individual or group gains control over more than 50% of the network's mining power. With such control, they can engage in double-spending, manipulating transaction history to spend the same coins twice. Additionally, they can disrupt the network by halting or censoring transactions, undermining trust in Bitcoin. Fortunately, due to the substantial global decentralization of mining power and the significant capital investment required, the likelihood of a successful 51% attack is highly improbable. Miners, acting in their self-interest, have no incentive to harm the network, as it would devalue their own holdings and profits.
Next on the list is the Sybil Attack, where an attacker creates multiple identities to deceive the system and gain control over the network. This type of attack can compromise the blockchain's consensus mechanism, influencing decisions in favor of the attacker and weakening network security. To tackle this issue, Bitcoin employs a Proof-of-Work consensus mechanism, where miners must invest significant real-world resources in terms of energy and capital to compete for the opportunity to add transactions to the blockchain. The high costs involved make it extremely challenging for an attacker to create a large number of identities or nodes to execute a Sybil attack effectively.
Another threat is the Distributed Denial of Service (DDoS) Attack, which involves overwhelming the network with a flood of requests, rendering it inaccessible to users. While Bitcoin has experienced such attacks in the past, it has demonstrated resilience and the ability to recover quickly. The network infrastructure includes various measures to mitigate these attacks such as load balancing, traffic filtering, and continuous monitoring.
Lastly, we address the Eclipse Attack, where an attacker isolates a node by surrounding it with malicious nodes under their control. This isolation enables the attacker to manipulate the victim node's received information, including hiding transactions, altering perceived Bitcoin balances, or attempting to deceive the node into accepting fake transactions. However, Bitcoin nodes are designed to establish connections with numerous peers, making it highly challenging to isolate a node. Moreover, the protocol employs peer discovery mechanisms that enable nodes to find and connect with others, creating a decentralized network.
Although no system can claim to be completely invulnerable to attacks, the Bitcoin network stands out for its remarkable security measures and decentralized structure. As the network continues to expand and garners more adoption, its security measures will continue to strengthen.
In the shadows of power: #CBDC threatens our freedom. #Bitcoin empowers it.
Conversations surrounding central bank digital currencies (CBDCs) in the mainstream media are set to increase as their deployment approaches. However, given the media's inclination to promote political narratives and propaganda, we cannot fully rely on them to shed light on the risks associated with a #CBDC. As advocates of #Bitcoin , it is our responsibility to educate the masses.
Firstly, let's address the issues of centralization and control. CBDCs, being centralized and controlled by central banks, introduce a single point of failure. Any disruptions in the central bank's infrastructure could cause major financial instability and have far-reaching effects. The centralized nature of CBDCs grants central banks an enormous amount of control over the money supply and transactions, amplifying their already considerable power in the existing system. If poorly managed or influenced by politics, this could lead to unfair distribution of resources, arbitrary decisions, and unintended consequences. CBDCs would increase society's dependence on a select few unelected individuals, limiting our ability to exercise self-sovereignty. Central banks would possess the authority to freeze accounts, impose restrictions, monitor and control our financial activities.
Next, we must consider privacy and surveillance. A CBDC-based monetary system would provide central banks with real-time visibility into all transactions, compromising the financial privacy of everyone involved. It would enable those in power to track and analyze our individual spending habits, directly infringing upon our freedom and liberties. Given the centralized nature and relatively small attack surface of such a system, it would be vulnerable to hacking attempts. Successful breaches would have far greater consequences than any witnessed in our current system. While assurances may be given about privacy safeguards, history has taught us that governments tend to gradually expand their surveillance capabilities over time. This could eventually lead to a surveillance state, resulting in a complete loss of our freedom.
Instead of heading in this direction, we should be advocating for the decentralization of power rather than its concentration. Let us not be swayed by the convenience narrative. Instead, let us choose Bitcoin, #money for the people.
Austrian economics and #Bitcoin: a perfect pairing
First and foremost, Austrian economics emphasizes the significance of individual decision-making and freedom, suggesting that economic progress stems from the actions of individuals. This aligns with Bitcoin's decentralized nature, where there is no central authority governing the monetary system. As a result, government intervention is limited, and voluntary interactions are promoted.
Secondly, Austrian economists advocate for a monetary system based on sound #money, which is a scarce commodity immune to manipulation or debasement. Bitcoin embodies this idea as it is the most scarce asset, with a fixed supply of 21 million coins and a predictable issuance schedule. Bitcoin serves as an ideal form of money, rejecting government manipulation, excessive money creation, and the destruction of purchasing power.
Thirdly, Austrian economics asserts that individuals determine the value of goods and services based on their own preferences and choices. Similarly, the value of Bitcoin is subjective and determined organically by market participants who engage in transactions and assign value to it.
Furthermore, Austrian economics supports the concept of spontaneous order, which reflects the operation of free markets. Austrian economists believe that economic coordination and efficiencies arise naturally from voluntary exchanges in the market, without the need for central planning. This concept aligns with the decentralized nature of Bitcoin.
Moreover, Austrian economists hold a critical view of central banks and their discretionary monetary policies. They argue that such interventions contribute to economic cycles of expansion and contraction, as well as the misallocation of capital. Bitcoin, being decentralized and self-governed, provides an alternative to fiat currency and renders central banking obsolete, fitting well with Austrian economic principles.
Finally, Austrian economics places great importance on property rights, and Bitcoin allows for easy self-custody. Bitcoin enables individuals to have control over their wealth, safeguarding it from confiscation. Additionally, Bitcoin transactions offer a higher degree of privacy due to their pseudonymous nature.
Austrian economics and Bitcoin share principles and ideas, including individual decision-making, sound money, subjective value, spontaneous order, criticism of central banks, and a focus on property rights. Their compatibility highlights the alignment between these two concepts.
Why should you place your trust in strangers when it comes to the economy and your hard-earned money?
Opt for #Bitcoin, a monetary system that operates without the need to rely on you trusting strangers to act in your best interest.
#Bitcoin vs. #Gold: the choice is clear.
Bitcoin, a transformative digital asset, stands in stark contrast to gold, the age-old embodiment of tangible wealth. The advantages of Bitcoin are evident. Its digital nature enables lightning-fast cross-border transactions, eliminating delays and the associated costs of storing, securing, and transporting physical gold. Bitcoin's superior portability and divisibility make it incredibly convenient for everyday use, while gold's weight and divisibility limitations hinder its practicality.
Bitcoin's transparency is a game-changer. Its transactions are recorded on the blockchain, a public ledger, allowing anyone with internet access to verify and audit the entire transaction history. In contrast, verifying the authenticity of gold requires specialized equipment and is a more complex process.
The value proposition of Bitcoin lies in its absolute scarcity. There will never be more than 21 million Bitcoins. Gold, on the other hand, has a finite but variable supply, subject to new discoveries.
Accessibility is another area where Bitcoin shines. It can be accessed by anyone with an internet connection, making it truly global. In contrast, gold may face limitations in remote areas and underdeveloped countries.
When it comes to self-custody, Bitcoin offers a significant advantage. It is incredibly difficult to confiscate Bitcoin held in self-custody, a concern that has historically affected gold holders in various countries.
While gold has a long-standing track record as a store of value, Bitcoin's trajectory is promising. With ongoing improvements, Bitcoin has the potential to surpass gold as its advantages are orders of magnitude greater.
In the battle between Bitcoin and gold, the case for Bitcoin becomes increasingly compelling. Its digital nature, transparency, scarcity, accessibility, and self-custody advantages make it a clear contender as the best store of value and #money.
#Bitcoin empowers individuals to take control of their finances, allowing them to act as their own bank. This groundbreaking technological innovation is invaluable for the 1.4 billion people worldwide who are unbanked.
By utilizing Bitcoin, marginalized individuals can protect their hard earned #money from inflation, capital controls, confiscation, and exploitative financial institutions.
How it should be:
Prices gradually decrease to match the marginal cost of production as a result of technological advancements. The best way to measure this change is by using #money with a fixed supply that is immune to manipulation.
Reality:
The significant productivity improvements created by technology, which should result in lower prices for society, are instead seized and consolidated by a small group of wealthy individuals known as cantillionaires. This is caused by the manipulation of money by central planners.
#Bitcoin fixes this.
#Money is how we store and trade our time.
Time has absolute scarcity and as such, demand for it trends towards infinity.
It makes sense that we value time with the only other asset that has a perfectly inelastic supply, #Bitcoin.
#Bitcoin, the liberator: a path to financial freedom for #Lebanon.
Lebanon is in crisis due to rampant hyperinflation caused by a corrupt government.
Economic challenges and political corruption led to a severe financial crisis, eroding trust in the #Lebanese pound and resulting in its collapse.
Factors such as fiscal deficits, high public #debt, political instability, and reduced foreign investments fueled the #crisis, depleting the central bank's reserves and making it difficult to maintain the fixed exchange rate.
The consequences of the currency collapse were dire: soaring #inflation, unaffordable goods and services, plummeting living standards, increased #poverty, high #unemployment, and escalating social unrest.
Lebanon continues to grapple with the ongoing consequences of the currency collapse.
Bitcoin offers potential solutions to address Lebanon's challenges.
Bitcoin's #decentralized and #borderless payment system promotes financial inclusion, allowing Lebanese citizens to bypass and opt-out of traditional banking channels and rely less on a fragile and politicized system.
Remittances, crucial to Lebanon's economy and a huge percentage of its GDP, can be facilitated more efficiently with Bitcoin's faster and cost-effective cross-border transactions.
Bitcoin's limited supply and decentralized nature make it a valuable store of value and hedge against monetary inflation, protecting savings and wealth from #hyperinflation and confiscation.
By adopting Bitcoin, Lebanon could attract foreign investment, stimulate economic growth, and establish itself as a Bitcoin-friendly destination, following the example set by El Salvador.
Bitcoin's public blockchain offers #transparency and accountability, combating corruption, and enhancing financial transaction integrity in Lebanon.
Bitcoin has the potential to empower the Lebanese people, providing them with transparency, accountability, financial freedom, stability, and self-sovereignty.
For once, our country can be ahead of the game.
#LebaneseBitcoinAdoption
#Bitcoin would not be Bitcoin without network effects.
Network effects are a captivating phenomenon in which the value of a product or service rises as its user base expands. It operates like a positive feedback loop that benefits all individuals involved.
During its early stages, Bitcoin had minimal value and a limited number of users. However, as more individuals began adopting it, network effects came into play, transforming Bitcoin into a global phenomenon.
As the Bitcoin network welcomed more users, it became increasingly convenient and practical for transactions, serving as a reliable medium of exchange.
The increased adoption of Bitcoin also led to improved #liquidity. This means that buying or selling Bitcoin became easier without causing significant price fluctuations. Such liquidity attracts investors, traders, and merchants.
As the user base grew, Bitcoin's #security also strengthened. The increased number of participants contributed more computing power to secure the network, making it harder for malicious actors to compromise it.
Additionally, the network effects surrounding Bitcoin prompted the development of various supporting #infrastructure, including wallets, exchanges, and payment processors. These entities emerged to meet the rising demand, creating a robust ecosystem around Bitcoin.
Network effects played a pivotal role in driving the success of Bitcoin. The expanding user base enhanced its value, convenience, liquidity, and security, which, in turn, attracted even more participants and fueled widespread #adoption.
Why choose #Bitcoin?
The current economic pricing mechanism is broken due to distortions caused by the central banking monetary system. Monetary easing and increases of the fiat #money supply leads to capital misallocation and recurring boom and bust cycles. #Bitcoin offers a solution as an unmanipulatable form of money.
Bitcoin represents the most reliable pricing mechanism in history. If adopted as a global standard, it would provide clear and undistorted signals about people’s preferences to market participants. Capital could then be directed towards more productive and beneficial endeavors for society.
By embracing Bitcoin, we can achieve increased stability and reduce boom and bust cycles in the economy. Its incorruptible nature allows for a more efficient allocation of resources, leading to a healthier economic environment for all.
Imagine a world where a Bitcoin standard is embraced. Human civilization would enter a new age of prosperity, where the flaws of the current economic system are overcome, and a more sustainable and equitable future is created.
The current economic system's flaws lie in distortions caused by central banking. Bitcoin, with its non-manipulatable nature, offers an alternative. By eliminating these distortions, we create a fairer playing field for economic participants.
A global #BitcoinStandard would revolutionize the way we conduct economic transactions. It would enable a more reliable and efficient pricing mechanism, ensuring that capital flows towards endeavors that truly benefit society as a whole.
Let's embrace the potential of Bitcoin and strive for a future of stability, prosperity, and economic justice. Together, we can build a world where the distortions of the past are replaced by a transparent and robust economic system.
#Money is our reward for our hard work and time. It allows us to exchange our value for the value others have created. In a perfect world, savings would be the difference between what we produce and consume. Simply put, it's what we have left over. However, money is often manipulated, which reduces the value of our savings over time, and encourages spending.
Why save when you know your money will be worth less later?
#Bitcoin, unlike fiat money, is immune to manipulation and #inflation. It offers an alternative to traditional finance, and empowers individuals to take control of their wealth.
Take the time to learn about Bitcoin.
