Subnostr

There has never been a louder clarion call in your lifetime, in your parents’ lifetimes, or grandparents’ lifetimes, nor will be in your children’s or children’s children’s lifetimes

You may not have asked for it, but it wasn’t your decision to make, once you understood you cannot unhear it

So it has come to you, take action—develop, code, build, create, stack, spend, learn, teach

#bitcoin

modulo 1y ago

Future #bitcoin business opportunities abound—#bitcoin disaggregates the payments and insurance function. Today, the credit card payment mechanism creates risk-shifting between the buyer and seller and the insurance intermediary. With #bitcoin those functions can be engaged (or not). For example, if a seller wants fraud (double spend before confirmation to the blockchain) protection, there will be a service provider for that. For merchants that do not need that protection they don’t pay for it.

#bitcoin for a bright future

Replying to

Leo Fernevak

Thoughts on the game theory of tainted Bitcoin, part 2.

In my first note on the subject I described in short why I believe that tainted coins/sats cannot work over time.

A possible response from governments as their taint policies inevitably fail, is to introduce a "taint tax".

One aspect of the game theory of Bitcoin is that governments will want to accumulate as much Bitcoin as possible, it being the best and most secure and neutral store of value.

One aspect of this *value* is that Bitcoin is neutral. Bitcoin transactions cannot be stopped via sanctions or political intrigue. This adds real, practical value to Bitcoin both for individuals and for competing nation states.

Taint tax.

As I alluded to above, a taint tax might be a possible strategy attempted by certain governments.

In practice this would mean that a government, realizing that their AML/KYC taint system is not working, decides to *accept* tainted coins/sats for a fee -- a taint tax.

Let's say that the EU introduces a Bitcoin taint tax at 10% for buying a house. If you can't or don't want to disclose the history of your coins/sats, the EU basically says: fine, we don't want to lose billions of Euro in lost trades every year, so we accept your coins that we have labelled as tainted, provided you pay us this extra fee (tax).

However the game theory doesn't stop here. The proposed taint tax will have to be evaluated in relation to the market response.

The EU might have to lower the taint tax to 5%, 2% or whatever the market participants consider a reasonable theft vs the benefits.

As nations compete to stack Bitcoin, taint taxes will also compete. If another country sets the taint tax to 1%, the EU will have to consider lowering their taint tax.

Many jurisdictions will not care about the EU taint phantasmas at all and their free market policies will naturally impact the rates that the EU sets.

Liberty-oriented jurisdictions will prosper from the increased commerce that follows from a free market without taint regulations and such government overreach.

As I reflected in my first note, I don't see how taint regulations will survive on a competitive global market with sovereign jurisdictions.

At the end of the day, consumers will vote with their feets and sats/wallets. Market participants will have the final word.

nostr:nevent1qqsyp39g9ykyclhvg2xxq3m5e6speyjdumzwk2llp2q3r630jkxrj5spzpmhxue69uhkummnw3ezumt0d5hsygpr6jfegcf9s4cxcu5s3f0rjp8e29m75zrmqvkahlxjsc3sf37esvpsgqqqqqqs3slnzj

#Bitcoin #Taint #GameTheory #Game #Theory #TaintTax #FreeMarkets #Free #Markets #Liberty

modulo 1y ago

Very interesting thought exercise and I generally agree with your conclusions.

modulo 1y ago

Every time I see this I take a double take—got to love Thailand where they are fully bitcoinized (in an alternate universe)

Replying to

Lau

The one thing Trump said that I did like was that he plans to have America generate an abundance of electricity. This is more important than bitcoin legal tender or a Bitcoin treasury, because electricity is the #Bitcoin security budget.

modulo 1y ago

That is my line! Energy abundance and a plan for it is what drives America

modulo 1y ago

Poor businesses fail and good businesses continue

Businesses that are #bitcoin Functional have a better chance for surviving but the prerequisite is business needs to be viable

Don’t expect #bitcoin to bail out a failing businesses model. #bitcoin will only buy you some time to right the ship

modulo 1y ago

Had the strangest dream last night. Trump walked out on stage holding a #bitcoin sign, talked a little about it then tore the sign up. Market price cavitated but then trump went off on a rant how everyone lost the thread, how politicians follow not lead

modulo 1y ago

New to #nostr and leaving #twiXter behind feels invigorating, particularly validating after X’s #bitcoin ₿ removal/betrayal

modulo 1y ago

Fun math:

Top miners are about 17.5j/Th

¢5 per kW/hr is relatively inexpensive electricity

• #bitcoin has 600Ehash mining

• 600Eh @ 17.5j/Th = 10.5mm kj

• 10.5mm kj x ¢5 per kW/hr = $525,000/hr globally

• $525k/hr x 24hr x 356days =

$4,600,000,000/yr for #Bitcoin mining, globally

Cost/yr fiat currency production from treasuries:

• US = $1,900,000,000 per year

• EU = $1,700,000,000 per year

USD & EUR = $3.6 billion per year to run

• JP, etc ???

#bitcoin is not expensive

modulo 1y ago

About inflation in the USD—you know it happens, but have you ever thought just how much you have gone through? I compiled this to show for your age how much USD inflation you have experienced. I am sure it is worse in other currencies. Stick with #bitcoin

Age Lifetime Inflation (CPI)

20 66%

25 89%

30 112%

35 153%

40 203%

45 335%

50 541%

55 758%

60 913%

(https://data.bls.gov/)

Replying to