🧵 1/4🧵 #Bitcoin  Schelling Point - “A solution people choose, by default, in the absence of communication”

Most basic observation - people choose and assume their local government currency is the only option for saving their wealth. In reality, primarily in western societies, especially in USA, civilians don’t look for another option. Or are completely ignorant of other savings vehicles. Only because there is a total lack of communication and education. #btc

2/4 Basic game theory with schelling point - if you ask multiple people to meet at a park without cell phones or a previously centralized meeting point. Each individual will assume where the others would meet.

If this park had a single enormous tree, on a hill, each person would likely start at the tree in their search for each other.

#nostr #plebs

Game theory continued :

3/4 Let’s say each of the previously mentioned people are level 0 players. If a level 1 player entered, 1 would assume 0’s will start at the tree, so 1’s would start on the edge. 2’s would assume where 0 and 1’s would start so they would choose mid field. Etc…. Now how this ties into bitcoin .. #crypto #money

4/4

Level 0 players are people who trust their government currencies only because they have never asked, “why?”

Level 1 are people who choose to invest in alternative wealth preservation vehicles. Stocks, bonds, housing, etc…

Levels progress only when communication barriers are broken and when the question “why?” Is answered.

Currently in time, I believe the highest level are those who truly understand #bitcoin  #btc  . Which is rare, even in the bitcoin community. Most people who own don’t understand.

What do you think ?

“EARNING” aka “SAVING” ON Debasement with #bitcoin  #btc

Will make this a video later today -

On September 18th, 2023, when the US debt hit 33 trillion and Bitcoin was priced at 26,700 USD, the value of Bitcoin could be seen as a potential hedge against government debt. If you had invested in Bitcoin instead of holding onto the US dollar, the increase in Bitcoin's value could have helped offset the debasement caused by the growing debt.

On Friday, November 10th, 2023, the US debt stood at 33.7 trillion, and Bitcoin was priced at 37,000 USD.

The difference in value between the US dollar and Bitcoin can be viewed as a measure of how much you could have saved.

To calculate the savings, we can compare the percentage increase in Bitcoin's value relative to the percentage increase in the US debt.

Using the given data, the percentage increase in Bitcoin's value from 26,700 to 37,000 is approximately 38.6%. Meanwhile, the percentage increase in the US debt from 33 trillion to 33.7 trillion is approximately 2.1%.

Therefore, in this particular example, by holding Bitcoin instead of US dollars, you would have potentially saved approximately 36.5% (38.6% - 2.1%) of the debasement caused by the growing government debt.

You can call this earning or saving, but it doesn’t matter because it is all in fiat. 1 bitcoin is 1 bitcoin. Live on bitcoin and beat debasement.

The lower your time preference, the deeper level of civilization you care for.

If you're really high time preference, you'll only care about yourself.

Lower your time preference slightly, and you'll start caring about your family.

Lower it a bit more, your community.

Lower it further, your country/jurisdiction.

Lower it even more and you start caring about the world.

And this is real caring as in building stuff, not the fake kind which is just a bunch of cheap words.