<h3>The adventure to understanding <img src="https://cryptologos.cc/logos/bitcoin-btc-logo.png" width=40px> Bitcoin </h3>
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(button:)[[Property rights and trade are the basis for human development->Propterty rights]]
(button:)[[The government is the basis for human development]]1. Property rights are a requirement of trade (Why trade anything if you don't own something afterwards?)
2. More trade is better for everyone (You would not trade if it wouldn't benefit you)
(button:)[[PayPal & Co are great for international trade]]
(button:)[[International trade is sooooo complicated]]
(button:)[[Each country can be self-sufficient]]Choose your preference
(button:)[[The government should tax more->Tax more]]
(button:)[[The government should tax less]]
(button:)[[The government can just print the money]]I am sure you have good intentions. However sometimes good intentions lead you down a slippery slope.
After repeating the step "//The government has to take more from the rich//" over and over one arrives at a system called Socialism / Communism. And this system has been tried many times (UdSSR, North Korea, Venezuela, Cuba, China) and this system creates unthinkable horrors and human misery in enormous scales:
* The Top 2 bloodiest dictators were communists <img style="max-width:500px; width:80%" src="https://images-cdn.9gag.com/photo/amroApo_700b.jpg" alt="Bloodiest dictators">
* Tianmen square original footage <div class="ytcontainer"><iframe class="video" src="https://player.vimeo.com/video/558243654?h=8894c214f9" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
* <a href="https://en.wikipedia.org/wiki/Xinjiang_internment_camps">Chinese Concentration camps</a>
* North Koreas horrors can fill entire youtube channels: <div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/oWHSYhzEdgA" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
* Cuba <iframe frameBorder="0" scrolling="no" src="https://playlist.megaphone.fm/?e=CSN1977843891"
width="500px"></iframe>
* East Germany <div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/railtJHRYIc" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
* Venezuela's socialism made <a href="https://www.worldvision.org/disaster-relief-news-stories/venezuela-crisis-facts">1/3 the population leave the country</a>
(button:)[[This time communism will work->The government has to take more from the rich]]
(button:)[[Maybe one should have less government->The government should tax less]] No doubt: PayPal and other financial services reduce the friction of international money transfer. ''However''
* Not available in many countries: <a href="https://home.treasury.gov/policy-issues/office-of-foreign-assets-control-sanctions-programs-and-information">https://home.treasury.gov/policy-issues/office-of-foreign-assets-control-sanctions-programs-and-information</a>
* Fees for conversion and remittances (WesternUnion) are high, especially for low value transmission
* If PayPal doesn't like you, you don't get an account
* If PayPal stops liking you, they freeze your account (good luck trying to get the money //ever// out again)
So what? Give up?
(button:)[[Work with governments to reduce financial barriers]]
(button:)[[Use <img src="https://cryptologos.cc/logos/bitcoin-btc-logo.png" width=20px> Bitcoin->Use Bitcoin]]Yes it is. And one reason are the different currencies:
* Foreign currencies introduce: volatility, need for many bank accounts (with fees), many payment processors, book-keeping headaches, tax headaches
(button:)[[Work with governments to reduce financial barriers]]
(button:)[[Use <img src="https://cryptologos.cc/logos/bitcoin-btc-logo.png" width=20px> Bitcoin for all international payments->Use Bitcoin]]
In principle yes, but in practice international trade is just as beneficial as in-country trade (for everyone).
(button:)[[The government should reduce international trade to be independent]]
(button:)[[Lets get more international trade->Use Bitcoin]]After decades of trying to make banking and international payments easier, staggering amounts of people are unbanked even inside countries (have ''no'' access to basic financial services).
//Even// in the //USA//, there are ''7%'' people unbanked
<iframe height="500" width="100%" src="https://www.gfmag.com/global-data/economic-data/worlds-most-unbanked-countries"></iframe>
And the expensive WesternUnion is far away from a good international payment system.
<div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/ZBIkC7nkbWE" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
(button:)[[How can <img src="https://cryptologos.cc/logos/bitcoin-btc-logo.png" width=20px> Bitcoin change this?->Use Bitcoin]]<div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/Gc2en3nHxA4" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
(button:)[[Bitcoin is a Ponzy Scheme]]
(button:)[[Bitcoin is a speculative investment]]
(button:)[[Bitcoin uses too much energy]]
(button:)[[Bitcoin is just one of many cryptocurrencies]]
(button:)[[Bitcoin should not be used because one cannot tax the rich->The government has to take more from the rich]]
(button:)[[I will buy it when it dips to get rich quick]]
(button:)[[The government will ban Bitcoin]]
(button:)[[Bitcoin is slow and not a payment system]]
(button:)[[I want to learn]]
More trade is better for everyone (You would not trade if it wouldn't benefit you)
(button:)[[The government can just tax more from the rich to compensate->Tax more]]
(button:)[[International trade is sooooo complicated]]
No. A Ponzi scheme pays out investors by new influx of money.
* Example: Player A is being promised to triple his money (100 USD). Player B and C also want to triple their 100 USD. Player A now gets the 300 USD collected from Player A,B,C. This obiously cannot continue indefinitely and needs an exponential growing people paying money into this scheme.
<img src="https://cryptologos.cc/logos/bitcoin-btc-logo.png" width=20px> Bitcoin is nothing of this sort. It promises nothing, no return, no gain. The only reason Bitcoin is valuable is that people ''value'' the Bitcoin network and the Bitcoin token in the Bitcoin network. Bitcoin is like Pokemon Cards. Why the heck do they have value?
(button:)[[I want to learn]]Bitcoin is many thing to many people.
And if you want to invest in any asset it is your choice. However Bitcoin is so much more than some asset:
* A freedom money
* Property rights enforced by math and code
* A store of value that is //absolutely scarce//
* A means of sending money around the world
* A means to circumvent capital controls
(button:)[[I want to learn]]
(button:)[[What does freedom have to do with money?]]While there exist other crypto-networks, there is ''no'' other competitor for //money// or //store of value//.
This has to do with self reinforcing network effects.
Listen & watch here:
* <iframe src="https://anchor.fm/thecryptoconomy/embed/episodes/Read_417---On-Schelling-Points--Network-Effects---Lindy-Willem-Van-Den-Bergh-eghjp4/a-a2lor55" height="102px" width="400px" frameborder="0" scrolling="no"></iframe> </br> <a href="https://medium.com/@willemvandenbergh_85885/on-schelling-points-network-effects-and-lindy-inherent-properties-of-communication-c4eb69b55c60">https://medium.com/@willemvandenbergh_85885/on-schelling-points-network-effects-and-lindy-inherent-properties-of-communication-c4eb69b55c60</a>
<div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/p0ftZgCEZos" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
(button:)[[I want to learn]]* Tax is using //force// to steal from those who created value (noone earns money without giving or creating value for other people)
* How can force / cohersion from anyone (including any government) be a good thing?
* There is no choice and therefore no competition to increase the quality of the government and government services
(button:)[[Tax less->The government should tax less]]
(button:)[[Tax should be increased, because that is what works->The government has to take more from the rich]]
How to pay for previous government services?
(button:)[[Tax less and print more->The government can just print the money]]
(button:)[[Tax less and pay to private companies for those services that you really want]]<h5>Printing money? Is the answer so easy?</h5>
But what does printing money actually do? Can the government create value out of thin air?
To understand this lets consider a simple game: Monopoly with 3 participants:
* Player A (starts with 100 USD and owns Street A)
* Player B (starts with 100 USD and owns Street B)
* Bank (sitting on the sideline)
Street A and Street B have a market value of 100 USD each (based on rent you can get from it).
At some point the banker decides to give Player A another 100 USD. What will Player A do?
* Most likely he will immediately try to buy Street B with up to 200 USD
* Or he keeps the money. But if Player B wants to buy Street A, he will price Street A as up to 200 USD.
<h5>What did just happen?</h5>
* Did Street A/B become somehow more valuable?
* Did the banker create value for everybody?
No, the banker extracted the purchasing power of Street A/B from those who held USD. And he then redistributed it (Player A).
Effectively he stole value from Player B and gave it to Player A.
''That is exactly what happens in the real economy too.''
* It creates massive injustice
* Massive wealth redistributions to those who have mostly assets
* Hidden paycuts to everyone who earns money and is not paid by stock-value linked bonusses. <a href="https://wtfhappenedin1971.com">https://wtfhappenedin1971.com</a>
(button:)[[Ok, printing money is not a good idea->The government should tax less]]
(button:)[[Government intervention creates a net benefit->The government has to take more from the rich]]
(button:)[[We must print money to pay for all the debt]]Why are we talking about tax? Because it is one of the examples how governments weaken property rights and with it trade and prosperity.
(button:)[[Property rights are important->Propterty rights]]
(button:)[[The government can just print the money]]Great to Listen:
* <iframe src="https://anchor.fm/thecryptoconomy/embed/episodes/Read_407---The-Bullish-Case-for-Bitcoin-Vijay-Boyapati-efpi06/a-a2hgo5d" height="102px" width="400px" frameborder="0" scrolling="no"></iframe>
* <iframe src="https://anchor.fm/thecryptoconomy/embed/episodes/Read_479---The-Greatest-Game--Part-1-Jeff-Booth-eocvib/a-a486pki" height="102px" width="400px" frameborder="0" scrolling="no"></iframe>
* <iframe src="https://anchor.fm/thecryptoconomy/embed/episodes/Read_480---The-Greatest-Game--Part-2-Jeff-Booth-eoe65a/a-a48ds0j" height="102px" width="400px" frameborder="0" scrolling="no"></iframe>
* <iframe src="https://anchor.fm/tales-from-the-crypt/embed/episodes/222-Beefing-with-the-NFL-with-Jack-Mallers-eomak8/a-a49vflr" height="102px" width="400px" frameborder="0" scrolling="no"></iframe>
Podcast Collection:
<a href="https://bitcoin-only.com/podcasts">https://bitcoin-only.com/podcasts</a>
(button:)[[I want to listen and learn->Audio materials]]
(button:)[[Links please->Bitcoin Links]]
(button:)[[Videos]]
<span id="forkongithub"><a href="https://github.com/relativisticelectron/relativisticelectron.github.io">Fork me on GitHub</a></span>
* <a href="https://medium.com/@vijayboyapati/the-bullish-case-for-bitcoin-6ecc8bdecc1">https://medium.com/@vijayboyapati/the-bullish-case-for-bitcoin-6ecc8bdecc1</a>
* <a href="https://bitcoin-only.com/">https://bitcoin-only.com/</a>
* <a href="https://learn.saylor.org/course/PRDV151">https://learn.saylor.org/course/PRDV151</a>
(button:)[[I want to listen and learn->Audio materials]]
(button:)[[Links please->Bitcoin Links]]
(button:)[[Videos]]
<span id="forkongithub"><a href="https://github.com/relativisticelectron/relativisticelectron.github.io">Fork me on GitHub</a></span>
(button:)[[I want to listen and learn->Audio materials]]
(button:)[[Links please->Bitcoin Links]]
(button:)[[Videos]]<div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/W8GDsddB1us" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
(button:)[[I want to learn]]People are paying for the energy that is used by Bitcoin mining. And they would not pay for any service if this would not be worth it for them.
Do you really want to tell people how they should spend their money? What about Xbox? What about driving a car? How could anyone measure the value except for those who actually need to spend the money?
(button:)[[I want to learn]]Debt. Oh now it gets complicated. Lets first understand how the economy works
<div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/PHe0bXAIuk0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
(button:)[[The government has to redistribute the wealth to the poor->The government has to take more from the rich]]
(button:)[[Can Bitcoin be used to escape this system?]]The short answer is ''yes''. But don't expect to have an easy time. Governments do not like to lose power:
<div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/ImXHelK0J1g" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
Did you listen: They don't want you to //escape//. //''Escape''//. How that reminds me of every communist regime ever. And no wonder she speaks like that. Who doesn't want to escape their financial system, when //nominal// negative interest rates are coming?
<div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/LgI0liAee4s" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
<div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/ZBIkC7nkbWE" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
(button:)[[I want to learn, even though it will not be easy->I want to learn]]
(button:)[[The government has to take more from the rich]]Check out the blog <a href="https://alexgladstein.com/bitcoin/">https://alexgladstein.com/bitcoin/</a> from the <a href="https://hrf.org/team/alex-gladstein/">Human Rights Foundation</a>
(button:)[[I want to learn]]Many governments have banned <img src="https://cryptologos.cc/logos/bitcoin-btc-logo.png" width=20px> Bitcoin and Bitcoin exchanges already.
Why? Watch here:
<div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/FyK4P7ZdOK8" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
However the Bitcoin network is designed to be as resiliant as possible and would survive even extreme adverserial scenarios we can think of. And exchanges to other currencies can always be done peer-to-peer, even if this is inconvenient.
The reason behind this is simple: Bitcoin nodes runs on all participants computers. And it is infeasible to stop people installing Bitcoin software on their own computers and cellphones, especially if people need it to cirumvent capital controls, sanctions, or protect their money from inflation. People will find a way to use and trade it, if they need to.
(button:)[[I want to learn]]<div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/JtyRN4YFRFI" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
<div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/stN03wk_Wzs" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
<div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/KXIaILHl7Rg" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
<div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/FyK4P7ZdOK8" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
<div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/p0ftZgCEZos" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
<div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/LgI0liAee4s" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
<div class="ytcontainer"><iframe class="video" src="https://www.youtube.com/embed/kqsmCUo3xEQ" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>
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(button:)[[I want to listen and learn->Audio materials]]
(button:)[[Links please->Bitcoin Links]]
(button:)[[Videos]]
<span id="forkongithub"><a href="https://github.com/relativisticelectron/relativisticelectron.github.io">Fork me on GitHub</a></span>
This is true. Bitcoin, at its base layer, cannot scale to be a world-wide payment system. Trying to make it such would destroy its decentralization property.
However nothing is stopping development to build more layers (lightning, liquid, and custodial) ontop.
<iframe src="https://anchor.fm/thecryptoconomy/embed/episodes/Read_421---Lightning-as-a-Retail-Payment-System-Nicolas-Burtey-eharkj/a-a2q7ii2" height="102px" width="400px" frameborder="0" scrolling="no"></iframe>
(button:)[[I want to learn]]