Thursday, July 31, 2014

Bitcoin is not a geek curiosity, but a breakthrough

In a consumption society, most of the new stuff is considered cool just because it is new.
We call that a geek curiosity, wearable Computing Devices and the Internet Of Things is exactly that.

However, such curiosities lack depth and purpose, how cool is it to change powerpoint slide only by moving a hand whose gesture is detected by an arm band ?
Cool it is, yes, purposeful and deep ? not so much.
I am not meaning there is not something deep and purposeful to do with the help of such devices, but the device alone is not enough.

Bitcoin is deep and purposeful, or what I call a breakthrough, just like internet was.
Proof is that once you start educating on Bitcoin by  yourself, one question leads to several others, those question make you understand not only technological aspect, but what "trust" is, what the "incentive" means, what is an economic force, and what is a private property.
Those are concepts that got altered by our politicians but Bitcoin redefines it without ambiguity.

The questions lead you to educate yourself about the different school of thought in economics are, even if you never cared,  by questioning the premises of its creator, why Satoshi has done it ? His ideal is rooted on economic thought coming from the Austrian school, from authors like Milton Friedman and Adam Smith. Names I never heard before questioning the purpose of Bitcoin.
You understand what the state is, what the central bank is, what a bank is, what are their motivations, why they are here, how they became, their beliefs and intellectual background, how a free market is like. The history of money and why some people retract or contract it, and why other prefer to stay away. You understand money is not different than any good and has an exchange rate with any other good in existence which is influenced by both, the good supply and demand, and money supply and demand.
You understand that money is not always wanted and all kind of substitute exists.

Bitcoin is like a window that opens into a new world that a simple geek does not normally care, but which solicit his curiosity to the extent where the old world will never look the same in his eyes.

Then, as soon as you deepen your knowledge about money, you then stop buying Bitcoin for speculation purpose but with the certainty that the value we are giving to it is so undervalued that it is worth risking. You also buy because of the new values the questions taught you.
You understand there gold has no more innate value than this array of byte representing this Bitcoin key.
You understand why economic forces will be drawn to use it anyway, masses understanding or not, state controlling or not. This does not mean a catastrophic event can't break Bitcoin entirely.
But such event will be purely technical and mathematical.
No political, consumer trends or any law can break Bitcoin. If the only weapon of state, coercion, is rendered ineffective by anonymity, then the state is impotent to stop economical in motion opposing its interests.
Bitcoin is not a declaration of war of the black market to the state.
Bitcoin is the best private property you can have. Nobody can steal it without your consent.
Even torture or computer theft can be rendered ineffective by a wise Bitcoin holder who can hide not only his Bitcoins, but also the mere knowledge of their existence.
Nobody can prove how much one person has, except if he agrees to speak, but even if, no proof can be given that he is not lying.

This means Bitcoin is the hardest private property to steal and the easiest to protect.
The creation of State was the response of society for the need of an entity that get granted with the monopoly of coercion on a territory, whose only goal is to protect citizen from violation of private property, be it physical, material and immaterial.
State should be happy, since, for the first time, we have an asset so inviolable by design, that very few resources is needed to protect citizens.

Bitcoin is not a war between black market and white market.
Bitcoin is nothing but an inviolable property that require explicit consent of its holder for any transfer.

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