Food, Energy, Money

Somebody posted this quote on Facebook…

Maybe that’s why the EU tries to regulate agriculture, and energy, tries to control the money with a single currency. Food was the main concern for governments in the ancient world. Just read plaques in cuneiform to get the idea.

Energy was for the most history slave labor and horse power, only the Industrial Revolution introduced new forms of energy such as hydrocarbons and electricity. Bitcoin is based on energy. Production requires energy. Modern society requires energy. Light go out, civilization goes out.

Money is the medium of exchange, pricing and money supply are important for the exchange of goods. BRICS wants its own exchanges, its own financial system. The Russians and Chinese are both on it.

Somehow countries (not all countries) became conscious of these important components of civilization. Russia for instance became a net exporter of food in 2016. The West is finally coming around the fact they need to build nuclear, ☢️ renewables are not going to cut it in the brave new world of AI and electric everything.

But one only wonders what took them this long?

Central Banks go After Bitcoin

Source

Last week, Ulrich Bindseil and Jürgen Schaaf of the European Central Bank (ECB) published a paper entitled “The distributional consequences of Bitcoin” in which they made a host of dubious claims about Bitcoin.

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Here are the claims:

  1. The main premise of the paper is that if bitcoin’s price continues to rise, early bitcoin investors — the “early birds” (the authors’ term) — will gain wealth at the expense of the “latecomers.” While this is true if the early birds hold all of their coins to no end, the dynamic is no different with any other publicly-traded asset. The bigger point that the researchers miss, though, is that some of us are both “early birds” and “latecomers.” I first bought bitcoin in January 2018, and I also bought some last week. Did I impoverish myself in this scenario? No, I didn’t. Nor has anyone who has dollar-cost averaged into bitcoin over any period of time.
  2. One of the other primary arguments in the paper is that Bitcoin has failed as a payment technology. In making this claim, the authors fail to even mention the Lightning Network, a layer built on top of Bitcoin that enables fast, cheap bitcoin payments. In recent years, the Lightning Network has grown exponentially. 
  3. Throughout the piece, the authors bring up how bitcoin and other cryptocurrencies are the preferred currencies of criminals and bad actors worldwide.
  4. The authors also make the claim Bitcoin is a threat to democracy because crypto PACs now donate to politicians. The presupposes that every other lobbying group out there isn’t a threat to democracy, which is laughable…
    Alexei Navalny, Vladimir Putin’s former opposition, popularized using cryptocurrencies for donations when the Putin regime limited its access to traditional financial rails.
  5. The authors also suggest that central banks can just tighten monetary policy to counteract the “bubble” forming in bitcoin’s price.

Imagine that, an asset appreciates. I hope you are stacking those sats my friends. BTC is actually used as payment in places where banking system is not very developed. In the EU, the adoption of BTC as a payment system is of course much slower. BTC is not a good option for criminals as the ledger is open and transactions can be traced to specific names.

The US Federal Reserve is not far behind in the stuck up dinosaur, legacy finance race…

Decentralized World

It is interesting how ideas and solutions that remove central authority and put power into the hands of individuals start to crop up…

I realized or rather discovered this after becoming thoroughly orange pilled. That is embracing Bitcoin. And well BTC is something that facilitates payments peer to peer without going through banks. It burst on the scene during the crisis of 2008, and “quantitative easing”. It presented a new take on money, money with a limited supply thus inflation prone, requiring proof of work to validate transactions. The beauty of BTC is it has no master, Satoshi Nakamoto is the mysterious founder of BTC and nobody knows who he is. He does not own Bitcoin, nobody does.

Governments and assholes want to control the media. They are deathly afraid of fake news. Disinformation can be dangerous because it can cause chaos but there is a lot of suppressed truth out there. But imagine bypassing the censors much like BTC bypasses the censors. Social media on a blockchain, where there is no management the government can phone and ask for people to be cancelled. I have also actually entertained the idea of blockchain voting.

Another thing that is emerging is the BRICS payment system. Murica has been able to get SWIFT to cancel Russia, thus this payment system was weaponized and ceased to be neutral. One of the criticisms of the BRICS is that it gathers countries which do not often see eye to eye. Russia-China-India seem unlikely allies given the history of clashes between these nations. But here lies the paradoxical strength of a shared payment system. Nobody would be in full control of it (hopefully) and its neutrality will be its strength. The new payment system comes on the backdrop of declining Western hegemony, and the emergence of a multipolar world. Can the World exist without a leading nation?

Also, the richer you are, the more ability you have to transcend the idea of belonging to a nation or state. If you have $100k (or more) to piss away, you can get a passport of some small island or some territory and take advantage of the perks there. These days we see a movement from the nation state towards universalist international blocks but I am interested in how an individual can do away with allegiance to a state. Is this possible? There are anarchist ideas of doing away with structures of hierarchy such as family, property (haves and havenots), and state.

Is doing away with hierarchy a utopian idea? How would you create a world that would satisfy everyone? Do we need to advance in technology to achieve a reality in which everyone would be able to grown into a viable adult without family, would be able to realize himself without money, would be secure and happy without property?

Owning nothing could probably lead to happiness because you would not have to worry about your possessions, more money more problems. But could I pursue my intellectual interests without money in today’s world? I could not! But imagine if the literature is all digitized, you can afford it with UBI, you can pay for your rent with a UBI, you can afford food with UBI, you can afford a computer with UBI, you can afford software with UBI? But the UBI will be distributed by the state and will amount to pittance that would barely pay for meal and lodgings.

So, while we can create a world without banks, without a single hegemonic superpower but it will take a while to do away with hierarchies in human society.

I Became a Bitcoin Maxi

And this is my final verdict on cryptocurrency…

My plans to own a portfolio of cryptocurrencies have changed abruptly after a moment of mental clarity. Pretty much following my post on analyzing cryptocurrencies, I came to dislike all the altcoins. I am not trading these and I just need the king to hodl. And that’s BTC!

BTC does not have a known founder and the software is pretty much not subject to any drastic changes. There are adresses believed to be belonging to Satoshi Nakamoto but he has never moved his Bitcoin unlike say Vitalik Buterin did with Ethereum.

Also BTC has a limited supply. It is a finite resource. I personally don’t think any of the other coins present an alternative. Maybe Monero with its encrypted transactions could find uses but Bitcoin is king. And there is no place for another.

So I converted anything that I had into BTC, and will not buy anything else from now on.

Damn, I am Buying US Debt

As you probably know, I am into buying crypto…

So, recently I have identified 7 cryptocurrencies which I want to have in my portfolio by the end of next year…

They are Bitcoin, Ethereum, Cardano, Solana, Monero, Litecoin, and USDC…

Bitcoin, Monero, and Litecoin are projects that I like personally, and that I think have a lot of potential. ETH, Cardano, and Solana can be staked. I wanna see how they behave.

USDC gains interest if you hold it, and can be spent using a Coinbase card. I am mostly investing in BTC and ETH and the other 5 I invest in on the margins.

USDC is a stable coin backed by US treasury notes among others…

Source

Source

Jerome Powell says US cannot continue piling up the debt, and the debt has to be addressed.

Cash is King

But is it?

This is also cash…

So, I see a lot of anxiety about the phasing out of cash. People rightly fear the government will get much more control over transactions people make, and would be able to tax transactions, or tell people what they can or cannot buy. Currently, transactions in cash over €3,000 are banned in the EU. This right to cash is often taken up by the politicians.

But why are we defending papers and coins issued by a central bank? This is just fiat that they can produce at any amounts and while it appears to be a great medium of exchange because it is the accepted legal tender, it does not hold value…

I have been curious about the very question of what is money. Basically, I found my old crypto wallet and began buying crypto, and this naturally led me to this very fundamental question. I realized that cash as a medium is sorely lacking in many qualities. Not only is it prone to manipulation by forces that are outside your control but also it could be faked.

Crypto like Bitcoin has a limited supply, there will be 21 million Bitcoins at the end and the supply cannot be increased. Other cryptocurrencies work differently, Ethereum has a burning mechanism that controls the inflation, in which some tokens are burned by the system and that controls the supply. Cryptocurrencies like Monero allow anonymity in transactions. In my opinion the cryptocurrency world is a developing medium that could supplant fiat money in due time or become a parallel and competing way of exchange.

The above video shows that all kinds of shit was used as money historically… If you want to keep central bank issued fiat cash because you think it will maintain anonymity of transactions, you are simply not being thinking creatively. We can have those payments digitally if the government doesn’t get involved.

Crypto adoption in the West, where the fiat system is relatively stable is very low but in places like Africa or Latin America the adoption among people is much higher. Was crypto ever to become a popular medium of exchange in the West, the governments would likely try to ban it by saying it is used by criminals and terrorists. Currently, there are already attempt under way to roll out digital currencies issued by central banks.

Heating the stove with Deutschmarks…

HODL yer Bitcoins

Guys, hold on to your Bitcoins and invest your money in it…

Although I beg for BTC above, I would suggest people hold on to their Bitcoins for the time being. I personally tried it. Put 100 quid into bitcoin and put it all on my Trezor wallet that I bought in a sale. This was several years ago, and then I lost the wallet. Recently I found it and my investment has grown 4 times. I decided to invest into it regularly because it seems like it is worth it.

Many bullish predictions of Bitcoin growth…

Bitcoin is drawing the attention of entire governments like that of Bhutan, and investment funds like BlackRock. My meagre investment will in the future grow tremendously. And that’s why you too should adopt the Bitcoin so we can grow together…

Shitcoins

The other day I found my hardware crypto wallet that I lost several years in the mess that is my bedroom. To my surprise its contents have grown by several hundred quid and I therefore decided to invest monthly into Bitcoin and Ethereum. I kind of want to turn every source of my income into invest.

And so I went to Coinbase, the place I last bought crypto and saw this shit…

Bitcoin I get, it was the first on the block, and Ethereum has the second largest market cap, and actually promises more, but SHIBA INU is just a meme. WTF? Is Bonk?

I have also encountered this commercial on X today.