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The Bitcoin Economy Part 2

Follow up to The Bitcoin Economy Part 1.

Bitcoin is a genie that can’t be put back in the bottle. I can only point to the tip of an iceberg in a blog but this summary is the result of years of research on my part.

Things to research if you want to begin to understand Bitcoin:

Byzantine General’s Problem – how Bitcon settles transactions nearly instantly
Triple entry accounting – I know what you see is what I see
Blockchain – Chain of digital signatures, verifying the ledger block by block
Game Theory – Balance of disparate factors coming together to balance the system
Small world network – No node in Bitcoin is more than 1.3 hops away
Proof of Work – Each Bitcoin is minted as a result of verifiable work performed. No forgery, just competition.
Particle Swarm Optimization – Solve difficult problems inside Bitcoin
Cellular Automaton – Simple rules for complex calculations
Mandala Network – Bitcoin is a dense network
Neural Network – Bitcoin is a brain
SEIR(S) – How diseases propagate. Also relevant to how Bitcoin propagates transactions
Total Turing Machine – Any answer calculable by a Turing machine is calculable by any Turing complete system, like Bitcoin
Wang B Machine – similar to Turing machine

You may notice several of these technologies mirror biological processes. Hmmmm….

All of the above, and more, exist in Bitcoin. This is genius level design.

We are starting to see a flood of new use cases and apps built on top of Bitcoin. It’s very important to get what I’m saying here, the current development of apps on BSV will lead to an explosion of powerful use cases in the near future.

Craig Wright (Satoshi Nakamoto) implemented the above tech (and more) in a unique way with Bitcoin and holds hundreds of patents. I believe Dr Wright will be recognized as a genius for this work within a decade. This will be a reversal of current sentiment as many have painted Dr Wright negatively to further their own goals. This will all resolve itself soon. Dr Wright is an incredibly patient man.

I spent many hours researching everything in the video below. It’s mind boggling. If you want to understand Bitcoin it will take a lot of work, I am still learning every day. Bitcoin is world changing technology.

(start at 11 min mark)

Bitcoin will usher in a new revolution. Bitcoin will be bigger than the Internet.

Bitcoin will be the single global repository for all data that has value. I know that sounds impossible but that’s the goal. This is unconventional thinking in 2019 but will be taken for granted in near future.

All of the technologies above will be combined so that anyone, anywhere can transact value peer to peer. Bitcoin is honest money which will bring accountability to every area of life. Honest money creates an honest economy. Imagine an economy run on a single ledger where everyone is accountable. Governments will be forced to be efficient. Corporations will be honest or perish. Goodbye Dutch Irish companies where Joe Sixpack pays more in taxes than Apple. This a decade away, but it’s coming.

The recent Facebook hearings in congress were bullish for BSV. The legislators see the danger in a centralized currency run by a cabal of tech companies. BSV is designed to operate within current legal frameworks. Legal compliance is baked into Bitcoin from the start.

Governments will be regulating coins soon. Most coins won’t survive, and what doesn’t survive regulation will be swallowed by Bitcoin.

BSV is gathering critical mass. 2020 will be the year it takes off. These are early stage projects built exclusively on BSV. Imagine them with a bit more time to mature. The future is going to be amazing.

yours.org – blogging
Audiob.app – music
twetch.app – social media, replaces Twitter with a system of micropayments possible only on BSV
streamanity.com – streaming video
moneybutton.com (and Paymail) – payments
Handcash POP – point of sale

These projects can only be built on Bitcoin as originally designed. No other coin has an ecosystem like BSV. Now, consider most of those projects are less than a year old and were bootstrapped from small teams. Imagine when large scale development begins in earnest on BSV.

Bitcoin is a genius invention that will change the world. Bitcoin is more than money. We are still so early that the picture is not clear yet but watch the next 1-2 years. The 20+ years of hard work on Bitcoin is about to pay off.

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Macro Guy Groks Bitcoin

Last night I watched a RealVision video about Bitcoin. In a moment I will tell you why this video is important.

RealVision focuses on Macro market views. Despite their slight gold bias most of their content is well supported in terms of data and balanced opinion.

This is the RealVision interview on Bitcoin.

Here is why this is an important video:

  • This macro gold guy sees Bitcoin at Trillion plus valuations
  • Calls Bitcoin a “truth security machine”
  • Recognizes Bitcoin as an invention and a system to benefit mankind, not a silly digital token
  • Sees the genius of it’s design. The multi disciplinary mastery involved.
  • Sees the breakthrough of solving Byzantine General’s Problem. Says it’s not properly valued.
  • While ETH and a few coins are mentioned, the majority of his thesis works only on BSV

People outside Bitcoin are starting to see what’s coming. He’s starting to get it. He further states it’s irresponsible to not have a 1-2% of your portfolio in Bitcoin.

He presents the Macro story of Bitcoin very well and it’s a story that aligns with BSV only. Legal, scalable, professional, honest.

This is the first video I’ve seen from someone outside Crypto who gets the potential and can talk about it in intelligent terms. Draper, Novogratz etc don’t lay out the details as well. I don’t think they get it to be honest. This guy is different. He hints at the particulars. He’s in the process of groking Bitcoin.

For me, this confirms that guys at this level are prepping for what they see as Macro changes. They are going to be increasing their positions as it becomes clearer to them Bitcoin is here to stay. To be clear, this is not me saying “the institutions are coming”. That’s a meme propagated by fools. An ETF is not going to save Bitcoin. What I’m saying is smart macro guys are seeing that Bitcoin has survived it’s blow off top. It’s not going to die. There is a whole world being built on Bitcoin and it’s dumb to ignore it. Now is the time to be serious about this breakthrough. Now the real adoption begins.

The market cycle is at play. This is where Macro guys live. They look for this type of play. This chart is their bread and butter and RealVision is posting videos saying the time is now.

Further, while he didn’t mention BSV specifically, if he’s doing this level of homework and ignoring the drama he’ll naturally discover why BSV is Bitcoin.

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Playtime is OVER

Sorry Crypto Kiddies, it’s time to grow up.

Pumping coins on the latest meme was good times while it lasted. Trust me, I enjoy a good meme.

Everyone makes money in a bull market and 2017 was a grand bubble. On large timeframes, we’ve been dead cat bouncing ever since.

Here’s the future of “alt coins”.

It looks like fundamentals are catching up to the market.

What are the fundamentals of BTC?

  • 1MB blocks
  • 7 transactions per second max
  • “store of value”
  • depends on sidechains to scale

What are the fundaments of BSV?

  • 2GB blocks
  • 1,000 transactions per second
  • Peer to Peer Electronic Cash / Global Ledger
  • Competitive network, scale or die, no third parties needed

Applications built on BSV:

yours.org – blogging
Audiob.app – music
twetch.app – social media
streamanity.com – streaming video
moneybutton.com (and Paymail) – payments
Handcash POP – point of sale

Applications built on BTC:

?????? – no kidding. I can’t name one. BTC’s only use case is speculation as far as I can tell.

Price:
BTC ~$10,150
BSV ~$150

70:1 ratio. I see a grand opportunity here for BSV. Remember, I said buy BSV at $130 and below in Buy The Blood.

And then we have the topic that has distracted the market for years. Who is Satoshi Nakamoto? The truth is coming out. Bitcoin was not designed for dark markets or money laundering. Bitcoin is designed to be legal and poised to be THE world currency.

Craig Wright on Cheddar today. CNBC by 2020. Speaking at United Nations within 5 years.

Crypto Twitter has been playing the game of attacking Craig Wright for years. Play foolish games get foolish prizes.

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Priced out of California

Cost of living in California is spiraling upwards at a dizzying pace. I left in November of 2018 because even though I make Bitcoin sized returns California still seems insanely unaffordable. Sure, San Diego has perfect weather but housing and rents have doubled within a few years. This is not sustainable. I see a huge correction coming to “America’s Finest City”.

For rentals, how about $3,075/month for less than 600SF sound? Sounds ridiculous to me. This is near the median for 1 bedrooms in the Little Italy neighborhood. Don’t worry, if you have your heart set on paying $8,000 for a 1 bedroom Little Italy has you covered.

 

This neighborhood is mostly young professionals. “Excuse me sir, but what are you doing at 28 to afford a $5,000 apartment?” Sure, many people make lots of money but is everyone making the required $200k plus to be rolling in a neighborhood with those rents paying $14 for avocado toast snacks and $12 cocktails on the daily? I doubt it. I smell daddy’s money or insane credit card debt.

The only way the math works out is that everyone is going broke, fast. But their Instagram is lit AF.

To be clear, I *could* afford to live in California but at $3k for <600SF why would I? Add in that a burger, beer and fries is over $20 and it was time to move. I was eating my retirement one $20 burger at at time. Maybe it’s because I still have my midwestern roots and no matter how much I make I refuse to blow obscene amounts of money on a studio with a peak ocean view. Or, maybe I can just do basic math.

But wait, there’s more. As a trader, California is creeping up on the Fed for their share of your tax dollars. You think short term capital gains from the Fed are bad? Wait till you have a great year and with Fed and CA capital gains you are paying over 50% of profit in taxes. That’s right, you keep less than 50% of your profit. But hey, you get to take 100% of the risk so it evens out? That’s an example of the new California math.

I realize NY or SF may have more ridiculous rents. Great, if you live there I’m surprised you are smart enough to read.

I sold my home shortly after the last bubble. I may be a buyer during the next crash. It’s going to be a doozy.

 

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Road To Winship

This is Gentlemen.

Fitting I start this post with a crypto saying. Crypto has been entertaining. The memes are memorable. The drama never ending.

Say goodbye to all that shit. Crypto fun and games are over.

BSV is up 30% in six days since I posted Buy The Blood and Crypto is a Ponzi.

Congress is sick of the money laundering and shadow coins. They are going to lay down the law, literally.

This means your portfolio of alt coins are dead. This was not hard to see. I have been calling it since the epic bull run of 2017.

There is a Giant Meteor Headed for Crypto. BSV is the ark.

NC Congressman Patrick McHenry: 

“The world that Satoshi Nakamoto, author of the bitcoin white paper, envisioned is an unstoppable force. We should not attempt to deter this innovation … those who have tried have already failed.”

BSV is the only coin that follows the Whitepaper. BSV is “set in stone” and obeys current laws. BSV is honest money. BSV is the unstoppable force McHenry references above. The rest of Crypto will go to zero.

The virus is spreading. The Road to Winship begins in earnest now.

 

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Worst Case

100 BSV = $13,500
When 1 BSV = $13,500
Your $13,500 will be worth $1,350,000

Worst case you lose $13,500.

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Mnuchin talks Crypto

Treasury Secretary Mnuchin talked about Crypto today:

Remember how I have been saying BSV is honest money? BSV fits within the law. Most of Crypto is a pipedream for anarchists who didn’t have good fathers.

BTC is relying on a non existent Lightning Network which runs afoul of KYC and AML. BTC can’t scale and now it will soon be illegal.

For me, Mnuchin’s comments were bullish for BSV.

BSV scales ON-CHAIN, legally.

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Buy The Blood

BSV is trading at ~$130. This looks like strong support on charts. BSV has fallen 50% from recent highs while BTC has fallen 25%.

I have been pounding out blogs talking about the fundamentals of BSV. Fundamentals is about what to buy. BSV is the only crypto anyone should buy because Crypto is a Ponzi.

Technical analysis is about when to buy.

At $130 BSV is a buy.

I expect $130 to offer price support. If 130 breaks we’ll have psychological support at $100 and, worst case IMHO, $50. BSV could fall another 50% or more. Long term, this doesn’t matter. BTFD now and continue all the way down. If you can’t stomach that don’t do it. Wait till trend reverses and follow the herd. As a confirmed crypto degenerate I am only telling you what I’m doing.

BTC is trading 70:1 to BSV. If you own BTC and are not hedging your holding at this ratio there’s no reason for you read my posts. You have made your decisions. You’re no longer processing information. You’re a HODLer. I have no time for that.

This is my call: BSV is a 10x from here within 12 months.

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Crypto is a Ponzi

Simply put, time is limited for Crypto. I expect another bear swoon maybe as soon as this Summer. The counter to this is Bitfinex and Tether will pump BTC in one last glorious exit pump, dumping at a peak on retail noobs conditioned to HODL. This will be the last hurrah.

Regardless of timing, there will be a massive cleansing of Crypto.

I called this BTC ponzi pump as it happened:

I wasn’t the only one:

This tweet was near the current BTC top:

This call on BSV paid off well if you took it at $57. Within weeks it hit $240+ and is now sitting around $160.

So how does this end? All the shitcoins, including BTC, with their broken economic models, experimental blockchains and “second layer” solutions will fail. This may take a year or more but it will happen.

Only one coin will survive.

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The Bitcoin Economy Part 1

Technology has transformed the human experience over the past 150 years. Medicine can now prevent and treat many previously incurable diseases. We can traverse the planet in hours instead of years. One farmer can feed a small town. Cars did not exist when my Great Grandmother was born.

Technology moves fast.

One area that we have not transformed is breaking our reliance on centrally managed fiat currencies. Our boom bust cycle that has existed since money was invented continues to this day. Every fiat currency in history has failed.

As the saying goes, “On a long enough timeline….”

We are now entering a new phase. Similar to how advances in medicine, transportation and technology altered our day to day life we are about to see a shift in how we value information and exchange goods.

Information is the new money.

Money has these characteristics:

The characteristics of money are durabilityportability, divisibility, uniformity, limited supply, and acceptability.

When comparing the USD (the world’s reserve currency) to Bitcoin the USD is inferior in all areas except for acceptability (at this time). The world just hasn’t caught on yet. When it does, Bitcoin will beat the USD there too.

We are on the verge of a new era, distinct from every currency of the past.

No currency in history has been backed by Proof of Work. This makes Bitcoin the most reliable, resilient and fair money mankind has produced.

Very simply, Proof of Work creates honest money. We know for the next 100+ years how Bitcoin, via POW, will be issued and secured. This process is set in stone.

Proof of Work is fundamentally different than Fiat. Proof of Work is competitive. Miners are rewarded for securing the Bitcoin network. No work, no reward. Every Bitcoin is a product of Proof of Work providing cryptographic proof of it’s validity.

Fiat money is a currency without intrinsic value that has been established as money, often by government regulation. Fiat money does not have use value, and has value only because a government maintains its value, or because parties engaging in exchange agree on its value. – Wikipedia

Stablecoins, eg Libra, are pegged to fiat. Fiat is a promise. Therefore, Libra is a promise about a promise! The world has been built on promises created by governments proclaiming their currency as means of exchange. Throughout history governments have broken their promises around Fiat. Fiat can be manipulated. It is subject to the presiding government’s challenges. Never in history has fiat survived the waxing and waning of the politicians. Example: as of the 70’s the US dollar is not backed by gold. Only more promises. Fiat is inferior to POW. Fiat, as a promise and as history has shown, is eventually broken.

POW is a fair playing field. No politician can manipulate Bitcoin. Money has always been power. In Bitcoin, information is power. This enables competition without boundaries. Even with unreliable internet anyone can compete in the Bitcoin Economy. I can sell my goods online for pennies from anywhere in a Bitcoin Economy.

The Bitcoin Economy will revolutionize information sharing and exchange of value.

Proof of Work is a breakthrough in how money is created. There is no promise, no peg to break in PoW. There is no dilution via centralized policy. Proof of Work replaces fiat with honest money. POW does not care about politics. POW is truth.

Bitcoin enables commerce at a microtransaction level. The Long Tail theory shows that microtransactions can generate a larger impact on the world economy than the Internet. Microtransactions in volume will dwarf current economic numbers.

Fiat currencies ultimately settle in USD, the king of Fiat, as USD is the world’s reserve currency. The problem is the USD is not honest money. There’s no peg to anything, only an empty promise. Bankers print with the Fed’s approval. Pegging the world’s currencies to the US Dollar is tying your lifeboat to the Titanic.

The world’s economies are living on borrowed time.

Stablecoins are lipstick on a pig (USD).We must dig deep. We can do better. This is a critical turning point for the world economy.

Bitcoin is truth.

Stablecoins perpetuate a fiat system built on a promise. Bitcoin is a NOT a promise. Stablecoins are the gateway to a new century of serfdom.

The Bitcoin Whitepaper is a masterpiece. Maybe the greatest human achievement in the past 100 years.You don’t mess with a masterpiece. If that sounds like hyperbole you haven’t seen what Bitcon enables yet.

The Bitcoin Economy exposes corruption, lies and crime. Anyone who champions against Bitcoin has a stake in hiding something. To be clear, Bitcoin does not care what you do, but if you do something illegal Bitcoin is not your friend.

We are in the very earliest stages of Bitcoin. 10 years is nothing. It’s important to begin researching Bitcoin now. I’ve been at this for years and I have startling revelations almost daily.

This will take time. Start now.

This post first appeared on Coinspeak.io

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