Ethics of Web3 Discussed at Paris Blockchain Week

Web3 technology is becoming increasingly pervasive in mainstream industries, raising important questions about the ethics needed to operate in the space. During the second day of Paris Blockchain Week 2023, a panel of professionals from the Web3 ecosystem took to the Venus de Milo stage to discuss the “Ethics of Web3.”

The panel was moderated by Moojan Ashghari, co-founder of Thousand Faces Web3 investment club. Ashghari opened the discussion by stating that the ethical framework or standard of technology will always lag behind the introduction of the technology. He emphasized that the biggest challenge of ethics is determining the right questions to ask in order to ensure that the technology does not harm us in the near or far future.

The panelists unanimously agreed that innovation typically comes before any ethical standard is implemented. Margaux Frisque, co-founder of and legal adviser to the Women in Web3 Association, highlighted the upcoming Markets in Crypto-Assets (MiCA) framework in the European Union as an example of turning ethics into law to protect people and innovation.

Frisque explained that the MiCA framework was inspired by feedback from past operations and will soon oblige businesses to segregate the funds of their clients from other bank accounts. She praised this as an example of good behavior that has been turned into hard law to protect people and innovation.

Paris Blockchain Week also hosted an entire panel discussion on the upcoming MiCA regulations, during which industry experts and regulators discussed the implications of European lawmakers’ proposals. While the proposal has faced several delays, it is set for a final vote in April 2023.

Loic Brotons, CEO of Galeon, echoed the sentiment that behavior influences ethics. He pointed out that “mixing innovation and ethics is a bit complicated” and that innovation typically comes first. He used the FTX scandal as an example, where the lack of verification led to problems. He stated that exchanges are now providing proof-of-reserves so that people can follow the money and verify their trust.

In conclusion, the Ethics of Web3 panel at Paris Blockchain Week highlighted the importance of implementing ethical frameworks in the Web3 ecosystem to protect people and innovation. The MiCA framework in the European Union was cited as an example of turning ethics into law to achieve this goal. As the Web3 ecosystem continues to grow and evolve, it is crucial to consider the ethical implications of new technologies to ensure their responsible and sustainable use.

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Bitcoin Transforms Evil Into A Greater Good

Bitcoin, Alchemy of Money: Transforming Evil Into Greater Good


Bitcoin teaches us that evil can be overcome, not with resistance or punishment, but through our willingness to understand and integrate all sides of our nature. 

From resource wars to human rights abuses and economic exploitation, greed and selfishness is now out of control. This has led to the breakdown of the current systems of accountability and a deepening crisis of liberal democracy which has exposed the weakness of the foundations of our global civil society.

In the formation of Western civilization, Christianity has played a powerful influence. Moral values articulated in the Bible helped shape modern court systems and their guiding precepts in defining judicial penalties.

Swiss psychologist Carl Gustav Jung saw inadequacies in the European religious framework of morality. His critique examined ways in which Christianity has promoted an image of God endowed with absolute goodness. The portrayal of a one-sided view of the Divine, acting exclusively as a force for good, is basic to the Judeo-Christian dualistic morality. It sees a part of human nature as evil in contrast to other parts regarded as good, tearing apart the interconnectedness of life.

Jung recognized the negative implications of this radical separation between the good and the evil. Deriving inspiration from the ancient philosophy aimed at metaphorically and literally turning lead to gold, Jung created a therapeutic practice aiming to restore the totality of the psyche. To him, alchemy represented “endeavors to fill in the gaps left open by the Christian tension of opposites.”

Now, over a half a century after the death of the giant whose contributions to psychology were far ahead of his time, our world has become far more complex. Globalization has brought people together for common goals, but it has also created friction among nations. As opposing ideologies and cultural values increase conflicts, Bitcoin, a breakthrough of computer science, now rekindles alchemical imagination.

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The Problem Of Evil

Bitcoin came into existence in the aftermath of the global financial crisis in 2008. The mysterious creator known by the pseudonym Satoshi Nakamoto shared the vision of peer-to-peer digital cash in a white paper. In the following year, January 3, 2009, an open-source protocol became operational as a decentralized digital currency.

The significance of this invention of technology goes beyond finance. Bitcoin, a software with a magical property, is like the philosopher’s stone. Arriving in cyberspace, it solved the weakness inherent in our current financial system that requires trust in central authority.

The key feature behind the current trust-based model is a moral maxim that is shaped by the dualistic view of opposition, establishing the antinomy of good and evil. The fiat monetary system is a closed system controlled by the few. Through levers of control, it maintains its integrity by carefully vetting participants for access and excluding “bad actors” who are engaged in behaviors that are considered negative.

Jung recognized a pitfall of moral duality that could lead to “the problem of evil.” He noted how our denial and condemnation of parts of ourselves become a “shadow” — the psychic forces that grow in the unconscious mind, and, over time, it gains its own autonomy and becomes extremely destructive.

Morality Turned Upside Down

When society judges and denies aspects of ourselves that are deemed unfavorable, they do not disappear. They are simply pushed out of our sight and kept hidden. Once having escaped from our consciousness, these forces become unchecked and can gain the upper hand.

Efforts through law enforcement to punish selfish actors can just make them more cunning, deceitful and hostile. Events such as HSBC money laundering and their involvement in arms trade along with the giant banking industry’s currency rigging have shown the use of traditional legal and regulatory tools to be completely ineffective.

In the end (or perhaps even from the outset), the fiat system was taken over and corrupted by power-hungry individuals. Now, central banks set rules for the entire global economy that can be changed at will — anytime and in whatever way they wish. With their monopolized printing press, elite economists, anointed by political leaders, create money out of thin air. This system, operating in secret without public accountability, acts as a moral authority dictating what is right and proper behavior. It creates hypocrisy and a double standard.

Under the banner of fighting against terrorism, banking and payment systems working on behalf of the U.S. Empire impose sanctions on countries that challenge their petrodollar hegemony. They suppress free speech via economic censorship, as was seen in the case of the financial blockade against WikiLeaks. On the pretext of stopping money laundering or protecting public safety, they shut down and freeze accounts of anyone who is suspected of conducting wrong or dangerous activities, acting themselves as arbiters of those terms.

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Proof Of Work

As a patronage network of private banks increasingly creates chaos and destruction in the world, Bitcoin now provides a creative approach for us to tackle the riddle of evil. Its core invention, a proof-of-work consensus algorithm, has begun to accelerate the demise of the fiat monetary system.

Satoshi, using strong cryptography, has created an unbreakable container that can unite the principles of good and evil. What facilitates Bitcoin’s alchemical transformation is the mining — a process that is involved in the creation of bitcoin and clearing of transactions.

In an open network where rules are applied to everyone equally, computers around the world (called miners) engage in a broadcast math competition. Rules of the game are fixed and made clear at the outset. They include the total quantity of bitcoin that can ever be created (math caps the monetary base at 21 million BTC), a predictable issuance rate and automatic adjustment of difficulty of the mining.

Solving math problems requires miners to spend energy, in this case electricity in the form of computational power. Every 10 minutes, problems are solved and whoever solves the problem first wins a fixed number of bitcoins. In order to earn bitcoin, everyone has to follow the rules of the game and do the work — use precious resources that are necessary to solve problems.

Mining difficulty is adjusted according to demand with a tight feedback loop every two weeks, keeping the mining always profitable. Regulated by the law of thermodynamics — principles concerning heat, temperature and their relation to energy — the dynamic market created through this global math contest provides security for the entire system.

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Honest Account Of Human Nature

The creation of digital gold requires special substances. Satoshi created the magic formula by mixing game theory (the study of mathematical models of strategic interaction among decision-makers) and economic incentive structure (careful balance of risk and reward).

Jung emphasized how the psychic processes of alchemy require us to confront our own shadow and make a healthy relationship with it. The creator of Bitcoin faced and integrated the dark side of humanity with the knowledge of evolutionary psychology — a biologically informed approach to study human behavior.

The essential idea was articulated by evolutionary biologist Richard Dawkins. Dawkins, the author of the influential book, “The Selfish Gene,” renewed the theory of evolution by putting genes rather than individuals at the center. With the term “the selfish gene,” he explained how “a gene that didn’t look after its own interests would not survive” and posited selfishness as a foundation of developing altruism. This theory offered an explanation of the paradox of human nature; humans can be selfish and nasty, yet at the same time we have a capacity for empathy and can act kindly toward others.

With an honest account of ourselves as both corruptible and perfectible, Satoshi created Bitcoin’s unprecedented security model. Bitcoin’s computer scripting language does not say, “You shall not cheat, steal and attack a network.” Satoshi expects miners to act selfishly. If some miners are kind to others and hesitate to compete, he knows this kindness will be exploited. Bitcoin developers share a mindset — that Bitcoin lives in an adversarial environment — and so humanity’s fallible nature is factored into the design of the system.

The Genius Of Economic Incentive

Unlike the fiat system that acts punitively toward those acting in their self-interest (except for those who run the system), the creator of Bitcoin accepts humanity’s tendency to take advantage of the good will of others and found a way to constructively work with it. Through the method of decentralization, aligning everyone’s incentives, Satoshi uses rewards to encourage all players to act honestly in an open and transparent network.

This creative ensuring of the rule of consensus, without the use of force, introduced a new code of ethics that radically departs from the old dualistic morality. The significance of this shift into a more compassionate approach might be compared to the breakthrough of Jesus Christ’s moral teaching recorded in the New Testament.

In the Sermon on the Mount, Jesus taught his followers how to pray. The Lord’s Prayer provided his disciples with a path to repentance. The path includes petitions made to God for forgiveness of our sinful nature and those requests were granted. Similarly, Bitcoin is an inclusive network with its door kept open to whoever asks and seeks to correct their deeds through following the rules of consensus.

The Lord’s Prayer reads, “Lead us not temptation, but deliver us from evil.” Bitcoin’s innovative incentive structure responds to the wishes of bitcoiners. Robert Wolinsky, senior manager of blockchain research at Genesis Project, explains the genius of Bitcoin’s economic incentive structure noting how “Satoshi introduces a cost equation to cheating/collusion via the proof-of-work protocol,” making the cost of attacking the network clear to parties and having them pay for it upfront. Furthermore, by making the rewards for playing by the rules higher than the value of attacking the network, it can proactively protect the system.

Through incentivizing greed, Satoshi does not test miners beyond their capacity to endure, and, at the same time, by rewarding honest behavior, he ensures that even the lost souls among us who are devoid of conscience will not be led astray.

Satoshi’s Grace

The New Testament was said to have brought a “covenant of grace.” With this, humanity is allowed to repent their transgressions, not by perfect compliance with a God’s will but by faith in his forgiveness. In this process, no priests, prophets, even Jesus himself can insert their authority and intervene in one’s relationship to the Divine.

Satoshi, with the invention of the consensus algorithm, established a new contract in which individuals can now directly connect to the source. Through simply trusting math, now each of us can claim virtues within ourselves and align our actions with truth and honesty. This is Satoshi’s grace. The Bitcoin protocol now helps us rescue ourselves from the separation within ourselves, from falling under the sway of the autocratic fiat regime.

Now, the great work has begun for the transformation of evil into a greater good. Satoshi’s love creates a spark of magic in the cryptographically ensured alchemical vessel. Man’s burning zeal for scarce money ignites the fire for the creation of the heart of gold. With the heat generated through the brutal mining competition, the flame glows ever more immensely for the redemption of our own selfishness.

By channeling energies that have been funneled into the military-industrial complex and surveillance capitalism, Bitcoin transmutes greed and aggression into a formidable defense for peace. The network, backed by the great hashing power, preserves moral values created by sovereign individuals out of their own freedom.

Bitcoin, an alchemical form of money, has begun to liberate people from the tyranny of central banks. Hyperbitcoinization could end misery and suffering and help move humanity toward our own salvation.

Acknowledgement: Special thanks goes to La Fleur Productions for her editorial help.

This is a guest post by Nozomi Hayase. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.

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The Conundrum Of Bitcoin Legal Tender Laws

The adoption of bitcoin by El Salvador poses an interesting contradiction of freedoms, albeit solved on a secondary level.

Nayib Bukele, El Salvador’s laser-eyed President, shocked the world at the Bitcoin 2021 conference in Miami when he announced that bitcoin would become legal tender in his country. A few days later, the “Bitcoin Law” was passed, ushering in a new era for the virtual currency.

There is something about the law — mandating that vendors accept bitcoin — that goes against the voluntary “opt-in” ethos of Bitcoin. However, there are key features of the law that many people may have overlooked that protect vendors from the risk of holding the volatile asset while maintaining the benefits of using bitcoin in transactions.

First, the law confirms that vendors are indeed mandated to accept bitcoin as legal tender. However, for accounting purposes, dollars will still be the “reference” currency — meaning prices will still be expressed in dollars but “may” be expressed in bitcoin. Secondly, steps have been taken to avoid forcing vendors to hold bitcoin.

Art. 8. Without prejudice to the actions of the private sector, the State shall provide alternatives that allow the user to carry out transactions in bitcoin and have automatic and instant convertibility from bitcoin to USD if they wish. Furthermore, the State will promote the necessary training and mechanisms so that the population can access bitcoin transactions.

Art. 9. The limitations and operations of the alternatives of automatic and instantaneous conversion from bitcoin to USD provided by the State will be specified in the Regulations issued for this purpose.

Art. 14. Before the entry into force of this law, the State will guarantee, through the creation of a trust at the Banco de Desarrollo de El Salvador (BANDESAL), the automatic and instantaneous convertibility of bitcoin to USD necessary for the alternatives provided by the State mentioned in Art. 8.

Source: Nayib Bukele

In an impromptu interview with Bukele, it was revealed that the citizens of El Salvador will have open access to an official government wallet — designed by Strike — that will allow receivers to instantly and automatically convert incoming bitcoin into dollars if they don’t want to take on the risk of holding an asset as volatile as bitcoin. This is what Strike does best: turning bitcoin into a payment rail that users don’t even have to think about.

The El Salvador government is setting up a $150MM trust fund with the Banco de Desarrollo de El Salvador (BANDESAL), and anyone who converts their bitcoin to dollars with the official wallet is essentially selling their bitcoin to the trust fund.

When the trust fund has more than $150MM of bitcoin it will rebalance and use the proceeds to fund technology investments in El Salvador. The worst possible outcome is that the $150MM only spurs tourism and investment to the impoverished country. The best possible outcome is limitless upside potential.

Users will not be forced to use the government wallet either. They can use a private custodial or non-custodial Lightning wallet if they want. And any private wallet service, made by Strike or any other neobank, could offer the same conversion service.

Thus, this isn’t a full legal tender mandate in the traditional sense. Users aren’t forced to take on the risk of holding bitcoin nor provide change in bitcoin and are free to receive dollars if someone sends them bitcoin. Vendors only have to have a Lightning QR code and they can instantly and automatically receive dollars when someone gives them bitcoin.

One can envision a world where this kind of adoption model spreads to other countries — using bitcoin as an open payment rail that spurs regional investment, while third parties take on the risk.

Your average saver may not like volatility, but guess who does? Professional money managers. If banks want to stay relevant, they will eventually figure out that there is money to be made by becoming the third party that will take on and manage the risk of holding bitcoin from Lightning payments as a value-added service.

Is forcing bitcoin as legal tender still a form of government coercion? Yes, of course. Users are mandated to, at least during the transaction, accept an open payment rail as a payment option. However, Bukele’s implementation is a less forceful way to mandate it. Private wallets are open to compete with the government’s implementation and nobody is forced to hold bitcoin.

The ethos of bitcoin is to not mandate its use and to allow the free market to decide its ideal use case. If private banks or services made wallets that utilized bitcoin’s open payment rails, to reduce friction — and users had free choice to use those wallets — those wallets would be adopted organically, without anyone needing to mandate their use. However, any law that eliminates capital gains taxes, for bitcoin users, is a huge win.

This is a guest post by Level39. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.

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Bitcoin Lurks Where Monetary Responsibility Has Been Abdicated

Rule IV: Notice That Bitcoin Lurks Where Monetary Responsibility Has Been Abdicated

A reimagination of “Beyond Order” by Jordan Peterson through the lens of Bitcoin.

Preface

This writing mirrors the exact chronological structure of Beyond Order; offering perspective through a Bitcoin lens. This is part four of a 12-part series, and reading the book adds a second dimension. All quotes credited to Jordan Peterson. All reflections inspired by Satoshi Nakamoto.

Make Yourself Invaluable

“What is left undone is often risky, difficult, and necessary. But that also means — does it not? — that it is worthwhile and significant.”

Bitcoin is risky for nocoiners who have not done their research,difficult for newcomers trying to learn and necessary for those who understand. Polarizing controversy is by definition significant, and Bitcoin is polarizing. The deep divide over the existence of Bitcoin validates its legitimacy as something worthy of exploration.

“It appears that the meaning that most effectively sustains life is to be found in the adoption of responsibility.”

Owning bitcoin is the act of adopting full ownership and accountability. Bitcoin rewards patience, teaches responsibility and nourishes curiosity. Einstein described compound interest as the eighth wonder of the world,and bitcoin to date compounds at 200% annually. This single asset offers normal people a path to retirement – just what saving the dollar had once represented. An asset you could bank on. Today’s dollar is a short-term holding bin that must be invested in order to reach retirement.

Responsibility And Meaning

“You must risk something that matters.”

Talk is cheap. The only way to have skin in the game is to actually own Bitcoin. Everything else is academic. To quote Nassim Taleb, “Don’t tell me what you think, tell me what you have in your portfolio.”

“[Peter] Pan says, ‘To die will be an awfully big adventure.’ But the psychologically insightful unseen narrator objects: ‘To live would be an awfully big adventure…’”

Peter Pan’s Lost Boys celebrate never growing up. After all, who wants to grow up in an increasingly dysfunctional world? Younger generations believe older generations kicked a grenade down the road straight into their laps. Spending a lifetime buried by the debt our elders created seems like an awful adventure. Nocoiners clearly see problems (and claim there are no good solutions) yet so many are quick to call Bitcoin a scam. It would be an awful end to the adventure to drown because you ignored the liferaft. Bitcoiners tend to choose to live life as an awfully big adventure.

Rescue Your Father: Osiris And Horus

“Osiris… a young, vibrant god [who] produced one of the first great and enduring civilizations. But he aged, as all things do, and became willfully blind.”

Gold has been used as base money for thousands of years and still succeeds in its purpose. In contrast, since 1450, we’ve had six world reserve currencies with an average shelf life of 90 years. Lyn Alden explains why the U.S. dollar never had a chance at maintaining parity with gold: It has an unsustainable design forcing it to continuously expand in order to satisfy ever-increasing global exports and oil consumption demands. We all age — but willful blindness is optional.

“We are well advised to take on challenges at precisely the rate that engages and compels alertness, and forces the development of courage, skill, and talent, and to avoid foolhardy confrontation with that which lies beyond current comprehension.”

Do not go all-in on a whim,but buy an amount of Bitcoin that matches your current level of understanding. Minimize your fear of a Bitcoin price dip by dollar-cost-averaging (DCA) to maintain your sanity and avoid getting REKT. Swan Bitcoin and River Financial offer Bitcoin-only DCA tools with educational resources to help you move from custodial to self-custody. Increase your daily purchases as your knowledge increases and, when you feel confident, make the leap into a flavor of custody that offers you the right balance between security and convenience. Grow your Bitcoin stack in proportion to your understanding. Start with a small investment, take the plunge, and “get off zero”.

And Who Might That Be?

“Because the future is coming, as certainly, for all intents and purposes, as the sun rises in the morning. And you are best advised to be ready for it.”

Bitcoin is coming. It’s a parallel universe. An immutable chain of time and trust tethered to our physical world through entropy. What is the price of time? What is the value of trust? Priceless. The bond amongst Bitcoin, time, and trust is as predictable as the sun rising in the morning. My best advice: be ready for it.

“We discovered the future, some long time ago — and now the future is where we each live, in potential. We treat that as reality.”

Imagine life before the discovery of the future. We take it for granted and our descendants will pose a similar statement: Imagine life before the discovery of digital scarcity. That future will be our reality. Fiat currencies pose a very different reality: Imagine financial ruin by robbing yourself tomorrow to pay for today.

“If you treat the person you are committed to in a manner that does not work when it is repeated across time, then you are playing a denigrating game, and you are both going to suffer terribly for it.”

Our relationship to fiat money is a repeated story of disintegration across time. The comprehensive suffering across large swaths of society must be attributed, at least in part, to the fact that money touches everything and our money has become toxic. Money is the common thread across all governments, industries, and households. When we serve money instead of money serving us, we all suffer terribly for it.

Happiness And Responsibility

“… like pleasure, attainment is unreliable… people experience positive emotion in relationship to the pursuit of a valuable goal… That is what produces the most reliable positive emotion.”

We tell the story of our lives as actors in a story, not numbers on a conveyor belt. In order to formulate the story of ourselves that we are proud to tell, we must pursue goals we deem valuable. Tech is obsessed with placing numbers before narratives. This means humans are being forced through algorithmic pinholes which results in empty, unspontaneous and predetermined stories that we are often too embarrassed to tell in their entirety.However, we are human beings who cannot help but tell our story. So in order to salvage our dignity among our peers, we use social media to showcase highly curated splices of our life while suppressing the ugly parts. Studies show chasing “likes” on social media produces negative emotions.

Technology is a black hole we are all being sucked into. We all see that our lives are increasingly dictated by computers. Computers have become the permanent middlemen connecting humans broadly by separating us intimately. Computers draw the metaphorical dividing line: Either you tell computers what to do or they tell you what to do. Fair or not, living above or below the computer line largely determines your fate. But not all computer programs are designed for evil. As Muneeb put it, “Google has a famous motto ‘Don’t be evil.’ But maybe it should be ‘Can’t be evil.’”

You may not be a Bitcoin tech savant like Adam Back but that does not preclude you from living a life immersed in a truthful and transparent narrative that you can be proud to share. Bitcoin is the oldest social network known to mankind: Money. It is designed to only tell the truth, andthat is a story we can all be proud to associate with in its entirety. That is pursuing a valuable goal that produces the most reliable positive emotion.

“There is no escaping the future… the right attitude is to turn around voluntarily and confront it. That works.”

Inertia leaves us drifting through life on autopilot. Breaking that inertia and turning around voluntarily to go toe-to-toe with discomfort is the inspirational story of David Goggins. You may not like it but his results don’t lie and what he does simply works. “Can’t Hurt Me” speaks to something timeless yet forgotten. We are waking up to the reality that the right attitude is to choose to be the hero of our own story.

Freedom exists in many forms. Financial freedom is embedded in the American Dream. Today the math stacks up against you. Simply saving money no longer suffices. To attain financial freedom you must learn to invest your savings. Bitcoin is in a goldilocks period: It is designed to store your money in the long run but is currently in an adolescent growth stage giving it tremendous asymmetrical upside. If you can ride out $50,000 bitcoin during these teenage years, then imagine its future value at maturity.

Pick Up The Extra Weight

“If you attend to your conscience, you will begin to determine that some of the things you are doing are wrong…”

One by one, fiat maximalists awaken to the realization that the green grass on which they’re sitting in the sun itself sits at the center of a prison yard. And they aren’t the ones wearing badges.

“You are all aimed in one direction. You are no longer a house divided against itself. You are standing solidly on a firm foundation. You are no longer so easy to dissuade or discourage. Your resolution trumps your nihilism and despair.”

Bitcoin Maximalism.

“You think, ‘The world is not set right. It is deeply troubling to me.’ That very disenchantment, however, can serve as the indicator of destiny. It speaks of abdicated responsibility — of things left undone, of things that still need to be done.”

“The Matrix” introduced us to the red pill: “Remember, all the red pill offers is the truth — nothing more.” Trust your intuition. Governments believe they can control all variables and it’s best to blue pill their citizens. If you sense that our world is deeply troubled, let that serve as an indicator that something must change. Believe in yourself and set the world right by taking the orange pill.

Notice that Bitcoin lurks where monetary responsibility has been abdicated.

This is a guest post by Nelson Chen. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.

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Value Creation In Bitcoin

In 2009, Satoshi Nakamoto invented the greatest store of value ever seen in human history. His creation, bitcoin, has firmly secured its place as the hardest form of money in the new digital economy and the bedrock of a new open, global financial system.

Bitcoin has already won.

What remains relatively unexplored is the way in which Bitcoin, the monetary network, will incentivize new forms of value creation and unlock new methods of value capture never before seen in human civilization. This piece explores the ways in which Bitcoin’s structure of incentivizing long-term holding among its token holders collides forcefully with its open monetary network to systematically create more value for society and lead to an eventual cultural renaissance.

All second and third order effects related to Bitcoin come from its elegantly designed incentive structure. Miners are incentivized to honestly mine blocks, and network participants are incentivized to HODL. Bitcoin’s supply growth is decreasing over time, leading to a capped supply and the one true digitally scarce substance on this planet.

Bitcoin’s deflationary monetary policy and NgU tech increases each bitcoin’s purchasing power in the long run, which creates a model that incentivizes its holders to put off unnecessary spending, save for the long term and invest prudently. This model runs in stark opposition to the incentive scheme of the fiat regime, where constant debasement of currency and inflation incentivizes consumption and rampant speculation.

Each participant in the fiat system today is in a frenzy to dump their cash, either by protecting it in some safe haven, immediately spending their rapidly decreasing purchasing power, or speculating in riskier and riskier assets. Bitcoin, with its capped supply and fixed, open and deflationary monetary policy provides the most elegant system to opt out of this madness.

While its holders are incentivized to continue holding for the long term, potential new participants to the network are incentivized to get in as quickly as possible whether by purchasing or earning coins in the marketplace. As supply decreases over time and demand continues to build, the value of each coin continues to rise: Number Go Up. We know what happens to those opting to purchase coins in the marketplace: they pay a higher price. What happens to those earning coins in the marketplace? As of yet this exchange is quite uncommon, so the answer is unclear.

My theory, however, is that this will lead to the creation of higher forms of value across many spectrums of society. Let us continue to explore how an open monetary network addresses the idea of value creation and further price discovery.

To understand how open software networks function and evolve we must take a look back at history. The early days of the internet opened up a world of possibilities in the realm of information sharing, allowing anybody to communicate their ideas freely over an open data transfer protocol. Over the past several decades, incredible amounts of software has been written to build critical infrastructure on top of these protocols, building what we know and use as the modern day web. This has served as the foundation for today’s modern day social networks, which serve as hyperscale information sharing and talent discovery tools. In a similar way, an open monetary network allows any participant with access—in the case of Bitcoin anyone on the planet with a bitcoin wallet—to engage in free commerce on a scale that has never been possible before.

In the same way that the large social networks of today are talent and information discovery mechanisms, Bitcoin is a price discovery mechanism for everything it touches. Any possible economic transaction that involves human decision-making and interacts with the Bitcoin network will in time come to a perfect price equilibrium as determined by the other users of the network. For a network user and long-term token holder to part with their satoshis requires a creation of value that far exceeds the potential return on each parted unit over the coming period of time that the account projects for. In turn, what this leads to is true price discovery for the essential things that matter most: human time and knowledge.

The microprocessor, modern day high speed computing, the internet and social media have reduced the barriers to entry in many walks of life and allow anyone to create and share value. The internet protocols that have allowed for this explosion of innovation have been built for the transfer of information but not the transfer of value. What we see as a result are megacorporations and walled gardens that act as the high priests facilitating the flows of value between creators and consumers in the new digital economy. Bitcoin cuts out these middlemen and enables those creating value to directly capture the value that they are creating.

In order to capture value in the new economy and entice bitcoin holders to part with their precious satoshis, creators must push the boundaries of creation and create such value in such proportion that true believers are compelled to part with what they believe to be the hardest asset ever invented.

In the end, only the very best will survive.

True meritocracy of value is the end result, enabling true capitalist forces that the world has not seen in many decades. Bitcoin culture is one of low time preference, a mindset that encourages long-term thinking and saving. At the same time, the Bitcoin network opens up a world of opportunity for value creators to capture that value, forming a meritocratic haven where bold ideas and beautiful creations reign supreme.

This new monetary system will enable excellence and beauty to a degree never before seen. The culture of Bitcoin combined with the capabilities of a global monetary network is set to unleash a force upon the world that reshapes every element of society for the better, creating value for everyone involved and pushing forward the trajectory of humanity.


This is a guest post by Karan. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.

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Here is the poll, as you can’t put them both together in 1 tweet: “In light of Covid19, Election2020, BLM & FakeNews who do you think will have the BIGGEST drop for honesty & ethics for 2020

Here is the poll, as you can’t put them both together in 1 tweet:
“In light of #Covid19, #Election2020, #BLM & #FakeNews who do you think will have the BIGGEST drop for honesty & ethics for 2020

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In light of Covid19, Election2020, BLM & FakeNews who do you think will have the BIGGEST drop for honesty & ethics for @Gallup’s next poll in January? Can’t wait for Politicians to finally overtake ” Used Car Salesman”

In light of #Covid19, #Election2020, #BLM & #FakeNews who do you think will have the BIGGEST drop for honesty & ethics for @Gallup’s next poll in January?
Can’t wait for Politicians to finally overtake ” Used Car Salesman” https://t.co/bwKBhTh2qp

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Bitcoin (BTC) $ 26,168.01 0.63%
Ethereum (ETH) $ 1,584.47 0.39%
Litecoin (LTC) $ 63.83 1.05%
Bitcoin Cash (BCH) $ 213.75 1.40%