It's hard to find the time to read all the best articles on bitcoin and crypto Kana me. So let me read them for you. This is a crypto Konami quick read. What is up guys? Welcome back to the show. This is the Crypt economy with guy's van and we are continuing our read started yesterday. I'm so this will be jumping into Chapter 3 of knut Spawn homes sovereignty through mathematics. So if you haven't listened to yesterday's episode go back and do that first. Because we are going through a whole audiobook this week without further Ado. We are jumping right into Chapter 3 The gullible Collective We humans are biased by Nature everything. We think we know is distorted in one way or another by our cognitive shortcomings. The human brain has been forced to evolve and adapt to whatever environment it found itself in over Millennia having a brain that is capable of setting aside personal aims for the sake of the collective has proven to be advantageous for the evolution of our species as a whole the same is true for every other social life form. however, to let these parts of our brains guide our political judgment can lead to disastrous results in the long run not because of bad intentions, but for the simple fact that a few individuals will always Thrive by playing every political system for personal gains from an evolutionary perspective and army of a Sayers and martyrs regardless of whether we're talking about an army of humans or an army of ants or bacteria has an advantage over a less disciplined one from an individual's evolutionary perspective though. It is better to appear like you're a martyr but to run and hide when the actual battle happens this at least partly explains the high percentage of sociopaths in leadership positions all over the world. If you can appear to act for the good of the collective, but dupe your way into more and more power behind people's backs. You're more likely to succeed then someone playing a fair game. The story of banking and fiat currency is a story about Collective Madness historically rulers have tricked people into killing each other through the promise of an afterlife through Central Banking. The rulers of the world wars could trick people into building armies for them by printing more money. This is seldom mentioned in history classes because it still goes on today on a massive scale inflation might no longer be paying tank Factory workers, but it is the main Mechanism that funnels wealth into the pockets of the super-rich and away from everyone else inflation is the mechanism that hinders us from transporting the value of our labor through time. It makes us avoid real long-term thinking we hardly ever consider this a problem because none of us has ever experienced an alternative to it money is still vastly misunderstood by The Lion's Share of the world's population. In most parts of the world bank's do something called fractional Reserve lending. This means that they lend out money that they don't have Conjuring up new money out of thin air and handing it out to their customers as loans loans, which have to be paid back with interest interest that can't be paid back with thin air, but has to be paid with so-called real money. Real money of which there isn't enough around to pay back all the loans. So that a constant need for new credit becomes a crucial part of the entire system not to mention central banks that do the same and worse two governments. We're so used to it by now that every country is expected to have a national debt all but a handful of ridiculously rich ones do National debts are also loans which have to be paid back with interest. Just backed by nothing. Think about that your taxes are paying someone else's interest. Your tax money is not paying for your grandmother's bypass operation. It is paying interest to a central bank. When the ideas of the Catholic Church ruled Europe people who didn't believe in God were few and very seldomly outspoken. They had good reason for this since belief in God was virtually mandatory throughout Society ever since 1971 when famously dishonest American President Richard Nixon cut the last string that tied the US dollar to Gold our conception of what the world economy is and ought to be as Has been skewed by an utterly corrupt system. We're led to believe that we're all supposed to work longer and longer days in order to spend more and more and bury ourselves in more and more debt to keep the machine running. We're duped into thinking that buying a new car. Every other year is somehow good for the environment that bringing a cotton bag to the grocery store will save the planet stores manipulate us all the time through advertising and product placement, but we're led to believe that if we can. Well climate-smart. We're behaving responsibly somehow our gross domestic product is supposed to increase infinitely while politicians will save us from ourselves through carbon taxes fortunately for us and unfortunately for them there now exists a way for unbelievers of this narrative to opt out life finds a way as Jeff Goldblum once so famously put it collectivism has ruined many societies those of us fortunate enough to live in Liberal democracies tend to forget that even democracy is an involuntary system. It's often referred to as the quote worst form of government, except all the others that have been tried but the system itself is very rarely criticized. We're so used to being governed that not having a leader seems Preposterous to most of us still we pay our taxes and an enormous cut of the Fruit of our labor goes to a third party via inflation in the taxation of every good in-service imaginable institutions once in placed into always favored their own Survival just as much as any other living thing does people employed in the public sector are unlikely to vote against policies that threaten their livelihood? This is a bigger problem than we realize because it's subtle and it takes a long time. But every democracy is headed in the same direction a bigger State a more complicated system in fewer individual freedoms. Long-term, it seems that all of our systems tend to favor those who know how to play that system and not those who contribute the most value to their fellow man proponents of socialist policies often claim that failed socialist States quote weren't really socialist or that quote. That wasn't really socialism what most people fail to realize is that we've never tried real capitalism since we've always used more or less. Inflationary currencies this might very well be the most skewed Narrative of our era. We're all experiencing real albeit disguised socialism every single day true free market capitalism is what we haven't experienced yet and it might turn out to be a very different thing than what we're told to believe that it is by almost all mainstream media. The validity of the classic right left scale describing political viewpoints has been debated a lot lately and alternative scale is like Galton the one with an additional y-axis describing more or less authoritarian. Tendencies are popping up in various contexts around the web after the birth of Bitcoin. There's a new way to see this imagine a Norwich o a zero point and a vector pointing to the left of that. All politics are arguably on the left because all policies need to be funded by taxes and Taxation can be viewed as theft taxation can be viewed as theft because at its core it's involuntary. If a person refused to pay his taxes, there is a threat of violence lurking in the background not to mention inflation, which Milton Friedman so elegantly described as quote taxation without legislation. What'd you do with the portion of the wealth that you have in Bitcoin is another matter altogether. If you take sufficient precautionary privacy measures and you know what you're doing your business in Bitcoin is beyond politics altogether with the introduction of the lightning Network and other privacy improving features. It is now impossible for any third party to confiscate your money or even know that you have it for that matter this changes the political landscape of Every Nation on Earth Bitcoin is much less confiscated will than gold and other scarce assets which makes it a much better tool for hedging against nation states in this sense Bitcoin obsoletes borders. You can cross any border on Earth with any amount of Bitcoins in your head. Think about that your Bitcoins exist in every country. Aeneas Lee any imposed limit on how much money you can carry from one nation to the other is now obsoleted by beautiful mathematics Bitcoin is sometimes referred to as a virtual currency. This is a very inaccurate description Bitcoin is just mathematics and Mathematics is just about the most real thing that there is there's nothing virtual about it counterintuitive to some but real nonetheless The complexity of human societal hierarchies and power structures are described perfectly in a classic children's book The Emperor's New Clothes by Hans Christian Andersen. See the world as the kid that points out that the king is naked in the tail and everything starts to make sense. Everything in human society is man-made nation's leaders laws political systems. They're all castles. Is in the air with nothing but a lurking threat of violence to back them up Bitcoin is a different Beast altogether. It enables every individual to verify the validity of the system at all times. If you really think about it morality is easy don't hurt other people and don't steal other people's stuff. That's the basic premise humans have but two ways of resolving conflict conversation. Violence and in this sense to hurt someone can only mean physical violence. This is why free speech is so important and why you should defend people's right to speak their mind above everything else. It's not about being able to express yourself. It's about your right to hear every side of every argument and thus not have to resort to violence should a conflict of interests occur. You can't limit free speech with just more speech. There's always a threat of violence behind limitations. Code which both Bitcoin and the internet are entirely made up of is speech any limitations or regulations that your government implements in regard to bitcoin is not only a display of Bitcoins censorship resistance, but also a test of your government stands on freedom of expression. A restriction on bitcoin use is a restriction on Free Speech. Remember that the only alternative to speech that anyone has is violence code is a language mathematics is a language and money is a linguistic tool a linguistic tool. We use as a means of expressing value to each other and as a way to transport value through space and time. Any restrictions or regulations regarding how you can express value IE making it impossible to buy Bitcoins with your credit card proves that the money you have in your bank account is not really yours when people realize this the demand for Bitcoin goes up not down if you know what you're doing. There's no need to fear The Regulators they on the other hand have good reason to fear and mention that shamelessly breaks their spell chapter 4 and Immaculate Conception some Concepts in nature are harder for us humans to understand than others how complex things can emerge out of simpler ones is one of those Concepts a termite Colony for instance has a complex cooling system in its lower levels. No single termite knows how it works completely unaware of the in results. They build complex mounds and nests shelter tubes to protect their pads. Networks of subterranean tunnels to connect their dirt cities everything seems organized and designed but it's not Evolution has equipped the termite with a pheromone receptor that tells the termite what task he ought to engage himself in by simply counting the amount of neighboring termites doing the same thing if there's a surplus of workers in one area nearby termites become Warriors and so on. Complex structures emerge from simple rules the fractal patterns found all around nature is another example fractals look complex. But in reality, they're not they're basically algorithms the same pattern repeated over and over again with a slightly modified starting point. The human brain is an excellent example of a complex thing that evolved out of simpler things and we humans still have a hard time accepting. that it wasn't designed religions, which themselves are emergent system spawned out of human interaction have come up with a plethora of explanations for how we came to be all sorts of wild origin stories have been more widely accepted in the a simple explanation that are complexities just emerged out of simpler things following a set of rules that nature itself provided our world with complex systems emerge out of human interactions all the time. The phone in your pocket is the result of a century of mostly free Global Market competition and no single human could ever have come up with the entire thing the device together with its internet connection is capable of a lot more than the sum of its individual Parts a pocket-sized gadget that can grant instant access to almost all of the world's. Old literature music and film that fits in your pocket was an unthinkable science fiction a mere 20 years ago Bitcoin first described in Satoshi nakamoto's white paper 10 years before these words were written was designed to be decentralized, but it wasn't until years later that the network started to show actual proof of this. Sound money or absolute digital scarcity emerged out of the network. Not only because of its technical design how Bitcoins first 10 years actually unfolded played a huge part in how true decentralisation could emerge and this is also the main reason as to why the experiment cannot be replicated scarcity on the internet could only be invented once Satoshi's disappearance was Bitcoins first step towards true decentralisation. No marketing whatsoever and the randomness of who hopped onto the train first were the steps that followed the coin truly had an Immaculate Conception. The network has shown a remarkable resistance to change over the last few years, especially in its current state might be its last Incarnation given the size of the network and the 95% sent agreement threshold in its consensus rules. It might never change again in that case an entirely new complex life form will have emerged out of a simple set of rules. Even if small upgrades are implemented in the future a 21 million coins. Supply cap is set in stone forever Bitcoin is not for humans to have opinions about it exists regardless of what anyone thinks about it and it ought to be studied rather. then discussed we don't know what true scarcity and a truly Global Anonymous free market will do to our species yet, but we are about to find out it is naive to think otherwise various futurists and doomsday prophets have been focused on the dangers of the impending General artificial intelligence Singularity lately warning us about the point of no return where upon an artificial intelligence will be able to improve itself faster than Any human could such a scenario could as news anchor Ron Burgundy would have put it escalate quickly this may or may not be of real concern to us. But meanwhile right under our noses another type of Unstoppable Digital Life has emerged and it is already changing the behavior and preferences of millions of people around the globe. This is probably bad news for big corporations and governments, but good news for the little guy. Guy looking for a little Freedom. At least that's what those of us who lean towards the ideas of the Austrian School of Economics believe this time around we will find out whether this is the case or not. No one knows what it will lead to and what new truths will emerge out of this new reality unlike the termite. We humans are able to experience the Grandeur of our progress. We can look in awe at the Sistine Chapel or the pyramids and we In delve into the technicalities and brief history of Bitcoin and discover new ways of thinking about value along the way money is the language in which we express value to each other through space and time. Now that language is spoken by computers. Value expressed in this language can't be diluted through inflation or counterfeiting any longer. It is a language that is borderless permissionless peer-to-peer Anonymous if you have the skills, Uhn replicable completely scarce nonda lootable unchangeable Untouchable undeniable fungible and free for everyone on Earth to use it is a language for the future and it emerged out of a specific. events in the past all languages are examples of complex systems emerging out of simpler things and Bitcoin evolved just as organically as any other human language did decentralization is hard to achieve really hard when it comes to claims of decentralization a don't trust verify approach to the validity of such claims will help you filter out the noise. So how can the validity of Bitcoins decentralization be verified? It's a tricky question because decentralization is not a binary thing like life or death, but rather a very difficult concept to Define. In however, the most fundamental concepts in Bitcoin like the 21 million cap on coin issuance or the 10 minute block interval as a result of the difficulty adjustment and proof-of-work algorithm has not changed since very early on in the history of the network this lack of change which is arguably Bitcoins biggest strength has been achieved through the consensus rules, which Define what the blockchain is. Some special mechanisms. For example be ip9 are sometimes used to deploy changes of the consensus rules these mechanisms use a threshold when counting blocks that signal for a certain upgrade. For example, the upgrade segregated witness activated in a node when 95 percent or more of the blocks in a retarget period signaled support Bitcoin has displayed a remarkable immutability through the years and it is Highly unlikely that this would have been the case if the game theoretical mechanisms that enable it's decentralized governance model hadn't worked given the many incentives to cheat that always seem to corrupt monetary systems. In other words the longer the system seems to be working the higher the likelihood that it actually does. Satoshi set in stone the length of the having period a very important aspect of Bitcoins issue and schedule an initial distribution during the first four years of Bitcoins existence 50 new coins were issued every 10 minutes up until the first block reward having four years. Later. every four years this reward is halved so that the issuance rate goes down by 50% this effectively means that half of all the Bitcoins that would ever exist where mind during the first four years of the Network's life 1/4 during its next four years and so on at the time of writing we're a little more than a year from the third having after that only 6.25 Bitcoins will be minted every 10 minutes as opposed to 50, which was the initial rate what this seems to do is to create hype cycles for Bitcoins adoption. Every time the price of Bitcoin booms and then bus down to a level above where it started a hype Cycle takes place Bitcoin had no marketing whatsoever. So awareness of it had to spread by some other mechanism when a bull market begins people start talking about it, which leads to even more people buying due to fear of missing out or fomo which inevitably makes the price rise even more rapidly. This leads to more fomo and on and on the bull market goes until it suddenly ends and the price crashes down to somewhere around or slightly above the level. It was at before the Bull Run started unlike what is true for most other assets Bitcoin never really crashes all the way why because every time a hype cycle occurs some more people learn about Bitcoins fundamentals and managed to Resist the urge to sell even when almost all hope seems lost. They understand that these bull markets are a recurring thing due to the nature of the protocol. These Cycles create new waves of evangelists Who start promoting Bitcoin simply because of what they stand to gain from a price increase in a sense the protocol itself pays for its own promotion in this way. This organic marketing creates a lot of noise and confusion to as a lot of people who don't seem to understand how Bitcoin Works often are very outspoken about it despite their lack of knowledge. Red herrings such as altcoins and Bitcoin Forks are then weeded out naturally during bear markets every time a bull market happens a new generation of bitcoiners is born. The four-year period between having's seem to serve a deliberate purpose so she could as well have programmed a smooth issuance curve into the Bitcoin protocol, but he didn't as events unfold it seems that he had good reason for this since these hype Cycles provide a very effective onboarding mechanism and they seem to be linked to the having's they certainly make Bitcoin volatile. But remember that in this early stage the volatility is needed in order. Her for these hype Cycles to happen later on when Bitcoin stock to flow ratio is higher the Seas will calm and it's volatility level will go down in truth. It already has the latest almost 80% price drop was far from the worst we've seen in Bitcoin. This technology is still in its infancy and it is very likely that we'll see a lot more of this volatility before mainstream adoption or hyper Bitcoin ization truly happens chapter 5 proof of work All right, let's let's go ahead and take a break and hit our sponsor and then we'll jump into a little bit of commentary on this piece before I run a time here and this is where we will close our read for today. For anyone who has a podcast anchor cannot be beaten particularly for trying to get off the ground their entire platform is free. This includes unlimited hosting both in audio that you upload and how much your listeners download. I have uploaded an incredible library of audio now and I've never paid anchor a dime. In fact, they connect me with other sponsors and have run an ad consistently on my show. So they've paid For exposure to my audience that's really hard to beat even if we ignore that I can record directly in the app or my browser. I don't need any other software. If I don't want it I can edit at sound effects clips and they automatically published to all of the top podcasting platforms. I never had to do a thing. So if you were thinking of starting a show or already have a podcast, there's no better platform out there check out anchor by downloading the app or go to Anchor dot f FM today So there's a couple of really good things in this section that particularly I really enjoyed it goes through a really really short version is essentially but what's funny is how accurate it is when you're when you're talking about the bigger picture of the financial system of how the fractional Reserve System actually works. So I grabbed a quote just to sum up basically that section because there's just a couple of paragraphs It's but it's pretty much all on point. Is that Conjuring up new money out of thin air handing it out to their customers as loans that those loans have to be paid back with interest but the interest can't be paid back with thin air. So it has to be paid back with so-called real money other money that's been issued into the system. So real money of which there is not enough to pay back all of the loans. So there's a constant need for new credit. It becomes a crucial part of the entire system in this is absolutely true. You like just take a very very simple case is that if you've got a hundred dollars that exist and then they allow someone else to spend that $100, but then they loan out someone else $100 at 10% interest. Well, then basically there's a hundred real dollars in existence and the the second person the person who got a loan owes the bank 110 dollars. So there's literally no mathematical way to pay it off. Outside of essentially that money then after it gets circulated back in being loaned out again as a reserve for another amount of money that was created out of thin air and it's only because the next loan that the money exists to pay off the interest of the first loan and the fact that our monetary system actually operates that or operates like that that is how the system actually works fundamentally is frightening. Meaning when you really think about the concept of like there are two outcomes either one we get buried in debt that makes no sense from a who actually has the resources standpoint and to even if we whether whether you pay off the debt or the bank ends up defaulting on the loan no matter what your just the the the bank just gets all of these resources. I mean think about it like it's a liability. When the bank gives somebody a loan, they're not giving anything to that person. They're paying themselves. It is a lot like like people people are constantly like talk about this. The political idea. Is that like, oh people need the loans people need the money. It's a nice thing to give somebody alone. No to give somebody a debt means they are obligated to somebody else. It's like saying, you know, we're going to make somebody a slave and give them a roof over their head. Like no, that's not that's not a good thing. It's a a liability to the bank the bank just invented themselves an asset that they never had you owe them your labor your time and your money that's insane and the fact that that's a fundamental part of our financial system. Like I think I can't get over the fact that at its core at the very base of how it actually details out. What what balances are what money is how it's issued into the system. It's fraudulent. In my opinion like I don't see any way for that not to be stealing money because the bank ends up with two hundred dollars worth of Value Plus interest when they only ever held a hundred and that hundred was just reserved. It wasn't even theirs. It was the depositors in this case. So it's just shocking to see how much wealth gets soaked up by a banking system when it's just just because a couple there's a couple of fundamental rules that are absolutely absurd and it's Just the gullible Collective. Everybody's just like well, this is just how it works. Of course, it would work this way. How could it not work this way? And then we spend years in decades and an entire education system trying to come up with good excuses as to why this is really important and that we must do this and then we compare it to these hypotheticals these these worlds that never actually existed or we look back at history under this lens and it's like you get the you get the imaginary great depression depression of the 1870s and 1880s when when we actually had deep price deflation across the economy, but Keynesian economist look back on this and for a very very long time, it was considered a depression like it was considered a very bad economic period because of the price deflation, but then if you actually go back and look at real estate if you look elsewhere and ignore the price deflation, which you actually see is that it was because this was during the Industrial Revolution and it was actually the one of the single greatest Periods of increasing standard of living that we've ever had in this country and Keynesian Economist for decades had been calling it a recession or nearly a depression a severe extended to procession essentially and it's because we just think of it wrong. We've been we've been in totally engrossed in hard to say propagandize because it's hard to call something propaganda if you think everyone involved is ignorant of it like I don't I think it's a conspiracy of ignorance. Not a not on purpose like I think mini the vast majority. If not, all of the people who have ever told me that I was wrong about the way I thought of things economically or ever debated with anybody totally believed what they were trying to get across that doesn't make it any less dangerous. If we're talking about people in government or actual policy makers enforcing these what is fraudulent Behavior or just horrific lie. A imbalanced and privileged monetary positions as law like as actual policy there backing these things up with violence. They're saying you're either going to participate in what is an Institutional Ponzi scheme to some degree or you know, you're breaking your breaking a law. That's just not how we do business. They've institutionalized a form of monetary corruption and It's it's really crazy to think about like if you actually step back and look at what's happening. It makes no sense to anybody is able to do that. I can't loan you a car. Then I don't have you know, like nobody can do this with with actual resources. That's not possible. So I can't like think about if I could just invent a loan to you right now. I could just invent a million dollar loan. And then you owe it back to me plus interest. We're so when you pay that back, how did I earn that million dollars? How did I earn it? I don't like I don't have a million dollars. How could I loan something to you that I don't have and to think that that's a position that a bank is simply allowed to have as a political privilege. is rather insane another another concept that he brings up in this section that that I really I really love and it's a concept that we dove into a article by Beauty on titled why America can't regulate Bitcoin. I'll see if I can't find that episode and post it in the show notes, but it's kind of a deeper dive into that concept. The whole article is just about Bitcoin as speech but it goes right back to our analogy from yes. Read that its language and he really goes into kind of digs a little bit into this that it is a linguistic tool. It is a way to translate value and it's really true that Bitcoin is absolutely speech its speech that's protected on a when he interesting things about it in the like he's got these out that quote that you can cross any border on Earth with any amount of Bitcoins in your head so that they exist in every country simultaneously what you hold is a piece of information that has obtained value because it lets you it lets you unlock a piece of the highest Assurance Ledger on earth like it is the most secure Financial Ledger that you can get anywhere secure and independent you're relying on no one else for its assurances. You can prove you actually do the validation yourself to know what degree of assurance is you get you can actually Test it and that's a powerful idea that has never existed before but in the end it is speech. It's just information. It's like I'm sure most of you are familiar with but on the atom back who is the he heads up a block stream now, but it was a cypherpunk from the early days invented. Hashcash, and I can't remember if it was actually Adam back. I think Adam back actually proposed to Wade, I wait eyes about Out be money about using it as the the issuance the means to issue money in way dies be money scheme, which be money was the one that where The Ledger was something that everyone held in the system. Everybody had a copy of it because you know, all these pieces were slowly brought together. It's funny. I love the history of all this stuff. I'm stuck on this because I've been listening to I'm almost done with it. I think I've been like 40 minutes left in the book but digital. - by Thin Brunton and we just talked about it on the rally Bitcoin meet on podcast, which I may be posting. So keep an ear out for that one, but it's a really good book. I highly recommend it if you have not listened or read it yet, but it's all about the history of the cypherpunks and stuff and there's so much about the precursors to bitcoin and the ideas of how this whole story goes all the way back to even the 30s and the 80s and trying to figure out how to authenticate and create private data data that was soul to or solely unlockable or readable by a single individual and it creates a scarcity to that data in a sense that it's someone owns it and and that's essentially what what Bitcoin has created a way to own a certain type of speech and the fact that it has obtained value its fun he goes into how Like you can't regulate free speech and it changes because the the dynamic is that any policy that you enforced by government is backed by violence. So it's to say that violence or to suggest that you should use violence to restrict speech which is the only way to restrict it. You either have free speech or you're being violent when somebody speaks is to say that speech can be more dangerous and violence that in a situation where we would want people speaking. Uncomfortable things or being violent with each other that violence is preferable because that's how we can legitimately respond to speech that were uncomfortable with which I think just on its face from a principal standpoint. It doesn't make any sense. And that's why we have this idea of free speech even though we really don't have it because just because that speech obtains value. It doesn't make any more sense that government should be able to control it. In fact just the opposite the the more precious that Speech is the more important that it is that we own it that it is that it is indeed ours is almost as if as long as the speech is inconsequential, well, then it's free. But as soon as it's meaningful, as soon as you're speaking like Julian Assange does on the crimes of people in government. Well, then it's not free speech because then it's incredibly valuable speech. It's incredibly dangerous speech to the people who decide whether or not it's free and then in the same way in Bitcoin since it is Is all just code that is soon as it obtains value. Well now it's in the realm of the government has to tell us what to do with it. And actually I didn't even finish the my fault on Adam back was that he sold during the one who saves a very early 90s the FBI some government institution was pushing for getting digital encryption. You be listed as a munition so that it could not be exported from the country that it was literally illegal to take down the directions essentially to on how to encrypt or you know, verify like the pgp encryption or RSA was actually the one in question here that to write that down and then walk across the border with it was illegal was that you were you were moving Munitions out of the country. You have taken a weapon of mass destruction and spread it around the world and Adam back actually printed it on a shirt and then sold you can actually go to Cipher space think I think it's Cipher space dot-org if I'm not mistaken. I'll double check and put it in the show notes, but I think that's right. And there's a little section with Adam back and you can click on and you can see the Munitions shirt the shirt that was illegal to move across the state border or Were moving a weapon of mass destruction across the u.s. Border, but he was an activist back then and you know sold that to basically demonstrate how obnoxious that the very concept was that speech could be a weapon which arguably it's funny. It's a very powerful means of Defense particularly in that instance. Is that Adam backs speech and demonstrating that through language showed exactly. How absurd how absurd the rule was in to react to that in violence makes no sense. It's obviously immoral. I love the this one of my favorite things because it's so dirt simple don't hurt people and don't take their stuff. I love that. He basically has this exact same commits fun home basically has that exact line in this piece and it's just spot on it's something that if you start from that Foundation you can you can then You Deuce so much other like set of morals and principles from that but it's just like like who doesn't know that don't hurt people and don't take their stuff. So I really I really enjoyed this this section and as he got into decentralisation, it really is and such a difficult. It's such a difficult idea to articulate like to actually measure I mean because it is Is I mean like he says it's not an on/off switch. It's some degree of a spectrum but it's even hard to tell where something is on a spectrum particularly win. It's a result of a large group of people because we are inherently horrific lie bad at did having any semblance of an idea of Telling ourselves any kind of an accurate story about a large group of people. We have these gross basic characterizations of incredibly diverse groups that we can't escape like just as you just as he says in this is that it is a limit of our human bias. It's at least a limit of our human capacity. Like as our minds. We can't not simplify everything to an incredibly dumb version of it. So so when you have two thinking about, you know, a group of 10,000 people like any any even partial semblance of accuracy, there is just not possible. It just isn't it is always going to be vastly more diverse and nuanced than you would ever imagine you would ever even be able to comprehend. It's just not possible and in that same sense to to attempt to articulate or a measure of The Descent. Relation of something that is actually part a result of it the community that supports it and then part its Community as a result of it because that's there's actually quoted this. That's a good point for the quote Bitcoin is not for humans to have opinions about it exists regardless of what anyone thinks about it and it ought to be studied rather than discussed. and that's a really interesting idea because Bitcoin has has an incredible amount of influence over our thoughts as as much so as our thoughts collectively have over it because of the way that it has matured that there is this this ideology or this these patterns of thinking that it has caused in those that participate in it that in doing so Bitcoin may never change. It's staying power is incredibly strong and I don't think it's merely that like a bunch of hard money people happen to migrate to Bitcoin. In fact, many of the people who I have known and talk to and who have come to bitcoin from a huge variety of different reasons from different perspectives where it was whether it was, you know, protest money or about Free Speech or about, you know, fixing a quality or the corruption of the banks like from so many different angles. Goals from both political aspects economic technological all of it that from my personal experiences. They've ended up going down the rabbit hole and finding themselves entertaining or finding ideas practical almost or realistic that would have seemed absurd before they were exposed or cannot make any grasp of the Bitcoin system before Bitcoin existed some of the ideas that then become possible or just Unthinkable fairy tale. Is that it just it was just outside of the realm something about something about the Defiance of Bitcoin to the status quo narrative that it challenges. It's like it's like dinosaur bones to creationist. It's this it's this thing that just the fact that it exists. throws a wrench into so much of the status quo narrative that is soon as you begin to actually understand it it you can't do so without it affecting your worldview in some significant way and I have found that obviously in my personal experience, but I have found that again and again with people who actually go down the rabbit hole into start start to really trying to wrap their head around the Bitcoin system and the of structure and like what it means to build a huge complex economy is sense in a sense from a seemingly simple set of rules how unbelievably complex things can arise from a couple of fundamental rules. Like I had someone challenge me on that talking about how DNA was super complex and that wasn't simple and I'm thinking the exact opposite. I'm thinking DNA is for proteins for there are four fundamental proteins in the almost the practically infinite set of complexities that result from genetic code not even just in the complexity and variation in humankind complexity in DNA talking about all living things and to think that that's from for proteins. We share those exact same for proteins at our base. It could not be a better. For example of the increasing complexity of like fractal patterns and a repeating algorithms that just continue to make higher orders of complexity as it creates some degree of stability that as one system or pattern continues to survive. Well, then it has an effect on its environment and its world and creates. It becomes a part of a new pattern and then that increases to a new level of complexity and we see this Us again and again, it's everywhere in nature. It's everywhere in the world. It's all across the university is a natural state of everything that we know of as existence in Bitcoin is an extrapolation of that. It's that from our technology like we are becoming a network organism this one I love this all up. So often I come back to this conversation it this isn't this is some form of an organism. It's a it's us becoming this insanely Dynamic and incentivised. School of fish so to speak or this, you know termite Colony or this ant colony, whatever whatever you want to call it. It behaves together to this much larger purpose that we can't even really grasp. I love that termite analogy. Actually that he uses was that the termite has no idea what they're building, but those Simple Rules create an incredibly complex set of structures that are required for their environment to actually sustain itself and nobody knows. What's going on? Nobody? Nobody individually actually has the whole picture. It just emerges like a language like like a network so many of these things like we are that species we have so many of these tools and Technologies like the economy is is an explosion of billions of things that have all just emerged from our interactions going back to the everything as a trade just the ball process of trading ideas and finding that the the constant incentive to find the most efficient means to do something or a new a new way to you know, save time or save my resources save my energy in accomplishing Tom some task or reaching a certain goal the just those really basic fundamental things that we really all share and then the ability to trade in the fact that all of our situations are different in our Isis and what we learn our different enables this enables something as vast and complex and completely unimaginable as the global economy as all of the languages and the money's we use and that the infinite number of tools and technologies that nobody knows how to do it. Like just like he says actually I'll recommend if you haven't listened to it. I've also got I pencil by Leonard read believe I've got that right think read did Alan but I pencil is a super iconic like essential read for like the kind of Austrian mindset the Austrian school and I will link to that one. And another actually good one is use of knowledge in society by Hayek. Both of those are really good. So I'll add those to the show notes, but I'm getting I'm getting low on time here. So let's just go ahead and cut this here. We will jump back. In tomorrow with the next chapter, what was it already forgot a proof-of-work proof of work. That's right. This one's going to be good. I'm excited about this. And so we'll be digging into this tomorrow another huge. Thank you to knut spawn home for this piece and allowing me to read this book in full so much fun stuff to talk about and just just an awesome book. If you haven't read it, and the fact that this is available for free for you guys is just great. So don't forget to follow Him and give him a shout out on Twitter because this really is an awesome thing and until until tomorrow. Don't forget to subscribe to the show. So you don't miss the rest of this. We've got the rest of the week covering this piece. And of course follow me at the crypto economy on Twitter and until next time I guess that'll that'll close this out for the day. Don't forget you can become a supporter of this show and help keep the project of turning all of the best. Bitcoin into the audiobook versions they deserve and you can do that by going to patreon.com slash the crypto economy and you will get access to the Crypt economy telegram crew as well. But if you can't do that, if you can't support monetarily the one thing you can always do is share this out with everyone, you know in Bitcoin and the crypto economy space so they too can get all of the best of Bitcoin in audio All right. Thank you so much for listening guys until next time take it easy everybody.
Continuing through our unabridged reading of Knut Svanholm's excellent book available on Amazon, "Bitcoin: Sovereignty Through Mathematics." • The inevitability of human bias • The absurdity of fractional reserve • Dangers of collectivism • Bitcoin is Speech • The Immaculate Conception • And why decentralization is so damn hard! https://www.amazon.com/Bitcoin-Sovereignty-mathematics-Knut-Svanholm/dp/1090109911/ref=sr_1_1?keywords=sovereignty+through+mathematics&qid=1571692865&sr=8-1  Other episodes and works mentioned in the show to dive deeper into some of the fascinating ideas discussed in today's read & commentary: Why America Can't Regulate Bitcoin [beautyon_] - https://anchor.fm/thecryptoconomy/episodes/CryptoQuikRead_260---Why-America-Cant-Regulate-Bitcoin-beautyon_-e4b4s8 I, Pencil [Leonard Reed] - https://anchor.fm/thecryptoconomy/episodes/CryptoQuikRead_123---I--Pencil-e2ndqm Use of Knowledge in Society [F.A. Hayek] - https://anchor.fm/thecryptoconomy/episodes/CryptoQuikRead_250---Use-of-Knowledge-in-Society-Part-1---F--A--Hayek-e43pfj   Subscribe to the show so you don't miss the rest of this amazing work as we read it this week. And if you want to support the show and join the Cryptoconomy Telegram crew, become a patron below! https://www.patreon.com/thecryptoconomy  ---   This episode is sponsored by  · Anchor: The easiest way to make a podcast. 