BRF #51 Bitcoin Fixes This
Unless you have been living under a rock for the last 2+ years, surely you have seen a bitcoin maxi posting “Bitcoin fixes this” as a response to literally anything from famine to world wars.
Perfect example, this took me two seconds to find on twitter…
How does Bitcoin fix this?
Bitcoin was the first real attempt at decentralized peer-to-peer finance, which can live and operate completely outside of the financial system yes that is correct but Bitcoin fails to even fulfill the first line of its own white paper.
”Without going through a financial institution” yet 90% of people buy and hold Bitcoin on an exchange which is a middle man/financial institution. So the thing it set out to do, it failed on. Now to take it a step further it also failed at being an “electronic cash system”, notice it doesn’t say “electronic store of value system” or “digital gold” yet those are the current narratives around Bitcoin.
Roger Ver was 100% correct yet still to this day laughed at and publicly crucified because he said the Bitcoin code wasn’t good enough to be used as a “CASH” system and he is correct. Cash is like what you have in your pocket, its the thing that can be used daily for things like coffees to eggs to gas. Sorry but no one and I mean no one is using Bitcoin to buy fkn eggs (except for the Bitcoin maxis shooting videos attempting to convince you to do it)
Insert the attempted use of Bitcoin in hyper inflated countries like Venezeula or heck even El Salvador- not used for small daily purchases.
The Bitcoin code itself isn’t modular, its spaghetti code with connection points all over the place, which makes it very hard to update. If you were around in 2017 then you got to see first hand that the network can’t handle the whole world transacting on it, in fact it couldn’t handle the volume of transactions from back then.
Blocks congested, transactions sat for days and costs on the network quickly jumped up to $20-$50 per transaction. Sorry that isn’t the future of finance, nor a viable replacement for the entire global financial system.
This is why CBDCs will do just fine, and while 90% of legacy still laughs at crypto (and would rather buy bonds and RE) and especially Bitcoin maxis who spout of dumb sht like that all day long. Marketing 101, if you want people to buy/believe in your product its gonna take a whole lot more than “Bitcoin fixes this”. Features and benefits, features & benefits!
But lets ignore all that for a minute and just run with the current narrative for Bitcoin which is “store of value”. If Bitcoin really did in fact fix this, then why has it gone from $69k to $29k during the biggest inflation jump in 40 years, during the middle of a war and global recession? Heck I mean not even gold has performed as a “store of value”, so we gotta have a serious rethink here.
Sure we can excuse some of this as delay in markets, markets are stupid, retail is stupid etc. Personally I think bitcoin already did its job and ushered in a completely new asset class and new direction for fiat/currency for better or worse. Its ok to admit that job well done and now change expectations/narrative around this asset.
Lightening network fixes some of these block issues, and yes tap root updates look promising but first off Lightening network is a layer 2 solution bolted onto the underlying asset (bitcoin in this case) and if we have a dev team and roadmap for Bitcoin code updates now, sorry but that fails the Howie test and makes it a security.
What about ETFs, that I have talked about before, how is fractionalizing bitcoin a good thing? Doing that will fundamentally change the total circulating supply of Bitcoin, destroying its main selling proposition- yet every single Bitcoin maxi celebrates any news on ETFs in America being launched.
So do they all fundamentally NOT understand the asset they are prompting and putting so much emotional energy behind or are they all just bad actors?
These same influencers been hawking affiliate links to Celsius and Blockfolio selling you on moving your bitcoin to a centralized exchange (no keys, no coins) to earn 6-8%, which we shared in the last email has all but disappeared until the bull market comes back, but again is this done on purpose or just ignorance?
Why would you remove your privacy and autonomy over your bitcoin by moving it into a place (exchange) where you don’t have control and they all admit they can just TAKE it, for a pettily little 8% apy?
Back to my core question, Bitcoin fixes this? Or is it literally the same exact thing as legacy? I mean lets not forget the conspiracy floating around years ago that the NSA created Bitcoin as a means to usher in digital currencies so you can’t hide cash anymore from the tax man and they could implement more capital controls.
I just can’t wrap my head about Bitcoin being the finish line, its laughable to me and I wish more people were looking to improve on the concepts of Bitcoin and develop something better that at minimum fulfills the promises made in its own white paper.
I think we can do better, we can create an entire financial stack outside of the global financial system with layers similar to what we see today but done better. I think the equities market should go back to reality- remove CEOs importance on stock price, which could be easily done by allowing people to gamble on Elon Musk directly with options and up/down instruments rolled out through the institutions instead of shady online sites and FTX which are most common current options.
Allow whoever wants to create their own token/NFT as a means of betting on value provided by that person, launch it under a regulated system so speculators can have a sandbox to play in and this would remove a lot of speculation stress on other fundamental assets.
I keep repeating a lot of the same conversation lately because I think a lot of people are missing the boat and want to bring attention to things I feel are important, hopefully at minimum these are fun thought experiments for you.
Lets end it with a bang!
How does intergalactic trade and value exchange work now you think? Yes I assume intergalactic trade and travel is already happening and we have been lied to, its kinda silly to me to believe otherwise just because they don’t talk about it on TV.
Peace and love!
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