RE: Secrets of Bitcoin’s Dystopian Valuation Model

The immutability is a feature, not a bug.

As Andreas Antonopoulos says... but even he admits that without privacy enhancements, the fungibility of bitcoin will suffer increasingly in the future. He's said that this is more important than scaling because of this ossification of the protocol.

I posit that Andreas’ ideas about priorities and importance are irrelevant if he lacks the information in my blog and if my blog is correct. That which is unstoppable and inevitable is important. Refer to my prior blog about the capital controls and “proof of source of funds” confiscations that are coming to kick people off of their BTC. Even if high transaction fees do not kick us off, we will be kicked off by the coming reaction of governments to the coming stagflation.

Note I added the point to my blog that Bitcoin will likely consume most of the world’s electricity by roughly the end of next decade! Contemplate the implications of that! The nations and most people are going to be turning against Bitcoin. They will need to form a world government in order to try to institute iron-fisted capital controls against BTC and bans on Bitcoin mining.

I agree that privacy would be nice if we never plan to exchange that cryptocurrency for anything in the tangible or centralized fiat world that governments can regulate. Bitcoin doesn’t have a fungibility problem on-chain. The fungibility issue is when exchanging into the regulated, tangible world.

But for Bitcoin, we will all be either kicked off by high txn fees or political persecution, and the uber wealthy don’t need to fear the governments, because they control the governments behind the curtain.

The lack of anonymity on Bitcoin is a designed feature:

To kick everyone but the uber wealthy global elite banksters off-chain
To force a separation between the black market and fiat-compliant BTC economies

Future writings will elaborate on the dystopian world we are heading into. War, devastation, human enslavement, etc…

That’s why it’s dystopian. But the alternative of keeping us all on-chain (if that were even possible to design?)

[…] then block size increases might be workable. Is there any other problem with increasing block sizes (other than a hard fork)?

I already explained to you in my prior post that block sizes can’t be increased (not even by an algorithm, e.g. Monero’s requires manually set transaction fees, which is centralization) without causing forking which destroys the system. The issue is Schelling points and game theory. Are you not clicking the links?

I already indicated in my reply to @lauch3d that maybe recursive zk-snarks for a constant blocksize that has unlimited transactions might be the only possible way.

But even if we achieve that, it doesn’t solve numerous other problems:

If every person can hodl a 10X every 4 years (i.e. 78% per annum compounded) appreciating asset, nobody will spend, invest, nor loan any of that unit-of-account in the real economy. That would be a Mad Max, “scorched earth” deflationary spiral outcome. Unless we expect Bitcoin increase in valuation to slow considerably as the price of electricity rises (which gold historically did not do w.r.t. price inflation) and/or Moore’s Law slows down. But even so, will it slow down enough or soon enough? If Bitcoin’s increase stagnates, that would be end of its sui generis quality.

If instead society (necessarily) chooses to expand the money supply with fractional reserves but with Bitcoin as the reserve unit-of-account, then whomever has control over the allowed reserve ratios can dictate the booms and busts in the economy. Yet nobody would risk reserves if their potential gains will be less than 78% per annum compounded, unless they had the fiat power to never actually payout in reserves. So in essence if the unit-of-account’s valuation is appreciating at a significant rate, then the only way to use it for a fractional reserve system is to have a highly corrupt system that never actually pays reserves. Essentially that would be equivalent to a system where the reserves are actually printed out-of-thin-air, i.e. a two-tiered monetary system where most people never transact in the actual Bitcoin.

If instead the society (necessarily) chooses to expand the money supply with fractional reserves (and/or invest in business activity) but using a unit-of-account which is an objective, decentralized cryptocurrency that is designed to not continue appreciating in value inexorably at such a high 78% per annum compounded rate, then reserves could be honestly risked in exchange for a gain from interest rates. When the interest rates exceeded the flow of the unit-of-account, eventually there would be defaults because there’s not enough new reserve monetary base being generated to pay back the interest rates in the monetary system.

But would society embrace a unit-of-account which is not appreciating in value as fast as Bitcoin? Humans are greedy and there’s no Schelling point for altruism, i.e. “altruism-prime” is an undersupplied public good. The greater inertia (e.g. electrical energy) invested in Bitcoin could be used in exchange arbitrage to turn the lower inertia altcoin into a volatility yo-yo. I think this idolization of Bitco[i]n’s 78% per annum usurious compounded money (i.e. dishonest gain) is what Revelation 17 means (note my next blog will cite the theological theories of @jasonhommel about who and/or what is the Great Harlot):

I know your afflictions and your poverty—yet you are rich! I know about the slander of those who say they are Jews and are not, but are a synagogue of Satan. — Rev 2:9

To the Church in Thyatira

[…] These are the words of the Son of God, whose eyes are like blazing fire and whose feet are like burnished bronze. I know your deeds, your love and faith, your service and perseverance, and that you are now doing more than you did at first.

Nevertheless, I have this against you: You tolerate that ~~woman Jezebel~~[Harlot], who calls herself a prophet. By her teaching she misleads my servants into sexual immorality and the eating of food sacrificed to idols. I have given her time to repent of her immorality, but she is unwilling. So I will cast her on a bed of suffering […]

Now I say to the rest of you in Thyatira, to you who do not hold to her teaching and have not learned Satan’s so-called deep secrets, ‘I will not impose any other burden on you, except to hold on to what you have until I come.’ — Rev 2:18–25

I will make those who are of the synagogue of Satan, who claim to be Jews though they are not, but are liars—I will make them come and fall down at your feet and acknowledge that I have loved you. — Rev 3:19

So, because you are lukewarm—neither hot nor cold—I am about to spit you out of my mouth. You say, ‘I am rich; I have acquired wealth and do not need a thing.’ But you do not realize that you are wretched, pitiful, poor, blind and naked. — Rev 3:16–17

The rest of mankind who were not killed by these plagues still did not repent of the work of their hands; they did not stop worshiping demons, and idols of gold, silver, bronze, stone and wood—idols that cannot see or hear or walk. — Rev 9:20

The people will love the world government Beast driven into existence with the aid of Bitcoin. That world government can fight for their sustenance against the Bitcoin. The people will hate Bitcoin not realizing it was a source of power exercised by the dragon Satan to bring about their enslavement in a world government, but Bitcoin is also evil because it is usurious and not a “free and fair montary system” tool that should be used by God’s holy people (idolatry of Bitcoin is presumably a deception) unless we expect Bitcoin’s increase in valuation to slow down considerably:

If thou lend money to any of My people, even to the poor with thee, thou shalt not be to him as a creditor; neither shall ye lay upon him interest. — Exodus 22:24
Take thou no interest of him or increase; but fear thy God; that thy brother may live with thee. — Leviticus 25:36

The great dragon was hurled down—that ancient serpent called the devil, or Satan, who leads the whole world astray. He was hurled to the earth, and his angels with him. — Rev 12:9

The dragon [and I] stood on the shore of the sea. And I saw a beast coming out of the sea. It had ten horns and seven heads, with ten crowns on its horns, and on each head a blasphemous name. The beast I saw resembled a leopard, but had feet like those of a bear and a mouth like that of a lion. The dragon gave the beast his power and his throne and great authority. One of the heads of the beast seemed to have had a fatal wound, but the fatal wound had been healed. The whole world was filled with wonder and followed the beast. People worshiped the dragon [Satan] because he had given authority to the beast, and they also worshiped the beast and asked, “Who is like the beast? Who can wage war against it?”

The beast was given a mouth to utter proud words and blasphemies and to exercise its authority for forty-two months. It opened its mouth to blaspheme God, and to slander his name and his dwelling place and those who live in heaven. It was given power to wage war against God’s holy people and to conquer them. And it was given authority over every tribe, people, language and nation. All inhabitants of the earth will worship the beast—all whose names have not been written in the Lamb’s book of life, the Lamb who was slain from the creation of the world. — Rev 13:1–8

That sustenance (e.g. centralized universal income) will be two planks of the religion of the Anti-Christ which is the second Beast:

Then I saw a second beast, coming out of the earth. It had two horns like a lamb, but it spoke like a dragon. It exercised all the authority of the first beast on its behalf, and made the earth and its inhabitants worship the first beast, whose fatal wound had been healed […] The second beast was given power to give breath to the image of the first beast, so that the image could speak and cause all who refused to worship the image to be killed. It also forced all people, great and small, rich and poor, free and slave, to receive a mark on their right hands or on their foreheads, so that they could not buy or sell unless they had the mark, which is the name of the beast or the number of its name.

This calls for wisdom. Let the person who has insight calculate the number of the beast, for it is the number of a man. That number is 666. — Rev 13:11–18

Then I heard what sounded like a voice among the four living creatures, saying, “Two pounds of wheat for a day’s wages,[b] and six pounds[c] of barley for a day’s wages, and do not damage the oil and the wine!” — Rev 6:6
If an altcoin does not compete with Bitcoin’s S/F valuation model, then presumably the altcoin (eventually) dies.
If an altcoin doesn’t use proof-of-work, the altcoin has no value (per the S/F valuation model) because of the “nothing-at-stake” it never burns any energy:

Now about PoS […] To understand the absurdity of this idea, imagine an analogous situation where a PoW-miner has extra video cards and ASICs materialize on their own out of thin air while working on a network. They configure themselves on the fly, connect to the server, and begin working. That is precisely what happens to those with quite a wealthy wallet under the PoS framework.

Besides that, I believe PoS is wild centralization and deflation in one bottle. If the concentration of a fixed amount of money generates new money on its own […] with PoS you can unleash an entire zoo of different PoS-systems, making a profit from all of them immediately and simultaneously. Drawing a parallel, you can participate in 10 or 100 networks at the same time. Now return to the initial example about spam and the story of why PoW came to be for Bitcoin to understand why the situation of PoS is absurd.
If an altcoin employs proof-of-work, would the altcoin be able to afford the electricity in the future, because Bitcoin will be consuming most of it and driving the prices of electricity sky high? If the S/F valuation model is such that valuation is accelerated as necessary to compensate for price inflation, then possibly the answer is yes, but if the altcoin has less wealthy participation then the participants are more impacted by price inflation (because they spend a greater percentage of their wealth) and thus more of them need to sell due to price inflation. So it seems in any case that for example silver's valuation would resist price inflation less than gold (well that’s true anyway because silver has a lower S/F ratio and thus higher flows with the flows increasing in cost due to price inflation).

The Beast has unleashed one of the bowls mentioned in Revelation. Bitcoin is a WMD!

I hope to be able to afford healthcare in the USA with the coming rise in the BTC price. Will do the Great Plains tests for gut dysbiosis. Perhaps I will need endoscopy. Maybe the cure will be a fecal microbiota transplant?

This sounds similar to what Vivian McPeak.

Yeah, but my body weight is okay. Mine is apparently not as severe as his. Maybe because I am not a pothead. I am still an athlete.

I guess I am not against marijuana for medical uses, but I am a teetotaler (since my early 30s) and thus am probably incompatible with those who are not also.

My health is OK.

Delighted to read that.

I'm taking care of my elderly father though so that takes up a lot of time.

Ah maybe nevermind then, because I am spread too thin as it is, so I need to choose only those who can give their undivided focus. Not to insinuate that you shouldn’t do that.

Question is, how do I send you this info without compromising the address? (I've always done this in person in the past)

We used multiple communication channels to triangulate and be sure we have the correct trusted key. My opsec is really not stringent enough.