"Fix the money, Fix the world..."

Bitcoin is ultimate store of human time.

The topic for this newsletter is valuing intellectual capital in a Bitcoin standard VS the current $ standard.

Our leaders are doing everything in their power to devalue their national currencies which is depleting purchasing power of work put in by every human who is getting paid in Fiat currencies.

Marty Bent, the host of Tales from the Crypt: A Bitcoin Podcast has summarized this phenomenon perfectly as

“Fix the money, fix the world…” So we will stick to this title.

WHAT AND WHY OPEN-SOURCE

The last couple of decades have been built on the modern tools and infrastructure of technology. Nothing has impacted the world like the codification of work where software has streamlined and removed all barriers that one could possibly imagine.

The impact can be best summarized by Andreessen Horowitz from a16z (Venture Capital Firm) as

“Software is eating the world”.

If we understand the common denominator amongst all the revolutionizing tech corps, most of them were built on the fundamentals of open-source software like Unix, other languages/applications and operating systems.

For the readers outside the tech community, Open source is defined as:

Software for which the original source code is made freely available and may be redistributed and modified

Essentially it’s the code owned and modified by the entire community with no central authority a.k.a decentralized.

It’s ironic to think that the absolute base of these billion (now trillion…) $ companies was completely freely available code.

OPEN-SOURCE INNOVATION IN DOLLAR FIAT STANDARD.

There are several examples of success stories, which we all know as our addictions popularly, grouped as FAANG (Facebook, Apple, Amazon, Netflix, Google ). These were the ones who made it big enough to absorb several other “David’s” who tried to innovate and operate on their principles but couldn’t be big enough to compete with these behemoth “Goliaths”.

So for them it was either join us or die..

There is whole world of entrepreneurs building on open-source softwares that never see the daylight of mass scaling because of $$ liquidity. So much talent in open-source community fails to reach the inflection point or are kept on the sidelines.

This is where Fiat Standard monetary system stifles the innovation. It encourages malinvestments where companies who are not profitable anymore are allowed to survive and are backstopped by cheap liquidity drug injection from Federal Reserve.

Instead the quality ideas get suppressed because they don’t get financial support from community unless they are allowed under accredited Investor laws.

Thereby only allowing people who have money to make more money.

This disruption creates a severe imbalance in market forces causing a massive suppression of financial energy. This energy when released leads to a society of extreme HAVE’s and extreme HAVE-NOT’s. There is no middle ground.

Free market running on honest money balances out the unprofitable ventures with superior alternatives based on the timeless principles of supply and demand.

INNOVATION IN BITCOIN STANDARD.

Bitcoin provides a way out of this monetary manipulation and has the potential to unleash the innovation humanity has never seen.

Future ideas financed with Hard money will force entrepreneurs to raise standards of their products in terms of producing value since the cost of failure will be much higher due to the disinflationary nature of money.

There will be no government bailouts in a Bitcoin monetary standard.

Market forces will elect the the companies that continue to strive to be best and NOT who can be kept alive due to cheap money supply.

This is exhibited in how the products from ancient times where countries were running on gold standard were created with strength to survive decades.

Modern infrastructure is running on the last leg of US dollar standard where the quality and lifetime of every product created has been degraded to facilitate constant consumption.

VALUE OF HUMAN CAPITAL IN BITCOIN

Hard money demands higher universal standards for quality and overall raises the value of collective human capital. 

When human capital is remunerated in the hardest money created, its impact is significantly higher as compared to a system where the outcome of successful creation is primarily measured in monetary value with no universal metric to the quality.

Bitcoin is the true money to determine and capture value for innovation.

This is best described by how Jack Dorsey, CEO of Twitter and Square defines Bitcoin as the internet’s currency.

Do you agree or disagree on the difference b/w value of human capital in Fiat VS Bitcoin monetary system.

or

Do you think this magic internet money thing is just a speculation instrument to make more $$$ and nothing will ever change.

Thanks for reading.

Feel free to leave comments below. I appreciate your feedback.