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Posted November 14, 2020
1/ A quick thread about #Bitcoin and the power of incentives.
For Bitcoin to reach global dominance, it must inspire a vibrant ecosystem of allies.
“Show me the incentives, and I’ll show you the outcome.”
Let’s go 👇
2/ Bitcoin attracts new users for many reasons
- Get wealthy
- Stay Wealthy
- Preserve Freedom
- Minimize violence
- Empower the poor
- Increase prosperity in the world
Users are incentivized to defend the network, improve the network, and onboard new users to the network
3/ Investors buy Bitcoin to generate wealth.
“Bitcoin was designed to pump forever” - @matt_odell
Bitcoin is the best trade of the century. Will be obvious in hindsight. Massive wealth transfer coming.
4/ Billionaires need Bitcoin to protect their wealth.
They have a lot to lose & they’re vulnerable to confiscation. Bitcoin is insurance against collapse, confiscation, or a greedy state.
Billionaires make powerful allies in the battles that come.
5/ Bitcoiners adopt Bitcoin because it’s the right thing to do Current system is broken. Bitcoin shifts power from incumbents Rightwards arrow an intolerant minority of cypherpunks, polymaths, freedom maximalists, and first principle thinkers. Bitcoiners will build a better world.
6/ Corporations need Bitcoin to protect their balance sheets.
While governments compete to devalue their currency, many corporations cannot generate a positive return on capital. Bitcoin protects the treasury.
7/ Freedom lovers adopt Bitcoin to protect liberty.
Bitcoin is a 10x improvement over existing property rights. Shifts power away from the state and towards the individual. Enables the rise of the Sovereign individual.
8/ Pensions need Bitcoin to generate a positive yield.
With mounting unfunded liabilities, $17t in negative-yielding bonds, and few options for positive yield…
Money managers will be forced to buy Bitcoin. It’s their only hope.
9/ Millenials need Bitcoin or they’ll “have fun staying poor”
Millennials have been dealt a bad hand by older generations. The 2020s will make things worse. Bitcoin is their best chance to generate wealth
Bitcoin will eat the SoV premium on real estate, enabling home ownership.
10/ Tech companies leverage Bitcoin to defend their moat
Money is being reinvented. Companies are scrambling to acquire territory on the new frontier. Square has an early lead (@CashApp), PayPal has entered the game.
When Apple, Google, Microsoft, and Facebook?
11/ Normal people use Bitcoin as a savings technology
Rather than staying wave-slaves, normal people can store the fruits of their labor in an asset that preserves their time & energy.
12/ Ostrisziced nations need Bitcoin to trade
The dollar hegemony excludes enemies from participating in the global financial system. Bitcoin is an open financial system, accessible to all.
Example: Iran is paying for imports by monetizing energy assets through Bitcoin mining.
13/ Banks adopt Bitcoin to stay relevant
Old banking is dead, digital mobile banking (Cash app, etc) is the future. CBDC’s are coming. Low-interest rate environments squeeze commercial bank margins.
Jamie Dimon should have stayed humble and stacked some sats.
14/ Humanitarians adopt Bitcoin to empower the disenfranchised
Billions of individuals don’t have access to basic financial services (or are opressed by their gov)
Entrepreneurs like @raypaxful leverage Bitcoin (and other tools) to “bank the unbanked” in developing countries.
15/ Politicians support Bitcoin because their constituents demand it
As more citizens own Bitcoin, they’ll elect more representatives who support Bitcoin.
When powerful people own Bitcoin, they ensure favorable laws.
16/ Boomers need Bitcoin to protect their net egg
Pensions and Social Security are underfunded. Boomers need Bitcoin to retire with peace of mind.
17/ Governments will adopt Bitcoin as a hedge against currency failure
Just as governments and central banks hold Gold today, Bitcoin will serve as a hedge against state failure.
Small nations will adopt Bitcoin to leapfrog ahead of nocoiner nations.
18/ Environmentalist will adopt Bitcoin to preserve the planet
The fiat system produces massive negative externalities on the environment.
Bitcoin reduces flared methane, reduces waste, incentives R&D for low-cost energy production, and minimizes fiat externalities.
19/ Americans adopt Bitcoin because it preserves “American Values”
Bitcoin is a tool that empowers an individuals’ life, liberty, and the pursuit of happiness.
What’s more American than that?
20/ Cyber Hornets protect Bitcoin because it enables a better world.
Driven by curiosity, seeking truth, and fighting for freedom, the cyber hornets defend the network at all costs.
21/ What else (besides Bitcoin) aligns humanitarians, billionaires, governments, environmentalists, and cyber hornets?
Each group offers unique advantages that strengthen the network.
Each marginal users improves the chance of success.
22/ “Show me the incentives and I’ll show you the outcome.”
Bitcoin is a force of nature that systematically aligns the incentives of the human race.
Bitcoin’s global dominance is all be guaranteed.
END/ Thanks for the inspiration.
@Breedlove22 @michael_saylor @matt_odell @hasufl @nlw @raypaxful @JeffBooth @chamath @MartyBent and many more.