#103 Monetary Misinformation

Good Morning Everyone,

The technology we call money is fundamentally a system of information. It is a ledger, that assigns who has what. Bitcoin does not send “money” from one side of the planet to another to enable the transfer of value - it is simply updating information. Modifying numbers between one pigeon hole and another on an open, public, immutable ledger. It does so in a way that ensures no errors can exist in this system of information. A system of pure signal - completely free of noise. A system of pristine informational clarity; of truth. Some would say, the ultimate record of truth.

When we compare this to that of the fiat monetary system, considering it as a system of information, the transformational nature of bitcoin becomes more pronounced. The fiat system is almost by definition the opposite. Where bitcoin is a system of truth - fiat is a system of lies. A system of noise. The poor informational quality is baked into the fiat system at the protocol layer as a result of a small number of humans having admin privileges over the network, and being able to inflate the supply with no limit, at the expense of every other node.

This inflation of the supply at the hands of a few fundamentally and irreparably corrupts the information in the system. It makes it very difficult to verify the truth, and increases the friction between nodes as they try to interact via the network. The societal impacts of this are all around us right now. No one knows the true price of anything, with risk tolerance being completely perveted across all asset classes [insert ape/rock jpeg]. Due to the design of the system allowing for admins, and the ability of those admins to elect future admins, the system mutates into more of a political system and less of a reliable monetary one. This has never been more obvious than it is today.

A year ago Janet Yellen and the rest of the mob lied to the public labelling inflation as transitory after they’d increased the monetary supply by 40%. Last week she said she may have been wrong about inflation.

Now in the face of a major energy crisis she has become an expert on energy markets, and said when testifying before the Senate Finance Committee yesterday that “the critical thing is we become more dependent on the wind and the sun”.

These people and the system they represent are morally and ethically bankrupt. The US is the largest oil producer on the planet and has every capability to solve the energy crisis if they wanted to. It is entirely self inflicted as a result of incompetent policies and naive interventionism. They are a corrupted file system trying to execute a corrupted program called fiat. Ultimately however, they are just operating in alignment with the incentives of a broken system.

Prior to bitcoin we had little option than to rely on closed, private systems, and had to trust the entities that control these systems to operate in good faith. To trust the validity of the information. Thanks to Satoshi, we no longer need to rely on faith - now anyone on the planet has the power to verify the rules of the network, and can verify the information for themselves; and for the information to be clean and pure. Fiat has created monetary misinformation that is deranging our societies and short circuiting our nature to self organise. Bitcoin is the anti virus software that will remove the corrupted information and reinstall the truth.

Don’t get lost amongst the fiat noise. Bitcoin is the signal.

Hope you all have a great day. I’ll talk to everyone tomorrow.

AK

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