“The fight for freedom is a constant struggle everywhere. In the long run, it’s not as easy as just ‘freedom-loving people will move to one jurisdiction and then that place will stay free forever’. That’s not how it works.”
This week the podcast is coming from Prague and I’m talking with one of our esteemed ambassadors here at the Free Cities Foundation who is also a very well known member of the Bitcoin community by the name of Knut Svanholm.
Knut is a former sea captain turned Bitcoin author/philosopher. He’s written a number of well-known Bitcoin books including ‘Sovereignty & Independence’, ‘Everything Divided by 21 Million’, and his latest work, ‘Praxeology: The invisible hand that feeds you’.
Now, this is a pretty long and meandering conversation and there’s a fair amount of thinking out loud going on, so I hope you can bear with us.
A vast array of subjects are covered, including Bitcoin, praxeology, human action, governance models, life on the sea, monetary history, central planning, eduaction, universal basic income, military history, religion, spirituality and we get to answer the age-old question: ‘Is Bitcoin is a cult?’.
Next week, amongst other things, I’ll be discussing city planning with Thomas Walker-Werth and trying to get to the bottom of the idiosyncracies of building Free Cities in the final frontier: outer space.
Automatically Generated Summary
Section Overview: The host introduces the podcast and talks about his recent experience at a Bitcoin conference in Prague. He also previews the upcoming conversation with Knut Svanholm.
- The Free Cities Podcast is introduced as the official podcast of the Free Cities Foundation.
- BTC Prague is described as one of the best Bitcoin conferences, with interesting people and great social events.
- Liberty in Our Lifetime, the Free Cities Foundation’s own conference, is promoted.
- The upcoming conversation with Knut Svanholm is previewed.
03:25 Getting to Know Knut Svanholm
Section Overview: The host and guest discuss their backgrounds and how they got involved in Bitcoin.
- Knut Svanholm’s background as a former sea captain turned Bitcoin author/philosopher is discussed.
- The concept of Bitcoin as an agreement between people on a fixed set of rules is introduced.
- The idea that following these rules is cheaper than trying to cheat them is explained.
- A thought experiment involving seed phrases and private keys is presented.
06:47 What Is Money?
Section Overview: Knut Svanholm discusses his views on money and its history.
- Money is defined as a tool for facilitating trade that has evolved over time.
- Gold and silver have been used historically as money due to their scarcity, durability, divisibility, and recognizability.
- Fiat currency, which has no intrinsic value but derives its value from government decree, is contrasted with commodity money like gold and silver.
- Central banking and fractional reserve banking are criticized for distorting the market by creating artificial credit expansion.
Section Overview: Knut Svanholm explains praxeology, a science that focuses on human action.
- Praxeology is defined as the study of human action and its implications for economics.
- The concept of subjective value, which holds that individuals assign value to goods and services based on their own preferences, is introduced.
- The importance of understanding incentives in economic analysis is emphasized.
- The role of entrepreneurship in driving economic growth is discussed.
27:08 Bitcoin and Governance
Section Overview: Knut Svanholm discusses how Bitcoin can be used to create new governance models.
- Traditional forms of government are criticized for being coercive and inefficient.
- Decentralized governance models enabled by blockchain technology are explored.
- The idea that Bitcoin can serve as a foundation for new forms of governance is presented.
- Examples of decentralized autonomous organizations (DAOs) are given.
38:20 Life on the Sea
Section Overview: Knut Svanholm shares his experiences as a sea captain and how they relate to his views on Bitcoin.
- Knut’s background as a sea captain is discussed.
- The parallels between life at sea and life in the Bitcoin space are explored.
- The importance of self-reliance and personal responsibility in both contexts is emphasized.
- The potential for seasteading, or creating floating communities outside traditional jurisdictions, is briefly mentioned.
47:50 Monetary History
Section Overview: Knut Svanholm provides an overview of monetary history from ancient times to the present day.
- Various forms of commodity money throughout history are discussed, including salt, cattle, shells, gold, and silver.
- The rise of paper money backed by precious metals is explained.
- Fiat currency systems like those used today are criticized for their lack of intrinsic value and susceptibility to inflationary pressures.
- Alternative monetary systems like cryptocurrency are presented as potential solutions to these problems.
01:00:50 Central Planning
Section Overview: Knut Svanholm discusses the failures of central planning and how they relate to Bitcoin.
- The concept of central planning, or government control over economic activity, is introduced.
- The inefficiencies and distortions caused by central planning are explained.
- The role of price signals in coordinating economic activity is emphasized.
- Bitcoin’s decentralized nature is presented as a potential solution to the problems caused by central planning.
Section Overview: Knut Svanholm shares his views on education and how it can be improved.
- Traditional education systems are criticized for being outdated and ineffective.
- The importance of self-directed learning and critical thinking skills is emphasized.
- Alternative education models like homeschooling and unschooling are explored.
- The potential for blockchain technology to revolutionize education through credentialing and verification is briefly mentioned.
01:22:20 Universal Basic Income
Section Overview: Knut Svanholm discusses the concept of universal basic income (UBI) and its implications for society.
- UBI is defined as a system in which all citizens receive a guaranteed income from the government regardless of their employment status.
- The potential benefits and drawbacks of UBI are explored, including its impact on work incentives, social cohesion, and government finances.
- Alternative solutions to poverty like entrepreneurship and community-based initiatives are presented.
01:33:40 Military History
Section Overview: Knut Svanholm shares his interest in military history and how it relates to Bitcoin.
- Knut’s interest in military history is discussed.
- The parallels between warfare tactics throughout history and modern-day business competition are explored.
- The importance of strategy, leadership, and innovation in both contexts is emphasized.
- The potential for Bitcoin to disrupt traditional power structures and enable new forms of competition is briefly mentioned.
01:44:50 Religion and Spirituality
Section Overview: Knut Svanholm discusses his views on religion and spirituality.
- Knut’s personal spiritual journey is discussed.
- The importance of individual freedom in matters of faith is emphasized.
- The potential for Bitcoin to facilitate charitable giving and support religious communities is briefly mentioned.
- The role of spirituality in promoting personal growth, empathy, and social cohesion is explored.
01:56:20 Is Bitcoin a Cult?
Section Overview: Knut Svanholm addresses the question of whether Bitcoin can be considered a cult.
- The definition of a cult is explored.
- The characteristics that distinguish a cult from other groups are discussed.
- The potential for Bitcoin to exhibit some cult-like tendencies, such as groupthink and tribalism, is acknowledged.
- However, the fundamental principles of Bitcoin as an agreement between individuals on fixed rules are presented as evidence against it being a true cult.
07:38 Ownership and Possession
Section Overview: In this section, the speaker discusses the difference between ownership and possession. He explains that possession is more valuable than ownership because whoever possesses something can choose not to give it back or break the contract.
- 08:04 The deeper layer of possession is that whoever possesses a good or asset can choose not to give it back or break the contract.
- 08:27 With Bitcoin, possession goes even deeper since you not only possess them but you are them. Any potential attacker cannot take away your Bitcoin without your consent.
- 08:54 Fiat currency is vulnerable to attacks such as taxes and inflation which are similar to a five dollar twenty dollar wrench attack. However, with Bitcoin, if someone threatens you with a wrench and demands all your Bitcoins, you can give them only a fraction of it without their knowledge.
Three Layers of Ownership
- 09:18 There are three layers of ownership: physical possession (e.g., gold), knowing where something is hidden (e.g., an open dime in a drawer), and possessing something digitally (e.g., Bitcoin).
- 10:06 Physical things like gold do not require the same level of knowledge as digital assets like Bitcoin. Gold stays the way it is while digital assets have finite lifetimes.
- 11:51 Understanding why digital assets like Bitcoin are valuable requires knowledge about its underlying technology.
Proof of Work
- 12:18 The proof-of-work system involves hashing documents or sets of numbers repeatedly until they produce a random number with 16 zeros at the start.
- 12:44 This process proves that someone found it insanely valuable to do this work. However, if one has no knowledge about this process, then it’s just arbitrary data.
Computers and Tools
- 13:55 Computers are tools that help people save time to reach their goals faster.
- 14:17 All tools have the same purpose, which is to save people time.
15:13 Computers and Bitcoin
Section Overview: In this section, the speaker explains that computers are tools used for calculation and that Bitcoin mining is just a person using a tool to guess a number. The speaker also discusses the importance of following the rules in Bitcoin.
Computers as Tools
- 15:13 Computers are tools used for calculation.
- 15:35 They help us convert binary numbers into mathematics we can understand and program.
- 16:24 A computer is just like any other tool, such as an orangutan using a grass straw to get termites out of a mound faster.
- 17:08 Bitcoin mining involves using an ASIC (a specific type of computer built for mining) to make a certain calculation over and over again until it hits the correct hash.
- 17:57 Running a node involves making a conscious decision to run software that proves people within the network are following the same rules as you.
- 20:14 It’s cheaper to follow the rules than try to cheat them, which includes making up your own rules.
Importance of Following Rules
- 19:05 Following the rules allows you to play with more people, similar to how knowing the rules of chess allows you to play with every other chess player in the world.
- 20:56 Other cryptocurrencies come up with their own rules and have big marketing teams telling everyone they’re better than Bitcoin’s rules, but ultimately fail when people realize they’ve been rug pulled.
- 21:17 Trying to replicate Bitcoin is futile in the long run due to its resistance to replicability itself.
22:07 Bitcoin as a Connection Between Physical and Digital
Section Overview: In this section, the speaker discusses how Bitcoin is backed by human action and requires people to function. They emphasize the importance of running a node to understand how Bitcoin works and ensure that it continues to function properly in the future.
Bitcoin’s Backing and Importance of Running a Node
- 22:07 Bitcoin is not backed by energy but rather by human action, which requires energy.
- 22:33 The network requires human beings and their decisions made by free will to function properly.
- 22:54 It is important to run a node oneself to understand how Bitcoin works and ensure that it continues to function properly in the future.
23:27 The Connection Between Physical and Digital
Section Overview: In this section, the speaker discusses how Bitcoin serves as a bridge between physical and digital realms. They also touch on the idea that all actions are both physical and non-physical at the same time.
Bitcoin as a Bridge Between Physical and Digital
- 23:27 Bitcoin serves as a bridge between physical and digital realms.
- 23:52 Any action made through Bitcoin is both physical and non-physical at the same time.
- 24:16 The real-world cost involved with using Bitcoin ensures that it is cheaper to follow rules than cheat them.
Human Beings as Bitcoins
- 24:44 Human beings are Bitcoins, meaning they are connected entities from a certain perspective.
- 25:14 This connection falls into new HD stuff, allowing for an unprecedented way for humans to connect with each other.
26:01 Money as Medium of Exchange
Section Overview: In this section, the speaker discusses how money is a medium of exchange and not a physical thing. They also touch on the idea that different goods have different levels of “moneyness” to them.
Money as Medium of Exchange
- 26:01 Money is used as a medium of exchange, which can be anything from exchanging information to providing services.
- 26:27 The confusion around money arises when people think it is a physical thing, but it can be traded with anything.
- 26:49 Different goods have different levels of “moneyness” to them.
27:42 Bitcoin’s Impact on Psyche
Section Overview: In this section, the speaker discusses how Bitcoin impacts our psyche by enabling us to interact with each other truthfully. They also touch on the idea that Bitcoin enables us to express our ethos and mythos.
Bitcoin’s Impact on Psyche
- 27:42 Bitcoin impacts our psyche by enabling truthful interactions between individuals.
- 28:03 Bitcoin is all logos at a technical level, allowing for expression of ethos and mythos.
29:13 Introduction to Praxeology
Section Overview: In this section, the speaker introduces praxeology as a science of human action and the foundation for the Austrian School of Economics. The speaker explains that praxeology acknowledges that people act out of their own free will and therefore nothing in economics is an absolute ever.
What is Praxeology?
- 29:13 Praxeology is a science Of Human Action and it’s the foundation for the Austrian School of Economics.
- 30:04 It acknowledges that people act out of their own free will and therefore nothing in economics is an absolute ever.
- 31:52 All other economic theories are wrong because they don’t take free will into account.
- 32:16 The first Axiom being man must act meaning that you have to do stuff of your own free will otherwise you die.
30:54 Money and Free Market
Section Overview: In this section, the speaker talks about money as one of those means we choose to reach our ends. He explains how money is very salable, which enables the free market process in which we engage with one another efficiently.
Money as a Means to Reach Our Ends
- 30:54 Money is one of those means we choose to reach our ends.
- 31:20 Money is very salable, meaning that you can exchange it for other things very easily which enables the free market process in which we engage with one another efficiently.
32:16 Property Rights
Section Overview: In this section, the speaker talks about property rights as an extension of owning our bodies. He explains how arguing against property rights is contradictory and how absolute property rights are necessary for non-violent interactions.
Property Rights as an Extension of Owning Our Bodies
- 32:16 Property rights are an extension of owning our bodies.
- 32:42 Absolute property rights are necessary for non-violent interactions.
- 34:31 Arguing against property rights is contradictory to engaging in argumentation itself.
35:01 Collectivist Ideas
Section Overview: In this section, the speaker talks about collectivist ideas and how they contradict the notion of absolute property rights. He explains that collectivist ideas lead to violent interactions and are not morally justifiable.
The Contradiction of Collectivist Ideas
- 35:01 Collectivist ideas contradict the notion of absolute property rights.
- 35:27 Collectivist ideas lead to violent interactions and are not morally justifiable.
36:39 The Group and Praxeology
Section Overview: In this section, the speaker discusses the concept of groups and praxeology.
Groups and Praxeology
- 36:39 Any group can be subdivided into smaller groups until you end up with an individual, so the only rights that matter are those of individuals.
- 37:02 Bitcoin’s rule set is a voluntary joining of a rule set, which is different from other group layers that are not morally justifiable because they run into a logical contradiction.
- 38:01 Praxeology is not an ideology but rather a way to explain human behavior. It is an a priori science that cannot conduct empirical studies.
- 38:51 Before performing an action, we feel a sense of felt uneasiness in our brain and imagine a future state where this uneasiness no longer exists. We then use means to reach our desired end state.
41:00 Understanding Human Behavior
Section Overview: In this section, the speaker delves deeper into understanding human behavior through practicality.
Understanding Human Behavior
- 41:00 We have a hierarchy of needs in our heads and choose to satisfy one or the other needs depending on where they are in this hierarchy.
- 42:17 All humans have an urge for something based on what they have seen or heard about it. This urge becomes more urgent when all other immediate needs have been satisfied.
- 43:05 Time preference is underrated in economics but plays a significant role in driving human behavior.
43:55 Bitcoin and Praxeology
Section Overview: In this section, the speaker talks about how he got interested in praxeology after discovering Bitcoin. He explains that praxeology is a science that provides a new way of looking at the world, which is not taught in schools.
- 43:55 The speaker became interested in praxeology after discovering Bitcoin.
- 44:19 He fell into the “praxiology rabbit hole” and started reading works by Mises, Rothbard, and Hoppe.
- 46:08 Praxeology is a science that provides a new way of looking at the world, which is not taught in schools.
- 46:32 It offers a robust way of thinking about subjective valuations and why humans do things.
Understanding Mathematics vs Social Sciences
- 45:27 The speaker loves mathematics because it makes sense to him. He finds it fascinating because it requires understanding rather than memorization.
- 46:08 On the other hand, social sciences were less appealing to him as they did not make sense to him.
- 46:56 Praxeology helped him realize that there is a science as robust as mathematics for subjective valuations.
Cynicism and Appreciation for Humanity
- 47:18 Practicing praxeologist fuels cynicism on a superficial level as one sees flaws in human behavior due to inflationary currencies.
- 50:07 However, deep diving into praxeology gives one an appreciation for humanity’s power when engaging voluntarily in free markets.
50:49 Understanding Praxeology
Section Overview: In this section, the speaker explains what praxeology is and how it differs from other fields of study.
What is Praxeology?
- 50:49 Praxeology is the study of human action.
- 51:06 It recognizes that people have goals and work towards those goals, but it doesn’t care about why people have specific goals.
- 51:28 The difference between a praxiologist’s view and someone else’s view is that praxeology tries to be as unbiased as possible.
Praxeology vs Austrian Economics
- 52:20 Austrian economics is a branch of praxeology that deals with markets, price signals, goods, and services.
- 53:11 Praxeology goes deeper than Austrian economics by providing a deeper understanding of why people do things in general.
53:38 Governance and Society
Section Overview: In this section, the speaker discusses governance in society and how praxeology can help us understand its impact on individuals.
Governance in Society
- 53:38 Governance itself is not good or bad according to praxeology. It observes that certain behaviors or modes of interaction can lead to certain outcomes.
- 54:10 Interacting voluntarily with consent leads to a higher net gain for individuals compared to being forced to do something by some force in society.
- 54:28 A society where everyone steals from one another all the time wouldn’t survive for very long because nothing helps people reach their ends.
55:44 Living Together
Section Overview: In this section, the speaker talks about living together and how praxeology can help us understand why people make certain choices.
Choosing Where to Live
- 55:44 Praxeology teaches us that individuals have a hierarchy of needs when it comes to choosing where to live.
- 56:24 The speaker chose to move because he felt that the price of his office job was too high in terms of spending time away from home.
- 56:44 Praxeology can help us understand why people make certain choices when it comes to living together.
57:51 Choosing a Career Path
Section Overview: In this section, the speaker talks about how he chose his career path and his experience working on boats.
Working on Boats
- 57:51 After finishing school, the speaker couldn’t get a student loan and decided to work in his father’s footsteps as a sea captain.
- 58:13 He worked on boats because he enjoyed sailing old ships and wanted to figure out what he didn’t want to do with his life.
- 58:34 The speaker never got his full captain’s license but had a Master Mariners degree. He was more of a skipper than a captain and commanded ferries with two to three hundred passengers on board.
- 58:58 Although he enjoyed working on boats, the Swedish rules for getting licenses were harsher than anywhere else in the world.
- 59:35 The Merchant Marine Academy laid out the career path for him. To get licenses, he needed to spend specific amounts of time on different tonnages.
- 59:55 The speaker got a job on a tall ship which he thought was his dream job because he loved sailing old ships and group dynamics of crews. However, it weighed less than 500 gross tons so he never got anywhere in terms of getting better licenses or bigger ships.
- 01:01:08 Although being on a ship gave him freedom, it also felt like prison because he was stuck in 20 square meters of space surrounded by water.
01:02:14 Thoughts on Seasteading
Section Overview: In this section, the speaker shares his thoughts about seasteading as someone who has spent time at sea.
- 01:02:14 The speaker asks the interviewer about his thoughts on seasteading as someone who has spent time at sea.
- 01:02:29 He doesn’t believe in seasteading because being on a ship gives you a sense of freedom but it’s also like prison because you’re stuck in a small space surrounded by water.
- 01:02:48 Seasteading would be a very lonely life, even if there are plans to connect all kinds of things together.
01:04:00 The Concept of Mars Living
Section Overview: In this section, Joe and the guest discuss the concept of living on Mars and whether it is a viable option for humans.
Living on Mars
- Joe expresses his skepticism about the idea of living on Mars, stating that he has a hard time believing that it’s basically just a chicken coop.
- The guest agrees with Joe’s skepticism but notes that the concept of studying extends to very large areas in the same sense that Mars living would.
- They both agree that living on Mars would be difficult and unpleasant, but some people may still want to go there due to vanity or a desire to leave something behind.
- They discuss whether people will eventually go crazy if they live in colonies on Mars, no matter how big they are or how comfortable their environment is.
01:06:20 Adventures and Minimalism
Section Overview: In this section, the guest talks about his experience sailing around the world and how it influenced his perspective on minimalism.
Sailing Around the World
- The guest describes his experience sailing around the world as a second officer. He spent six days in each port, during which he had two days of work and four days off to explore.
- He traded four days in a place he had seen before so he could work four out of six days in one port and then have all the time in the next port off to do whatever he wanted.
- He enjoyed seeing new places but found some aspects of sailing boring, such as getting wet while slowly going nowhere at great expense.
- The guest did not like ports because he did not find his people there. He preferred minimalist life since he never really craved material things anyway.
01:08:32 Meditative Experience of Sailing
Section Overview: In this section, the guest talks about his experience sailing and how it influenced his ideas.
Experience of Sailing
- The guest did not enjoy the act of sailing itself and found it boring. He only enjoyed the idea of being on a boat and going to new places.
- He did not like ports because he did not find his people there. He preferred minimalist life since he never really craved material things anyway.
- The guest notes that some aspects of sailing were meditative, but overall, he did not enjoy it.
01:10:06 Digital Nomadism and Settling Down
Section Overview: In this section, the speakers discuss the idea of digital nomadism and settling down. They talk about how having children can change one’s perspective on being a digital nomad and the importance of having a base somewhere.
Digital Nomadism Dissolves When You Have Children
- 01:10:26 The idea of digital nomadism dissolves when you have children.
- 01:10:50 Women especially want to stay in one place with their family.
- 01:12:48 Moving too many times can be difficult for children.
Importance of Having a Base
- 01:11:02 It is important to have a base somewhere that you can call home.
- 01:11:59 The speaker has bought a new house in Spain close to the sea which has potential for being a long-term home.
- 01:12:25 The speaker is still searching for a place to really settle down at some point.
01:13:12 Self-Sovereignty and Agriculture
Section Overview: In this section, the speakers discuss self-sovereignty and agriculture. They talk about how having land can provide food sovereignty and how Bitcoin, social media, and zoom calls are powerful tools for interacting with each other selectively on the entire planet.
- 01:13:36 One of the components is the self-sovereign aspect of having land.
- 01:14:24 Having land provides an opportunity to do their version of agriculture on a larger scale than they currently can.
Future Need for Food Sovereignty
- 01:14:43 There may be a need for food sovereignty in the future.
- 01:15:10 Bitcoin, social media, and zoom calls are powerful tools for interacting with each other selectively on the entire planet.
01:17:17 Why I’m Doing This Now
Section Overview: In this section, the speaker talks about his motivation for getting involved in Bitcoin and how it relates to his past experiences.
Motivation for Getting Involved
- 01:17:17 The speaker had a similar feeling when he saw the potential of Bitcoin as he did when he was in an electronics engineering class where many people became web designers and made a lot of money.
- 01:17:36 He wants to learn from his mistakes and contribute to the network of interesting people in the space.
- 01:17:59 The speaker believes that the most interesting people are in this space, just like they were in the internet space in the mid-90s.
Optimism About the Future
- 01:18:22 The speaker is optimistic about the future, but acknowledges that some people see a collapse of the system as likely.
- 01:18:41 He points out that collapses don’t have to be violent, citing examples such as the fall of the Soviet Union and Berlin Wall which were mostly peaceful.
- 01:19:35 The speaker emphasizes that optimism is important because losing hope fuels negative outcomes.
01:20:00 Praxeology and Human Action
Section Overview: In this section, the speaker discusses praxeology and its relationship with human action.
Rationality vs. Emotionality
- 01:20:26 The speaker explains that praxeological rationality means acting with intent, not necessarily pure logic.
- 01:20:57 All decisions are based on emotions because they aim to reach a state of less uneasiness. Deductive reasoning is used to choose means to reach ends.
- 01:21:20 Motivations arising from emotion and logic are intertwined, and the distinction between them is unnecessary in terms of human action.
Studying Human Action
- 01:22:11 The speaker notes that studying people is studying outcomes.
- 01:22:58 People want to become rich or famous because they believe it will solve their problems.
01:24:22 The Role of Love in Decision Making
Section Overview: In this section, the speaker discusses how love plays a role in decision making and how it can influence our choices.
Love as a Motivator for Decisions
- Most decisions are ultimately based on a desire for love from other people.
- Even seemingly unrelated decisions, such as buying a cheaper cable, can be influenced by the desire to have more money left over to solve other problems.
- All tools are there to save us time so we can free up time to do the things we love the most.
01:25:15 Praxeology and Labor vs. Leisure
Section Overview: In this section, the speaker introduces praxeology and explains the difference between labor and leisure.
Labor vs. Leisure
- Praxeology makes a distinction between labor and leisure.
- Leisure is wherever you consume a good or service, while labor is the effort you put in to be able to enjoy that good or service.
- Making money in order to buy something is considered labor, while consuming that thing is considered leisure.
01:26:08 Sailing and Inner Peace
Section Overview: In this section, the speaker talks about his experience with sailing and how it has influenced his thinking.
Sailing as a Source of Inner Peace
- Sailing gave him a way of finding some form of inner peace to be able to have deeper thoughts.
- It allowed him to sit under the stars and trigger ideas in other brains.
- He used sailing as an opportunity for finding inner peace rather than just working hard.
01:27:45 Enjoyment of Sailing
Section Overview: In this section, the speaker talks about his enjoyment of sailing and how it has influenced his thinking.
Enjoyment of Sailing
- The speaker enjoyed sailing because it gave him a sense of inner peace.
- He found the sound of the waves passing the ship and other soothing sounds to be very majestic.
- The constant attention required for sailing was not enjoyable, but he found that delegating tasks to others made it more enjoyable.
01:29:34 Sailing 300 Years Ago
Section Overview: In this section, the speaker talks about his experience with an old replica ship and reflects on how people sailed 300 years ago.
Sailing 300 Years Ago
- The speaker worked on an old replica ship from the 18th century called the Gothenburg.
- It was a big project in Gothenburg around 15 or 20 years ago.
- The captain delegated tasks to others, making it more enjoyable for him.
01:31:30 The Maya Villages and the Bleeding Obvious
Section Overview: In this section, Joe Rogan talks about his visit to the Maya villages in Belize and how they had rotating tables for thousands of years but never figured out how to make a cart. He then discusses what is completely bleeding obvious in hindsight that we don’t see.
The Maya Villages
- 01:31:56 The Maya civilization had rotating tables for thousands of years but never figured out how to use them vertically or make a cart.
- 01:32:16 They carried everything on sleds instead of using wheels.
- 01:32:39 Joe Rogan wonders what is completely bleeding obvious in hindsight that we don’t see now.
- 01:33:00 He gives an example of public toilets with light sensors instead of valves, which could have been implemented in the 60s.
- 01:33:27 He asks if there are any things like that currently unrectified.
01:33:49 Thoughts on Governments and Private Places
Section Overview: In this section, Joe Rogan discusses his thoughts on governments and private places that govern themselves.
Redundancy of Governments
- 01:34:11 From an ethical and philosophical perspective, Joe views forceful governments as completely redundant and unethical at their core.
- 01:34:37 However, he acknowledges that there will always be a societal class that uses force to gain power over others.
- 01:35:01 Moving towards a Bitcoin standard will force governments to shrink and become more competitive with one another.
- 01:35:25 Joe loves private places that govern themselves as long as people can opt-in or opt-out.
- 01:35:47 Private security firms are more trusted than police forces in many countries.
- 01:36:13 Defending one’s property from an attacker is not a moral crime, but positive rights like housing and healthcare can infringe on someone else’s right to be left alone.
Morality of Private Force
- 01:36:41 Employing a private force to enforce violence is not morally wrong if it is for defending one’s property.
- 01:37:00 Titus Gable’s phrase “the right to be left alone” is the only human right because every other positive right will eventually infringe on someone else’s right to be left alone.
- 01:37:27 Joe questions the definition of a right.
01:38:30 The Meaning of Rights
Section Overview: In this section, the speakers discuss the meaning of rights and whether the right to be left alone is intrinsic to human beings.
- 01:38:30 Acting upon a logical contradiction despite it being indefensible from a moral perspective is wrong.
- 01:39:00 The word “right” does not mean the same as “can.” Most people think of rights as something that somebody gives you or an ability that people bestow upon you.
- 01:39:19 If a right is not the right to be left alone, then the only right you have is the right to obey.
Intrinsic Right to Be Left Alone
- 01:39:59 The right to be left alone is intrinsic as a human being. Any opposing view would run into a logical contradiction somewhere.
- 01:40:22 A society where interactions between people are made with consent as much as possible and coercively as little as possible is preferred.
01:41:10 Preferred Governance Model
Section Overview: In this section, the speakers discuss their preferred governance model and how technology can enable more interactions between like-minded individuals.
- 01:41:10 A society where interactions between people are made with consent as much as possible and coercively as little as possible is preferred.
- 01:41:33 Social media, Zoom calls, and Bitcoin enable more interactions between like-minded individuals despite borders or third-party interference.
- 01:41:53 People in the future may amass together for similar reasons using better tools such as social media, Zoom calls, and Bitcoin.
01:42:36 Digital vs Physical Connections
Section Overview: In this section, the speakers discuss the importance of digital and physical connections.
Realness of Digital Connections
- 01:42:36 Interactions on the internet are just as real as in-person interactions.
- 01:43:06 The internet is a tool that saves time, and when talking to someone online, it’s as real as if talking to them in person.
Importance of Physical Connections
- 01:43:31 While digital connections are real, physical connections are also important.
- 01:43:57 Podcast interviews like these are somewhere in between online discussions and private conversations.
01:45:27 The Future of Relationships and Borders
Section Overview: In this section, the speaker discusses the importance of relationships and how they will manifest in the future. He also talks about how Bitcoin enables social connections and why he is an advisor for the Orange Pill app.
Relationships in the Online World
- 01:45:27 The speaker believes that relationships are important and will continue to be so in the future.
- 01:45:46 He thinks that online relationships will manifest in a substantial way, as seen with Bitcoin enabling social connections.
- 01:46:08 The Orange Pill app is designed to enable Bitcoin’s social layer and bring people together in real life.
Finding Like-Minded People
- 01:46:28 The internet is an excellent tool for finding like-minded people who you can then meet in real life.
- 01:46:47 The speaker shares his experience as a Swedish libertarian feeling lonely until he found others at conferences.
- 01:47:10 He believes that borders of the future may be internet borders of today.
Freedom and Movement Restrictions
- 01:47:31 The speaker believes that freedom-loving people will move to jurisdictions where they have more freedom if movement restrictions do not occur.
- 01:47:52 However, he acknowledges that he himself is not doing it now because he has a family rooted in a particular place.
- 01:48:19 Providing movement restriction does not occur, the fight for freedom is a constant struggle everywhere.
01:48:40 Democracy, Totalitarianism, and Fiat Money
Section Overview: In this section, the speaker discusses democracy, totalitarianism, fiat money on the internet, and their impact on governments becoming more bureaucratic.
Democracy Leads to Totalitarianism
- 01:48:40 The speaker has a bleak view of democracy, as he thinks it leads to tolerance for totalitarianism eventually.
- 01:49:49 People vote for politicians who tell them there’s a free lunch, leading to policies that do not work and incentivize unproductive behavior.
Fiat Money on the Internet
- 01:49:04 The birth of the internet and digital fiat currencies is speeding up the process of governments becoming more bureaucratic and totalitarian.
- 01:49:26 Printing new dollar bills had a physical cost before banking became digital. Now, it’s cheaper to print a new dollar by pressing enter on a keyboard than writing out the word “dollar.”
- 01:49:49 If money has no costliness to it, it has no value in the long run.
Free Lunch Paradox
- 01:50:14 All human problems stem from people’s wish for there to be a free lunch.
- 01:50:34 People view democracy as a fix-all and vote for policies that do not work.
- 01:50:59 Redistribution of wealth incentivizes unproductive behavior and disincentivizes productive behavior, leading to less productivity in society.
01:52:36 The Long-Term Effects of Collectivism
Section Overview: In this section, the speakers discuss how collectivists win elections and how individualists tend to have their own parties. They also talk about how people who don’t think are more likely to vote for a specific group because of an urge for group belonging.
Free Thinkers vs Group Belonging
- 01:52:51 Collectivists win elections because free thinkers are less likely to vote for a specific group due to an urge for group belonging.
- 01:53:12 People who don’t think are much more likely to vote for a specific group because of an urge for group belonging.
Totalitarian States and Opting Out
- 01:53:31 The state gains more control over people over time, leading to totalitarian states and bigger bureaucracies that are harder to change.
- 01:53:55 The way out is to opt out of the system completely on a personal level instead of trying to change it from within.
Desire for Free Lunches
- 01:54:17 The desire for free lunches is rooted in a profound desire to save energy as human beings.
- 01:54:37 Most people don’t think of the consequences when taking shortcuts.
01:54:57 Psychopaths in Power
Section Overview: In this section, the speakers discuss how psychopaths come into positions of power and use rituals such as ceremonial burial or elections as tools for control over people. They also talk about how bad systems can become very big and powerful without necessarily benefiting each individual in the group.
Ceremonial Burial and Expansion
- 01:56:03 Whenever civilizations come up with a notion of ceremonial burial, they expand their territory very fast.
- 01:56:25 Ceremonial burial implies that there’s an afterlife, and the psychopath on top can use this to tell young people to kill other tribes and take their stuff.
Psychopaths in Power
- 01:56:48 All rituals that we engage in are tools for psychopaths to reach their ends, which is always control over people.
- 01:57:11 The system is set up in such a way so it’s rigged for psychopaths to come into positions of power.
- 01:57:37 A very bad system can become very big and powerful without the people in it necessarily living fulfilling lives.
- 01:57:58 Rome, America, and Mongolia were great civilizations that rose the living standards of everyone but had problems with expansion and corruption.
01:58:25 Personal Peace
Section Overview: In this section, the speakers discuss personal peace and how it relates to being left alone. They also talk about how they would prefer peace over war.
- 01:58:25 Personal peace means being left alone.
- No bullet points available.
Peace vs War
- No bullet points available.
- The speakers would prefer peace over war.
01:59:09 Living Independently from the State
Section Overview: In this section, the speaker discusses how he lives his life in a manner that makes him more independent from the state. He talks about how he hates being meddled with and having a relationship with the state without consent.
Relationship with the State
- The speaker lives his life in a manner that makes him more independent from the state.
- He hates being meddled with and having a relationship with the state without consent.
01:59:55 Monetary History and Central Banks
Section Overview: In this section, the speaker talks about monetary history and central banks. He explains how banknotes were first introduced as receipts for gold vaults, which allowed people to conduct free trade over greater distances. However, this system was abused by some individuals who produced more receipts than they had gold in their vaults. This led to bank runs and eventually to the creation of central banks. The speaker believes that central banks are evil institutions that perpetuate war and provide societies with an illusion of peace.
Banknotes and Gold Vaults
- Banknotes were originally introduced as receipts for gold vaults.
- This system allowed people to conduct free trade over greater distances.
- Central banks were created after some individuals abused the banknote system by producing more receipts than they had gold in their vaults.
- The speaker believes that central banks are evil institutions that perpetuate war and provide societies with an illusion of peace.
02:01:47 The First World War is Not Over Yet
Section Overview: In this section, the speaker argues that the first world war is not over yet because it was initiated by the creation of central banks and moving away from the gold standard. He believes that this war is being waged by governments against their own populations to this date. The speaker also talks about how everyone is a victim of this war because they are forced to pay for something that they didn’t even vote for.
First World War
- The first world war was initiated by the creation of central banks and moving away from the gold standard.
- This war is being waged by governments against their own populations to this date.
Victims of War
- Everyone is a victim of this war because they are forced to pay for something that they didn’t even vote for.
02:03:28 Decentralization in Bitcoin
Section Overview: In this section, the speaker talks about decentralization in Bitcoin. He explains how decentralization allows us to have a form of money without trust in third parties, where everyone involved in the network can verify the rules and see that things are done properly. However, he believes that decentralization is an unfortunate means to a greater end in Bitcoin and not an end in itself. The speaker argues that a free market needs hierarchies and differences in how much money and power people have to reward productive behavior.
Decentralization in Bitcoin
- Decentralization allows us to have a form of money without trust in third parties.
- Everyone involved in the network can verify the rules and see that things are done properly.
Free Market Needs Hierarchies
- A free market needs hierarchies and differences in how much money and power people have to reward productive behavior.
02:06:10 Energy Usage and Civilization
Section Overview: In this section, the speakers discuss the prevailing meme that energy is finite and saving energy is a good idea. They also talk about how using more energy does not necessarily lead to a better civilization.
- The prevailing meme is that energy is finite and saving it is a good idea.
- Bitcoiners think using energy incentivizes finding better ways to harness it.
- Using more energy does not necessarily lead to a better civilization.
- Fiat currency incentivizes using energy for arbitrary things that are not productive.
- It leads to spending for spending’s sake, which does not correlate with a more civilized society.
- Central planning stems from people thinking that a small committee of people can make better decisions than the free market can.
02:11:31 Central Planning vs Free Market
Section Overview: In this section, the speakers discuss central planning and its merits at certain scales. They also talk about how central planning cannot make better decisions than the free market because it cannot connect all human brains according to each one’s means and desires.
Merits of Central Planning
- There are merits to central planning at certain scales.
- People have an innate response inside them to want to plan on a small scale.
Free Market vs Central Planning
- The free market connects all human brains according to each one’s means and desires.
- A central planner can never do that; they can only up the process so that it becomes less productive in the end.
- All good things we have are because of the part of civilization that is the free market.
02:13:07 The Problem with Central Planning
Section Overview: In this section, the speaker discusses the problem with central planning and how it is a tool used by those in power to control people.
Misunderstanding of People
- 02:13:17 Central planning is a problem because it assumes that those in power know what’s best for everyone else.
- 02:13:49 This misunderstanding of people leads to the belief that “I think or feel this, therefore everyone else must be.”
- 02:14:48 Fear is used as a tool to make people think they must behave in certain ways.
- 02:13:52 Fear is often created by invisible enemies such as climate change, viruses, terrorism, and drugs.
- 02:15:16 Politicized movements happen when people believe there is a threat.
- 02:15:43 These movements are about control and instilling fear in people.
- 02:16:09 Environmentalism tries to fix problems without addressing the core issue of broken money systems.
- 02:16:31 Inflationary currencies reward consumerism and misallocate resources.
- 02:18:10 Fixing the core problem would eliminate many issues caused by consumerism.
02:18:48 Collective vs Individualist Thinking
Section Overview: In this section, the speaker discusses collective vs individualist thinking and how it affects decision-making.
- 02:19:14 Some well-educated individuals are collectivists at heart and have a higher propensity to want to tell others what to do.
- 02:19:36 This creates hostility between individuals who disagree on how things should be done.
- 02:18:34 Individualist thinking allows for voluntary interaction and peaceful coexistence.
- 02:18:47 The individual should be the one to set rules for their own behavior, as long as it does not involve violent interactions with others.
02:20:28 The Role of Universities and Media in Society
Section Overview: In this section, the speaker discusses how universities and media influence people’s decision-making processes. He argues that these institutions have become corrupted due to their reliance on funding from external sources, which has led to a lack of truth-seeking and an emphasis on attention-seeking.
The Influence of Universities and Media
- 02:20:28 Universities and media are a force in society that tells people what to do and how to live.
- 02:21:41 Once an institution is in place, it becomes difficult to break up or remove.
- 02:22:03 Traditional academia rewards attention-seeking rather than truth-seeking.
- 02:24:58 There has been a shift towards social sciences like critical race theory and gender studies.
02:20:52 Fiat Currency and Corruption in Education
Section Overview: In this section, the speaker discusses how fiat currency enables government growth without public knowledge. This leads to corruption in education as institutions become more reliant on external funding sources.
Fiat Currency’s Role in Corruption
- 02:20:52 Fiat currency enables government growth without public knowledge.
- 02:21:17 Taxes are not the only way governments are funded; inflation plays a significant role.
- 02:22:27 Institutions become more corrupt as they rely more heavily on external funding sources.
02:21:17 Hard Money Standard vs. Fiat Currency
Section Overview: In this section, the speaker compares hard money standards like Bitcoin with fiat currency. He argues that hard money standards would lead to more truth-seeking because people would be freer to save money and live within their means.
Hard Money Standards vs. Fiat Currency
- 02:21:17 Hard money standards like Bitcoin would lead to more truth-seeking because people would be freer to save money and live within their means.
- 02:23:19 If everyone had more time due to a hard money standard, there would be more time for scientific endeavors.
- 02:24:34 Price signals are better under a hard money standard.
02:23:47 Universal Basic Income and Voting Cattle
Section Overview: In this section, the speaker discusses universal basic income (UBI) and how it can create voting cattle. He argues that UBI is not a sustainable solution because it leads to complacency and lack of productivity.
Universal Basic Income
- 02:23:47 UBI creates voting cattle by making people reliant on government handouts.
- 02:26:11 UBI is not a sustainable solution because it leads to complacency and lack of productivity.
02:27:22 The Failure of UBI and Central Planning
Section Overview: In this section, the speaker discusses why Universal Basic Income (UBI) and Central Bank Digital Currencies (CBDCs) are forms of communism that create a class of slaves and an elite ruling class. He explains how these systems fail because they do not incentivize productivity.
UBI and CBDCs as Forms of Communism
- 02:27:22 UBI and CBDCs are forms of communism that create a class of slaves and an elite ruling class.
- These systems do not incentivize productivity but instead incentivize people to be unproductive or productive in the wrong ways.
- The result is a totalitarian society where everyone is afraid, leading to reduced productivity.
Why Communism Fails
- 02:28:03 Communism fails because it does not work.
- Stalin’s last days illustrate this point: he died alone in his room, dead for four days before anyone found him because no one dared to tell him he was going to die.
- In a totalitarian society, everyone is afraid, hindering productivity.
Productivity and Capital Accumulation
- 02:29:15 Civilization and productivity come from humans’ ability to accumulate capital.
- Robinson Crusoe catching fish with his hands realizes that if he can construct a fishing net, he will catch more fish per time unit than trying with his bare hands.
- To construct the net, Robinson must save up capital by catching enough fish to have time to set off to build the net.
Division of Labor
- 02:30:00 The free market works by lowering our time preference, saving up capital, trading with one another, and getting the division of labor.
- Ricardo’s law states that if one country is better at producing two goods than another country specializing in one good, the division of labor still works.
- The net outcome is higher if each country specializes in what they are best at producing.
Public Sector and Real Cost
- 02:32:50 The public sector does not have to produce anything of value to other people.
- People in the public sector pay taxes to hide the real cost because they are just a cost, not productive.
- The government can hinder productivity by taking resources from productive individuals.
02:34:25 Universal Basic Income (UBI)
Section Overview: In this section, the speakers discuss the concept of Universal Basic Income (UBI) and its potential impact on productivity and society.
UBI and Productivity
- 02:34:47 UBI incentivizes unproductivity as people may not feel the need to work if they have a guaranteed income.
- 02:35:11 People will likely choose leisure over work if given the option without personal cost, leading to misallocation of resources.
Robinson Crusoe Analogy
- 02:35:32 The third person in Robinson Crusoe provides security, which is a service worth paying for.
- 02:36:07 The evolution of states arose from private services that people paid for, such as protection from other tribes or lions and tigers on an island.
Individual vs. Collective Struggle
- 02:37:14 The struggle between individual and collective is never-ending.
- 02:37:36 Bitcoin enables breathing out towards the individual by providing intellectual armor that cannot be taken away.
Evolution of Weapons
- 02:37:54 Military history shows that weapons evolved from fist fights to guns.
- 02:38:34 Bitcoin is like armor 2.0 because it’s intellectual armor that cannot be taken away.
Value of Monetary Network
- 02:39:49 The value of a monetary network grows exponentially with more users.
- 02:40:15 Bitcoin has a strong network due to its increasing number of users.
02:40:56 Bitcoin as a Tool for Peace
Section Overview: In this section, the speaker discusses how Bitcoin can be viewed as an armor rather than a weapon. He also talks about how hashing power and mining are just one part of the Bitcoin network, which requires human action from every participant.
Bitcoin as Armor
- The speaker views Bitcoin as an armor rather than a weapon.
- He believes that hashing power and mining are just one part of the Bitcoin network.
- The network requires human action from every participant, making it more than just a projection of power.
Evolution Beyond Physical Conflict
- The speaker suggests that we have not yet evolved out of physical conflict.
- He argues that we are in constant physical conflict with our governments because we are forced to pay for things we didn’t order.
- However, he does believe that globalism has made the world more peaceful than ever before.
Bitcoin and Free Market Competition
- The speaker explains the difference between biological competition (winner takes all) and catalytic competition (free market competition).
- He believes that free market competition is good for every participant because it provides others with goods and services they crave.
- The state arises because people let it happen, but there is a cost attached to it.
Sound Money and Deflationary Nature of Bitcoin
- The speaker believes that absolutely sound money like Bitcoin will go up in value compared to everything else on Earth forever.
- This is due to its finite nature and deflationary properties since more Bitcoins will be lost than new ones mined over time.
02:47:35 Bitcoin Collaboration
Section Overview: In this section, the speaker discusses how Bitcoin companies are incentivized to collaborate and help each other succeed.
Bitcoin Companies Collaboration
- Other bitcoiners’ success helps the entire network succeed.
- Legitimate Bitcoin companies want other legitimate Bitcoin companies to succeed.
- Companies are incentivized to help one another succeed beyond just free market competition.
- The collaboration is better than just a free market.
02:48:39 Importance of Bitcoin in World Peace
Section Overview: In this section, the speaker talks about why Bitcoin becomes an important strategy for world peace.
Progression of Arms and Competition
- Jason Lowry spoke about the evolution of arms and competition in nature.
- Antlers become a symbol of power rather than a way to hurt your opponent.
- Similarly, Bitcoin becomes a symbol of power that enables trading but cannot be used as force against others.
- Time-locking Bitcoins can protect them from being forcefully taken by someone else or even yourself.
- Hoarding money provides security and enables more selective actions.
00:00 Bitcoin and Government Ownership
Section Overview: In this section, the speaker discusses the hypothetical scenario of a government requiring individuals to hand over their Bitcoin. The speaker argues that it would be difficult for a government to own Bitcoin due to technical knowledge requirements and dishonest behavior.
Time Locking Bitcoin
- 02:54:17 When you time lock your Bitcoin, they are providing you with a service by allowing you to use them when they’re finally unlocked.
- 02:54:40 If the government insists on everyone handing over their Bitcoin, time locking your Bitcoin could be an interesting conundrum.
- 02:55:07 If the government knows that you have time locked your Bitcoin, they could accuse you of withholding it from them.
Government Ownership of Bitcoin
- 02:55:22 It is unlikely that a government can own Bitcoin because it is made up of individuals who may act dishonestly.
- 02:56:55 A multisig setup would require technical knowledge and security measures that most governments may not possess.
- 02:58:45 Using Force becomes harder with Bitcoin ownership as violent coercion is easy in our current system.
Possession and Tracking of Bitcoins
- 02:59:33 Dishonest behavior and nepotism exist in current systems like the Panama Papers and Cayman Islands.
- 03:00:08 Chain analysis firms’ closed-source software makes tracking Bitcoins difficult.
- 03:01:40 Buying Bitcoins is not as easy as people think due to core endurance, lightning network, etc.
Section Overview: In this video, two experts discuss the future of money in relation to Bitcoin. They explore how Bitcoin can be used as a means of conducting business without third-party involvement and how it could change the way we think about transactions.
The Difficulty of Proving Ownership
- It is difficult to prove ownership of Bitcoin without using a private key. 03:00:49
- This makes it challenging to transfer ownership to another person. 03:00:49
Comparing Apples to Apples
- The speakers caution against subscribing too much to the idea that “Bitcoin fixes everything.” 03:01:15
- They argue that while Bitcoin may solve some problems, it will not necessarily make things easier in all cases. 03:01:39
Base Layer Chain Transactions
- The speakers discuss how base layer chain transactions on Bitcoin will become more costly and less accessible over time. 03:02:02
- They suggest that off-chain solutions will be necessary for scaling the entire system. 03:03:35
Microtransactions and Wealth Theory
- The speakers debate whether microtransactions are important for the future of money or if they are a very fiat thing. 03:05:10
- They argue that wealthier individuals have less need for small transactions, which could reduce the velocity of money but also lead to higher-quality goods and services when transactions do occur. 03:05:58
Overall, this video provides insights into some of the challenges and opportunities presented by Bitcoin as a new form of currency. While there are still many questions about its long-term viability, it is clear that Bitcoin has already had a significant impact on our understanding of money and finance.
03:07:58 The Future of Money and Abundant Goods
Section Overview: In this section, the speaker discusses how a well-oiled economy leads to cheaper costs of production and transportation, resulting in deflationary prices. He argues that deflation does not lead to decreased productivity but rather a shift from quantity to quality. The speaker also mentions the book “Zero Marginal Cost” and how it relates to the future of money and abundant goods.
Deflation and Productivity
- 03:07:58 A well-oiled economy leads to cheaper costs of production and transportation, resulting in deflationary prices.
- 03:08:19 Deflation does not lead to decreased productivity but rather a shift from quantity to quality.
- 03:08:45 The costs of production and transportation go down over time, leading towards more free stuff.
Zero Marginal Cost
- 03:08:45 The book “Zero Marginal Cost” is mentioned as an example of where everything is headed in a well-oiled market economy.
- 03:10:12 The speaker believes that perfect money is needed for us to reach a world where goods and services are abundant or very cheap.
- 03:11:54 While goods and services will be cheaper on a Bitcoin standard, there may still be people involved in providing services such as baristas who cannot be automated.
Taxes, Inflation, and Exponential Growth
- 03:13:27 Taxes and inflation have destructive power on businesses by depriving them of exponential growth opportunities.
- 03:13:51 An example is given about an apple farmer who can afford more apple trees each year due to his business growth.
03:14:38 The Impact of Bitcoin on the Economy
Section Overview: In this section, the speakers discuss how Bitcoin can impact the economy in terms of growth and customer satisfaction. They also talk about how Bitcoin turns the material world into information, making it a powerful force that affects everything else.
Bitcoin’s Impact on Prices
- 03:15:04 Bitcoin is a powerful force that can lead to lower prices everywhere.
- 03:15:47 With some products, the price eventually goes to zero, but not for services like a barista’s time.
- 03:16:50 The production costs of everything drop over time due to how much easier every interaction between people becomes because of the internet.
Subscription Services with Bitcoin
- 03:18:15 Coffee shop owners may accept a small Bitcoin payment once for a lifetime subscription of coffee because the price of coffee will go down in Bitcoin terms so fast that it’s better for them to make one initial payment for Lifetime worth of coffee than to just wait for you to come into the coffee shop and pay for it every time.
- 03:19:37 When wanting to be truly Sovereign in the future, there will always be a baseline base layer to transact on, and every layer above it is a compromise of decentralization.
Lightning Wallet Security
- 03:20:23 There are more attack vectors with custodial lightning wallets than if you just did a base chain transaction. Even non-custodial lightning wallets have trade-offs and are not as secure as base chain transactions.
00:00 Understanding Bitcoin and Trust
Section Overview: In this section, the speaker discusses the concept of trust in Bitcoin and how it enables transactions between strangers. They also talk about the cultural and social implications of Bitcoin.
The Importance of Trust in Bitcoin
- 03:21 The speaker talks about how trust is required to have a family, and how money is seldomly used to trade with one’s spouse.
- 04:21 They mention that marriages break up, friends borrow money and never pay it back, but there is still trust involved.
- 05:40 The speaker explains that even on the base layer of Bitcoin, there is trust involved. Hardware manufacturers and software developers need to be trusted.
- 06:59 However, unlike traditional systems where individuals are trusted, with Bitcoin you’re trusting a collective brain.
Fees in Bitcoin
- 08:30 The speaker talks about how fees will take over from subsidy as time goes by because of holdings.
- 09:30 They explain that fees are currently low at around 15 to 100 sets per byte but may increase in the future.
- 10:30 The speaker mentions that only an overwhelming consent can bring any change to bitcoin which means that only bitcoin can get better over time.
Cultural and Social Implications of Bitcoin
- 12:03 The speaker expresses their fascination with the cultural and social implications of bitcoin for humanity as a whole.
- 13:30 They mention that they would love to know how bitcoin evolves over time because it’s astonishingly beautiful.
Section Overview: In this section, the speakers discuss the relationship between Bitcoin value and transaction fees. They also talk about how Lightning Network will affect fee markets.
Bitcoin Value and Transaction Fees
- 03:27:59 If you’re already in Bitcoin, you’re safe from high transaction fees because your Bitcoins will have increased in value as well.
- 03:28:22 There is a linear relationship between the value of Bitcoin and the cost of transaction fees.
- 03:28:45 It makes sense to buy a cup of coffee on the base layer if there are no other ways of paying, but microtransactions may not be worth it in the future.
Lightning Network and Fee Markets
- 03:29:05 The same thing may happen to fee markets on Lightning Network as they get pushed up over time.
- 03:29:26 Lightning allows for sub-satoshis, so acquiring some Bitcoins at this point is safe for transactions.
- 03:30:05 Microtransactions may go away, but subscription services could still be paid with Bitcoin.
Hard Money Standards
- 03:30:29 A world on a Bitcoin standard would be very different from what we know now.
- 03:31:11 Gold differs from other commodities because its stock is much bigger than its flow. With Bitcoin, hash rate follows price, but issuance schedule remains predictable.
- 03:31:59 Miners produce blocks, not Bitcoins. Users pay miners in Bitcoins to find blocks for transactions.
Predictability of Bitcoin
- 03:33:08 The predictability of how many Bitcoins there will be at a certain point in time makes economic calculation possible based off that information.
Future Layers Beyond Base Layer
–03:34:03 The speakers speculate on whether people will talk about third, fourth, and fifth layers in the same way as they talk about the base layer.
03:34:31 Bitcoin and Spirituality
Section Overview: In this section, the speakers discuss the relationship between Bitcoin and spirituality. They explore how Bitcoin enables better communication and understanding within the ethos and mythos.
Bitcoin as a Spiritual Realm
- 03:35:17 Bitcoin is an agreement on a fixed set of rules that allows for communication and information exchange.
- 03:36:32 The absolute logos of Bitcoin enables us to tap into the spiritual realm in a way that never existed before.
- 03:37:19 Bitcoin changes one’s view on relationships with others and oneself, which is at the core of spirituality.
Atheism vs. Spirituality
- 03:39:07 Atheism is not a worldview or belief but rather a rejection of specific beliefs.
- 03:40:00 The speaker believes that there is truth to spirituality despite being an atheist.
- 03:40:24 The discovery of Bitcoin around 2009 has led some to believe it could be related to predictions made by various religions about big cataclysms or changes around the year 2000.
- The speakers find it interesting how exploring the spiritual aspects of Bitcoin does not make them religious.
03:41:39 Belief in God and Bitcoin
Section Overview: In this section, the speakers discuss the concept of belief in God and how it relates to Bitcoin. They also touch on the idea of Bitcoin being a cult.
Belief in God vs. Belief in Bitcoin
- The game theory suggests that one should believe in God because there is a chance of going to heaven.
- However, this theory disregards the other 5,000 gods that humanity has come up with in the past.
- It also discounts the fact that one may not want to spend their life surrounded by people who go to heaven.
- On the other hand, believing in Bitcoin can increase its chances of becoming godlike and an actual force in the world.
- Unlike other forms of currency, Bitcoin does not require belief in an authority figure or deity.
Is Bitcoin a Cult?
- While some may call Bitcoin a cult, it lacks a figure or entity to which absolute power is assigned.
- Some people worship Satoshi, but he is not crucial to Bitcoin’s discovery and development.
- Every aspect of Bitcoin can be verified and incentivizes ideals such as corporation and immaculate conception.
Money as a Communications Tool
- Money is not just a noun but also an adjective that enables voluntary interactions between people.
- As people understand money deeper, it becomes more akin to spiritual ideas because it unlocks ways for us to interact with each other that we never thought possible before.
- A bitcoin private key is like a literal key that unlocks your heart so you can wear it on your sleeve publicly.
- The speaker’s main purpose for sharing their philosophical rants about Bitcoin is to provoke thoughts in others’ brains and encourage them to think differently about things.
03:48:22 Exploring Novel Concepts
Section Overview: In this section, the speakers discuss the importance of exploring new ideas and perspectives to find something novel. They also talk about how difficult it can be to come up with new concepts in a space where narratives are often regurgitated.
The Edge of What’s Thinkable
- 03:48:22 The speakers discuss the importance of exploring new ideas and perspectives to find something novel.
- 03:48:43 To explore something, you need to look at it from a different angle; otherwise, you will just see the same thing over and over again.
- 03:49:07 It can be hard to come up with new concepts in a space where narratives are often regurgitated.
Being the “Bitcoin Thinker Guy”
- 03:48:51 The speaker never intended to be known as the “Bitcoin thinker guy,” but now that people expect that of him, he devotes more time to trying to come up with novel concepts.
- 03:49:31 All the narratives in Bitcoin are just regurgitated over and over again, making it harder and harder to come up with something truly unique.
Onboarding New People
- 03:50:00 Each iteration of Bitcoin narratives onboard a new flock of people into the community.