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I was reading @plebpoet's insightful recent post #1547194 and there was a line in there about how if bitcoin fails we have ai.

It got me to thinking: what does it mean when we talk about the failure of bitcoin?

A failure to reconcile ones beliefs projected onto it

The reasons for crash-outs and "Bitcoin has failed" declarations are as varied as the individuals making them

So Bitcoin doesn't fail, people fail at understanding it. A failure of ego is projected onto it.

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What beliefs do you project onto Bitcoin?

I know I have a few. Like the ability to unilaterally control my money being something I'll always be able to do for example.

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Mostly mechanics, rigidity makes it a measurement instrument... That unit of measure becoming a black hole for liquidity and price discovery therefore translates to world reserve currency

Personal sovereignty is a means to that end not the end itself, and I think mostly illusory at the personal level under super power meets techno feudalism pretenses

Ideologically that it's anti-globalist given those mechanics, those same sovereignty illusions at the personal level become real at the nation-state and techno fuedal Lord level

A lingua franca at nation-state level aligns individuals across nation-states closer together, thereby keeping the nation-states better aligned to their populations which overall increases everyone's standard of living

So to me, a failure would be in it not being rigid. If it's not rigid then my ideological interest falls apart, crash out, failure declaration.

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A few ways I can think of:

  1. No longer functions as a store of value, whether through depreciating purchasing power or security
  2. No longer functions as a medium of exchange, whether through prohibitively high fees or failed transactions
  3. No longer censorship resistant
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No longer functions as a store of value, whether through depreciating purchasing power

There isn't even a measurement for this. Nobody makes an index of BTC to goods and services.

You could take the BTC-fiat exachange rate and the CPI inflation to approximate it. But BTC-goods&services directly isn't a metric anyone measures.

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Not in a systematic way. Considering that there’s no large isolated bitcoin economy, it shouldn’t matter very much.

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I think we need to add point 4. to your list. About the amount of goods and sevice that one can actually buy

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I’ll allow it

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  1. bitcoin does have these price crashes...I think most people would say an 60-80% drawdown counts as failing to function as a store of value
  2. while you can spend bitcoin in a number of places (especially thanks to square), it's not really easy to use it as a medium of exchange. it's barely across the failure state on this count.
  3. on this one, i think it still is pretty strong.
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  1. Still fits with the upward trend when adjusting for “seasonality”
  2. Can be used pretty easily with those who want to use it. Agreed that the existence of such people is also important.
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11 sats \ 0 replies \ @Car 13 Aug

I read that post, but was hard for me to grasp how AI is bad for Bitcoin. If anything it helps Bitcoin considerably as a MoE. But I am also more on the Startup side of the ecosystem. If anything looking forward to IRL Robots paying other Robots in Bitcoin.

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that means if Bitcoin were a classroom of men with laptops and maybe some 🎲, they wud collectively get an F grade; sometimes Bitcoin gets an A+ grade, but not very consistently, it seems - that depends on the users & the educators;

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Wow, thanks for sharing this update! As a teenager from Switzerland who is just starting to learn about Bitcoin, these kinds of posts are super helpful to understand the ecosystem. Keep it up!

11 sats \ 0 replies \ @fifoofa 14 Aug -30 sats

bitcoin fails when the cap breaks or the chain stops finalizing. a 70 percent drawdown is a bad entry, not a failure. the store of value test in this thread is just the price chart with extra steps