326 sats \ 1 reply \ @davidw 2 Apr \ on: The network state and the hyper-spherical economy mostly_harmless
Sounds ridiculous now but in my mind, I had never sufficiently distinguished between physical & digital markets for bitcoin merchant adoption before. I mean I had but only with specific products. I had just bundled both together as largely inevitable. But I think this is what we’re already seeing 👇
But software, or membership, or attendance, or music, or art, or other aspects of digital culture, or other stuff with no or minimal marginal cost -- abstract money can chase abstract goods, and nobody can stop it. And given the increasing importance of abstract goods in the concrete economy, this seems very interesting. This seems like the road that will get us there.
Imagine there’s already evidence to back that thesis, with VPNs, domains, hosting and any global online or AI service today able to and already starting to sell for bitcoin. And that’s because there is little friction online. Local transactions are full of friction however, with wallets, education, being online, KYC, taxes, robberies etc.
Like it or lump it too, long-term there’s only going to be more digital services to buy and sell. So if it takes a bigger percentage of that ever-expanding market, that could well be enough for hyperbitcoinisation. I also think we haven’t optimised our lives around the internet yet. We’re still stuck on 1st base - cat gifs.
write
preview
this territory is moderated
21 sats \ 0 replies \ @elvismercury OP 2 Apr
Imagine there’s already evidence to back that thesis, with VPNs, domains, hosting and any global online or AI service today able to and already starting to sell for bitcoin.
I think you're right, and I want to get my mind around the AI connection in particular, all the way. The logic I'm playing with goes something like:
  • AI is the ultimate proof-of-work system: PoW involved in the manufacture, but PoW in deployment, in the logistics and the energy cost.
  • If computational resources to run giant NVIDIA farms become the key to competitive advantage (or even equilibrium) in the future, then all the fiat tricks will be squeezed to the limit.
  • People will be placated, for a while, if you give them trinkets that you claim are free; but hard money chases out soft when consequences are high enough and timescales are short enough.
That last bullet seems different, to me. AI seems different. And especially, the world in response to AI, which among its virtues is also an infinite-bullshit-generator. Not being able to bullshit btc proof of work is the ultimate high stakes, anti-bullshit countervailing force.
Again, this feels like it really is something, but don't have the argument crystalline yet. Thoughts welcomed.
reply