Previously
In the previous post, here, we took a high-level look at bitcoin and its (verifiably) fundamental properties.
Now, let’s dig into some of the more specific and granular aspects of bitcoin (without getting into any of the technicals and programming code). It is my hope that as you read through the demonstrable properties of bitcoin that you will begin to understand why so many people are so excited for this amazing asset and what it can do for the cause of individual liberty.
Fair Warning: This article is fairly lengthy and in-depth. The vast majority of the content is in the “End Notes, References, & Citations“. It’s not my intention to overload nor bore you. Instead, I want you to have all of the resources you need to DYOR, Do Your Own Research. Feel free to skip the End Notes if any of it becomes laborious; you can always come back to the article later on. Overall, I want you to have the confidence that you know what bitcoin actually does. It’s that knowledge and confidence that will help you Bitcoin In Peace.
“Demonstrate, Don’t Explicate“
I often encounter people who are quick to jump on bitcoin and denigrate it out-of-hand. Every single time I have asked them to describe and demonstrate the actual attributes, characteristics, properties, and qualities of bitcoin, they delay, hem and haw, obfuscate, and then finally admit that they haven’t studied bitcoin. At all.
I kindly and gently let them know that I am always available for consultation if they ever want to get an informed view on it by joining my bitcoin MeetUp, “Bitcoin, Huntsville, Crypto, & Coffee” as well as reading my blog, BitcoinInPeace.com.
Below, we’ll go through the demonstrable properties of bitcoin. So, if you encounter anyone who disputes this list then ask them to demonstrate their claims to you (i.e. “Bitcoin can be shutdown by the government.“). As the old saying goes, “Demonstrate, don’t explicate.” Don’t argue with them; simply ask them to show you what they are claiming. If they can’t… move on; you have more valuable things to do (like reading BitcoinInPeace.com) Of course, don’t leave without first letting them know about this great blog you found, BitcoinInPeace.com where they can get their bitcoin questions answered.
I have made my personal best efforts to verify the list of bitcoin properties below. I either experienced them directly, observed them firsthand, or watched others use them. So, let’s get into it.
Technical Note: These are not all of the properties of bitcoin; there are other more technical aspects of bitcoin which are equally important. But, for the sake of this opening series, the ones below are the attributes which I felt would be most impactful and relatable.
In short, the ten most important demonstrable attributes of bitcoin are:
- Verifiable Intent
- Auditable & Open Source Programming Code
- Downloadable & Transparent Transaction History
- Completely Decentralized
- 24 / 7 & Global
- Permissionless & Voluntary
- Apolitical
- Unconfiscatable, Uncensorable, & Irreversible
- Extremely Secure Bitcoin “Bank Accounts”
- Programmatic Inflation Rate & Ultimate Supply Cap
Let’s get into the details of this list.
Author’s Note: While I consider #1 and #2 to be the most important bitcoin attributes, the rest are presented in no particular order of importance.
1. Verifiable Intent
Let’s start with the first and most important aspect of bitcoin – the “Bitcoin Whitepaper“. [1]
This is where the creator of bitcoin, the pseudonymous “Satoshi Nakamoto“, [2] [3] stated what “he” intended with bitcoin and some of the basic architecture to make it work so effectively. In the whitepaper, he shows how he solved several challenges with traditional hard money, modern currency, and recent attempts at creating electronic cash. [4] It is considered a revolutionary invention which was built upon previously known methods and techniques from computer science, mathematics, and cryptography (hence the term “crypto“) to create the first true form of money.
Anyone (including you) can download this bitcoin whitepaper, here, and verify what Satoshi was intending to accomplish with this new form of money. And, I recommend that all of you do just that!
2. Auditable & Open Source Programming Code
The second most important part of bitcoin is the bitcoin code, the software that all bitcoin users use to receive, send, and hold bitcoin. The bitcoin code is entirely “open source“. We covered the topic of open source software in the previous article, which you can read here and here, under the section “Trust… But Verify“. In short, “open source” (or “open source software“, “OSS“) means that all of the underlying code which comprises bitcoin is entirely available for anyone to download and audit on their own (and not some proprietary or secret software code like most modern software).
Right now, you can go to GitHub.com and download the bitcoin code, check it, compile it, then run it entirely on your own without having to trust anyone else. Granted, not everyone is a programmer, but nothing prevents us from doing our personal best to see it for ourselves. We cover this concept of auditing the code in the previous article, here, under the section “Trust… But Verify“.
To take this a step further, there are “guided tours” of the bitcoin code that anyone can watch and learn. We cover the topic of bitcoin guided tours in the previous article, here and here, under the section “Going On Tour“. You can see the bitcoin code file-by-file, section-by-section, line-by-line, character-by-character. These guided tours of the bitcoin code are actually fascinating, even for those of us who are not programmers, developers, or software engineers. I encourage everyone to try it!
Most importantly, with bitcoin’s open source code:
Nothing is hidden. All is transparent.
3. Downloadable, Immutable, & Transparent Transaction History
Bitcoin’s entire financial transactions history is completely open and transparent (on the bitcoin “blockchain” [5]). When you hear “blockchain“, think an “extremely secure accounting ledger“. For free, anyone can automatically download, verify, and maintain a full record of the global “accounting ledger” (the bitcoin blockchain) onto their own private hardware. At all times, there are literally millions of virtual eyes around the world which monitor the bitcoin blockchain.
The bitcoin blockchain is constantly updated (on average) every ten minutes. Globally. 24/7. Without fail. Without errors. Without doubt. Going further, 100% of the blockchain transactions are valid. 0% are in error or fraudulent. There is no organization which can make that claim. [6] We will cover how this happens in future blog posts.
Let’s compare and contrast that with our central bank, The U.S. Federal Reserve. Or, we could invoke the U.S. Treasury Department, instead. [7]
We have not had a full audit of either
of those organizations for decades.
If any of us were to transact on the bitcoin network we could see our transactions on the blockchain (within seconds to minutes) to prove that we sent the payment and that the amount had been deducted from our bitcoin wallet automatically. [8] To enhance this public transparency and availability, there are free websites dedicated just for the purpose of confirming these transactions which provide complete transparency of the of all transactions. [9] Now, let’s compare that to our so-called modern banks which can take days (or even weeks) to move our currency, verify the move, and finalize the transaction.
It used to be said that something was “written in stone” as something eternal and immutable; in the not-too-distant future, the expression will instead be “written on the blockchain“. Credit to Andreas Antonopoulos for the “written in the blockchain” theme. [10]
4. Completely Decentralized
Do you remember Napster? [11] This peer-to-peer (“P2P“) [12] software had a meteoric rise after its start in June of 1999 and, three years later, an equally dramatic crash by June of 2002.
What made Napster so revolutionary was the ability to share things of great value which were in digital format (almost any sort of file, usually songs) without any sort of centralized control or coordination. Ordinary, regular people using their computers (the “peers”) were able to create temporary connections with each other over the internet, locate songs that they wanted on each other’s computers, and copy those songs across the internet without restriction.
True P2P was born! Independent of the legalities (and ethics), this was a revolution in the ability to transfer value over vast distances immediately and without any sort of intermediating party to control the process.
Luckily for us, bitcoin is a P2P network which does not suffer from the same issue of copyright infringement that Napster had. [13] Instead, all of the information which is shared across its network is already the (intellectual) property of the two parties who are exchanging that information, a sender and a receiver.
Don’t worry – we will go into more detail about what this means and how it works in future articles! Suffice it to say that bitcoin perfectly enables the direct exchange of economic value over the internet between two parties via P2P. No middle man, or intermediary, is needed. In the bitcoin realm, we call this “disintermediation” – removing intermediating (and usually unnecessary) parties from any process.
“So, what does this mean??” you might ask. Great question!
It means that bitcoin is orthogonal to,
completely independent of, government. [14]
Bitcoin is completely independent of governmental power, laws, regulations, ordinances, codes, controls, rules, influence, coercion, propaganda, politics, and force. [15]
In other words, trying to regulate bitcoin
is like trying to regulate the sun.
As with all P2P networks, no one participant has more power than any other participant. Any government or agency would have equal standing with any other government, company, or person. [16] Thus, we can ask this fundamental (and slightly rhetorical) question:
“What if all governments had to compete for resources the same as all of us instead of using its position of privilege and power to confiscate wealth and corrupt our values?
What a novel concept!
5. 24 / 7 & Global
Since bitcoin is completely decentralized (peer-to-peer or “P2P”) and operates over the internet, bitcoin is a global asset which can be sent and received at anytime and anywhere, 24/7, 365. Since bitcoin is native to the internet, we can transact at any time with it via smart phone, computer, laptop, tablet, USB stick, etc. Try asking your government to do that.
Bitcoin has… no weekends, no holidays, no banker’s hours, no sick days, no leave, no vacations, no capital controls, no labor strikes, no shutdowns, no time zones, no boundaries, and no borders.
Compare this to our current banking and governmental systems:
- Usually not open on the weekends
- Can’t operate on holidays
- Not open outside of normal business hours
- Only open 40 out of 168 hours per week (~25% of the time)
- Can be shut down for a lack of gov’t budget (“sequestration”), investigation, or in-fighting
- Can go on strike at any time
- Frequently make mistakes (which we, not they, have to pay for)
- Have ZERO performance standards and incentives
6. Permissionless & Voluntary
Let’s take a look at the voluntary nature of bitcoin:
- If you want to participate in the bitcoin network, you can.
- If you don’t want to participate, you don’t have to.
- You don’t have to setup a bitcoin “account”.
- There is no “IT Helpdesk” to contend with.
- There is no government which can order your funds to be frozen.
- There is no bank which can deny you access to their website or your account.
If you understand what a password is then you can participate. You simply setup your own bitcoin wallet [17] and start transacting with anyone else on the bitcoin network.
As in the above section, when we compare this to governments and centralized banking, there are layers of impediments that these institutions can put in your way, intentional or unintentional, competently or incompetently.
Bitcoin’s P2P nature allows it to be completely independent
of authoritarian edicts and political squabbles.
7. Apolitical
Since Bitcoin is decentralized and outside of the control and influence of the state, it is completely politically neutral and cannot be weaponized.
Let’s compare bitcoin’s political neutrality to three recent and significant examples:
- The Russian Invasion Of Ukraine In 2022
- The Canadian Truckers’ Convoy
- India Decommissioning The 1,000 and 500 Rupee Notes
The Russian Invasion Of Ukraine In 2022
On 02/24/2022, Russia invaded Ukraine using a full-scale assault across multiple fronts within Ukraine. [18] Almost immediately afterwards, the U.S. lead the effort to cut Russia off from the SWIFT payment system [19] [20] after they invaded Ukraine. [21] The stated intention for the cutoff from SWIFT was that removing Russia’s ability to buy or sell goods and services on the global market would be severely hampered and, thus, incentivize Russia to cease hostilities and pull out of Ukraine. An unstated outcome of cutting Russia off from SWIFT meant that Russia could not pay its debts to other countries that used SWIFT. If you or any company that you own had any Russian debts then you could not receive your money.
Ultimately, for good or for bad, the U.S. weaponized
the SWIFT payment system, against Russia.
The irony of the West’s financial sanctions on Russia (via SWIFT) is that the sanctions actually caused Russia to use bitcoin as a form of money for international exchange. [22] A major consequence of Russia’s use of bitcoin is that it has begun the process of integrating bitcoin (and other crypto-assets) into its country’s financial and economic systems. Additionally, Russia’s major trading partners, China and India, have increased their exposure to bitcoin for economic and financial purposes. It’s almost as if the U.S. tightening its grip causes it to lose more control… [23]
On the other hand, bitcoin is accessible by all countries and people alike. Bitcoin is completely apolitical and neutral. It is the ideal mode of exchanging value.
8. Unconfiscatable, Uncensorable, & Irreversible
The Canadian Truckers’ Convoy
Now, let’s focus on our second major historical example, the “Canadian Truckers’ Convoy” (“CTC”), which was forged to protest against the Canadian government (in 03/2022) for a variety of reasons. [24]
As a crucial part of the Convoy, these truckers needed basic supplies and equipment (i.e. diesel fuel, propane, food, blankets, sanitary items, etc.) just to subsist and maintain their protest. They asked the world to donate to their non-violent protest. And, the world responded generously.
To facilitate donations, the CTC opened a GoFundMe page to request donations. But, due to political authoritarian pressure that the Canadian government and Prime Minister Trudeau placed on that website, GoFundMe actually shutdown the CTC’s donation page and refused to allow the Canadian Trucker’s Convoy to withdraw their funds. [25] [26]
The CTC pivoted quickly by asking people to donate directly to their bitcoin exchange account (which is similar to a stock brokerage and exchange account such as the NASDAQ or NYSE). Again, the Canadian government and PM Trudeau interfered and disallowed the CTC to withdraw donated funds. [27]
Finally, the Canadian Truckers Convoy gave the Canadian government the “flying finger of friendship” and decided to cut all ties with any centralized organization for the purpose of receiving funding. The CTC asked donors to provide bitcoin directly. [28] And, the funds started flowing because bitcoin is completely independently of any government. There are even videos of individual truckers receiving bitcoin and using it to pay for critical items. [29] CTC protestors were able to do this because:
Bitcoin is unconfiscatable, uncensorable, and irreversible.
Ultimately, the state, a centralized institution, used its power to influence other centralized institutions (which used a centralized fiat currency) to prevent legitimate donors from supporting a worthy civic cause. The Canadian government imposed draconian capital controls upon the people of the world to prevent them from sending their own fiat currencies to whomever they wanted. Those around the world who wished to support the CTC had their will subverted by the Canadian government.
Bitcoin transcends this.
The Canadian government could not prevent bitcoin donations, stop the receipt of those bitcoin, nor take those donated bitcoin away. Bitcoin allows anyone from around the world to donate to anyone else around the world. And, there is no middleman to take an administrative slice or to prevent the funds from flowing. [30]
India Decommissioning The 1,000 and 500 Rupee Notes [31]
Let us turn our attention to the third major example, India demonetizing its 1,000 and 500 Rupee notes. [32] In short, with the stroke of pen, the government evaporated the savings of tens of millions of people by decommissioning these high denomination Rupee bills.
The unbanked had no ability to keep their savings in electronic formats. Thus, they were forced to maintain their savings in physical bills, mostly 1,000 and 500 Rupee notes. Financial chaos amongst the poor and rich alike ensued. In a flash, tens of millions of Indian citizens had to rush to banks to exchange their 1,000 and 500 Rupee notes for smaller denomination notes. This caused a run on the banks and many people had their savings immediately evaporated. In addition, capital controls were put into place which limited the amount of Rupees each individual could exchange per day. Entire black markets sprung up overnight to fill the need to move to smaller denominations.
The Indian government claimed it was “fighting black markets” (which, by definition, are the minority of transactions) and eagerly ruined the lives of millions of its people in order to push its political agenda.
Ultimately, with bitcoin, there is no politician who can decommission nor demonetize your bitcoin. Bitcoin is your property independent of any government.
The State Cannot Stop Bitcoin
Referring to a previous article in the opening series (here under the section “Are You Tired Of…?”), we asked two fundamental questions:
- “Are you tired of feeling like a criminal taking your money out of your bank account?“
- “Are you tired of one set of humans (those in government) telling another set of humans (you) how they should and should not live their lives?“
In all three instances above (removing Russia from SWIFT, the Canadian Truckers’ Convoy, and India Demonetizing the Rupee), a tiny contingent of politicians and bureaucrats were able to impose their will and corrupted values upon hundreds of millions of people, both friend and foe alike, mostly with a few strokes of the pen. They were able to do this because of control over their fiat currency systems.
The government can compel you, your bank, or any other financial institution to reverse any financial transaction that it wants to, without your explicit permission. While there may be legal challenges to this, the fact would still remain that you would have to prove your own innocence. Eventually, “the process is the punishment“.
Many might argue that this could be an innocent mistake but does that matter to you? What if you have an immediate need such as buying a new house, a medical emergency, or an unexpected large expense? These institutions and governments do not care about your well-being; they care about their “processes”.
Bitcoin is fixes this.
Let’s compare the above indictment of government to bitcoin. Bitcoin is just software code, thus, it is free speech. [33] There are no gold bars to steal, no bank transactions to meddle with, no payment apps to threaten, no central banks to change policy.
Without going into detail, every ten minutes after a bitcoin transaction is posted to the bitcoin blockchain, the ability to reverse that transaction becomes exponentially more difficult. A general rule of thumb in the bitcoin world is that a transaction that has settled on the bitcoin blockchain for at least an hour on the blockchain is impossible to reverse. Thus, no government in the world has the ability to confiscate that bitcoin by reversing the transaction.
9. Extremely Secure Bitcoin “Bank Accounts“
Bitcoin “wallets” are where we “store” our bitcoin, like a safe or bank account. This is a slight over-simplification but good enough for now.
Bitcoin wallets are VERY secure and can be made EXTREMELY MORE secure with layers of security which are relatively easy and straightforward to implement. [34]
When compared to our modern banking system, bitcoin is literally many, many orders of magnitude more secure and safer than any bank or government in existence. We have countless examples of banks and governments having their funds stolen, their websites corrupted or even outright shutdown.
In comparison, since its inception, bitcoin has had a 100% up-time record with 0% errant or fraudulent transactions. I defy anyone to show me a bank or government agency with the same level of performance with zero cost to the public.
Ultimately, if you can send and receive email
then you can use bitcoin safely and securely.
10. Ultimate Supply Cap & Programmatic Inflation
In order to dive into these two topics of ultimate supply cap and programmatic inflation, we need to present a graph that is a good representation of the two concepts.
Nerd Note: Sometimes the ultimate supply cap is called the “hard supply cap” or just “supply cap”.
To understand the layout of this graph, click on the end note at the end of this sentence to understand it. [35] Once you feel comfortable with the layout, then come back here so we can look at the blue and orange lines. Of course, you’re free to skip it if that’s most comfortable for you.
Now that we’ve defined the framework for our graph, we can begin to look at the underlying concepts.
The Ultimate Supply Cap (Blue Line)
Bitcoin has a hard limit of 21,000,000 bitcoin “tokens” which will be produced (“mined”). When that limit is reached (circa 2140), no more bitcoin will be created. [37]
That means that there is an ultimate cap of 21M bitcoin.
For the first time in human history, we have synthetic scarcity.
In this context, “synthetic scarcity” mean a digital asset which cannot simply be replicated ad infinitum (like a digital photograph or song), but instead is solidly limited in quantity.
While we won’t go into how this works now (but we will cover this in later articles), suffice it to say that all of us can audit the bitcoin code to see for ourselves that this hard limit is an absolute demonstrable fact. [37]
No one can change it.
No one can cheat the system.
No one can edge out the public.
This idea of an ultimate supply cap via synthetic scarcity is brand new. It is changing our understanding of economics and markets permanently.
The Programmatic Inflation Rate (The Orange Line)
Bitcoin’s programmatic inflation rate has precisely defined how new bitcoin tokens are introduced into the economy for ~140 years. Just like the ultimate supply cap, this is a completely new and innovative approach to monetary policy; removing the state from the creation and issuance of money.
Economics Note: In this context, “inflation” refers to changes in the money supply, not necessarily changes in the prices of goods and services. [38]
This is why programmatic inflation is so important and impactful:
- In 20, 50, and 100 years from now, all of us will know exactly how much bitcoin will have been created (mined) and what the inflation rate will be then.
- Anyone can participate in the creation (mining) of bitcoin.
- No matter how many people or companies start mining for bitcoin, the programmatic inflation rate continues exactly as planned.
- Technological improvements to bitcoin mining make no difference to the inflation rate.
- No one company can have a monopoly on bitcoin mining (creation).
- Independent of the price of bitcoin, high or low, the new supply issuance (the bitcoin inflation rate) doesn’t change.
- Changes in the demand for bitcoin have no impact on the inflation rate.
- No amount of government interference can change the inflation rate.
- Central banks cannot engage in “quantitative easing“, “QE infinity”, nor “liquidity injection“.
All of the above impacts lead to one very important aspect of economics – elasticity. [39] In the case of bitcoin, its supply is considered to be “perfectly inelastic“. [40]
Nerd Note: If you have concerns about there being “enough” bitcoin for everyone, please read this note [41]
The One-Two Punch
These two concepts, ultimate supply cap and programmatic inflation, are revolutionary and unprecedented because they completely take the money printers out of the hands of the state. This is one of the most important steps to separating state from money. The concepts of “quantitative easing” or “injecting liquidity” or “bank bailouts” [42] are not possible with a capped supply and programmatic inflation rates because the state is not able to print currency on a whim, ad hoc, ad infinitum, ad nauseam.
Thus, governments cannot evaporate the value of
your savings by blowing up the currency supply
in order to fund their favorite pet projects.
Instead, the politicians must appeal to each of us for funding by way of open and obvious taxation. [43] And, while taxation is never desirable, it is far preferable to the “sly or roundabout way” of covert taxation by monetary inflation due to the fact that taxation is obvious and visible. [44]
Conclusion: Bitcoin Is Money The Superior Form Of Money
People often ask me if bitcoin is money. Without trying to be snarky, I always answer their question with another question, “What is money?” [45]
I usually get one of two responses: 1) a list of currencies or 2) some definition akin to “Something which allows you to trade.” In an attempt to build good faith with the person, I will ask a series of clarifying questions in conversation which probes about other properties of money, such as scarcity and durability (much as we covered in a previous article, here.
It is reasonable that people might become frustrated with me for asking them these questions and not simply giving them a straightforward answer (“Why can’t you just tell me if bitcoin is money??“). The point is that commencing with a bad starting point (a poor definition of money) allows us to arrive at pretty much any conclusion we want, including contradictory ones.
While being methodical can be a bit laborious, I can’t help but think that when it comes to something as fundamental as money and the tens of thousands of hours of our lives that we exchange for money, that we ought to invest a little bit of earnest time and effort to understand it and come to reasonable definitions and conclusions about this fundamental pillar of civil society.
Cultural Note: As you have probably picked up by now, I have real disdain for people who are anti-bitcoin AND have not studied it AND denigrate bitcoin publicly. All of them ought to be ashamed of themselves for talking about a subject about which they have deliberately stayed ignorant. I have compiled a short list of ardent and ignorant “anti-bitcoiners” below. [46] This is also why I politely push back against people’s assertions that “bitcoin isn’t money” by asking them to define money first. 100% of the time I have challenged people on their anti-bitcoin notion they have admitted that they don’t actually have a good working definition of money. That’s when the healing begins.
What This Means For You
As we covered in a previous article, here, we have seen multiple instances throughout history where a hard money standard always:
- Naturally and passively restrained the state
- Encouraged individual liberty
- Fostered innovation
- Greatly improved the living conditions of entire populations
Time and time again, the use of dependable money showed us that economic prosperity and political freedom are not coincidental; instead, they are intertwined and inherent with one another. [47]
This extended article is meant to be a primer on the demonstrable properties and qualities of bitcoin that would have the greatest impact to most people. By understanding what bitcoin actually does, you can tell others what it means to you and all freedom loving people:
It means… bitcoin is hard money.
It means… bitcoin is dependable money.
It means… you have an escape hatch
from the authoritarian and oppressive state.
I hope that BitcoinInPeace.com provides a real glimmer of hope, a reason to be optimistic about your future and the future of those around you.
Next Steps
In this post, we talked about some of the high-level properties of bitcoin which are impactful and demonstrable as well as illustrated how those properties mirror those of hard money. This brings Part 3 of the opening series, “Bitcoin: The Ultimate Freedom Accelerator“, to a close.
Next up, we’ll begin Part 4 of the opening series by discussing the impact that a hard money standard has on the world and how bitcoin will fulfill that role.
The Learning Never Stops!
If you want to continue your journey of learning about all things bitcoin with knowledgeable people who love to be helpful, I highly recommend my bitcoin MeetUp, “Bitcoin, Huntsville, Crypto, & Coffee” which you can find here . We meet two times every month online to discuss bitcoin and its impact on the world. You’ll be able to talk directly with others who are also on their personal bitcoin journey and ask them engaging questions. We’re not selling anything. The only thing that we ask of you is to come to the table in good faith and be willing to DYOR – Do Your Own Research. We love newbies and the energy they bring!
Donations
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End Notes, References, & Citations
[1] The Bitcoin Whitepaper
You can download the bitcoin whitepaper here
Brave search engine summary: “What is the bitcoin whitepaper“
“Bitcoin Whitepaper Explained
The Bitcoin white paper, titled ‘Bitcoin: A Peer-to-Peer Electronic Cash System‘, is a foundational document written by the pseudonymous Satoshi Nakamoto. It was published on October 31, 2008, and introduced the concept of Bitcoin, a decentralized digital currency system that operates without a central authority.
The white paper explains how Bitcoin functions as a peer-to-peer network, where transactions are verified and recorded through a public ledger known as the blockchain.
It outlines the proof-of-work mechanism, which ensures the security and integrity of the transactions by making it computationally difficult to alter the blockchain.
Bitcoin’s white paper also addresses the double-spend problem, a critical issue in digital currencies where a user might attempt to spend the same funds twice. Nakamoto’s solution involves a distributed timestamp server that records a series of cryptographically signed transactions, ensuring that each transaction is unique and secure.
The document emphasizes the importance of decentralization, ensuring that the network’s security, resilience, and trustworthiness are distributed among its participants.
It also discusses the concept of mining, which is how the Bitcoin network programmatically issues new Bitcoin and enforces scarcity, ensuring that only 21 million Bitcoin will ever exist.
Overall, the Bitcoin white paper is a concise yet foundational document that has significantly influenced the development of cryptocurrencies and blockchain technology.“
[2] Satoshi Nakamoto
Brave search engine summary: “Who is Satoshi Nakamoto“
“Who is Satoshi Nakamoto
Satoshi Nakamoto is the pseudonym of the individual or group who created Bitcoin, the world’s largest cryptocurrency by market capitalization.
Nakamoto introduced Bitcoin to the world in 2008 with a whitepaper titled ‘Bitcoin: A Peer-to-Peer Electronic Cash System‘. The true identity of Satoshi Nakamoto remains unknown, despite numerous theories and investigations.
Nakamoto used the British spelling of certain words, such a ‘favour‘, suggesting a connection to the United Kingdom or someone educated there.
The pseudonym’s identity has been linked to various individuals, including Dorian Nakamoto, Hal Finney, Nick Szabo, and Peter Todd, but none of these claims have been definitively proven.
In a notable development, a 2024 HBO documentary titled ‘Money Electric: The Bitcoin Mystery‘ directed by Cullen Hoback, suggested that Peter Todd might be the original creator of Bitcoin. Todd, however, denied being Nakamoto.
The mystery surrounding Satoshi Nakamoto’s identity continues to intrigue the cryptocurrency community, with some believing that revealing the true identity could have significant consequences for Bitcoin’s decentralized nature.“
“Satoshi Nakamoto“
“Satoshi Nakamoto is the name used by the presumed pseudonymous person or persons who developed bitcoin, authored the bitcoin white paper, and created and deployed bitcoin’s original reference implementation. As part of the implementation, Nakamoto also devised the first blockchain database. Nakamoto was active in the development of bitcoin until December 2010.
There has been widespread speculation about Nakamoto’s true identity, with various people posited as the person or persons behind the name. Though Nakamoto’s name is Japanese, and inscribed as a man living in Japan, most of the speculation has involved software and cryptography experts in the United States or Europe.“
[3] Satoshi Nakamoto’s anonymous status
The person or persons using the pseudonym “Satoshi Nakamoto” is not publicly known. We do not know if this was a single person or a group of individuals. There has been a considerable amount of speculation to determine who Nakamoto is. It is a fascinating topic on which the stuff of legends is built. For convenience, when referring to Satoshi, I will simply say “he“, “him“, “Satoshi“, “Nakamoto“, or “Mr. Nakamoto” and acknowledge our collective ignorance (yet eternal gratitude).
[4] “Ecash” and “Hashcash“
“Ecash
Ecash was conceived by David Chaum as an anonymous cryptographic electronic money or electronic cash system in 1982. It was realized through his corporation Digicash and used as micropayment system at one US bank from 1995 to 1998.“
Author’s Note: The “Ecash” of the early 1990’s is completely different from the “eCash” (symbol: XEC) crypto-asset that was created in the 2020’s.
“Hashcash
Hashcash is a proof-of-work algorithm, which has been used as a denial-of-service counter measure technique in a number of systems.
A hashcash stamp constitutes a proof-of-work which takes a parameterizable amount of work to compute for the sender. The recipient (and indeed anyone as it is publicly auditable) can verify received hashcash stamps efficiently. Hashcash was invented by Adam Back in 1997“
“Hashcash
Hashcash is a proof-of-work system used to limit email spam and denial-of-service attacks. Hashcash was proposed in 1997 by Adam Back and described more formally in Back’s 2002 paper ‘Hashcash – A Denial of Service Counter-Measure’. In Hashcash the client has to concatenate a random number with a string several times and hash this new string. It then has to do so over and over until a hash beginning with a certain number of zeros is found.”
[5] The bitcoin blockchain
Brave search engine summary “bitcoin blockchain summary“
“Bitcoin Blockchain Summary
A blockchain, particularly the Bitcoin blockchain, is a decentralized, digital ledger that records transactions in a secure and transparent manner. Each block in the chain contains transaction data, a timestamp, and a cryptographic hash of the previous block, creating an immutable record.
The Bitcoin blockchain is distributed across a network of computers called nodes, each maintaining a copy of the entire blockchain. When a new transaction occurs, it is verified by the network and added to a block. Once a block is filled with transactions, it is added to the blockchain.
Transactions on the Bitcoin blockchain are verified through a process called mining, where miners compete to solve complex mathematical puzzles. The first miner to solve the puzzle gets the right to add the block to the blockchain and is rewarded with newly minted bitcoins.
This process ensures the integrity and security of the blockchain, as altering any data in a block would require changing all subsequent blocks and obtaining consensus from the network, which is computationally infeasible.
The Bitcoin blockchain is transparent in that all transactions can be traced and viewed by anyone, but it also allows users to remain pseudonymous by not directly linking transactions to real-life identities.
In summary, the Bitcoin blockchain is a secure, decentralized ledger that records transactions through a network of nodes and mining processes, ensuring the integrity and transparency of the Bitcoin network.“
“What Is a Blockchain?
A blockchain is a distributed database or ledger shared across a computer network’s nodes. They are best known for their crucial role in cryptocurrency systems, maintaining a secure and decentralized record of transactions, but they are not limited to cryptocurrency uses. Blockchains can be used to make data in any industry immutable—meaning it cannot be altered.
Since a block can’t be changed, the only trust needed is at the point where a user or program enters data. This reduces the need for trusted third parties, such as auditors or other humans, who add costs and can make mistakes.“
“Balances – Block Chain
The block chain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain. It allows Bitcoin wallets to calculate their spendable balance so that new transactions can be verified thereby ensuring they’re actually owned by the spender. The integrity and the chronological order of the block chain are enforced with cryptography.“
[6] Bitcoin use on dark web sites for illicit activities
Due to the fact that the bitcoin blockchain is completely auditable, the top dark web sites have started to shy away from bitcoin as payment for illicit substances and services. This is entirely in contrast to the highly fraudulent and bad faith claims of politicians and other public figures who vehemently assert that bitcoin is solely (mostly) used for criminal purposes. [65] Let’s compare that to fiat currency which is THE primary payment method for crime around the planet. In fact, current estimates on the use of fiat currency for crime are orders of magnitude greater than those use by bitcoin. [66] [67]
Brave search engine summary: “Do the top dark web sites allow bitcoin“
“Dark Web Bitcoin Access
Yes, the top dark web sites do allow Bitcoin, but they increasingly support other cryptocurrencies as well. Bitcoin has been the de facto currency for dark web marketplaces since the emergence of Silk Road in 2011.
However, due to concerns over Bitcoin’s traceability, many modern markets now offer alternative privacy-focused cryptocurrencies like Monero (XMR) and USDT (TRC20) alongside Bitcoin. For example, Vortex, a prominent darknet marketplace, supports Bitcoin, Monero, and USDT. Similarly, Abacus supports both Bitcoin and Monero, emphasizing security and user experience. While Bitcoin remains widely accepted, the trend shows a shift towards cryptocurrencies with stronger privacy features to enhance user anonymity.” [emphasis added by J. Young]
[7] The Federal Reserve and the Treasury Dept.
Let’s compare and contrast that with our central bank, The U.S. Federal Reserve. Or, we can invoke the U.S. Treasury Department. Neither of those are transparent nor are they accountable in any way to the citizenry of the U.S. We can extend this to all of the world’s central banks. None of them provide any semblance of openness. In fact, many of the Fed’s documents are actually classified. Why? What does the manager of our money supply need to classify? What about the large commercial banks (i.e. JP Morgan Chase Bank, Wells Fargo, Bank Of America, Citibank, which are extensions of the Federal Reserve and the Treasury Department)? They can create currency (credit) out of thin air without any accountability to the people. The communications between their executives and boards of directors can be kept secret without a stitch of transparency even though a few dozen people have carte blanch to control the creation and flow of one of the most fundamental aspects of a modern civilization. When was the last time you were able to audit the nation’s gold supply in Fort Knox? How about being able to crosscheck payments made by the Treasury Dept.?
Author’s Note: I want to give proper recognition to the Department Of Government Efficiency (“DOGE“) for its work in uncovering fraud, waste, and general maleficence at the federal level. That was definitely overdue. But, we are entirely dependent upon some people acting altruistically and nobly (to “appeal to our better angels” [64]). The moment we switch administrations is the moment we go right back to the old way of doing things. As of the writing of this article, there is a distinct possibility that DOGE will actually audit The Fed as well as the supposed gold stores in Fort Knox.
[8] The speed of the Lightning Network
In an attempt to improve the transaction times for bitcoin transactions and to enable relatively small transactions to take place using bitcoin (i.e. a cup of coffee), the Lightning Network (“LN”) was created. The LN allowed bitcoin transactions to clear with 1 – 10 seconds, a vast improvement over bitcoin’s capabilities. In addition, the cost of the vast majority of LN transaction are a fraction of a penny. There are some legitimate hurdles that the LN must overcome but I have trust in human ingenuity that these hurdles will be solved and bitcoin will become the primary means by which people transact.
[9] Bitcoin blockchain explorers
Any person can check the blockchain manually by using these user-friendly websites:
[10] “written in the the blockchain“
Credit to Andreas Antonopoulos for the “written in the blockchain” theme. I saw a YouTube video where he coined the term but I have not been able to relocate the video.
[11] Napster
Napster’s can be found website here
“Napster
Napster was an American peer-to-peer (P2P) file sharing application primarily associated with digital audio file distribution. Founded by Shawn Fanning and Sean Parker, the platform originally launched on June 1, 1999. Audio shared on the service was typically encoded in the MP3 format. As the software became popular, the company encountered legal difficulties over copyright infringement. Napster ceased operations in 2001 after losing multiple lawsuits and filed for bankruptcy in June 2002.
The P2P model employed by Napster involved a centralized database that indexed a complete list of all songs being shared from connected clients. While effective, the service could not function without the central database, which was hosted by Napster and eventually forced to shut down. Following Napster’s demise, alternative decentralized methods of P2P file-sharing emerged, including LimeWire, Gnutella, Freenet, FastTrack, and BitTorrent.“
[12] Peer-to-Peer (“P2P”)
“Peer-To-Peer
Peer-to-peer (P2P) computing or networking is a distributed application architecture that partitions tasks or workloads between peers. Peers are equally privileged, equipotent participants in the network, forming a peer-to-peer network of nodes. In addition, a personal area network (PAN) is also in nature a type of decentralized peer-to-peer network typically between two devices.
The opposite of a peer-to-peer network: based on the client–server model, where individual clients request services and resources from centralized servers.
Peers make a portion of their resources, such as processing power, disk storage, or network bandwidth, directly available to other network participants, without the need for central coordination by servers or stable hosts. Peers are both suppliers and consumers of resources, in contrast to the traditional client–server model in which the consumption and supply of resources are divided.”
“What Is Peer-To-Peer (P2P)?“
“What is P2P ? – Peer to Peer explained“
[13] Napster’s doomed history
Of course, many of us know that Napster was doomed to failure almost immediately due to the fact that Napster was facilitating the unauthorized copying and mass-distribution of copyrighted material, a violation of the rights of the owners of the original content (enter Lars Ulrich of Metallica [61])
[14] Orthogonal
“Orthogonal is a geometry term. It means “at right angles”. So, the walls of your house are orthogonal. The intersection of two roads can be orthogonal. A synonym would be ‘perpendicular‘. In statistics, it means that two things are statistically independent. Building on that second definition, it is often used metaphorically to describe two things that are not aligned, unrelated, negatively related, or complete opposites. For example, you might say that in casino gambling, skill and success are orthogonal. One is not related to the other.“
“What does orthogonal really mean?“
“Orthogonality
“In mathematics, orthogonality is the generalization of the geometric notion of perpendicularity. Whereas perpendicular is typically followed by to when relating two lines to one another (e.g., ‘line A is perpendicular to line B‘), orthogonal is commonly used without to (e.g., ‘orthogonal lines A and B‘).
Orthogonality is also used with various meanings that are often weakly related or not related at all with the mathematical meanings.“
[15] Shutting down the internet
For those who claim that governments “merely” have to shut down the internet in order to stop bitcoin, I would challenge them by asking them, “When has deliberately shutting down the internet ever worked?“
Iran tried that several years ago and it backfired spectacularly with costs valued in the hundreds of millions of U.S. dollars. [62] But, let’s say that all governments shut down the internet in their respective countries in order to stop bitcoin. That means the entirety of global finance, supply chains, power plants, electricity, heating, air conditioning, medical facilities, telecom, manufacturing, militaries, governments, in fact, all of the technologies of modern society would crash. Instantly. And, those who own bitcoin would still own their bitcoin. It would be like shooting oneself in the foot to swat a fly which had landed there.
An additional perspective to consider: if the government is trying to shut it down or ban you from owning and using it then it’s probably something which you ought to consider taking a deeper look at.
Finally, if our governments are shutting down the internet then they are shutting down all militaries, law enforcement, banking, finance, supply chains, electric grids, air conditioning, modern medicine, and manufacturing. And, we still own our bitcoin.
[16] Schelling Point
Brave search engine summary: “Schelling point“
“Schelling Point
A Schelling Point, also known as a focal point, is a solution that people tend to choose by default in the absence of communication, because it seems natural, special, or relevant to them. The concept was introduced by economist Thomas Schelling in his 1960 book The Strategy of Conflict, where he demonstrated it through thought experiments, such as determining where to meet a stranger in New York City without prior communication. The most common answer to this scenario was “noon at Grand Central Terminal,” a location that stands out due to its prominence and tradition as a meeting place, even though no objective advantage exists. Schelling points arise from shared knowledge, cultural context, or salience, allowing individuals to coordinate successfully in cooperative games without direct communication. This principle extends to various domains, including economics, social norms, international relations, and even the value of money, which functions as a Schelling point because people expect it to be universally accepted.“
[17] Setting up your own bitcoin wallet
Setting up a bitcoin wallet is not a difficult task. For the most part, it merely requires that you be open-minded. There are many different types of wallets which can you can use depending on your personal needs. In addition, there are literally dozens of very helpful videos and website which can show you exactly what you need to do to setup your own bitcoin wallet. While setting up a bitcoin wallet is slightly technical, the free market has done a great job of providing solutions which are straightforward and dependable. Many solution providers even have customer support to walk you through the process. Millions of people around the world have created their own wallets without any technical knowledge. Overall, there is no reason to be intimidated by choosing and setting up your own personal bitcoin wallet.
[18] Russia invading Ukraine in 2022
Brave search engine summary: “When did Russia invade Ukraine“
“Russia Invades Ukraine
Russia launched its full-scale invasion of Ukraine on 24 February 2022, beginning with missile strikes across the country before dawn and a multi-front ground assault.
This marked a major escalation of the ongoing Russo-Ukrainian War, which had started in 2014 with Russia’s annexation of Crimea and support for separatist movements in the Donbas region. The 2022 invasion is the largest conflict in Europe since World War II.“
“Russian invasion of Ukraine
On 24 February 2022, Russia invaded Ukraine, starting the largest and deadliest war in Europe since World War II, in a major escalation of the conflict between the two countries which began in 2014. The fighting has caused hundreds of thousands of military casualties and tens of thousands of Ukrainian civilian casualties. As of 2025, Russian troops occupy about 20% of Ukraine. From a population of 41 million, about 8 million Ukrainians had been internally displaced and more than 8.2 million had fled the country by April 2023, creating Europe’s largest refugee crisis since World War II.“
[19] The SWIFT payment system
You can visit the SWIFT homepage here
Brave search engine summary: “SWIFT payment system“
“SWIFT Payment System
The SWIFT payment system, short for the Society for Worldwide Interbank Financial Telecommunication, is a secure global messaging network used by financial institutions to exchange standardized financial messages, primarily instructions for international money transfers. It does not move funds directly, nor does it hold accounts or perform clearing and settlement functions; instead, it acts as a carrier of messages containing payment instructions between banks. The network facilitates transactions by routing these messages through unique identifiers, known as SWIFT codes (or BICs, Business Identifier Codes), which are 8 or 11-character strings identifying the financial institution, country, city, and branch.
SWIFT connects over 11,000 financial institutions across more than 200 countries, enabling secure, reliable, and standardized communication for international payments, securities trades, treasury operations, and other financial services.
The network processes an average of over 44 million messages daily, with traffic continuing to grow. While SWIFT is the dominant global financial messaging system, alternative networks exist, such as Ripple, CIPS, and the Russian SPF, though access can be restricted by national regulations.
The system operates by converting a payment request into a structured message using a proprietary syntax, which is then routed via the SWIFT network to the recipient bank using the relevant SWIFT codes.
The recipient bank processes the instruction, verifies details including beneficiary information and compliance with sanctions, and initiates the fund transfer through correspondent banking relationships or other settlement systems. The entire process is supported by services like compliance analytics, risk management tools, and integration solutions to ensure security and regulatory adherence.
A significant development in the system is the ongoing migration from legacy MT message formats to the more advanced ISO 20022 standard, which began in March 2023.
This transition aims to enhance transparency, increase data capacity, and improve interoperability between banks, ultimately leading to more efficient and lower-cost cross-border payments. Despite its critical role, SWIFT is not a bank or a payment system itself but a foundational infrastructure that underpins global financial transactions.“
“SWIFT
The Society for Worldwide Interbank Financial Telecommunication (SWIFT), legally S.W.I.F.T. SC, is a cooperative established in 1973 in Belgium (French: Société Coopérative) and owned by the banks and other member firms that use its service. SWIFT provides the main messaging network through which international payments are initiated.[2] It also sells software and services to financial institutions, mostly for use on its proprietary ‘SWIFTNet’, and assigns ISO 9362 Business Identifier Codes (BICs), popularly known as ‘SWIFT codes’.“
[20] Russia cutoff from SWIFT payment system
Brave search engine summary: “Russia cutoff from SWIFT”
“Russia Excluded from SWIFT
Russia has been partially cut off from the SWIFT international financial messaging system as part of sanctions imposed by the EU, US, UK, and other allies following its invasion of Ukraine in February 2022. In March 2022, seven major Russian banks—including VTB Bank, Bank Otkritie, and Vnesheconombank (VEB)—were disconnected from SWIFT, effectively limiting their ability to conduct fast and secure international transactions. Although Sberbank, Russia’s largest bank, was initially spared due to concerns over energy payments, the European Commission later proposed adding it and other institutions to the ban.
SWIFT itself does not transfer funds but enables secure communication between banks for cross-border payments, and being excluded forces affected banks to rely on slower, less reliable methods like email or telex. In response, Russia has developed its own alternative system, the System for Transfer of Financial Messages (SPFS), and is working with China’s Cross-Border Interbank Payment System (CIPS) to reduce reliance on SWIFT. Despite the sanctions, some Russian banks have found workarounds; for example, VTB Bank has enabled transfers to China’s Alipay platform, suggesting ongoing access to international financial flows through alternative channels. As of 2025, further sanctions have been considered, including a proposal to disconnect up to 15 additional Russian banks from SWIFT under a new EU sanctions package, though approval requires unanimous support among EU members and remains uncertain.“
“SWIFT ban against Russian banks
The SWIFT ban against some Russian banks is one of several international sanctions against Russia imposed by the European Union and other western countries as a result of its invasion of Ukraine, aimed at weakening the country’s economy to end the invasion by hindering Russian access to the SWIFT financial transaction processing system.“
[21] My thoughts on Russia invading Ukraine
We need to call the Russian invasion of Ukraine what it truly was – evil. Both the Ukrainian and Russian people have paid the price for Putin’s drive for power. That said, what I don’t like is one country (the U.S.) being able to cut off another country’s (Russia’s) ability to make and receive payments on a whim. In this case, by cutting off Russia from the SWIFT payment system.
At first blush, it seems like Russia is really being “punished” because they are seemingly prevented from being able to sell their goods on the international stage (i.e. crude oil, lumber, iron ore, etc.) because global buyers would not be able to pay them through the SWIFT system while the ban is in effect.
But, there are huge knock-on effects of cutting one country off from a massive payment system such as SWIFT. We need to take this to its logical conclusion; if Russia cannot be paid through SWIFT then Russia cannot pay, either. So, if Russia cannot use SWIFT then they cannot pay their debts to any other country which uses SWIFT, that includes companies and people.
Thus, if you have a company which is doing business with Russia or a Russian company and they owe you (or your company) money, then you might have a very difficult time being paid or might not get paid at all. The U.S. federal government has hamstrung your finances without your permission and mostly for political purposes. Politically controlled money has enabled politically driven agendas and caused real and practical damage.
Ultimately, we must ask ourselves this question: “If the U.S. can cut off another country from the international financial system ad hoc, what’s to prevent them from doing so for even minor reasons?“
By the way, in keeping with our theme of fighting against fiat currencies, Russia was only able to invade Ukraine because it had its virtual money printers which allowed it to fund the war. Otherwise, it would have had to appeal directly to the Russian people for funding via taxation. And, I think we’re seeing that large swaths of the Russian population do not condone what Putin has done. I think we know how they would have voted with their wallets.
[22] Russia using bitcoin
Brave search engine summary: “Russia used bitcoin“
“Russia Uses Bitcoin
Russia has increasingly utilized Bitcoin and other cryptocurrencies to facilitate international trade, particularly with China and India, as a means to circumvent Western sanctions.
This shift is part of a broader strategy to reduce reliance on the U.S. dollar and traditional financial systems like SWIFT, which were restricted following Russia’s invasion of Ukraine. The Russian government has formally endorsed this practice through legislative changes that allow the use of cryptocurrencies in foreign trade and have legalized crypto mining within the country. Russian oil companies have been using Bitcoin and stablecoins like Tether (USDT) to conduct international transactions, reportedly involving tens of millions of dollars monthly.
Finance Minister Anton Siluanov confirmed in December 2024 that domestically mined Bitcoin is being used in foreign trade under an experimental framework, stating such transactions are already occurring and should be expanded.
The Bank of Russia has opened up bitcoin and crypto buying to a ‘limited circle of Russian investors,‘ defined as those with significant wealth or income, signaling a significant policy shift from previous opposition to cryptocurrencies.
This development follows a 2024 law that regulated crypto ownership and mining while maintaining a ban on domestic use, allowing businesses to use digital assets for international payments.
Russia’s use of Bitcoin is also linked to its energy sector, where excess power from gas and electricity is being used to fuel large-scale mining operations, particularly in its ‘shadow territories‘ like Transnistria and Donbas.“
“Russia is using bitcoin in foreign trade, finance minister says
MOSCOW, Dec 25 (Reuters) – Russian companies have begun using bitcoin and other digital currencies in international payments following legislative changes that allowed such use in order to counter Western sanctions, Finance Minister Anton Siluanov said on Wednesday.
Sanctions have complicated Russia’s trade with its major partners such as China or Turkey, as local banks are extremely cautious with Russia-related transactions to avoid scrutiny from Western regulators.“
[23] Princess Leia quote
“The more you tighten your grip, the more star systems will slip through your fingers” — Princess Leia to Grand Moff Tarkin
[24] The Canadian Truckers’ Convoy
Brave search engine summary: “Canadian truckers convoy“
“Canadian Truckers Convoy
The Canadian truckers’ convoy, known as the “Freedom Convoy” (French: Convoi de la liberté), was a series of protests and blockades across Canada in early 2022, initially organized to oppose COVID-19 vaccine mandates for cross-border truck drivers.
The movement began in January 2022, with the first convoy departing Prince Rupert on January 22, and expanded to protest all pandemic-related restrictions and mandates. Hundreds of vehicles, including trucks and cars, traveled from various parts of Canada, converging in Ottawa by January 29 for a rally at Parliament Hill.
The protests were sparked by new rules requiring Canadian truckers crossing into the United States to be fully vaccinated, effective January 15, 2022, ending previous exemptions for essential workers.
Although an estimated 85–90% of the 120,000 Canadian truckers serving cross-border routes were already vaccinated, concerns about job losses and supply chain disruptions fueled opposition. Organizers, including groups like Canada Unity, framed the convoy as a broader stand against government overreach and Prime Minister Justin Trudeau’s pandemic policies.
The convoy gained national and international attention, with demonstrations spreading to other Canadian cities, key border crossings like the Ambassador Bridge and Coutts-Sweetgrass, and solidarity protests in the U.S. and New Zealand.
In Ottawa, the protest paralyzed the downtown core for weeks, with thousands of vehicles blocking streets around Parliament Hill. The situation prompted Ottawa’s mayor to declare a state of emergency on February 6, 2022.
The movement drew support from various individuals and groups, including some with ties to far-right and conspiracy ideologies, which led to concerns about the presence of extremist symbols and rhetoric at protest sites.
In response to the prolonged disruption, Prime Minister Trudeau invoked the Emergencies Act on February 14, 2022, to empower law enforcement to clear blockades and restore order.
It is important to note that some images circulating online, such as a 2019 convoy of trucks supporting Canada’s oil and gas industry (the “United We Roll” protest), were falsely presented as part of the 2022 Freedom Convoy.
The 2019 event was unrelated to vaccine mandates and instead protested government energy policies.“
“Canada convoy protest
The Canada convoy protest, known as the Freedom Convoy (French: Convoi de la liberté) was a series of protests and blockades across Canada in early 2022, initially organized to oppose COVID-19 vaccine mandates for cross-border truck drivers. The movement quickly expanded to protest all COVID-19 restrictions and mandates. Beginning on January 22, 2022, hundreds of vehicles departed from various locations across Canada, converging in Ottawa on January 29 for a rally at Parliament Hill, joined by thousands of pedestrian protesters. Parallel demonstrations occurred in provincial capitals and at key border crossings with the United States.“
[25] The Canadian Truckers’ Convoy using GoFundMe
Brave search engine summary: “Canadian truckers convoy using GoFundMe“
“Canadian Truckers GoFundMe Convoy
The Canadian “Freedom Convoy” protest, which began in January 2022, involved truckers and supporters traveling to Ottawa to protest federal COVID-19 vaccine mandates, particularly those affecting cross-border truck drivers.
The organizers, Tamara Lich and B.J. Dichter, launched a GoFundMe campaign on January 14, 2022, to help cover expenses such as fuel, food, and lost wages for participants. The campaign quickly gained traction, raising over CA$5 million by January 25 and eventually surpassing CA$10 million before being suspended.
GoFundMe initially placed a hold on the funds on January 24, stating that the organizers needed to demonstrate how the money would be properly distributed, in accordance with standard verification processes.
This temporary freeze was also attributed to international banking regulations, according to the organizers. Despite the hold, GoFundMe later released an initial $1 million to the organizers after beginning its verification process.
However, on February 5, 2022, GoFundMe announced it would no longer allow donations to the campaign and planned to redirect the funds to “verified charities” chosen by the organizers, unless donors requested refunds by February 19.
This decision followed widespread concerns about the protest’s association with far-right groups, extremist views, and the occupation of Ottawa.
In response to the GoFundMe suspension, the convoy organizers moved their fundraising efforts to alternative platforms. They partnered with CloutHub, which positioned itself as a censorship-resistant platform, and also began accepting direct e-transfers.
Additionally, supporters raised over $9 million through GiveSendGo, another crowdfunding site known for hosting right-wing causes, which took in over $640,000 in platform fees from the donations. A separate effort using Bitcoin via the Tallycoin platform raised more than $450,000, allowing donors to bypass centralized payment systems.“
“GoFundMe has frozen $4.5 Million in funds collected by protesting Canadian Truckers“
“GoFundMe withholding $4.5 million from trucker convoy until plan presented” (Posted January 25, 2022 6:23 am)
[26] Trudeau cutting off the CTC’s funding from GoFundMe
Brave search engine summary: “Canadian truckers protest cut off from GoFundMe“
“GoFundMe Cuts Truckers
In early February 2022, GoFundMe froze a major fundraising campaign supporting the Canadian “Freedom Convoy” truckers’ protest against COVID-19 vaccine mandates, after it had raised over CA$10 million (US$7.96 million).
The platform stated the fundraiser was paused and under review to ensure compliance with its terms of service, applicable laws, and regulations, particularly concerning the identity of the organizers, the use of funds, and whether the campaign promoted behavior in support of violence.
GoFundMe later determined that the protest efforts violated its terms of service due to unlawful activity, leading the company to cut off funding for the organizers.
Initially, GoFundMe announced plans to redirect the donated funds to charities of its choosing, a move that sparked widespread backlash and accusations of political bias and overreach. Facing legal threats from U.S. states like Texas and Florida, GoFundMe reversed its decision and committed to issuing refunds to donors instead.
Following the shutdown of the GoFundMe campaign, protest organizers moved to the Christian-based fundraising platform GiveSendGo, which quickly raised millions more in donations.
In response, the Ontario government obtained a court order to freeze access to those funds, asserting the protest had become an unlawful occupation. GiveSendGo pushed back, stating Canada had no jurisdiction over its U.S.-based operations and that funds were directly distributed to recipients.
The incident drew significant political attention, with U.S. Republican figures such as Texas Attorney General Ken Paxton and Florida Governor Ron DeSantis criticizing GoFundMe’s actions and defending the donations as support for a “worthy cause”.
Canadian officials, including Public Safety Minister Marco Mendicino, rebuked the foreign political involvement, emphasizing Canada’s sovereignty and rule of law.“
“GoFundMe Cuts Off the Truckers“
“GoFundMe Makes Controversial Move as Fundraising Campaign for Truckers Reaches Nearly US$8 Million“
[27] Trudeau cutting off the CTC’s funding from bitcoin exchanges
Brave search engine summary: “Canadian truckers protest cut off from bitcoin exchange“
“Canadian Truckers Protest Bitcoin Exchange
Yes, the Canadian truckers’ protest was effectively cut off from traditional cryptocurrency exchanges. In February 2022, the Royal Canadian Mounted Police (RCMP) and the Ontario Provincial Police issued an order requiring all regulated financial institutions, including cryptocurrency exchanges, to cease facilitating transactions with 34 specific crypto wallets linked to the protest.
This action was taken under the authority of the Emergencies Act, which had been invoked by Prime Minister Justin Trudeau to address the disruption caused by the ‘Freedom Convoy‘ protests.
Exchanges like Kraken and Coinbase were directly targeted by these orders.
Jesse Powell, CEO of Kraken, publicly stated that his exchange would comply with government requests to freeze and seize funds, emphasizing that they could not protect users from such actions. As a result, funds sent to these designated wallets were blocked from being traded or withdrawn through centralized exchanges.
Despite these efforts, some funds were still moved. Blockchain analysis showed that portions of the donated cryptocurrency, including Bitcoin, were transferred to centralized exchanges like Coinbase and Crypto.com before the freeze orders took full effect.
However, the government’s actions significantly disrupted the flow of funds, and the ability to use these assets was severely limited. The seizure of funds from a fundraiser’s wallet, where police obtained the seed phrase under a search warrant, further demonstrated the vulnerability of centralized custody.“
“Government Crypto Powers in Spotlight After Canadian Trucker Protest Is Disbanded – Industry participants are divided when it comes to lawmakers’ ability to freeze bitcoin wallets“
“Trucker crypto crackdown in Canada fuels GOP backlash in U.S. – At least one House GOP lawmaker has introduced a bill to prevent a similar government clampdown in the U.S.“
[28] The Canadian Truckers’ Convoy using bitcoin using QR codes
Brave search engine summary: “Canadian truckers protest using bitcoin“
“Canadian Truckers Use Bitcoin
In early 2022, Canadian truckers participating in the “Freedom Convoy” protest against COVID-19 vaccine mandates turned to bitcoin for fundraising after traditional platforms blocked their campaigns.
The protest, which began in late January, involved thousands of trucks converging on Ottawa and blocking key border crossings. Initially, supporters raised over C$10 million ($7.8 million) through a GoFundMe campaign, but the platform froze the funds, citing violations of its terms due to reports of unlawful activity.
In response, a group of bitcoin advocates known as “HonkHonkHodl” launched a cryptocurrency fundraising campaign using the platform Tallycoin.
This effort allowed donors to contribute via bitcoin on-chain and through the Lightning Network, emphasizing the censorship-resistant nature of the technology. Over 5,000 individuals from around the world donated approximately 21 bitcoin, valued at over $900,000 at the time. Among the notable contributors was Jesse Powell, CEO of Kraken, who donated 1 bitcoin in support.
The use of bitcoin became a central narrative in the protest, illustrating how decentralized financial systems can bypass traditional restrictions.
However, the Canadian government responded by invoking the Emergencies Act for the first time in history, granting authorities expanded powers to freeze bank accounts and attempt to seize cryptocurrency wallets linked to the protest. Authorities identified and sanctioned 34 crypto wallets—29 Bitcoin addresses and others across different blockchains—receiving more than 20 BTC (worth over $870,000).
Despite these measures, the episode highlighted bitcoin’s role as a tool for financial sovereignty and resistance to state intervention.
A police task force later seized some of the bitcoin funds, though control was eventually relinquished after legal challenges. The protest was disbanded by late February 2022, but its financial dynamics sparked ongoing debate about government power, financial censorship, and the utility of cryptocurrencies in political movements.“
“Canadian Truckers Are Funded with Bitcoin After $10 Million GoFundMe Campaign Was Shut Down
In Canada, truckers are protesting against vaccine mandates. A GoFundMe campaign in support of the protests was shut down. Subsequently, another fundraising campaign based on Bitcoin and the Lightning Network was initiated. With Tallycoin, a fundraiser of over 6 BTC, worth around $250,000 at the time of writing, from 3400+ individuals from all over the world is being conducted. This comes with advantages — such as privacy, censorship resistance, low transaction fees — and concerns. — Cedric Heidt, Philipp Sandner“
“Bitcoin evangelists throw Canadian trucker protest donation lifeline after GoFundMe removal – ‘Don’t allow your voices to be silenced, and don’t allow your financial sovereignty to be trampled upon,’ says group
Following the decision by GoFundMe to remove the donation campaign for the Canada “Freedom Convoy” trucker protest from its site, a group of Canadian libertarian bitcoin evangelists have thrown the group a lifeline.“
“Honk, Honk, HODL: How Bitcoin Fueled The Freedom Convoy And Defied Government Crackdown“
“Canadian Trucker Convoy Raises $450,000+ Using Bitcoin, Bypassing GoFundMe Restrictions“
[29] Using QR codes for bitcoin
Without going into detail in this article, it is a very straightforward task to create a QR code that allows anyone to send bitcoin to a bitcoin wallet. Doing this makes the process less technical and easy to execute. There are plenty of sites which walk you through this easy process. For the curious, I provided high-level steps for creating and using a bitcoin QR code below:
Brave search engine summary: “How to create a QR code for a bitcoin receiving address“
“Create Bitcoin QR Code
To create a QR code for a Bitcoin receiving address, start by obtaining your Bitcoin wallet’s public address from your wallet application.
You can then use a dedicated QR code generator tool, such as those found on websites like ViralQR, QR Code Dynamic, or My QR Code, which allow you to input your Bitcoin address and optionally specify an amount to receive. These tools generate a scannable QR code that encodes the address, making it easy for others to send Bitcoin by simply scanning the code.
The standard format for a Bitcoin QR code is bitcoin:address?amount=amount&label=label&message=message, where the parameters after the address are optional and should be URI-encoded.
For example, you can generate a QR code using a Google Chart API link by replacing the address and adding parameters like amount and message, ensuring spaces are encoded as %20. Alternatively, you can use a bookmarklet or a local tool like qrencode to generate the QR code from the command line, which can be a more secure, offline method.
Once generated, you can customize the appearance of the QR code by changing its colors, adding a logo, or adjusting the size and margin, which is useful for branding on business cards, websites, or marketing materials.
It is crucial to verify the generated QR code by scanning it with a smartphone to ensure it correctly links to your intended Bitcoin address. Always double-check the address before sharing to prevent sending funds to the wrong destination. Some platforms, like My QR Code, offer dynamic QR codes that allow you to update the underlying Bitcoin address without regenerating the code, providing greater flexibility.“
Brave search engine summary: “How to scan a QR code for a bitcoin receiving address“
“Scan QR Code Bitcoin Address
To scan a QR code for a Bitcoin receiving address, follow these steps:
1) Ensure you have a cryptocurrency wallet app installed on your smartphone that supports QR code scanning. Popular options include the Bitget Wallet, Blockchain.com Wallet, and others.
2) Open your cryptocurrency wallet app and navigate to the “Receive” or “Deposit” section. This is where your unique Bitcoin address and its corresponding QR code are displayed.
3) Activate the QR scanner within your wallet app. This is typically found as a button labeled “Scan” or “QR” near the “Receive” or “Deposit” screen.
4) Point your device’s camera at the QR code. The app will automatically detect and scan the code, instantly populating the Bitcoin address field with the information stored in the QR code.
5) Always double-check the scanned address to ensure it matches the intended recipient’s address before confirming any transaction.
This step is crucial to prevent sending funds to the wrong wallet.
6) Once you have verified the address and the amount (if specified in the QR code), proceed with the transaction as prompted by the app.
The QR code typically contains the Bitcoin address, and may also include the amount to be sent or a message, encoded using the Bitcoin URI scheme.
This method is faster and more accurate than manually entering the long, complex Bitcoin address.“
[30] Bitcoin miners’ fees
Miners are paid a nominal transaction fee by the bitcoin senders to clear the transaction and make them irreversible. For context, there are instances of parties sending millions of dollars’ worth of bitcoin for less than $5, fractions of a percent. All bitcoin transactions are permanently and irrevocably cleared in about 60 minutes. In comparison, credit card and bank transactions can be reversed months later (via chargebacks long after the initial settlement). [63]
[31] My friend, “R.“, educating our MeetUp (“Bitcoin, Huntsville, Crypto, & Coffee“) about India
A friend of mine, who I will simply call “R.“, lives in India and gave me some personal insights into this action by the Indian government. He explained how government intervention caused massive black markets to pop-up (the exact opposite intent of Prime Minister Modi). And, the poor and middle class were hamstrung during the transition period because they could not exchange their high denomination rupee notes for lower denominations quickly enough. Consequently, they lost significant and crucial parts of their purchasing power. All of this happened because one man had direct and pernicious control over the lives 1.4 billion people.
[32] India demonetized the 1,000 and 500 Rupee notes
Brave search engine summary: “India removes the 500 rupee note“
“India Removes 500 Rupee Note
India removed the 500 rupee note as legal tender starting from midnight on 8 November 2016, as part of a demonetization effort announced by Prime Minister Narendra Modi to combat corruption, black money, and counterfeit currency.
Alongside the 1,000 rupee note, the 500 rupee note was withdrawn from circulation, and new 500 and 2,000 rupee notes were introduced to replace them. The old 500 rupee notes ceased to be valid, and the public was given a limited period to deposit or exchange them at banks.
However, recent claims in 2025 suggesting a new phase-out of the 500 rupee note by 2026 have been officially debunked. The Indian government, through the Press Information Bureau (PIB) Fact Check, has clarified that there are no plans to discontinue the 500 rupee note, and it remains legal tender.
Financial authorities, including the Reserve Bank of India (RBI), have not issued any directive to stop disbursing 500 rupee notes from ATMs, and the currency continues to be in active circulation.“
“India withdraws 500 and 1,000 rupee notes in effort to fight corruption
This article is more than 8 years old – Prime minister says country’s highest value banknotes will be taken out of circulation as part of clampdown on ‘black money’ “
“Shock as India scraps 500 and 1,000 rupee bank notes“
[33] Software is free speech
Brave search engine summary: “court ruling that software is free speech“
“Software Free Speech Ruling
A federal appeals court ruled unanimously in 2005 that the First Amendment protects programming code, marking the first time a federal appellate court decided that computer programming languages are entitled to free speech protections. This decision in Junger v. Daley overturned a previous ruling that had deemed code more functional than expressive and therefore not protected under the First Amendment. The court recognized that programming languages, like French or German, are a form of language that communicates information to both computers and humans.
This principle was further reinforced by earlier rulings in the 1990s, particularly in the case of Bernstein v. Department of State, where a court found that software source code is protected speech under the First Amendment. In that case, cryptographer Daniel Bernstein challenged export control laws that restricted the publication of encryption software, and the court ultimately ruled that such restrictions violated his First Amendment rights.
More recently, courts have continued to affirm the protection of digital expression. In 2024, the Supreme Court emphasized that government regulation of how social media platforms curate content violates the First Amendment, underscoring the high level of protection afforded to online speech. However, in June 2025, the Supreme Court upheld a Texas law requiring age verification for accessing certain online sexual content, applying intermediate scrutiny and allowing restrictions that burden adults’ access to lawful speech, despite concerns about free speech and privacy implications.“
“In Legal First, Federal Appeals Court is Unanimous: First Amendment Applies to Programming Code
CLEVELAND, OH — The American Civil Liberties Union today lauded a first-ever ruling by a federal appeals court that the First Amendment protects documents written in computer programming languages.“
“EFF at 25: Remembering the Case that Established Code as Speech
One of EFF’s first major legal victories was Bernstein v. Department of Justice, a landmark case that resulted in establishing code as speech and changed United States export regulations on encryption software, paving the way for international e-commerce. We represented Daniel J. Bernstein, a Berkeley mathematics Ph.D. student, who wished to publish an encryption algorithm he developed, the source code for a program to run the algorithm, and a mathematical paper describing and explaining the algorithm.“
[34] Adding layers of security to a bitcoin wallet
For those who are legitimately concerned about security, I can secure my wallet with SEVERAL LAYERS of security that are easy for me to create and unlock but EXTREMELY DIFFICULT (nigh impossible) for anyone else to crack. For the curious, I have provided a high-level set of steps that I can use to secure my bitcoin (this is a slight over-simplification but good enough for now):
- I can protect my bitcoin wallet using a 256-bit password (“passphrase”).
- Encrypt my wallet using a 1,024 bit encryption key.
- Place the wallet in an encrypted virtual drive protected by another 1,024 bit encryption key.
- Place the encrypted virtual drive using another 1,024 bit encryption key in a hidden partition on a physical hard drive or USB drive.
To some you, that sounds like something very encumbered to manage. If you can, do a little research on YouTube on how to use VeraCrypt. It’s surprisingly straightforward, lightweight, and extremely effective.
I can use military-grade encryption for all of this. I can use free and open source code for the encryption (i.e. “VeraCrypt”). With my proper access to the files, credentials, and keys, all of these layers can be unlocked and peeled back in less than two minutes with minimal effort but would take more time than the existence of the universe to hack. This would effectively be a 3,328 bit encryption key (256 + 1,024 + 1,024 + 1,024 = 3,328).
You might have legitimate concerns about losing your wallet. Making extremely secure back-ups is a cinch. After following the above-mentioned steps, I can use the following to create many reliable and secure back-ups:
- Make multiple copies of the virtual drive on various USB thumb drives
- Place those USB thumb drives in different locations that only I know about and can easily access
- Place the virtual drive on an online drive that I control
- Leave one of the USB drives with my estate planning attorney / executor
[35] The “Ultimate Supply Cap & Programmatic Inflation Rate” graph layout
The Horizontal Axes
We have two horizontal x-axes, a lower axis and upper axis. Both the blue line and orange line correspond to both horizontal axes. Both horizontal axes approximately represents time. [71] (Technically, it represents the number of bitcoin transaction blocks on the bitcoin blockchain but more on that in a later article.) The lower horizontal x-axis represents the number of blocks on the bitcoin blockchain. The best way that I can describe “blockchain” is:
- It is a publicly available “accounting ledger” of all of the bitcoin transactions
- The blockchain is comprised of “blocks” which are analogous to a single page in an accounting ledger
- Each block (page) contains many rows of bitcoin transactions which record bitcoin moving from one account to another
- All of the blocks are bound together in a specific order (in time)
The lower x-axis shows the numbers “210”, “420”, “630”, etc., but each of these must be multiplied by 1,000 to show the actual number of blocks (“ledger pages“) that are in the blockchain at that time. As of now (2025), there are ~900,000 blocks which have been put into this massive ledger we call the bitcoin blockchain. So, we can think of this as a huge accounting ledger with roughly 900K pages in it and it continues to grow every ten minutes.
Of course, as humans, we don’t think in terms of “blocks on the blockchain“. Thus, we need to relate this to the traditional way in which we think of the x-axis on a graph, time. This is where the upper x-axis comes into play. In this case, every 210,000 blocks on the bitcoin blockchain very closely represents 4 years. For now, we won’t get into how 210K blocks represent 4 years in this article (in future articles we will revisit it often). But, in order to equate blocks on the blockchain to time, we would trace vertically from the lower axis to the upper axis. For example, if we were to trace from “630” (630,000) on the lower axis vertically to the upper axis then we would land on the year “2021”.
Nerd Note: The method that the inventor of bitcoin, Satoshi Nakamoto [2] created to ensure that 210,000 blocks would be added to the blockchain almost exactly every 4 years is called the “Difficulty Adjustment”. [68] Just like so many other aspects of bitcoin, the Difficulty Adjustment is a fascinating topic that we will cover in future articles.
For context, the Difficulty Adjustment is the first time in human history where we have had what is called in economics “perfectly inelastic supply” [39] which means that the supply of a product which is produced is completely independent of demand and price. Without going into any depth right now, the new supply of bitcoin does NOT change in accordance with increased demand. Therefore, the only thing that can change with increased demand is price.
In my humble opinion, considering that economists have thought that perfect ubiquitous supply inelasticity was impossible, the ability to create perfect supply inelasticity was a stroke of pure genius. I think you will agree when you see how Nakamoto did it and with such simplicity.
The Vertical Axes
Let’s take a look at the vertical y-axis. In this case, we also have two axes. The orange line corresponds with the left axis and the blue line with the right axis. Along the left side, we can see the inflation rate (as a percent) or, to be more exact, the rate at which new bitcoin are added to the existing supply of bitcoin (the amount of new bitcoin created in one year divided by all of the bitcoin created in all of the previous years). In this case, it is expressed as a percentage per year, or the amount of new bitcoin divided by the supply of bitcoin that was already in existence. You’ll notice that the orange line gets progressively closer to the zero line.
The orange line has distinct step-down’s. This happens every four years (every 210,000 blockchain blocks). Each step-down is called a “halving”. [70] In short, a halving is the reduction by half (50%) in the number of new bitcoin which are introduced to the system, a reduction in the inflation rate. So, if the current bitcoin inflation rate happens to be 4%, then after a halving, the inflation rate would reduce by half to 2%. These halvings will occur every 4 years until ~2140. Currently (2025), the network issues 3.125 new bitcoin (approximately) every 10 minutes (which comes to 450 bitcoin per day).
The inflation started high (100%) but that came down very quickly after that (i.e. 100% in year 2, 50% in year 3, 33% in year 4, etc.). As a recent real example, it decreased from 1.8% to 0.9% around 04/20/2024. It happened and no one had to make it happen. It was automatic without any interfering politicians, bureaucrats, or bankers. How many of us would pay good money to watch a politician cut the inflation rate in half because it’s the right thing to do?
For context, we in the U.S. sometimes experience 0.9% in a single month! Other countries have experienced that in a week, sometimes in a day, or even in a single hour! [69]
On the vertical y-axis on the right side, representing the blue line, we have the total amount of bitcoin which have been created (“mined” or have been brought into cryptographic existence). [72] The right axis has the numbers “5“, “10“, “15“, “20“, but there is the multiplier of “millions”. For example, “5” would be 5,000,000 bitcoin (“bitcoin tokens”).
You’ll notice that the blue line is always increasing yet bending downward. It’s not easy to detect but that blue line will never go above 21,000,000 (21M). This is important; this 21M is what we call the Ultimate Supply Cap. Around the year 2140, the very last tiny fraction of bitcoin will be “mined” (introduced to the monetary system). After that point, no more bitcoin will be added to the existing supply of bitcoin.
Nerd Note: The word “bitcoin” is both the singular and plural form, similar to “sheep” and “deer“. Many people innocently mistakenly use the term “bitcoins“.
Nerd Note: We will cover the topic of bitcoin “mining” in future articles.
[36] The numbers of satoshi’s in a bitcoin
One bitcoin can be sub-divided into 100,000,000 smaller units called “satoshi’s” or “sat’s”. This smaller unit was named after the inventor, “Satoshi Nakamoto” [2] As an analogy, the U.S. dollar can be subdivided into small units, pennies.
[37] Trying to create more than 21M bitcoin
If anyone asks you (with a not-so-small amount of snark and sarcasm) how you can possibly verify that there will never be more than 21M bitcoin, you can tell them that anyone can audit the code at GitHub.com! We covered the ability to audit the bitcoin code in a previous article here, in the section “Trust… But Verify“. Tell your detractor to DYOR, Do Your Own Research, and go look at the code.
If anyone tries to create more bitcoin on top of the 21M, the rest of the bitcoin holders will reject those transactions and those people will be left in the cold, a pariah to be ostracized by everyone else until they play by the same fair and equitable rules as everyone else.
All miners and bitcoin participants would simply reject these illegitimate bitcoin. All of the work that some bad actor put into creating those faux bitcoin would immediately go to waste. Thus, there is no “enforcement” of the bitcoin rules necessary; nature and mathematics are the “enforcers” of the bitcoin rules. Unlike having to pay police officers to enforce the law, no costs are incurred by the rest of the bitcoin community to ensure that the bitcoin rules are being followed. This is in stark contrast to our current fiat currency standard which requires inordinate costs (both direct and indirect) to try to enforce. Everyone has the proper incentive to follow the rules. [73]
[38] Milton Friedman’s famous quote on the singular cause of inflation
Milton Friedman had a great quote about price inflation, “Inflation is always and everywhere a monetary phenomenon.“
https://www.goodreads.com/quotes/7216580-inflation-is-always-and-everywhere-a-monetary-phenomenon
“Milton Friedman Teaches Monetary Policy“
[39] Economic elasticity
In the case of bitcoin, its supply is considered to be “perfectly inelastic“.
“Definition of Price Elasticity of Supply
In economics, elasticity is a summary measure of how the supply or demand of a particular good is influenced by changes in price. Elasticity is defined as a proportionate change in one variable over the proportionate change in another variable:
Elasticity = (% Change In Quantity) / (% Change In Price)
The price elasticity of supply (PES) is the measure of the responsiveness in quantity supplied (QS) to a change in price for a specific good (% Change QS / % Change in Price). There are numerous factors that directly impact the elasticity of supply for a good including stock, time period, availability of substitutes, and spare capacity. The state of these factors for a particular good will determine if the price elasticity of supply is elastic or inelastic in regards to a change in price.“
[40] Perfectly inelastic supply
Brave search engine summary “perfectly inelastic supply“
“Perfectly Inelastic Supply
A perfectly inelastic supply curve is one where the quantity supplied does not change with the price, and the supply curve is vertical.
This means producers cannot alter the quantity supplied regardless of price changes. For example, the Mona Lisa painting by Leonardo da Vinci has a perfectly inelastic supply curve because it is unique and cannot be duplicated at any price. In a market with a perfectly inelastic supply curve, an excise tax results in an increase in the price paid by consumers equal to the amount of the tax per unit, with no change in the quantity bought and sold.“
“Perfectly Inelastic Supply
The Mona Lisa painting by Leonardo da Vinci has a perfectly inelastic supply curve. There is only one Mona Lisa painting, and it cannot be duplicated at any price.
Because the Mona Lisa is unique, it will always have a perfectly inelastic supply. In most cases, time has a great influence on the elasticity of supply. Production of some goods or services cannot be increased in the very short term. Time provides greater elasticity in the production of almost all goods and services. Over time management can invest in the labor and equipment to increase production, or lay off workers and find other uses for their plant and equipment If prices fall.“
[41] There are more than enough bitcoin to go around
For anyone who is concerned that 21M are not enough for everyone in the world (~8 billion people), keep in mind that each individual bitcoin can be subdivided into 100,000,000 (100M) [36] smaller parts called “satoshi’s” or “sats“. This is just like one U.S. dollar being subdivided into 100 pennies. If we do the math (21,000,000 bitcoin X 100,000,000 satoshi’s per bitcoin) then we end up with 2,100,000,000,000,000 (2.1 quadrillion) satoshi’s or individual units. Yes, that seems like a huge number but keep in mind that each satoshi is a tiny unit. Ultimately, that means the global average would be ~250,000 satoshi’s per person. Plenty of sats to go around!
To clarify, having 2.1 quadrillion sats does not mean the supply has been inflated. If we remember what Milton Friedman said about the true cause of inflation [38] then it’s not the number of units that is a problem; it’s the growth of the number of units that is the real problem.
[42] The use of the phrases “quantitative easing“, “injecting liquidity“, and “bank bailouts“
When we use terms such as “quantitative easing” and “injecting liquidity” this effectively means that the government and central bank are increasing the number of currency units; they’re inflating the currency supply. This is true inflation. We covered how governments do that here, here, and here. To put this in context, ever time you hear “quantitative easing” or “injecting liquidity” then you should immediately translate that to, “We’re stealing the purchasing power right out of your wallets and bank accounts by inflating the money supply and making the price of everything you buy more expensive.“
When the government and the Federal Reserve use the term “bank bailouts” you should immediately translate that to, “We’re stealing the value directly from your wallets giving it to financial institutions which were irresponsible, unethical, or both.“
In the context of bitcoin’s Ultimate Supply Cap & Programmatic Inflation Rate, removing the state’s and the central banks’ ability to control the money supply completely eliminates their ability to steal from you and to force you support people and institutions who do not represent your values and ethics.
[43] WWII war bonds
In order to fund its military expenditures during World War II, the U.S. had to sell “war bonds”. These were loans that the U.S. federal government had to ask for from the public in order to pay for the war effort. There were enormous efforts that the federal government had to expend in order to ask the public, hat in hand, lend it money.
Let’s roll forward from the 1940’s about two decades to the 1960’s: the U.S. no longer has to sell war bonds in order to fund its massive military efforts and hugely growing entitlement programs. This has persisted all the way into the present (2025).
What happened? What changed? Why were war bonds required prior to 1965 and yet no longer afterwards?? Because the U.S. was still somewhat on a hard money standard during WWII and quickly fell off of that hard money standard going into the 1960’s and 1970’s. At that point, whenever the federal government needed funds, it simply inflated the money supply and took the value from you in order to fund its global military and domestic entitlement programs.
Brave search engine summary: “What were U.S. war bonds“
“U.S. War Bonds
U.S. war bonds were government-issued debt securities designed to finance military operations during times of war, primarily used to fund the United States’ involvement in World War I and World War II. Initially introduced as Defense Bonds in 1941, they were renamed War Bonds following the attack on Pearl Harbor in December 1941, signifying the U.S.’s full engagement in World War II. These bonds functioned as loans from citizens to the government, with the promise of repayment at face value upon maturity, typically after 10 to 40 years, depending on the issue date. They were sold at a discount—usually between 50% and 75% of their face value—and did not pay periodic interest, making them zero-coupon bonds; investors profited from the difference between the purchase price and the face value at maturity.
The U.S. government launched a massive nationwide campaign to promote war bond purchases, leveraging patriotic appeals and extensive advertising across radio, newspapers, magazines, and film newsreels. Celebrities like Bette Davis, Rita Hayworth, and the Andrew Sisters, along with artists like Norman Rockwell and composers like Irving Berlin, played key roles in the effort, with songs like “Any Bonds Today?” becoming iconic. The campaign included bond drives, school and community group participation, and even special events like baseball games and movie screenings where bond purchases were required for admission. The effort was highly successful, with over 85 million Americans purchasing bonds worth more than $180 billion during World War II, representing nearly a fifth of the total war expenditure.
The bonds were also available in small denominations, including War Stamps starting at 10 cents, allowing even children and low-income citizens to contribute. The Series E War Savings Bonds, introduced during WWII, were eventually replaced by Series EE Savings Bonds in 1980, but the original Series E bonds continued to accrue interest until 2010. The U.S. government still allows the redemption of these old bonds through its online savings bond calculator tool.“
[44] Frederick Hayek’s quote on hard money and “sly or roundabout way“
Famous Austrian school economist, Friedrich Hayek, had a famous quote in 1984 where he proposed that the only way that money could be taken out of the hands of government was in some, “sly, roundabout way”. This has become a common phrase in the bitcoin community. The full quote is:
“I don’t believe that we shall ever have good money again before we take the thing out of the hands of government because we can’t take them violently out of the hands of government. All we can do is by some sly or roundabout way introduce something they can’t stop.” — Friederick A. Hayek
You can view the original interview below:
In addition, much of the idea of removing the money supply from the hands of the state was developed in his book “Denationalisation Of Money” (10/01/1976).
[45] The “What Is Money” podcast
You can learn more about the “What Is Money” podcast here.
[46] Ignorant anti-bitcoiners acting in bad faith and promoting fear, uncertainty, and doubt (“FUD“)
- Dave Ramsey: real estate mogul, personal finance guru, and radio talk show host
- Peter Schiff: President and founder of the EuroPacific Fund
- Jamie Dimon: President & CEO – JP Morgan Chase Bank
- Warren Buffet and Charlie Munger: President & Vice President – Berkshire Hathaway
[47] “Capitalism And Freedom” by Milton Friedman
You can pick up the book here “Capitalism And Freedom” by Milton Friedman
“Capitalism And Freedom
Capitalism and Freedom is a book by Milton Friedman originally published in 1962 by the University of Chicago Press which discusses the role of economic capitalism in liberal society. It has sold more than half a million copies since 1962 and has been translated into eighteen languages.
Friedman argues for economic freedom as a precondition for political freedom. He defines “liberal” in European Enlightenment terms, contrasting with an American usage that he believes has been corrupted since the Great Depression.
The book identifies several places in which a free market can be promoted for both philosophical and practical reasons. Among other concepts, Friedman advocates ending the mandatory licensing of physicians and introducing a system of vouchers for school education.“
[61] “Metallica v. Napster, Inc.“
Brave search engine summary: “Lars Ulrich Napster“
“Lars Ulrich, the drummer of Metallica, took a strong stance against Napster, a peer-to-peer file-sharing service, in 2000 when he discovered that a demo of Metallica’s song “I Disappear” was circulating on the platform before its official release. This led Metallica to file a lawsuit against Napster, arguing that the service was enabling users to exchange copyrighted MP3 files without permission.
Many people criticized Lars for his actions at the time, believing that file sharing was a right and not willing to pay for music.
However, some artists, including Corey Taylor of Slipknot and David Ellefson of Megadeth, have since defended Lars, stating that he was right about Napster and that the band’s actions were necessary to protect artists’ rights.
In 2001, Napster settled the lawsuits with Metallica and Dr. Dre, but the Napster service ultimately filed for bankruptcy due to the fallout from the lawsuits.
Despite the controversy, Metallica’s lawsuit is considered a landmark case that helped redefine how we listen to music.
Lars himself has since reflected on the situation, expressing regret for not educating himself better about Napster and the broader implications of digital music distribution.“
“Metallica v. Napster, Inc.“
“Metallica, et al. v. Napster, Inc. was a 2000 U.S. District Court for the Northern District of California case[1] that focused on copyright infringement, racketeering, and unlawful use of digital audio interface devices. Metallica vs. Napster, Inc. was the first case that involved an artist suing a peer-to-peer file sharing (“P2P”) software company.“
[62] Iran shuts down internet access in their country
Brave search engine summary “Iran internet shutdown“
“Iran Internet Shutdown
Iran has frequently shut down the internet to suppress protests and control information. The most notable internet blackout occurred in November 2019, lasting from November 16 to November 23, as a response to the 2019–2020 Iranian protests.
During this period, Iranian citizens could only access the National Information Network (NIN), which allowed some government services and local apps to remain operational. Internet shutdowns have continued since then, with Iran ranking third globally in the number of internet shutdowns in 2022. These actions have significant economic impacts, costing Iran approximately $773 million in 2022.“
“Iranians Sustain Huge Losses Due To Government Internet Shutdowns
Amid reports that Iranians have lost more than $770 million due to deliberate government internet outages in 2022, authorities try to play down the impact.
Iranian Minister of Information and Communications Technology Issa Zarepour said Friday that there is no accurate data regarding the damage from internet access restrictions. However, independent VPN review website Top10VPN said in its annual that the economic impact was about $773 million in 2022.“
“FEATURE-Iran steps up internet crackdown one year after Mahsa Amini death
“INTERNET SHUTDOWNS HAVE ECONOMIC COSTS
Already struggling with international sanctions, high inflation and unemployment, internet shutdowns cost Iran an additional $773 million last year, digital privacy research group TOP10VPN estimated.
The impact is felt by small businesses across the country.
“We haven’t had one day without the internet causing some sort of problem. It’s impossible to have a normal life in these conditions,” said Saeed Souzangar, who said he was struggling to keep his Tehran technology company afloat.“
[63] Credit card transactions being reversed many months later
Brave search engine summary: “How long can credit card chargebacks happen after settlement“
“Credit Card Chargeback Time Limit
The timeframe for filing a credit card chargeback after a transaction has been settled generally ranges from 60 to 120 days from the date of the transaction, depending on the card network and the reason for the dispute.
For most disputes, including those related to fraud, billing errors, or goods not received, the standard window is 120 days. However, for certain cases like “Credit Not Processed,” banks must wait 15 days after the credit document date or the date services were terminated before processing a chargeback. While the Fair Credit Billing Act (FCBA) mandates a minimum of 60 days for disputing a charge, many issuers allow up to 120 days. There is a rare exception allowing disputes up to 540 days from the transaction date if the cardholder only realized they hadn’t received goods or services after that time, though this is uncommon and typically applies to pre-paid or long-term service agreements.“
[64] “appeal our better angels“
Brave search engine summary: “appeal to our better angels“
“Appeal to Our Better Angels
The phrase ‘appeal to our better angels’ originates from Abraham Lincoln in 1861. Lincoln used it to urge Americans to maintain their bonds of affection and unity despite the tensions and divisions of the time. The phrase suggests that people should strive to act with higher virtues and resist base tendencies, appealing to their more enlightened and compassionate nature.
The context of Lincoln’s speech was the secession of several Southern states and the looming threat of civil war. He hoped that by appealing to the ‘better angels of our nature,’ the nation could avoid conflict and preserve the Union.
Since Lincoln’s time, the phrase has been used in various contexts to encourage people to rise above their differences and act with kindness and understanding.
It has been adopted by organizations, books, and media as a call for unity and moral improvement.
In summary, ‘appeal to our better angels‘ is a call to summon one’s highest moral and compassionate qualities, as expressed by Lincoln and echoed in various forms since then.“
[65] Politicians claim only criminals use bitcoin
Brave search engine summary “which public figures claim only criminals use bitcoin“
“Public Figures on Bitcoin Use
Jamie Dimon, the CEO of JPMorgan Chase, has stated that if you were in certain countries like Venezuela or Ecuador, or if you were a drug dealer or murderer, you would be better off doing transactions in bitcoin than in US dollars.
Additionally, Treasury Secretary Janet Yellen has referenced cryptocurrencies as a particular concern for terrorist financing, suggesting that cryptocurrencies are mainly used for illicit financing.“
“Fact or Fiction: Crypto is the currency of criminals
One of the most common criticisms of cryptocurrency is that it is the currency of criminals. Jamie Dimon, CEO of JPMorgan Chase, the biggest bank in the US, famously said ‘If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than US dollars,’ “
“The False Narrative Of Bitcoin’s Role In Illicit Activity
Speaking at a Senate Finance Committee hearing today, Janet Yellen, President-elect Joe Biden’s pick for Secretary of the Treasury, stated cryptocurrencies are ‘a particular concern‘ when it comes to criminal activity and terrorist financing.
Yellen continued, ‘I think many (cryptocurrencies) are used, at least in a transaction sense, mainly for illicit financing. And I think we really need to examine ways in which we can curtail their use, and make sure that anti-money laundering (sic) doesn’t occur through those channels.‘ “
[66] How big is the illicit drug trade?
Since so many politicians and leaders of financial institutions have publicly stated that bitcoin is “only used for crime and drug deals“, I wanted to bring attention that the real problem here is not bitcoin but our global fiat currency system. Specifically, the vast majority (99%+) of global crime and drug deals are committed using fiat currencies, not bitcoin. People who say that bitcoin’s only use is for crime and illegal drugs are lying and deliberately not telling the whole story.
Brave search engine summary: “What is the global value of illegal drug trade in us dollars“
“Global Value of Illegal Drug Trade
The global value of the value of the illegal drug trade is estimated to be between $32 billion and $652 billion annually. More specifically, the UNODC reported that the global illicit drug market was valued between $426 billion and $652 billion in 2014. Additionally, [the] RAND Corporation estimated that Americans spent nearly $150 billion annually on illicit drugs in 2016.“
“Illegal Drug Trade
The illegal drug trade, drug trafficking, or narcotrafficking is a global black market dedicated to the cultivation, manufacture, distribution and sale of prohibited drugs. Most jurisdictions prohibit trade, except under license, of many types of drugs through the use of drug prohibition laws. The think tank Global Financial Integrity’s Transnational Crime and the Developing World report estimates the size of the global illicit drug market between US$426 and US$652 billion in 2014 that is equal to the UK’s national debt alone. With a world GDP of US$78 trillion in the same year, the illegal drug trade may be estimated as nearly 1% of total global trade. Consumption of illegal drugs is widespread globally, and it remains very difficult for local authorities to reduce the rates of drug consumption.“
“Americans’ Spending on Illicit Drugs Nears $150 Billion Annually; Appears to Rival What Is Spent on Alcohol
Spending on cannabis, cocaine, heroin and methamphetamine by Americans reached nearly $150 billion in 2016, with a large proportion of spending coming from the small share of people who use drugs on a daily or near-daily basis, according to a new RAND Corporation report.“
[67] Global value of crime in U.S. dollars
Below, I have placed several articles and references regarding global crime to highlight the fact that the VAST MAJORITY of crime happens with fiat currency, not bitcoin. This is in stark contrast to the outlandish claims that politicians and traditional finance titans make regarding bitcoin’s “only use” is for criminal activity. One could argue that the biggest crime perpetrated upon the people of the world is the requirement by all governments that fiat currencies be used, giving all governments the ability to steal the life’s savings of their citizens. Overall, actual criminal activity in fiat currency is MANY orders of magnitude greater than what bitcoin could ever be.
Brave search engine summary “What is the global value of crime in us dollars“
“Global Value of Crime
The aggregate cost of crime in the United States is significant, with an estimated value of $4.9 trillion reported in 2021.“
“Crime in the United States
The aggregate cost of crime in the United States is significant, with an estimated value of $4.9 trillion reported in 2021.“
“The Aggregate Cost of Crime in the United States
Estimates of crime’s burden inform public and private decisions about crime-prevention measures. More than counts of criminal offenses, the aggregate cost of crime conveys the scale of problems from crime and the value of deterrence. This article offers an estimate of the total annual cost of crime in the United States, including the direct costs of law enforcement, criminal justice, and victims’ losses and the indirect costs of private deterrence, fear and agony, and time lost to avoidance and recovery. The findings update crime-cost estimates of past decades while expanding the scope of coverage to include categories missing from past studies. The estimated annual cost of crime is $4.71–$5.76 trillion including transfers from victims to criminals and $2.86–$3.92 trillion net of transfers.“
- Anderson, David A. (November 2021). “The Aggregate Cost of Crime in the United States“. Journal of Law and Economics. 64 (4): 857–885. doi:10.1086/715713. S2CID 246635242. Retrieved March 6, 2022.
Brave search engine summary “What is the global value of crime in dollars“
“Global Crime Value in Dollars
The global value of transnational crime is estimated at $1.6 trillion to $2.2 trillion annually, according to a report by Global Financial Integrity released in March 2019.
This includes various illicit industries such as counterfeiting, drug trafficking, and illegal logging, among others. The report highlights that high profits and low risks for criminals, combined with a global shadow financial system, perpetuate these criminal activities.“
“Transnational Crime is a $1.6 trillion to $2.2 trillion Annual ‘Business’, Finds New GFI Report
Globally the business of transnational crime is valued at an average of $1.6 trillion to $2.2 trillion annually, according to a new report released today by Global Financial Integrity (GFI), a Washington DC-based research and advisory organization. Titled “Transnational Crime and the Developing World,” the study highlights that the combination of high profits and low risks for perpetrators of transnational crime and the support of a global shadow financial system perpetuate and drive these abuses.“
“Transnational Crime and the Developing World
This March 2017 report from Global Financial Integrity, “Transnational Crime and the Developing World,” finds that globally the business of transnational crime is valued at an average of $1.6 trillion to $2.2 trillion annually. The study evaluates the overall size of criminal markets in 11 categories: the trafficking of drugs, arms, humans, human organs, and cultural property; counterfeiting, illegal wildlife crime, illegal fishing, illegal logging, illegal mining, and crude oil theft.“
“Transnational Crime
This March 2017 report from Global Financial Integrity, “Transnational Crime and the Developing World,” finds that globally the business of transnational crime is valued at an average of $1.6 trillion to $2.2 trillion annually. The study evaluates the overall size of criminal markets in 11 categories: the trafficking of drugs, arms, humans, human organs, and cultural property; counterfeiting, illegal wildlife crime, illegal fishing, illegal logging, illegal mining, and crude oil theft. Counterfeiting ($923 billion to $1.13 trillion) and drug trafficking ($426 billion to $652 billion) have the highest and second-highest values, respectively; illegal logging is the most valuable natural resource crime ($52 billion to $157 billion).“
[68] The bitcoin Difficulty Adjustment
Brave search engine summary: “What is the bitcoin difficulty adjustment“
“Bitcoin Difficulty Adjustment
The Bitcoin difficulty adjustment is a mechanism that ensures a new block is added to the blockchain approximately every 10 minutes, maintaining a consistent block creation rate regardless of changes in the network’s total computing power.
This adjustment occurs automatically every 2,016 blocks, which is roughly every two weeks. The network calculates the difficulty for the next epoch based on the actual time it took to mine the previous 2,016 blocks compared to the expected time of 20,160 minutes (2 weeks). If the blocks were mined faster than the target time, the difficulty increases to make mining harder; if they took longer, the difficulty decreases to make mining easier. The adjustment factor is proportional to the difference between the actual and expected time, but it is capped at a maximum change of four times the current difficulty level to prevent abrupt shifts. This self-correcting system is crucial for preserving Bitcoin’s predictable issuance schedule and its intended monetary policy, ensuring that the rate of new Bitcoin creation remains stable even as mining technology advances.“
[69] High inflation
With regards to the concept of “inflation”, in common usage, we mean “price inflation“. Our usual way of measuring price inflation is the federal government statistic called the “Consumer Price Inflation” or “CPI“. There are many legitimate complaints about the CPI as a measure of price inflation because of the way that it has been manipulated, mutated, deformed, and constructed in bad faith over the past five decades. Without going into any sort of detail, I agree with the majority of those criticisms. In my opinion, a more realistic measure of price inflation can be found at Shadow Stats (www.ShadowStats.com). The operators of this website have a more consistent, holistic, and realistic method of measuring price inflation. I highly recommend visiting their site. I think it will put the concept of price inflation into proper context. If you really want to nerd-out then do some research into the “M2 Money Supply“. In short, it is the growing M2 Money Supply which actually creates price inflation. Please see the above note regarding Milton Friedman and his quote on the true cause of inflation.
[70] The bitcoin halving
The bitcoin halving is a reduction by half in the number of bitcoin that are awarded to a miner for successfully discovering (“mining”) a bitcoin block on the bitcoin blockchain. These halving events occur every four years and are considered significant in the bitcoin community. The current (2025) bitcoin reward for mining a bitcoin block is 3.125 bitcoin. Around 03/2028, that reward will be cut in half to 1.5625 bitcoin. This reward of bitcoin to a miner is inflationary (currently about 1%) but is cut in half at every bitcoin halving event. Thus, in March of 2028, the inflation rate will programmatically drop from 1% to 0.5%.
Nerd Note: For the curious, the method that the blockchain is able to measure four years is fascinating! While we can’t cover this topic now, we will get into that topic in future articles.
Brave search engine summary: “bitcoin halving“
“Bitcoin Halving
The last Bitcoin halving is happened in April 2024, reducing the block reward from 6.25 to 3.125 bitcoins.
This event, which happens approximately every four years or after 210,000 blocks are mined, is a key feature of Bitcoin’s monetary policy designed to control inflation and ensure scarcity. The halving of the block reward is expected to limit the supply of new bitcoins entering the market, which could increase scarcity and potentially raise the price if demand remains strong. However, the exact impact on the price is uncertain and depends on market conditions.
Historically, Bitcoin’s price has shown significant increases following halving events.
For example, after the halving in May 2020, the price of Bitcoin surged from $6,877.62 to $8,821 at the time of the event and continued to rise to reach $49,504 by May 2021.
The fourth halving event occurred on April 20, 2024, at block height 840,000.
The next halving is expected to happen on March 26, 2028, at block height 1,050,000.
Bitcoin halvings are important for traders because they reduce the number of new bitcoins being generated by the network, which can impact the price.
Traders can speculate on the price of Bitcoin using derivatives such as CFDs or buy the coins outright via an exchange.
The total supply of Bitcoin is capped at 21 million coins, and the halving process will continue until all coins are mined, which is estimated to happen around the year 2140.“
[71] Blockchain time
Technically, it represents the number of bitcoin transaction blocks on the bitcoin blockchain but we’ll cover that in a later article. In the bitcoin whitepaper, Satoshi called the blockchain a “timechain“.
[72] Bitcoin mining
In regards to “bitcoin mining“, we use the terms “mined” or “mining” as a convenient way of describing a vital function of the bitcoin network. In short, newly “mined” bitcoin are simply bitcoin that are introduced into the existing supply of bitcoin. We can’t go into the topic of bitcoin mining now but we will cover this subject in many future articles. Suffice it to say that bitcoin mining is a fascinating topic!
[73] Following the rules because it’s in their own best interest
For those who are interested in the concept of “following the rules because it is in their own best interest” I recommend looking into the concepts of “Game Theory” [74] and “Schelling Point” [16]
Ultimately, it’s about people voluntarily choosing to follow the rules because it’s in their own best interest. This is the ultimate in system design and engineering; creating incentives where people follow the rules because it is in their own best interest and not because of some enforcer.
[74] Game Theory
“Game Theory
Game theory is the study of mathematical models of strategic interactions.[1] It has applications in many fields of social science, and is used extensively in economics, logic, systems science and computer science.[2] Initially, game theory addressed two-person zero-sum games, in which a participant’s gains or losses are exactly balanced by the losses and gains of the other participant. In the 1950s, it was extended to the study of non zero-sum games, and was eventually applied to a wide range of behavioral relations. It is now an umbrella term for the science of rational decision making in humans, animals, and computers.“
Brave search engine summary: “game theory summary“
“Game Theory Summary
Game theory is a mathematical framework used to model strategic interactions among rational decision-makers, known as players, where the outcome for each player depends on the actions of all others. It provides tools to analyze situations involving cooperation, conflict, and competition across diverse fields such as economics, biology, political science, psychology, and computer science. The core elements of a game include players, their available strategies, the information they possess, the sequence of moves, and their preferences over the possible outcomes.
The theory originated with John von Neumann and Oskar Morgenstern’s 1944 book The Theory of Games and Economic Behavior, initially focusing on zero-sum games—situations where one player’s gain is exactly balanced by another’s loss. It was later extended to non-zero-sum games, which allow for mutual gains or losses, reflecting more complex real-world interactions. A central concept in game theory is the Nash equilibrium, where no player can benefit by unilaterally changing their strategy, given the strategies of the others. This equilibrium concept helps predict stable outcomes in strategic scenarios.
Game theory distinguishes between different types of games, including simultaneous-move games (where players act at the same time) and sequential-move games (where players act in turn, with later players aware of earlier actions). In sequential games, players use backward induction to look ahead and reason back to determine optimal strategies. In simultaneous games, the logical challenge of mutual anticipation—“I think that he thinks that I think…”—is resolved through equilibrium analysis.
The theory also examines strategic behaviors such as dominant and dominated strategies, where a dominant strategy is always optimal regardless of others’ choices, and a dominated strategy is always inferior. In some cases, like the prisoner’s dilemma, the Nash equilibrium leads to a collectively suboptimal outcome, highlighting the tension between individual rationality and group welfare. To achieve cooperation in repeated interactions, strategies like tit-for-tat are often effective.
Game theory has practical applications in business strategy, auctions, negotiations, pricing decisions, and even military and diplomatic planning. It helps predict competitor responses and design optimal strategies, especially in oligopolistic markets. However, its predictions can be limited by the assumption of perfect rationality, as real-world decisions are often influenced by emotions, social norms, and bounded rationality.
In essence, game theory is the science of strategy, aiming to understand and predict how rational agents make decisions in interdependent situations.“
