“Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” -Abraham Lincoln
To understand the implications of a paradigm changing technology, one must intimately understand the problem that is being addressed. If we do not understand the problem at a granular level, how can we ever determine what may be a suitable solution? Bitcoin has been obtuse to many, the reason being that most simply do not understand the problem of money; if you are one of these people, don’t be hard on yourself — very few do understand. With this writing, the aim is to help the novice learner become familiar with our current problem of money. Once the problem is understood, the solution becomes obvious. When speaking to radical disruption, humans have a hard time adapting to a new reality. This is not only due to fear of change, but more so, we are psychologically conditioned to our environment — we cannot see that something is broken when it is all we have ever known.
“If I had asked people what they wanted, they would have said faster horses.” — Henry Ford
Everyone that is now a Bitcoin evangelist was once a Bitcoin skeptic — this rule applies with very few exceptions. Bitcoin is an excruciatingly complex system that requires a working knowledge of economics, computer science, open-source software, game theory, the global political landscape and investment strategy. Bitcoin is an open-source, globally distributed protocol for transferring and storing value; but, just as important, it has a vast technology stack being built out on top of the base protocol — drastically expanding Bitcoin use cases. Bitcoin can mean a wide variety of things to different people with different motivations and has a near infinite number of potential use cases. From this worldview, Bitcoin dominates without rival on three core applications:
- Finite and programmatic money supply issuance with no risk of debasement (inflation) — in essence, the wealth you own…