BTCMeansFreedom4All on Nostr: One thing I love about #Bitcoin is it's #volatility. Why? Because it's volatility is ...

One thing I love about #Bitcoin is it's #volatility. Why? Because it's volatility is evidence of it being a truly #freemarketgood.

You see when something is 'stable' it's actually being #manipulated. The U.S. Dollar is the most 'stable' currency in the world, yet it loses about 7% of it's value in a year in perpetuity due to this #manipulation. (So only giving the #illusion of stability really).

Here's an #analogy: Think of the demand for any good within a free market like an open pool of #EconomicEnergy that we'll represent with oil (the demand is literally the economic energy flowing into it, through purchases and the work needed to create more of this market good), with the surface of the pool being the spot price.

Just as with actual oil it takes a lot of energy to produce new quantities of this oil and put it into the pool, but this is good because it maintains the quality of the oil (energy) in the overall pool. It's volatile but the larger the market the less turbulent the surface is relative to the overall capacity, and you're confident that the quality of the oil you put in will be the same as what you pull out.

(Bitcoin specifically revolutionized this mechanism by adding a way to track the percentage of the overall system that your energy represents at the time you input it, and maintains that percentage as the network grows to maintain fairness for everyone.)

Dumping a ton of oil in this pool at once (lots of buying/producing) causes the surface to become more turbulent, and scooping a ton of oil out all at once (selling/spending/using) does the same.

With Bitcoin, this pool always has a source of new oil regardless of what the market is doing. That is the value of the time / effort / energy that the #MiningNetwork is inserting through #ProofOfWork which simultaneously expands the pool size (the ever reducing creation of new coins) and adds new oil (the proof of work energy those coins represent) at the same time to maintain and grow the overall capacity of the pool.

Mining is the constant source of the energy needed to make the system sustainable (like the Sun provides to earth which sustains life), without it the system cannot survive due to the #SecondLawOfThermodynamics stating all isolated systems become chaotic due to increasing #entropy without a new external source of #energy. This is why #ProofOfStake coins are #unsustainable long term, they have no perpetual source of new energy input outside the open market. Proof of stake coins are closed systems doomed to fail without offering an alternative value proposition to sustain them.

When people stop focusing on the surface turbulence they realize that over time the overall energy of Bitcoin's pool is consistently growing larger, supported by mining, and the surface waves aren't worth worrying about at all if you're not over extended/leveraged.

On the other hand, a government currency is like a sealed box of pressurized water that was once an open pool of oil when it was on the Gold standard. It once was the case that both citizens and their governments would need to do work to put actual oil into it, preserving the quality within when withdrawn, and the market for gold matured long ago so it's volatility was rather small relative to it's overall value enabling it's use as a unit of account.

Gold also takes energy in through the mining of new Gold, but lacks the tracking mechanism to maintain percentages of the overall system that our input represents.

When governments broke from the Gold standard they put a lid on this pool, with a funnel for citizens to continue putting their hard earned oil (economic energy) in, and small valves the government controls for the distribution of oil to those same citizens.

At the same time they added special giant in and out connections for themselves that allow them to simultaneously pump in as much water as they want (printing more fiat with no marginal cost of production, and therefore no energy being input into the system) which dilutes the oil and reduces its ability to function for its purpose (pay for things), while also pumping the mix of citizen provided oil (diluted with government water) out when needed to spend however they see fit.

They can exchange worthless water with the mixture of oil and water as much as they want/need; do it too quickly and citizens lose faith in the pool, as it's obviously not as pure as the oil they put in, and the currency hyperinflates. 7% a year is enough that most people don't immediately notice the change in quality over time, especially when technology reduces how much oil is needed to live through efficiency gains.

In this #FIAT system their is no surface turbulence because it's a sealed box so people have a false sense of safety, in turbulent markets when the pressure in the box grows too low they add restrictions on your ability to use your oil, and pump in a lot of water to increase the pressure of the system to make everyone think everything is fine. But this again reduces the quality of the oil within and also reduces faith in the system (what good is money if it's unavailable when you need it most?), and you need more of this diluted oil to get things done.

Eventually governments abuse this and the system gets diluted of economic energy faster than citizens can add fresh oil, and it just becomes plain water that nobody can use for anything.

Bitcoin prohibits these government manipulation tactics. There is no dilution of the oil allowed. No special government spiggets. It's fair for everyone thanks to it's method of tracking the percentage of the overall system our input represents. During market turbulence you have full access to your #SelfCustodied Bitcoin. And it has a constant source of fresh oil from the mining network that sustains the energy held within.

Bitcoin is truly #Revolutionary. It provides us a way to #Peacefully starve the current toxic system that is #Enslaving us to ourselves. I welcome the #NewAge of #Prosperity it is slowly bringing to #Humanity, and I can't wait to see what the next few decades bring about when supported by the #SoundMoney system that is ₿.

#Freedom
#Bitcoinisfreedom
#Bitcoinisfair