Musings

The world of international relations is undergoing a dramatic shift.

Traditionally, countries have relied on military muscle, economic clout, and alliances to project power.

But a new player has entered the game.

The Rise of Decentralized Disruption

The 21st century has witnessed the rise of blockchain, Bitcoin, and DeFi, all acting as disruptors to traditional power structures.

Bitcoin’s magic lies in its distributed nature.

Unlike traditional currencies controlled by central banks, Bitcoin has no single authority.

Instead, a vast network of computers around the world, known as miners, collaboratively verifies and secures transactions.

This decentralization creates a whole new way to project power. One that’s not beholden to any one nation-state.

National Power in a Decentralized World

So how does this translate to national strategy?

Borderless Power Projection

Forget tanks and trade deals. Bitcoin allows nations to project power without the constraints of physical borders.

Imagine a scenario where a nation with a strong Bitcoin economy can bypass traditional financial sanctions or offer financial aid directly to individuals in another country, bypassing gatekeepers like central banks.

This fundamentally changes the game of international influence.

Challenge to Traditional Sovereignty

Bitcoin’s ability to operate outside government control throws a wrench into the traditional concept of sovereignty.

A nation’s ability to control its currency is a cornerstone of sovereignty.

With Bitcoin, individuals and businesses have an alternative financial system that exists outside the control of any one nation.

This challenges the traditional power dynamic and forces governments to rethink their approach to financial regulation and economic policy.

Reshaping the International Order

The rise of decentralized power projection has the potential to rewrite the rules of international relations.

New forms of collaboration could emerge, as nations find common ground in fostering innovation and security within the decentralized space.

Competition will also take on new forms, with nations vying for influence and a strategic edge in this new frontier.

The Future of Global Politics

The implications of Bitcoin’s power projection are vast. As countries navigate this new landscape, expect to see:

Cooperation 2.0

Nations will have to find new ways to work together in this decentralized world.

Traditional alliances based on geography or shared enemies may no longer be the only glue that binds nations.

Cooperation around regulating the decentralized space, fostering innovation, and maintaining security in this new frontier will become crucial.

Security Redefined

National security strategies will need to adapt to this new reality.

New threats and opportunities will emerge in the decentralized space.

Nations will need to develop strategies to protect their citizens and interests in this new digital landscape.

A New Arena of Competition

The race for influence in the decentralized space will become a major battleground for nations.

Nations will compete to develop expertise in blockchain technology, attract talent and businesses to their jurisdictions, and shape the future of this new digital economy.

Embracing the Future

The rise of Bitcoin presents a fascinating new lens for understanding national power.

As technology continues to evolve, nations that embrace decentralization will be best positioned to thrive in this new era.

Recognizing Bitcoin’s strategic significance is no longer optional.

It’s the key to unlocking success in the decentralized future.

Humanity’s relationship with money has been an ever-evolving journey, shaped by societal needs and technological advancements. 

From primitive bartering systems to precious metals and fiat currencies, the pursuit of an ideal medium of exchange has been a constant pursuit. 

Why Bitcoin Outshines All

As the the digital age unfolds, Bitcoin has emerged as a revolutionary technology. 

A decentralized, peer-to-peer electronic cash system that challenges traditional notions and presents a superior alternative to the status quo.

Unmatched Durability

Gold’s reputation for durability is well-established, yet Bitcoin surpasses even the most precious metal. 

Existing solely on a digital ledger, Bitcoin transcends physical limitations, ensuring its integrity remains intact as long as the network persists. 

Unlike fiat currency, which can deteriorate, requiring replacement, Bitcoin’s digital nature grants it an unparalleled ability to endure.

Limitless Divisibility

While gold’s divisibility is constrained by practicality at smaller denominations, Bitcoin’s divisibility is virtually infinite. 

A single Bitcoin can be divided into an astonishing 100 million units called Satoshis, enabling precise transactions of any value. 

Fiat currency, despite its denominations, may not always accommodate the smallest transactions. 

Bitcoin’s granular divisibility ensures seamless exchange, regardless of the amount.

Perfect Fungibility

Fungibility, the principle that each unit of currency should be identical and interchangeable, is a cornerstone of an effective monetary system. 

Gold bars may vary in weight and purity, while fiat currency can be marred by tears or markings, raising concerns. 

Bitcoin excels in this regard. 

Every Satoshi is fundamentally identical, ensuring that any Bitcoin is seamlessly exchangeable for another, fostering unwavering confidence in the system.

Unrivaled Portability

The physical nature of gold and fiat currency has historically imposed limitations on portability and security. 

Transporting large quantities of gold is cumbersome, while fiat currency is vulnerable to theft. 

Bitcoin triumphs in this aspect, as its digital existence allows vast sums to be securely stored and transported in a digital wallet. 

Eliminating physical security risks and enabling borderless transactions with unparalleled ease.

Transparent Verifiability

Verifying the authenticity of traditional forms of money often requires specialized expertise and equipment. 

Bitcoin revolutionizes this process through its underlying blockchain technology. 

Every transaction is recorded on a public ledger, accessible to all, allowing anyone to verify its authenticity. 

This unprecedented transparency fosters trust and reduces the potential for fraud. 

A cornerstone of an effective monetary system that surpasses the opaque nature of both gold and fiat currency.

Enforced Scarcity

Scarcity is a fundamental driver of value, and Bitcoin’s brilliance lies in its predetermined and inalterable scarcity. 

Unlike gold, whose finite supply can be disrupted by new discoveries, or fiat currency, which can be printed infinitely by governments, leading to inflation and devaluation, Bitcoin’s supply is capped at 21 million coins. Enforced by its underlying code. 

This scarcity creates a predictable value proposition, attracting investors seeking a hedge against inflation and a store of value in an uncertain economic climate. 

A feat unmatched by traditional forms of money.

Bitcoin’s Paradigm-Shifting Superiority

As the world grapples with the complexities of the modern financial landscape, Bitcoin emerges as a disruptive force, surpassing the traditional dominance of gold and fiat currencies. 

Bitcoin’s innovative approach has catalyzed a paradigm shift, prompting a reevaluation of our fundamental understanding of money and its role in the global economy. 

As the world embraces the digital age, Bitcoin’s potential for secure, transparent, and decentralized transactions presents a compelling vision for the future of finance. 

A future where Bitcoin reigns supreme as the epitome of superior money.

Bitcoin Pizza Day

May 22nd is celebrated in Bitcoin circles as Bitcoin Pizza Day.

It commemorates one of the first real-world transactions using Bitcoin as currency.

Which at the time was just over a year old and virtually worthless outside of the small group of crypto enthusiasts who were mining and trading it.

On May 22, 2010, a programmer named Laszlo Hanyecz posted on the Bitcoin Talk forum that he was willing to pay 10,000 bitcoins for a couple of pizzas.

At the exchange rate at that time, that meant the two pizzas were valued at around $41.

Hanyecz didn’t want to go through the laborious process of converting his bitcoins to dollars and ordering a delivery.

So he asked if anyone would be willing to order the pizzas for him and he would reimburse them with bitcoins.

A 19-year-old named Jeremy Sturdivant, who went by the username “Jercos,” took Hanyecz up on his offer.

Sturdivant ordered a pizza from Papa John’s, had it delivered to Hanyecz’s house, and uploaded the receipt to show Hanyecz had received his order.

In exchange, Hanyecz sent Sturdivant 10,000 BTC from his crypto wallet.

At the time, neither party had any inkling that a decade later, that 10,000 BTC would be worth over $650 million dollars based on today’s Bitcoin price.

Sturdivant has said if he had held onto that BTC stash instead of transferring it to another buyer shortly after for $400, he’d be a multimillionaire today.

Instead, both Hanyecz and Sturdivant got to claim a small piece of crypto history.

Hanyecz’s purchase marked the first time Bitcoin was used to buy a physical product or service, other than the crypto mining rigs and technology used by early adopters.

While some claim there were potentially smaller Bitcoin transactions for goods before this, Hanyecz’s purchase is considered the first publicly recorded instance of merchant adoption and using Bitcoin as a medium of exchange for consumer products.

The purchase was partly a stunt by Hanyecz to raise awareness of Bitcoin’s ability to act like real money, rather than just as speculative crypto tokens.

In an interview years later, he said, “I don’t regret it. I think that it helped plant the consequences about change and thinking, me doing it.”

Bitcoin Pizza Day is an important milestone in Bitcoin transcending its origins as a pet project of a handful of coders and potentially becoming a revolutionary new form of money and financial system.

Bitcoin has carved out an important niche as a store of value and alternative asset.

So on this Bitcoin Pizza Day 2024, Bitcoin fans worldwide likely are raising a slice to Laszlo Hanyecz.

Paying tribute to his $650 million pizza purchase that captured people’s imagination and planted the first seeds for the Bitcoin revolution unfolding today.

The city sleeps beneath a veil of twilight, the hush broken only by the distant cries of nocturnal birds and the occasional sigh of the wind.

Moonlight paints the streets silver, casting long, inky shadows that dance like phantoms.

Within the confines of a traditional wooden townhouse, nestled amidst the bustling heart of Edo, I sit bathed in the soft glow of an andon lamp.

The air is thick with the heady scent of incense and the comforting aroma of freshly brewed genmaicha, its steam swirling like wisps of dreams.

Tonight, my thoughts turn not to the affairs of the imperial court, nor to the delicate intrigues that weave through the lives of the nobility.

Instead, my mind is captivated by a whisper, a murmur carried on the invisible currents of the changing times.

₿itcoin

A word both foreign and strangely alluring, spoken in hushed tones within the confines of the city’s burgeoning merchant houses.

They speak of a future where the very essence of wealth is transformed, where tiny, intangible fragments called Satoshis hold the weight of a single gold oban.

A million of these Satoshis, they say, nestled within a digital purse, could blossom into a fortune beyond imagining.

A decade ago, they tell me, a million Satoshis could be acquired for a mere pittance, a token sum barely enough to purchase a single cup of sake at a roadside tea stall.

A fleeting dream, a butterfly glimpsed for a moment before it vanishes on the breeze.

Now, the price of these digital slivers climbs steadily, like a determined carp battling its way upstream.

Yet, it is not the price itself that ignites a spark within my soul.

It is the potential, the vast, uncharted expanse that stretches before us like the endless rice paddies that feed our nation.

A world where the clinking of coins and the rustle of paper notes fade into forgotten whispers.

A new language takes root, a symphony of ones and zeroes, of encrypted vaults and transactions conducted in the blink of an eye.

We stand, blindfolded, on the precipice of a revolution as profound as the fall of the shogunate.

The very foundation of commerce, the lifeblood of our society, trembles on the cusp of transformation.

The future beckons, a hazy silhouette shrouded in mist. Can we, with our mortal eyes, even begin to grasp its true form?

Visions dance in the flickering lamplight. Fortunes built upon a foundation of digital trust, empires rising from the fertile ground of this nascent technology.

The world we know, reshaped, molded by the invisible hand of this gossamer coin.

A shiver courses through me, a tremor of anticipation and a hint of fear.

The old ways, the traditions etched in ink and silk for centuries, may soon crumble to dust.

Will this new world offer solace or sow chaos?

Will it bring prosperity to all, or will the chasm between rich and poor widen further?

I close my eyes, and the symphony of the city fades. In the quietude, I see a million Satoshis, shimmering like a million fireflies dancing in the summer night.

Each one, a potential future waiting to be born.

A million dreams, as fragile and fleeting as the dewdrops clinging to a spider’s web, yet imbued with the power to reshape the very fabric of our world.

Ah, but the impermanence of it all!

Like the cherry blossoms that grace our gardens with their fleeting beauty, this digital dream too may wither and fade.

Yet, even the most ephemeral bloom leaves behind a memory, a bittersweet pang of longing for what once was.

And perhaps, within the fleeting dream of this gossamer coin lies a seed, a promise of a future both prosperous and harmonious.

A future where the potential of a million Satoshis blossoms into a world of abundance for all.

– Notes discovered hidden in an Edo Shrine thought to be written by Murasaki Shikibu in the 11th century. 

The magic of Bitcoin isn’t the transfer of money to someone 10,000 miles away. It is the transfer of money to someone 10, 000 years away.

– Michael Saylor

The Halving Effect – A Catalyst for Exponential Growth

Every four years, the Bitcoin network undergoes a halving event, a profound moment that reduces the supply of new Bitcoin entering circulation.

This strategic scarcity has historically served as a powerful catalyst, propelling Bitcoin’s value skyward in a remarkable display of resilience and growth.

With each halving, we bear witness to the birth of a new era, where Bitcoin’s inherent value is reinforced, and its ascent to greater heights becomes an inevitability.

Bitcoin Price Increases After Each Halving

Initial Launch

Bitcoin was introduced in 2009 with no assigned value.

The first recorded transaction was on May 22, 2010, where 10,000 BTC were traded for two pizzas, valuing each BTC at around $0.0025.

First Halving (November 28, 2012)

Before Halving:

$12.35 (November 27, 2012)

After Halving:

The price skyrocketed to over $1,000 by November 2013, an increase of over 8,000%.

Second Halving (July 9, 2016)

Before Halving:

$650 (July 8, 2016)

After Halving:

Bitcoin reached an all-time high of around $19,500 in December 2017, an increase of around 3,000%.

Third Halving (May 11, 2020)

Before Halving:

$8,787 (May 10, 2020)

After Halving:

Bitcoin reached a new all-time high of around $69,000 in November 2021, an increase of around 685%.

With each halving event, Bitcoin’s price has consistently demonstrated remarkable growth.

Reinforcing its value proposition and solidifying its position as a formidable asset in the financial landscape.

These historical price increases serve as a testament to the power of scarcity and the growing adoption of Bitcoin by both retail and institutional investors.

Institutional Embrace – A Vote of Confidence

The tides are shifting, and the once-skeptical institutional investors are now embracing Bitcoin with open arms.

Major financial institutions, long renowned for their discerning eye and unwavering commitment to sound investments, have recognized the immense potential of this digital asset.

Their engagement not only infuses the market with substantial capital but also bestows upon Bitcoin a well-deserved credibility and stability that will undoubtedly fuel its upward trajectory.

Scarcity Breeds Value

Bitcoin’s scarcity is its crown jewel, a fundamental aspect that underpins its value proposition.

With a finite supply of only 21 million Bitcoin ever to exist, each halving cycle amplifies the supply shock, creating an economic paradigm akin to digital gold.

As demand surges, fueled by institutional interest and a growing recognition of Bitcoin’s utility as an inflation hedge, its value is poised to soar, reflecting the immutable laws of supply and demand.

Technological Renaissance – Paving the Way for Adoption

The Bitcoin network is a living, breathing entity, constantly evolving and adapting to meet the ever-changing needs of its users.

Innovations like the Lightning Network promise to revolutionize the way transactions are conducted, offering unprecedented speed and cost-efficiency.

As the technology matures, its accessibility and user-friendliness will continue to improve, inviting a new wave of participants to embrace this digital revolution.

Regulatory Clarity – A Beacon of Progress

While the regulatory landscape may seem daunting, it also presents an opportunity for growth and stability.

Clear and comprehensive regulations can provide a framework for safer investments and broader adoption, fostering an environment where innovation can thrive without fear of unnecessary restrictions.

As governments worldwide recognize the potential of cryptocurrencies, their embrace will serve as a beacon of progress, guiding Bitcoin toward mainstream acceptance.

Market Sentiment – Embracing the Momentum

The sentiment of retail investors is a powerful force, capable of driving Bitcoin’s price movements to unprecedented heights.

The fear of missing out (FOMO) has proven to be a potent catalyst, igniting a frenzy of buying and propelling prices upward.

As we navigate through the current cycle, it is essential for investors to embrace this momentum, channeling their enthusiasm into a well-informed and strategic approach.

Embracing the Future with Confidence

As we stand at the precipice of a new four-year cycle, the stage is set for Bitcoin’s ascent to new heights.

The interplay of factors, the halving effect, institutional embrace, scarcity, technological advancements, regulatory clarity, and market sentiment, coalesces into a formidable force, propelling Bitcoin’s growth trajectory into the stratosphere.

While past performance is no guarantee of future results, the signs are undeniable.

Bitcoin’s potential is limitless, and its journey is one that promises to captivate and inspire generations to come.

Embrace the future with confidence, for the era of digital currency is upon us, and Bitcoin leads the charge.