We live in a modern world that is both embarrassed by base human nature and our ‘monkey brains’, while simultaneously utilising all the forces within our grip to design systems (social media) and marketing that exploit these desires.
What does our desire to eat unlimited doughnuts at our own expense have to do with money and Bitcoin?
“Show Me the Incentive and I’ll Show You the Outcome” – Charlie Munger
Ironically, Charlie Munger’s own incentives are what drive him to be so critical of Bitcoin, but let’s park that.
The incentives that have kept humans alive in the harshest of conditions and made us apex predators are not going away anytime soon. It doesn’t matter how many iced lattes we drink or fancy clothes we buy; the incentives remain.
Incentives are the reason fiat money continues to be debased.
Incentives are the reason gold will always fail as sound money over time.
Incentives… are what Bitcoin takes into account.
So, how does Bitcoin change human nature?
It accepts what we are and uses those incentives for good.
The old world is stuck trying to find the ‘right person’ who cannot be corrupted; Bitcoin accepts that this isn’t possible from day one.
This is why decentralisation is paramount.
This is why there will only ever be a finite amount mined.
But, Bitcoin doesn’t have this power without the users, and the users must be incentivised to participate in the network peacefully.
Bitcoin volatility is a FEATURE, not a bug. Few understand this.
It doesn’t matter what kind of person you are, every individual is incentivised to participate based on their own self-interest, which in turn results in what’s best for the wider network.
Bitcoin doesn’t ‘fix’ violence, but it does change the incentives.
Wealth, resources and power are often at the centre of conflict between both people and large powers.
Individuals can now easily hide and take full ownership of the majority of their wealth. It doesn’t mean there won’t be thieves, but it does make the ‘honey pot’ far smaller.
Countries having greater control over their finances is a deterrent in itself. The weaponisation of the financial system is huge—having access to Bitcoin changes everything.
“But what about the bad countries?”
If a ‘bad country’ cannot ignore Bitcoin and adopts sound sovereign money, is that a bad thing? They are being incentivised to support, use and protect a technology that is all about giving individuals more freedom. Do you think this won’t eventually carry over to their citizens?
This is happening in real-time.
You were probably ‘incentivised’ to pay attention to Bitcoin for the price, the more you learn, the more you are incentivised by what Bitcoin is. Once you know that, you’ll probably want to auto-save sound money on a regular basis, that’s what we focus on making easy at FastBitcoins.