It’s The Attributes, Stupid
Things are scary and weird once again in the Bitcoin universe. Every Bitcoin advocate I know missed this pullback and sentiment in general is low. The price of BTC has wobbled slowly between $87k-$92k for months like a boat without a motor, and the knives are out. But once again Bitcoin don’t care.
In times like these I always try fall back to my training as an engineer: find the bedrock truth.
For 1000s of years humans have been looking for the perfect universally accepted money to transact with strangers in lieu of violence and pillaging like savages. As we evolved, we became “educated” and now we know what the hell they were searching for. They were sniffing for some physical matter that satisfied the following attributes:
They tried to use salt, shells, beads, feathers, cheese, rocks, yada, yada. Finally, the world magically converged on gold as the best money to employ for transacting with others. But of course, everyone was thinking local, point-to-point, handoffs and no one thought of an invincible, global, wall of energy that ferociously protects Bitcoin. Ultimately, it’s all about cosmic energy, all of it, and us.
Want some more emotionless metrics?
And the shapeless orgless org that nourishes our little badger:
And Bitcoin doesn’t have to worry about these types of noble but archaic concerns.
As more and more people learn about the current inflationary prison they’re in, they”ll continue to move out of USD, into gold, and into Bitcoin. It’s a slow trickle for now. Tick tock next block.
The Zippers, The Stack, The Message
Every day I pop the fedora off the top of the stack, wear it, and push it into the bottom of the stack. The next day it’s wash, rinse, repeat.
Ponzi, Ponzi, NOT
Ponzi scheme……
Ponzi scheme…
Ponzi schemes are like one and done ejaculations… 💦🍆. They ramp up quickly once, and then they undergo a blow off top, and then they crash, and then they are gone forever. Good riddance Ponzi perps.
Bitcoin is the anti-Ponzi. It has had 5, I repeat 5, price crashes of greater than 70% since birth. Even it’s off it’s all time high by only 30%, current sentiment toward the magical internet money is really negative, yet again. As the world’s “hardest” money (sorry you are in the process of being dethroned, my venerable but old and tired friend, gold), it always arises out of the ashes like the mythical Phoenix.
NOT a Ponzi scheme…
That’s because people around the world (not just here in the so-called almighty states) are valuing it more and more as it catches on and they become enlightened to the debt-orgy mess the whole world is stuck in due to wreckless, irresponsible, spending by the governments that rule over them. They are being what us maxis call, orange-pilled. Choose please: red, blue, or orange?
Fiat currency, purposefully unmoored to anything “hard” in the physical world other than paper, ink, and a cheap ass printer controlled by a centralized cabal of unelected bankers, is always debased and printed into oblivion to accommodate the political spending machine. I hate when that happens, don’t you?
Two Charts
I can’t get the 2 charts below outta my surgically repaired head (see last pic below) today. On the top we see all the “value” stored in a melting ponzi paper-currency game which is debased 7%/year on average via money supply growth (forget about the rigged 3.0% CPI that the pols try to make you believe every year). Prices are up by 25% since 2021).
In the top left corner we see a tiny sliver of the monster $900T asset market value currently stored in Bitcoin’s tiny little sub $2T space. A 10x rise in price from here at $90k would only stuff $20T more into the space. Hence, that’s what people mean by Bitcoin being the greatest asymmetric trade of all time and why some predict $1M Bitcoin in the not too distant future.
It still blows me away how early it is in the evolution and adoption of BTC, but when the world is undergoing a major scientific revolution it gets turned upside down and the entrenched interests get exposed and expelled. In Thomas Kuhn’s eye opening “The Structure of Scientific Revolutions” he points out all the major historical paradigm shifts and they all resonate with his logic.
Next, we see how volatile the price of gold was in Weimar Germany against the German mark when the country exploded into hyperinflation. Who would’ve thought gold would be so volatile as a store of value. But in volatile times, everything becomes volatile. I don’t think the US will go hyper, but the macro economists I follow think 15-20% inflation is imminent, like next year. D’oh!
And third, we see why the rest of the fiat-paper brains don’t get it. Science progresses via a succession of funerals for the elite and smugly installed power base. Tick tock next block.
BTW, here’s my surgically repaired head, but that’s a story for another day. 
The Pyramid
Are you ready for the “suddenly” part of “gradually, then suddenly” mantra? Start following Japan. We’re not too far behind.
Wen Gobbling?
Fuggedaboud the next Bitcoin halving. As the figure below shows, I want to know when the gobbling is going to happen. We’re somewhere between the Bitcoin launch date and the gobbling, but I have no idea where. The end state is where all 160+ centralized fiat systems bend the knee to king Bitcoin.
Fiatcoiner, Bitcoiner, And Schittcoiner
As the state transition diagram below shows, there are three types of coiners: Slave-Fiatcoiner, Sovereign-Bitcoiner, and Dumschitt-Schittcoiner. Before the immaculate conception that is Bitcoin, we were all Fiatcoiners, but not by choice. We were all born into one of the closed, 160+ jurisdictions in the world that required the use of Fiatcoins for daily living and tax payments. We were like fish in water as we took these Fiatcoin systems for granted that “they worked just fine”. But they don’t. Inflation, the insidious scourge designed into all fiat systems, erodes the purchasing power of all Fiatcoin holders.
Thankfully, my path to becoming a Sovereign-Bitcoiner was direct. I was lucky enough to fall down the Bitcoin rabbit hole and emerge enlightened before the plethora of Schittcoins (and yes, they include ethereum) popped up everywhere. They formed a treacherous moat between Fiatcoiners and Bitcoiners. This formidable barrier inhibited direct transitions into the enlightened Bitcoiner state.
Those Dumschitts who fell into the quagmire of centralized Schittcoin pump-and-dump schemes got rekt big time. Those horrible experiences nudged them down the bitcoin rabbbit hole, which converted them to Bitcoiners, who are all anti-Schittcoiners. Until the Schittcoin market fully implodes, direct transitions from Fiatcoiner to Bitcoiner while avoiding the Schittcoin swamp will be rare.
Notice that the Bitcoiner state has no exit transitions. Once a Bitcoiner, always a Bitcoiner In the long run, those who remain in the Schittcoiner and Fiatcoiner states will get rekt, and they’ll deserve it.
Just Because
I haven’t posted in a while because… well, just because. It’s a long story so I won’t bore you with the lurid details. We gotta keep moving forward because when motion stops, death follows. So here I am, for now.
My two favorite macroeconomic analysts are Lyn Alden and Luke Groman. They are unparalleled in their ability to convey their deep understanding of what’s going on in the world economically to lowly plebs like me. Lyn has a book coming out soon titled “Broken Money“. I can’t wait for it!
I’ve been capturing my understanding of the structure of what a typical unpegged fiat system looks like. I produced the concoction below after many maniacal iterations. I think the model is applicable to every country on earth that has a central bank to control its national fiat system. It applies to all forms of government: democracy, dictatorship, monarchy, junta, politburo, etc. If you don’t agree, then help me understand what’s wrong with the model.
The ith Bitcoin Halvening
I just got one of these stylish sweeties from an Etsy artisan shop.
So, you ask: “WTF does that Bitcoin nerd math mean?”
Here’s BD00’s attempt at communicating the meaning of the sacred Bitcoin money-supply equation by mapping the basic math symbology into words:
So, you say: “This explanation doesn’t help at all. WTF is this ‘Halvening’ jargon?“, and you follow that up quickly with an astute, insightful, haymaker: “You think you’re smart, but you’re not… you’re an imposter.”
One of the divine features of the Bitcoin protocol is that the production of bitcoins gets abruptly cut in half approximately every 4 years. Hence, the new word, “halvening“, was concocted to commemorate those joyous supply shocks for Bitcoin cultists like me (you’re one too, you just haven’t realized it yet).
“Halvening” can be used interchangeably with “halving”. BD00 prefers the former because it’s a new beast, has 3 syllables, and reminds him of those scary “ing” movies: The Conjuring, The Shining, The Thing, Jurassic Parking, Karate Kidding, Schindler’s Listing, Deadpooling, etc.
Here’s what we get when we plot out the most hallowed, disciplined, apolitical, incorruptible, deterministic, terse, honest, “money printing” policy of all time.
The Bitcoin network has dispassionately and automatically executed 3 halvenings since it was launched 13 years ago on January 3, 2009. Thus, the index “i” is currently set at 3 until the next halvening event occurs in 2024. It’s important to note that over 18M bitcoins, or 85% of the total supply, have already been mined to date. It’s important because hard core believers like me are steadfast HODLers (Hold On for Dear Life) that further restrict the availability of bitcoins for purchase over time in addition to the built-in protocol halvenings.
So, what’s so special about the Bitcoin money production schedule? The following composite graph, which led to an abnormally high number of views in a previous post, clearly shows the contrast between the Bitcoin mining schedule and the printing “schedules” of untrustworthy, central bank-printed, fiat paper.
The succession of relentless halvenings executed by the decentralized Bitcoin protocol software eventually drives inflation to zero. The money printer stops forever at 21M bitcoins printed. In fiat-denominated nations, all money units are printed from one source: the country’s “independent” (lol) central bank. In every known case in history, central banks eventually are pressured by their governments to keep inflating the money supply to keep the economy roaring. Keeping inflation low takes a back seat to gorging their donors with free money. Bitcoin don’t give a fuck about donors or governments or central banks. Bitcoin don’t care if you or I use it. Bitcoin just is.
Why am I here?
WTF?
Meh!
D'oh!
My BTC Address
Bulldozer00's Blog 