STEMM, IP, and the Pursuit of Knowledge #AES #Bitcoin§57 STEMM stands for Science, Technology, Engineering, Math, and the extra M is for Manufacturing because manufacturing is very important for building surplus, tradeable commodities. Capital. A huge variable for the Wealth of Nations.

Real Estate Age #AES #Bitcoin §56 More millionaires have been created in the past one hundred years from real estate than any other industry. Real estate is riding a bow wave of financialization and population growth. Financialization is good for the hierarchy, bad for the next generation.

The Industrial Age and Industrial Capital… #AES #Bitcoin §55 There is a greater question. Will AI be centralized or will AI be decentralized? If decentralized, knowledge work will continue to grow. Zero-tax Bitcoin is our best hope for a decentralized singularity.

Capital Is Shifting over Time #AES #Bitcoin §54 Before and during Jericho, there was a conflict between the hunter-gatherer and the farmer. Cain the farmer and Abel the shepherd. Metaphorically speaking, the farmer killed the shepherd, just like the barbed wire killed the free-ranging cowboy. There is a similarity between the walls of Jericho and barbed wire. Tearing down the walls of Jericho repeats the same Cain and Abel metaphor. The Walls of Jericho falling could be remembered as The Shepherds Strike Back.

#AES #Bitcoin §54 Before and during Jericho, there was a conflict between the hunter-gatherer and the farmer. Cain the farmer and Abel the shepherd. Metaphorically speaking, the farmer killed the shepherd, just like the barbed wire killed the free-ranging cowboy. There is a similarity between the walls of Jericho and barbed wire. Tearing down the walls of Jericho repeats the same Cain and Abel metaphor. The Walls of Jericho falling could be remembered as The Shepherds Strike Back.

Traditional Social Security #AES #Bitcoin §53 In the past, land, sheep, cattle, and agriculture were capital. It was traditional social security. Generational wealth, not centralized entitlements. In Uganda, for example, ancestorial lands remain a tradition. Ancestorial private property is social security.

Capital Etymology #AES #Bitcoin §52 In our hyper-financialized, fiat world, it’s easy to lose sight of what built wealth in the first place. Adam Smith’s Wealth of Nations, published in 1776, was a good framework contributing to the U.S.’s success over the past 250 years. Adam Smith defined capital as "that part of man's stock which he expects to afford him revenue."

Capital Etymology #AES #Bitcoin §52 In our hyper-financialized, fiat world, it’s easy to lose sight of what built wealth in the first place. Adam Smith’s Wealth of Nations, published in 1776, was a good framework contributing to the U.S.’s success over the past 250 years. Adam Smith defined capital as "that part of man's stock which he expects to afford him revenue."

WHAT IS CAPITAL? #AES #Bitcoin §51 We are most happy when we are productive. Capital is a force multiplier for human productivity. Capital starts with surplus commodities. Fungible value, such as barley, cattle, or a case of good wine without sulfates. Tradeable surplus. Tradeable assets.

#AES #Bitcoin §50 Unit of Account As Bitcoin’s inflation rate moves to zero, ideal money will become the best: • Store of Wealth. • Medium of exchange for large transactions. • Medium of exchange for everyday transactions. • Unit of account…a natural step as Bitcoin layers accelerate the velocity of value.

#AES #Bitcoin §49 Medium of Exchange for Everyday Transactions Bitcoin’s first-layer network is not practical for buying a cup of coffee. Lightning Network is one example of a second layer. There will be many second layers enumerated in satoshis or sats. There are 100 million sats per Bitcoin.

#AES #Bitcoin §48 Medium of Exchange for Large Transactions With Bitcoin, there is no international border concept. No transfer limits. With Bitcoin, more than one billion dollars is transferred from the U.S. to anywhere in the world for less than one U.S. dollar, and within three confirmations, about thirty minutes, the transaction is considered immutable. No authority in the world can censor, change, or reverse that transaction on Bitcoin’s first-layer network.

#AES #Bitcoin §47 Store of Wealth Bitcoin is a superior store of wealth to all other forms of money, including gold. The decline of the Roman Empire was characterized by the steady debasement of the currency. The U.S. Empire is following the same path as the Roman Empire and the Soviet Union. No empire lasts forever.

#AES #Bitcoin §46 Bitcoin Burns the Present for the Future Bitcoin is the perfect battery. A perfect capital flywheel. Nothing is lost. Not one Satoshi. It does not leak your precious time, your energy, or your value. Your value does not melt nor evaporate. The decentralized network and Proof-of-Work protect your value. In the future, you will be able to spend your value, your energy. Central banks, their cronies, and other fiat cartels don’t like the twenty-one million fixed units and don’t like Proof-of-Work because they can no longer spend your future. Bitcoin breaks the magic money printer.

#AES #Bitcoin §45 Fiat Burns the Future for the Present The U.S. dollar CPI averages 4%, but even this is a low estimate. Central bankers cook the books to hide money printing. They need inflation or debt-based assets collapse. Fiat bankers align with pro-growth anything, including high-fertility organizations.

#AES #Bitcoin §44 BITCOIN’S PATH TO MONETIZATION Fiat can’t compete with other Bitcoin attributes: • Decentralized. • Fair distribution. • Open source. • Public ledger, symmetric information. • No asymmetric trading against the public. • Most important, Bitcoin’s inflation is going to zero. • Without inflationary debasement, fiat debt implodes.

#AES #Bitcoin §44 BITCOIN’S PATH TO MONETIZATION Gold, silver, and tradable surplus represent a commodity-based monetary system. With knowledge and productivity growth, commodity-based monetary systems are Booth-deflationary. The price of living goes down. Great for the wage earner. Bad for debt-based assets.

#AES #Bitcoin §43 Debt Supercycle Implosions The debt supercycle is a recurring pattern: • Debt builds, • The velocity of value slows, • Money dies, malaise, • Eventually, the pitchforks come out, • War, guillotines, and debts are destroyed, and • A new power establishes or resets with a new ledger. Which ledger will replace the petrodollar? Can it be different this time? A transition without violence? Perhaps peaceful Bitcoin will emerge instead of another top-down artificial fiat.

#AES #Bitcoin §42 Fault Isolation This is a method of detection by isolation. Failure to isolate an electrical fault may require replacing multiple systems. With a monetary system, fiat is an electrical short or a hydraulic leak. Bitcoin is ideal. A closed system of twenty-one million. Value flows without loss. Without inflation. Bitcoin follows the Law of Conservation. Fiat does not. Fiat is designed to debase. Designed to leak. Fiat is not ideal money.

#AES #Bitcoin §41 Electrical Shorts Are Bad The first law of thermodynamics is a universal law and can be applied to a closed system. Energy is converted from one form to another, but it cannot be created or destroyed. An application of the Law of Conservation can be observed with a hydroelectric power plant. Water flows downward onto a turbine. This, in turn, rotates the turbine and generates electricity. The electric circuit is a continuous path from the energy source to the load. The electric circuit is a loop. A short circuit may cause a fire, electrical burn, or electrocution. Fixing a short circuit is not easy. Fault isolation is one method.