Path to Freedom & Why Progress Against Poverty Is Stagnating.
Bitcoin is important for the self-sovereign individual.
Hi friends,
When the stars are aligned and seemingly rigged in my favour, it’s easy to be grateful. Conversely, when I feel discouraged or lost, it’s challenging to be grateful. Hard as it may be, I push myself to be thankful (possibly moreso than normal) because I know that even when things aren’t going well, I’m still on the profit side.
“There is nothing to gain and nothing to lose in this life. You came with nothing. Whatever the hell is happening you’re in the profit side.” – Sadhguru, Founder of Isha Foundation
Somehow this reminder has a way of centering me back to what matters most: gratitude and presence.
“All you have is how profound, intense, and beautiful is your experience of life.” – Sadhguru, Founder of Isha Foundation
The truth is, if I’m not careful about my intention here on Earth, time will slip away from my fingers. I will be 85 years old, wondering why the hell I wasn’t so grateful and joyful and lively in the “good old days.” So, even when it gets rough, especially when it gets rough, I try to practice gratitude.
What are you grateful for today?
Here are some highlights (and a bonus goodie) I would like to share with you today!
From The Archives.
The Path of Freedom and Sovereignty with Natalie Smolenski.
To Natalie Smolenski, a political and economic anthropologist developing a theory of value, Bitcoin has automated one of the central functions of the state: the seigniorage and management of sound money. (Historically, this has been the prerogative of the state and now central banks.)
By no means is she suggesting we no longer need a state, but that:
“Now a particular function of these institutions has been automated and made global and universal by design and default.” — Natalie Smolenski
She also talks about the importance of property and property rights.
“What belongs to me vs. say to someone else or to the community?... There's always a debate about where the boundaries of ownness kind of end, like where personal property begins to transition.” — Natalie Smolenski
But why is owning something important in the first place?
“If you don't have some sense of personal property – at all – then you set individuals up for, in effect, totalitarian control.” — Natalie Smolenski
If you don’t have ownness, then anything you have can be confiscated at any time by the state. For example, your real estate can be taken away from you. If you don’t pay your taxes, the government can go into your bank account and take the money directly from there. Of course, these are extreme cases and occur more often in totalitarian states, but it’s still a reality for many people.
“And so this is why Bitcoin is so important for the individual. Because it actually enshrines – in a material infrastructure – a structure of ownership through ownership of private keys. And the ability to use those private keys in a self-sovereign way to transact with anybody you choose.” — Natalie Smolenski
This is the first time in history that no king, no president, no prime minister, and no bank can take your private property away from you thanks to Bitcoin. What we’re experiencing with bitcoin is a new level of sovereignty never before seen in humankind. It’s a luxury that you and I get to experience. Isn’t that special?
This interview with Natalie Smolenski feels like getting a Ph.D. in history, society, and economics in under two hours. I cannot stress how intellectually stimulated I felt by listening to Natalie speak. I think we are lucky to have her in the Bitcoin space.
2 Highlights.
The Inaccurate Comparison Between VISA & Bitcoin.
Bitcoin transactions should not be compared with VISA payments, says Anita Posch, Bitcoin educator, author, and founder of Bitcoin for Fairness.
Why? Because in traditional banking there are multiple layers of settlement. In the U.S. finance network, the base layer is Fedwire, CHIPS and SWIFT networks. Then, debit card and credit card payments “operate one or two levels above with many intermediaries.”
With Bitcoin (on-chain), the base layer has to be compared with Fedwire, CHIPS and SWFIT, while Bitcoin’s second layer solutions, like the Lightning Nework, can be compared with VISA. So, when we compare volume of transactions or energy consumption between VISA and Bitcoin, we’re comparing two different things. “Apples with eggs.”
This is why it’s important to understand things before making comparisons and bold claims.
If you liked that tidbit of information, you may want to subscribe to Anita’s newsletter called “The Orange Journal.”
The Slow, Long Death of Global Development.
According to this essay, there is no way for countries to become rich without industrializing.
“The crux of the problem is this: despite attempts to find alternative models of economic development, there is no widely replicable strategy to develop a country—simply put, to turn it from poor to rich—that does not involve an economy becoming highly industrialized.”
The problem is that economies across Latin America, South Asia, the Middle East, and sub-Saharan Africa, are experiencing deagrarianization and deindustrialization. Over the past 50 years, these countries have been focusing on de-industrializing, on commodity exports, and less on producing their own food and machinery – which is needed for independence and self-development.
They also outline other factors contributing to the de-development of the Global South, how debt has become a means of survival, and provide solutions to the “slow, long death of global development.”
As an example, these solutions include changing the core “not just the periphery,” reforming global “free trade” agreement that held back poor countries, and “reshaping of the IMF’s global reserve system and its allocation of special drawing rights to poor economies.” How likely are these changes to happen? I wouldn’t be willing to bet on it.
At a time when “a new golden age of global development seems like a distant prospect,” Bitcoin may just be one solution for these poor countries to self-develop. With Bitcoin, we have a complete paradigm shift and a reimagination of the global financial system, in which poor countries can participate and hopefully lift themselves out of poverty.
BONUS.
Bitcoin Dada, a women-centric entity that is educating African women about Bitcoin, featured me in their series called “Her Bitcoin Story.” (Fun fact: a while back I wrote about the founder of Bitcoin Dada, Lorraine Marcel, for The Misfit newsletter.)
In this video, I answer questions like:
How did you first become interested in exploring the humanitarian side of Bitcoin and its impact on various aspects of our society?
As someone with a newsletter and a podcast focused on Bitcoin's impact on human rights, and the global financial system, what inspired you to start sharing these stories and interviews?
Can you share an interview that left a profound impact on you personally, and why was it so meaningful?
… and more!
If you’re curious to hear my attempt to answer these seemingly simple (but rather deep) questions, here it is:
On that note, this week I’ll make an appearance on The Progressive Bitcoiner podcast. It will be my first time appearing on a Bitcoin podcast. Please wish me luck! And if you have any tidbits of advice, or think I should mention a specific story/lesson/topic, please let me know.
That’s it for now, friends.
No matter where you find yourself today, no matter how dim, or hard things may be, remember you’re on the profit side. There is much to be grateful for (I hope).
See you Wednesday and please take care.
– Ayelen