03 Mar I think I’ve figured it out
ok, I haven’t figured out anything, but here’s a hypothesis anyway
seemingly intelligent people (the latest of which is michael burry) speak disparagingly of bitcoin with an astonishingly high level of confidence that they’re right about bitcoin being bad/pointless/overpriced/etc. for the life of me, I can’t figure out why can’t see at least the partial usefulness of bitcoin and everything that it is.
But one thought: bitcoin is so novel, so groundbreaking, so innovative, that people can’t even see it. they can’t see it in the way an ant can’t see a smartphone (ok, exaggerating, but still). they’re so thoroughly entranced by the high-time-preference, high-entropy, central-authority-stockholm-syndrome default worldview, that they don’t even see the things that bitcoin fixes as problems.
for them, the world where wealth slowly slips away through entropy, or is only preserved through the debt-fueled frenetic activity of a public tech company or by loaning it back to a central authority with a military, (or rather than preserved, simply received continually as a gift by virtue of one’s proximity to a fiat money printer), is the only possible world that can exist.
I think about it this way: most people are so high time preference, so focused on the short term, so involved in high frequency, high risk, frenetic active hedging and trading strategies in business and in life, that that is the only world they can conceive of. Enter bitcoin, a deceptively simple, long term, stable, low frequency, low time preference savings technology, they can’t even see it.
Their time preference is so high, and bitcoin is designed for people whose time preference is so low, that for them bitcoin just doesn’t exist in any meaningful way. they see people interacting with it but can’t understand their behavior.
so instead they just try to fit into framings they can understand….”bubble”, “ponzi”, “greedy waste of energy”
here’s to you, the low time preference people who actually understand btc.