Taleb: Bitcoin Is "An Excellent Idea" And "Insurance Against An Orwellian Future
Content adapted from this Zerohedge.com article : Source
by Tyler Durden
Authored by Nassim Nicholas Taleb via Medium.com,
Bitcoin... It may fail but we now know how to do it
Foreword to the book by Saifedean Ammous
Let us follow the logic of things from the beginning. Or, rather, from the end: modern times. We are, as I am writing these lines, witnessing a complete riot against some class of experts, in domains that are too difficult for us to understand, such as macroeconomic reality, and in which not only the expert is not an expert, but he doesn't know it. That previous Federal Reserve bosses, Greenspan and Bernanke, had little grasp of empirical reality is something we only discovered a bit too late: one can macroBS longer than microBS, which is why we need to be careful on who to endow with centralized macro decisions.
What makes it worse is that all central banks operated under the same model, making it a perfect monoculture.
In the complex domain, expertise doesn't concentrate: under organic reality, things work in a distributed way, as Hayek has convincingly demonstrated. But Hayek used the notion of distributed knowledge. Well, it looks like we do not even need that thing called knowledge for things to work well. Nor do we need individual rationality. All we need is structure.
It doesn't mean all participants have a democratic sharing of decisions. One motivated participant can disproportionately move the needle (what I have studied as the asymmetry of the minority rule). But every participant has the option to be that player.
Somehow, under scale transformation, emerges a miraculous effect: rational markets do not require any individual trader to be rational. In fact they work well under zero-intelligence –a zero intelligence crowd, under the right design, works better than a Soviet-style management composed to maximally intelligent humans.
Which is why Bitcoin is an excellent idea.
It fulfills the needs of the complex system, not because it is a cryptocurrency, but precisely because it has no owner, no authority that can decide on its fate. It is owned by the crowd, its users. And it has now a track record of several years, enough for it to be an animal in its own right.
For other cryptocurrencies to compete, they need to have such a Hayekian property.
Bitcoin is a currency without a government.
But, one may ask, didn't we have gold, silver and other metals, another class of currencies without a government? Not quite.
When you trade gold, you trade "loco" Hong Kong and end up receiving a claim on a stock there, which you might need to move to New Jersey. Banks control the custodian game and governments control banks (or, rather, bankers and government officials are, to be polite, tight together). So Bitcoin has a huge advantage over gold in transactions: clearance does not require a specific custodian. No government can control what code you have in your head.
Finally, Bitcoin will go through hick-ups (hiccups). It may fail; but then it will be easily reinvented as we now know how it works. In its present state, it may not be convenient for transactions, not good enough to buy your decaffeinated expresso macchiato at your local virtue-signaling coffee chain. It may be too volatile to be a currency, for now.
But it is the first organic currency. But its mere existence is an insurance policy that will remind governments that the last object establishment could control, namely, the currency, is no longer their monopoly.
This gives us, the crowd, an insurance policy against an Orwellian future.
Getting rid of the government control of every national's finances as long as you use the bank, is one of the ultimate reasons I decided to join the cryptocurrency stock market. Bit coin is surpassing that though, leaving we the users in ultimate control. And the government having no clue of how to play a part in this.
We are waiting for it to be an animal of it's own, and it's happening soon. Whoever hasn't joined, better joins the new trend of keeping money before the animal in the bitcoin emerges out
There are a lot of other blockchains which will be coming along....it is still early in the game.
The governments are going to realize at some point how foolish it is to try and stop this. However, they have to do it for their own self preservation.
My country government already ban bitcoin.
And how did they do that?
Only they know..😥😥
Absolutely @sajeeb240897 bitcoin banned from Bangladesh
Excellent article....and many good points brought up.
The model is out and we know what to do. That is why people who fear the Petro, whatever Russia is calling theirs, or the Fed coin are engaging in senseless activity. There is no way a centralized currency can compete with a decentralized one...it is really that simple. The network is too strong when decentralized.
The more the banksters (and government) try to clasp down upon crypto, the worse it gets for them. This is a movement that is going to extend to all areas of people's lives. Only then will we even begin to sniff what freedom is.
Until then, the battles will be waged. I know the banksters are done because I understand the power of blockchain.
And it is a force no entity can stand up to.
@taskmaster4450 I appreciate your comments
It 's the best that can not stand in the way of anyone we need to free ourselves from the constraints
Do you know how many Russians know bitcoin
According to a new survey, more than half of Russians have an initial knowledge of bitcoin, where awareness is growing among young people and in major cities. Three-quarters of Moscow's population is aware of leading digital currencies thanks to 185,000 publications via media and news. According to other studies, "bitcoin" ranked first as the most popular word in Russian social
In the year in which many major developments took place, many Russians became familiar with the first digital currency, with 56% saying they knew bitcoin. According to a recent study conducted by VCIOM (Russian Public Opinion Research Center) The study has reached 66% of active Internet users. Awareness among Russian youth has reached 75% (18 to 24 years of age), as 71% of all men know about bitcoin, in addition to 74% of Moscow's population and the second largest city St. Petersburg has already learned about decentralized digital currencies.
However, few have deep knowledge of bitcoin, only 34% know that anyone can get bitcoin, and 16% believe that bitcoin is actually banned in Russia. On the other hand, 29% know that currencies are not only for buying, but can Mining, as well as 44% of others are aware that digital currency exchange is not yet authorized in Russia
This is in itself a point of strength, thank you for participating. @zer0hedge
Did you know Not everyone in Russia is willing to make optimistic predictions based on the latest social data. VCIOM consultant, shared a manual and a rule borrowed from "professional investors" by saying:
"If the price of an asset is discussed in TV shows for housewives, it will collapse soon!"
"We will wait and see," says the Russian proverb. The housewives soon know more about the bitcoin of their husbands.
I didn't know about the situation of bitcoin in Russia,tnx for sharing.
We need him and he will be arrogant. We never follow anyone's words. We are the ones we control. We want him. They can not stop him. Never remember this.
Hear what he said
Nobel Prize laureate Robert Schiller is somewhat confident that bitcoin will collapse, but he is not entirely sure about the date of the collapse. Shiller, a professor at Yale University and a Nobel laureate for the economy in 2013, told CNBC "That bitcoin is likely to" completely collapse and be forgotten ", although it may last for 100 years
What do you rejoice in his words?
Decentralization can never be stopped
Thanks for the valuable participation. @zer0hedge
Notably, this is not the first time that Schiller has given bearish forecasts to Pitcullin. In 2014, bitcoin was called "an amazing example of the bubble," adding that it is back to the Dark Ages. Last month, Schiller saw that the "bitcoin" legends would be "a wonderful story if they really are real and predicted that although they may not immediately crash to zero, they will certainly go down considerably.
I absolutely agree with what they wrote. States are trying to destroy Bitcoin. The reason why bitcoin will be your future currency. They are applying reverse psychology to take control. They are not afraid that they do not have their own controls. For everyone to know the money in his pocket. They are afraid that following this currency is difficult. They are as scared as they want unless we leave bitcoin. Bitcoin will not disappear. @zer0hedge
The reality is that blockchain is going to destroy the states just like it will the banksters. There is nothing that can stand in its way.
What the masses do not realize is that cryptocurrency is just the first app on blockchain...there will be more like DAO, etc....
This is not going to stop...and when it is through running its course, we will not recognize the structures of the world because they will be new.
Its true that the States are trying to destroy bitcoin.
Bitcoin is the future of Currency and it will never be destroyed or disappear
After reading " Black Swan" by Taleb, I can surely say that his guy know his stuff! He is absolutely correct in his statement, even BTC fails, there will be another, better and scalable blockchain that will replace it (Steem for example). This train cannot be stopped, revolution is underway.
Yeah taleb is right.
The issue with blockchain in general is over time more and more centralized entities (central banks, governments, IMF...) are doing everything they can to weezle their way into the technology where ever they can. Leave it to these old elitist geezers to totally miss the whole point of these cryptos in the first place (to REPLACE these unwanted and unneeded monopolistic entities...).
The US technology stock market Nasdaq will begin Bitcoin operations in the second half of 2018.Thats important for bitcoin's future !
The only problem is that is does not account for the "written future" that will come to pass and cannot be mitigated by any human effort. We will have a One World Economic System and it will be run by the "wizards" behind the scene.
People will accept it willingly as they are blinded the the Prince of the power of the air, (Satan(satanic))- so to speak.
Write what you want, but unless it is filtered correctly through the lens of Scripture; it is mere speculation based on a foundation of human opinion.
Bitcoin trust in the future of insurance to be? What do you think?
It can not be stopped
It's block Qin technology
This is special