Come Saylor-way... Or... Michael Saylor's Brilliant Tweet Symphony On The Intelligent Energy-Efficient Use of Bitcoin

By BitcoinGordon | BitcoinGordon | 14 May 2021


The quoted source for all following points originate from Michael Saylor on his Twitter. The following link seems to get me there:

https://twitter.com/michael_saylor/status/1392904274489774085

My goal for this post (thus a goalpost?) is to observe Saylor's points and show appreciation for his response to the blasphemy that has transcended markets this week.

Michael Saylor @michael_saylor   #Bitcoin   Mining serves as the foundation of the monetary network - critical to its growth, stability, longevity, vitality, & integrity. The Proof of Work architecture is a masterpiece of engineering that anchors the system to the real world, providing Seven Layers of Security.  

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Saylor claims that there are seven layers of security provided by the genius of Proof of Work Bitcoin protocol. They are: Energy, Technology, Political, Financial, Mining, Spatial, and Temporal.

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Energy: Miners can monetize any form of energy, anywhere on earth, in any quantity, at any time, at the highest price. Firms compete globally to sell energy to the network, which is the largest wholesale customer, providing Bitcoin with a low-cost energy advantage vs. competitors.

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This is not only a point backed in facts, where if someone were to challenge Saylor on the argument, I feel certain he could cite multiple real sources and examples, it is also backed by a firm grasp of other security layers, naming a free market driven by economic choices that reward the best offer. If energy is taken out of the hands of governments and placed in the hands of solution-makers, likely the next phase of crypto evolution coming from Elon and the like... the one who currently seems confused by the very technology he blesses in increasingly lower evolutionary forms, then the truly best solutions can be allowed to surface to the top.

This is not just about providing free market energy solutions often doubly incentivized BY governments to make improvements where they are incapable of doing so for their own citizens, but even more, it pressurizes the source to find its own solutions to energy. The better, faster, cheaper, quicker to market, more reliable... these are the true definitions of sustainability. Longevity comes from efficiency, not blaming the victim for breathing.

This is just as importantly about ACCESS. One of the chief pillars, the cornerstones of climate change war-drum-banging is how unfair energy use is around the globe, and until all things are available equally all the time everywhere to everyone, no one should have a measure more than anyone else, unless someone uses SO much resource that they can pay their way out of harm's way (yeah, I fail to see the truth, reason or logic as well). Bitcoin has been lauded in its rite of providing access and potential to anyone who can figure out a means to set up shop anywhere that provides the best energy conditions. Keep it cool in caves to reduce heat-emitting servers and gpu's? Sweet open an ice-cave mining rig! Wanna make use of the CCP's wicked over-built turbine's? Sweet, open a mining rig and have most of your coins confiscated on an undetermined basis. Wanna get the U.S. in at least one future-leaning industry before we simply bend over and beg for a Communist colonoscopy from Putin and the CCP? Cool, let's legislate some energy-friendly zones in 'Merica and get back to work mining a better future for money! Texas, anyone?             

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Technology: Firms compete globally to develop & sell energy efficient PoW hardware to Miners, who need to continually upgrade equipment to stay competitive, and this creates massive barriers to entry & exit, stabilizing the network while bringing Darwinian discipline & vitality.        

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Much like the supply of energy itself, technology is the point at which better computers can mean a better future. My fear for a while now, has been that the divide between technocratic elites and us commoners, would be in the access to the actual form of computing provided. If supercomputers and self-learning AI feeding into quantum computers could only become available to the tops and governments, and we are simply led by our nose to smaller, faster, cheaper hand-held devices and cloud computing for whatever processing that could not handle, there would be a true permanent disadvantage to all of us equally. China played that game once by intentionally holding back the mining computers needed in one of the biggest Bitcoin booms to take place. Oh, they were all delivered... but only once they could no longer be used for mining. Saylor is right; the market can respond to intense, high-level computational demand by the improvement of technology, materials and the conditions of nature, bringing down prices and improving efficiencies. When you have better energy, cheaper tools, you have better money. I do not see any form of money currently at work in the world that is on a technical skew towards efficiency, do you? I see governments either spending into oblivion or going all-out bust. I personally would replace 'Darwinian' with Moore's Law, but that is yet a different task.

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Political: Officials at the municipal, state, & federal level compete globally to attract Miners to their jurisdictions to create jobs, tax revenues, capital investment, & energy demand. #Bitcoin   Miners represent the ultimate clean, high-tech exporter generating hard currency. 

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Politics, in my opinion, is the sole critical force of nature to be reckoned with. The most evil of necessities ever invented by man, and the single biggest threat to Gordon's super-hero earning powers. There is not a single technical hurdle that cryptocurrencies cannot overcome. From centralization to energy use, from privacy to security. It can ALL be done, and it can all adapt over time to provide new solutions to new problems, but governments mobilize on the worst notions of the lowest levels of thinking most of the time. Politicians are both equally the swiftest of swines and the slowest of morons wrapped in the same tempered iron of mental fatigue and corruption. The only thing I have ever agreed with politically, is the portion of the Constitution that asserts that our only rights as humans, are that we are created such that no human being HAS the right to impose rights on us. Freedom cannot be given by other humans, therefore it cannot ever be taken by humans. Unfortunately, just saying so out loud doesn't prevent it from happening anyway. But, the ideals are there, and eventually I see the same points in crypto. There are reasons that often true blue HODLers quote Ayn Rand, unaware of her secret Soviet operative connections (yes, I know it doesn't make logical sense if you believe Randian heroes mean what people seem to think they mean), and are mostly Libertarian leaning. I am not a Libertarian or a Libertine, but I love, and believe in liberty, embrace it, encourage others to lean into it with all of their might before leaning is outlawed along with breathing in public. I embrace most of the same ideals, and believe that crypto is designed to encourage people to think, seek independence from forces, and to value the actual individual voice, more so above democracy and more than centralization.

When local governments can create incentives to bring mining that promotes local business, promotes business in tech, in maintenance, generates taxes through the creation of an asset that actually adds monetary value while generating taxes... explain to me how that isn't the incentive governments need to take a swift kick in the pants and show a little fear of their citizens for once? Anyone thinking about the future should understand that embracing the parts that actually are not harming us, is the very way to avoid becoming the last kid in line wishing they had done their homework. If I didn't know the motivations behind globalists, I would never be able to understand the sloth-like qualities of politicians. The only thing worse is the people who praise their lies. Once again, I agree with Saylor's point.

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Financial: Miners are capital intensive and represent an attractive investment opportunity for traditional debt & equity investors. These investors & their bankers are thus recruited as powerful political & financial allies, becoming net purchasers of #BTC   & BTC derivatives.            

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We now venture into the first field where, though I recognize the logic and the point made by Saylor, truth be told I do not see this as a positive aspect for Bitcoin or any cryptocurrency, but he is absolutely right that it is a powerful level of security. In fact, the political and financial, meaning lenders and investment groups, are the two strongest components to the future of digital money that is possible to invest in. I am not happy with this element, because along with their seals of approval comes their disgusting corruption. The irony will always sit the firmest with Bitcoin, because the very freedoms it is designed to create, are going to be the elements that come in with greedy hands bringing the stability that the network needs.

Forget oil, the future wars may very well be over private addresses. Bitcoin derivatives, lending, borrowing, staking, interest-earning, binaries and futures are all gimmicks of the geniuses of banking that turn lending institutions into Casinos, and it is terrible, and it piles lower forms of commerce on top of a brilliant form of value-creation. Bringing in leveraged positions, though many love it, matched by ETF's and deriv's which give a parallel side-quest to the very scarcity Bitcoin is designed to embrace, are slowing down the rise of value exponentially, and when people get liquidated in place for holding positions on spot order books, money leaves the space that is never to return. When you get rekt, unless you are living the life of an abused spouse, you don't return for more abuse. You get jaded and you leave. Yet still, in the end, Saylor is absolutely right; the banking sector is coming in strong and is going to allow only the top clientelle access to cryptocurrency, thus making even Bitcoin "too big to fail". It won't go away, because the bloated upper earners now see the value of it. Bitcoin wasn't a bargain at $3900... we want it now that it is over $40K.

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Mining: As Miners mature operationally & emerge public, they become powerful advocates for the network, as well as buyers & holders of BTC, driving S2F negative, with world-class financial, legal, political, & technical capabilities as well as strong vested interests to defend.  

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For those who don't know, S2F stands for Stock-To-Flow, a model for predicting future value that many agree with, and many simply do not. One can understand the doubter when Doge is embraced by the masses. "Stock" refers to Bitcoin's current supply, and "Flow" refers to what Bitcoins are left to be mined. I personally believe a much more complex model is needed to see where the S2F actually kicks in, because in my opinion, if we were already there, sell-offs like yesterday simply would not sustain. I believe I have read that Saylor says something similar, but I've only heard it referenced and have not seen it myself, where the goal was to eventually have enough Bitcoin bought off the table that the price starts to stabilize and becomes very hard to move at market. There is a human-instinct cautionary tale woven into place by the possibility that miners can become like gods, and governments can trick out the price of Bitcoin with power outages (wink wink California and China), so the best thing that can happen for Bitcoin is for there to be more mining operations in more places that offer more healthy, cheap energy in more physical locations across the globe. If there were 180 participating countries, each with at least 1 major area that supports a percentage of the Bitcoin network, there would be a stronger belief in its stability, and for certain even the most brutal attacks would pale in comparison to the infrequent Amazon or Twitter outages that sometimes take place. My warning is that the less we rely on central banks and politics to secure a better future for money, the better. We've already traveled beyond that point since regulation is creeping in stronger every day.

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Spatial: Energy, technology, political, financial, & mining competition drive geographic decentralization of the mining network. Security is never co-located with the asset & has no nexus, neutralizing physical, institutional, & regulatory attacks - making Bitcoin fault tolerant.    

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I personally am not a fan of the fact that the power of a decentralized network is also shared by new age philosophy derived from nature, but that only pertains to the fact that some of the more elite, unknown global economists are hard-line post-Darwinist eco-system-based new age philosophers, and that is definitely a different story for a different time. But, the truth is that the brilliance of the Bitcoin network is in the network itself! Centralized structure in business suggests power at the top, the most disconnected from operations with the most god-like control, with the worker bees at the bottom suffering the brunt of increasingly unfair conditions. In a network, each portion of the network operates as a vector point connected to all others, but if something happens to that location, all other actors in the network continue operation. It would take more than a CEO heart attack or a CFO Secretary scandal to take down a Bitcoin network. Even if Craig Wright ended up being Satoshi and we all had to stop tweeting long enough to shower and resume, it would not stop the incentive to mine Bitcoin. At the very end of the chain, when it is impossible to create any more coins, the network should be global and robust to the point of handling nothing but transactions at a reward worth favoring. The best thing that can happen is that the most corrupt governments, like Russia, U.S., The EU and especially the CCP, are powerless to generate a major impact on the mining of Bitcoin by having such strong forces in the network across the globe. The asset itself should already be enough incentive for countries to be racing to fight for their place in the puzzle!

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Temporal: To attack the network an entity needs to marshal massive energy, technology, financial, political, & mining resources over the course of 2-4 years. This makes any attack very difficult, expensive, slow, hard to conceal, unlikely to succeed, & allows time to react.    

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Since the prior point is spatial, I know that Saylor refers to the passage of time, and it is supported by the fact that it is difficult enough to attack the network, that such an attack is known with plenty of time to recognize it and seek a solution. This is a far reach from the local bank robbery, and though we all must admit that trafficking, drugs, laundering and extortion all take place utilizing cryptocurrency, most illegal activities are pretty stupid to take place on Bitcoin, as it is easy to track, and even if the addresses are unknown, the flow of transaction activity is already highly surveiled to a point it would be impossible not to eventually shake down wrong-doers. The question then becomes, why governments wouldn't take more proactive approaches to actually helping to secure the network? The answer obviously is the desire to dox the planet, and that sucks. But, in reality the more Bitcoin that sits in more hands, mined in more locations, protected by more governments, required by more banks, the more we can all have at least the potential to share in a better future economy that, at least until now, nobody could ever say we didn't have ample time and opportunity to get our hands on some of the pie before it got too darned expensive. The network is secured largely by the fact that its physical layout, powerful energy requirements and built-in value system all work together to simply drive a high price for someone to mess things up.

Summary: The #Bitcoin   Proof of Work architecture anchors the crypto-asset network physically & politically to the firmament of reality, driving ferocious competition in the marketplace to decentralize, improve, & secure the network, thus assuring vitality & integrity over time.

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Gordon's going to add one more step to Saylor's excellent premise.

Saylor is really making an important point that few may pick up on. Tying the virtual to the tangible is ultimately going to be the thing that makes Bitcoin more than just the biggest or the first. Bitcoin is going to remain at the top of the list for a while now, and that will mostly be because it is the most rooted in reality. While ETH may be the world supercomputer, it is constantly under attack by ETH killers that can handle transaction fees among other hurdles. TRON is a copy-clown. Doge is super fun until it starts wrecking entire economies, and then once again the dog ate all of our homework. The list goes on. Every crypto has a point and a fan base. Bitcoin was the first to launch this revolution, but it has staying power with a great team of programmers who I hope never fall prey to making changes that are illegal to the rules set forth. Some would say that has already happened, but I digress.

Relevance to reality is important.

We see the Bitcoin logo permeate society and start to become recognized. We see Bitcoin ATM's though often unserviced and set to outlandishly incorrect values. We see documentaries on YouTube, books by really smart people on social media and Amazon. We hear of lectures in colleges now, reddit is still a thing, and more and more people take a genuine interest in knowing what Bitcoin is and what it will become. We see banks that are getting in line to start adding crypto to people's bank accounts. We know PayPal now allows users to buy top coins. It is going to be increasingly more 'hip' to offer crypto payment options, crypto-cash-back incentives to the kids, and we are seeing that although it CAN be stopped, it won't be easy now.

Michael Saylor, this was the right chain of tweets to publish at the right time, and though we disagree on a few things here and there, I haven't stopped appreciating your heroic presence to our community quite yet. Don't pull an Elon or become a Gates. Keep HODLing and holding presenters accountable.

And now, from Gordon Freeman crypto super hero, macro to Saylor's micro, writing paused and reflected upon...

I... am... out.

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BitcoinGordon
BitcoinGordon

Hi! I'm Gordon Freeman (I hear they made a likeness of me in some video game... totally unrelated... or...).


BitcoinGordon
BitcoinGordon

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