"Quantitative Hardening" QH At the BTC Halving- The QE Money Printing Counter Balance
The Battle of the Century QE vs QH

"Quantitative Hardening" QH At the BTC Halving- The QE Money Printing Counter Balance


Game Theory rules. Or so most BTC Maximalists say, one being,

Samson Mow, CEO of Pixelmatic, and CSO at Blockstream. Mr. Mow is one of the key driving forces and, from what I can tell, a 'co-creator' of the new about to be released (later this year) Multi Player , animeme style  "Infinite Fleet" game. 

Mr. Mow coins the term "Quantitative Hardening"  QH as the main event of the upcoming (3 weeks?)  #BTC #Halving in this episode of Keiser Report, where 'Max' points out the QH term is a fusion of part of the fiat term "Quantitative Easing" (Central bank govt money printing to infinity) with #BTC Bitcoin's most  valuable feature of "hard store of value" or hence "Hardening" of the BTC money supply.

IMO, the last half of this episode is worth a view by any in the crypto space, starting at about the 13 minute and 27 second mark of the link above. (The duration of which is 12 minutes of your valuable time.)

Infinite Fleet CEO Mow from PixelMatic Interview on Esports News

"Do we have our own Infinite Fleet of Crypto Necessary to Sink the Evil Fiat Empire?"

Mow brings forward some very sound reasoning IMO, in discussions with Max Keiser about Bitcoin and,  #BTCs ability to counter-balance the negative "buying erosion" effects of fiat global #QE "Quantitative Easing" or massive increases in the Money Supply (almost 8 Trillion US $ alone  since the beginning of 2020, likely twice that when all currency QE is accounted for)  during the episode linked above,  discussing how in effect Bitcoin's Halving is a form of Quantitative Hardening " #QH " which effectively creates an economic "balancing force", all of us in the investment community need to be aware of, given most all of us are 'hell bent" on trying to protect our speculative or cleverly earned gains in fiat or crypto, where the former "soft store of value" is now eroding our buying power daily, before our very eyes, in the world of fiat assets and bank accounts, erosion due solely to all the govt and central bank operated money printing machines massively ballooning the world's fiat money supply. (Don't worry, letting your kids and grandkids pay for it via higher taxes, less buying power/higher prices is ok? not.)

My previous post shows BTC has recovered its 2020 pre-crash value in only six weeks. Now, IF that is not a hard store of value with good volume use behind it driven by investors and speculators who think the same way, then I don't know what is. 

Hammer & Anvil Hardening of Metal

Crypto Hard Stores of Value like BTC, Cut through & Eliminate Capital Controls slowing Money Velocity, Especially Across Borders

QH- Quantitative Hardening - Infinite Fleet Development hints at How QH is 'playing out' in the world of Multi-player Gaming

Infinite Fleet  is definitely built as a BTC Maximalist solution where you "peg in" real BTC to the Sidechain found on Liquid Network the work of Blockstream, where the game manages utility tokens, which can then be redeemed as value when you "peg out" off the side-chain. The settlement time for the side-chain is 2 minutes, which is likely 'good enough', when you update your token utility store of  Infinite Fleet "loot" after each gaming session, where such 'local' side-chain loot is spent building up your fleet of 'star ships' the way you like them and earned as you take territory by winning battles against enemy fleets.

Inherent to the game is the more junk you need to build up and defend your 'star fleet' the more "hard store of value" in #BTC a player must "peg in" to have that converted into Infinite Fleet utility loot stored on the liquid network sidechain reserved for Infinite Fleet play. So the Infinite Fleet game really does cost you to join in and play, you need hard cash to plug in your game controller and "go at it" which means, Infinite Fleet is in effect, a digital incarnation of 'virtual warfare' with very real monetary cost to the player. Said another way, Infinite Fleet has monetized the "art of war" and, is certainly matching 'Generation Kill' interests quite effectively.

 

Infinite Fleet BlockStream's Big

Infinite Fleet: A Digital Form of 'Engulf & Devour'- Ready to Replace Fiat? 

If you extend the Infinite Fleet 'war' metaphor to politics and business as we know them today, the same BlockStream created Infinite Fleet crypto system could  easily support "fleets"(tribes, states, countries physical and/or virtual) of like minded users, operating together, to effect the same outcomes, take over financial  domains, enterprises and other groups, virtual and/or physical. (After all nation states do operate at the end of gun and money does pay for them, the harder the money the more likely any tribe will "get what they want") 

Judging by the heavyweight BTC maximalist backers financing Infinite fleet's rise, (see infinitefleet.com and follow the owner/director/investor 'bread crumbs' to the Whales, crunchbase is a good place to start) it's clear to see Blockstream's move into gaming with Infinite Fleet built on their liquid network has other 'real world' applications driven by bigger motives of very big crypto Whales, which is, compete with fiat on a number of business & financial fronts, anywhere, without cross border "capital flow controls" and, without "accredited investor" hurdles to jump through, given  Blockstream has SEC REG A+ in place to democratize the assets held on the sidechain, which realistically could be anything. (ie-Trade you my car for your awesome, never been defeated virtual starship? (cuz I can make lots of real hard money with it playing Infinite Fleet ) 

IMO all of the above is likely worthwhile for crypto investors to track, that is initially track Infinite Fleet's traction (player count growth) as they release this big Multi-Player game into the market later this year (probably before US  "Black Friday" Shopping is my Guess) and then watch for the cadre of Whales driving Blockstream's next moves, which I expect will be replicating the same Infinite Fleet capabilities, as they enter and compete with existing fiat fueled financial and business markets via new 'similarly designed' business entities, operating under SEC REG A Plus rules (Mini IPOs) to setup those crypto centric competing entities.

Finally, it is very Interesting to note Mr. Keiser could 'not help himself' and, 'took a run' at Ether (eum)  #ETH as well, (see my rough note transcripts below) comparing ETH  Oil markets and Keynesian fiat monetary policy. Competition is good. Giddy up ETH 2.0!   ;)

TK over and Out

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PS- For those of you time constrained & interested, please find my rough transcript from the Keiser Report link above...

TK rough transcript notes below from this episode

MS - We are working with Stalker (in Europe) to facilitate our Security Token offering

Progress with  SEC with REg A+ filing  (like a mini IPO) 

Bigger than "Fortnight" scalability (number of players), Yes its a  MMO Strategy Game  Home World , Age of Empires 4 (recently left and joined infinite fleet),  Eve Online AAA developers

MK Verizon says 75% increase in gaming during the lock-down in March.., On Ramp into Bitcoin...

SM Staying at home, playing more, spending money online is up., pub other games and PR as well, bullish for gaming

Blockstream, BTC specific, side-chains on liquid network, utility token currency in the game running on the liquid network, fund raising for the securities (similar to World of Warcraft gold, but now a crypto asset convertible into BTC) for the funding raising of the security token we are using liquid securities a platform which we built on top of the liquid network, what that does is you now have securities that are trade-able 24/7 and because we are REg A+ filing with the SEC you eliminate the need for accredited investors so this really democratizes the whole investment scheme and I would say its a reformation of capital markets in a sense..

MK- it sounds like BTC is having no problems scaling, you know I remember back in 2017 during the block size wars there was this issue that BTC couldn't scale and that was shot down with the adoption of Segway, I'm surprised anyone still even mentions bit trash or Bitcoin trash or whatever it's called  it still has some agency , I don't know why, they lost the block size wars, why, why do people still mention it...

SM 

MK Halving happening in next 3 weeks what is the halving or halving of the mining amounts down to 900 (about half) and it's now being called a "Quantitative Hardening"  so as fiat currencies are printing more and more, we BTC are getting more Scarce and more Scarce basically its part of the protocol of BTC its built in every 4 years its happen, there is a large expectation in the community that the BTC price will go up, 

MK Let's talk about QH  for a second there have been many genius BTC memes over the years, this is a hybrid meme, because it combines something pulled from Central Bank Language QE and it combines it with the Bitcoin notion of QH and the hardest money ever created and, this about an awakening now people  are understanding the central banks are completely out of control. Neil KashStari recently said on a 60 Minute broadcast that they have infinite QE the ability to print infinite amounts of money.. "money printer go BRRR"  and this is really drawing back a lot of interest to BTC for exactly why BTC was designed to be the hardest money ever created is this the year that the global financial system finally meets its Waterloo "you can't print your way to prosperity" and there's a migration over to the hardest money ever known to humans and that would be BTC, Samson

SM- I think it it inevitable, its just a question of when, it's not an if its a when, it only makes sense that we migrate to BTC off of the current systems just because fiat is manipulable , BTC in incorruptible, if you are running a BTC node  nobody can tell you what to do or change the monetary policy from out from under you and you just have your autonomy and sovereignty . BTC is also a global currency , anybody in the world can get into to BTc buy a little bit of BTC and there's no concept of border with BTC, so I do think this will be a seminal year and its a question of when we reach that Hyper Bitcoinization where everybody's using BTC  and nobody needs to go back to fiat

MK speaking of BTC wannabes and projects that seem to have infinite QE built into the protocol lets talk about Ethereum for a second, I remember Vitalik Buterin once compared #ETH to oil  and now look at oil, oil is a complete disaster so maybe that was the best comparison to make

 

But I want to follow up on that a little bit in terms of BTC miners and BTC its going to interesting to watch how they respond to the decline in price compared to for example the US oil sector where producers have been losing money but keep pumping , alright so here you have the analogy her ein the oil field they are losing money in the shale (oil) industry but they keep at it, they keep pumping, the miners at BTC they have a cost and now they are going to get 1/2 of the reward they got "pre halvening" so what happens in the mining sector of BTC , How is it different from Oil, walk us thru that a little bit  

SM -will the thing is Oil can go negative because there isa cost to deliver, you have to buy the barrel and you have to move it physically so physical delivery incurs a large cost  and BTC will never have that problem because it is digital  BTC has purity of function, it is just money, like Peter Schiff likes to argue like other thingds like gold and things have utility but that utility is a more of a hindrance than any thing right? When you want money you want it to be hard (maintain its value/buying power) you want it to be reliable , predictable and you want it to have a purity of function which BTC has

 

MK What about various countries now getting into the crypto game, just this past news cycle we heard that China is going to come out with  some kind of crypto coin because they want to get away from fiat they are starting to see the limitations of fiat money and others countries have announced hey we're going to get into to crypto that's one part of my question the second part of my question is you've got these huge sovereign wealth funds like in Qatar that are bleeding due to the oil and gas collapse are they good places to take to look at crypto or BTC I should say and say you know let's put a few billion in or !/2 a trillion to work  in BTC do you think the game theory that's built in to the protocol will find its way into the sovereign wealth fund level and the global central bank level is that where we are headed Samson

SM, I definitely think so, BTC is inevitable and eventually everyone will be using it its just a question of when they figure out they should be using it so thoses the nation states that are rolling out their own cryptocurrencies it's often said they are competing with BTC but I really don't think they are, they are just competing with fiat currencies and they may be competing with stable coins, so the question there is really is " is the govt crypto better than a stable coin like Tether, is it going to be permissionless,can anybody access it, or will in enforce capital controls, or will it be a tool for surveillance, because surveillance capitalism is a thing now and privacy is being eroded constantly and you see that even more with  COVID!( and trampling of civil liberties but the question is " are these national currencies, digital currencies going to enable that (surveillance capitalism) or help the common man.

 

MK- You mention Surveillance Capitalism and that a relatively new category of markets and finance and its growing quite substantially both on a health perspective people want to track this COVID!( virus  and people also want to do forensic examinations of where money is going at any given time because these states are running out of cash and they are looking for any cash they can find is surveillance capitalism something that BTC fights against is itself subject to  possible invasive forensic  accounting because after all everything is accounted for on the BTC blockchain is that a liability and are we going to see the rise of more let's call them fungibility projects like "coinjoin"  where your are where the providence of coins disappears through various filters (mixers etc..) what's your thought on this?

SM- I think BTC does change things up because now we have the potential to fight against surveillance capitalism and you and invasion of your personal financial privacy, BTC is not quiet there yet because with BTC blockchain everything is open, its an open book, anybody can look at the blockchain there are companies that specialize in blockchain surveillance and you know tracking where things move which coins are associated with who and you know trying to kinda segregate coins into clean and dirty coins and these are things we need to work against and fight for  I think a lot of people understand your privacy is really dead right now and we need to fight to bring it back and there things like you mentioned which are coming to help us do that one on which is P2 AP or "page a point" which is a common std that is helping people to achieve privacy and fungibility

MK  This notion that BTC is separation of money from state . Agree of Disagree?

MS Totally agree, BTC is how you separate the two and I think the tools of fungibility and privacy are what will allow you separate morality from money, if BTC is that vehicle. Because right now you can blacklist coins , you can say something is dirty and a lot of that is really just someone projecting their morality on to money, and I think the sooner we can remove that aspect the better for everybody 

MK- Well Fantastic, Samson Mow thanks for being on the Keiser Report 

End of TK transcript 

 

 

 

 

 

 

 


thunderboltkid
thunderboltkid

Macro Cryptonomic Observations & Insights for investors small & big. I educate, offer tips, forecasts re: tech & people drivers operating "under the hood" moving the crypto market. Working on SOVRINTown Managed transparent & honest evoting & govt spend


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Breaking the Small Wind Mold- Darwind5 Circa 2012

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