More than once I said that the most important asset I had and that no one, no bank, no government, or no corporation could take away from me is having been young in the 70s.

It was a magical decade to be young. There was a worldwide explosion of yearning for freedom, art (especially music), popular expressions of all kinds, anti-corporate sentiment, inner search, critical thinking, rejection of hierarchies, in short, revolution. We believed that we were going to change the world. We believed it deep inside of us, and we lived our youth according to that premise. The thumbnail image, two flowers copulating, is one of the most iconic images of our generation, from the movie The Wall, whose music was created by one of the most iconic symphonic rock bands of all time, Pink Floyd.

But we failed. Something went wrong. In the 1980s, Reagan and Thatcher launched the wildest form of capitalism known to date, based on the farce of "globalization", which consists of a very small group of corporations taking over the resources of distant countries for free. No country owns its resources, all resources belong to corporations. All this is endorsed by international organizations such as the IMF and the World Bank and is executed by governments as lackeys of corporations. Every once in a while they get together to celebrate in Davos, with the motto “Improving the State of the World”, taking us all for idiots.

Where were the "flower power" and freedom?

It is fair play to admit that, for the moment, we have totally failed. Inexperience, lack of tools and technology, and absolute imbalance of power were the main reasons.

 

A bit of theoretical physics

The standard model of particles was severely challenged, precisely in the mid-1970s.

The standard model tries to unify two great theories. On the one hand, Einstein's relativity works perfectly to explain the Universe but fails when trying to explain the behavior of matter on an atomic scale, and on the other, quantum theory accurately predicts what happens at the atomic scale, but which fails to enlarge its scale to a universal level. Until today the standard model is not enough to be a complete theory of the fundamental interactions because there are still many unresolved questions.

A new theory was needed.

String theory arises from the need to unify these two great theories.

In 1974 the first approach to string theory appeared. The proposal was (and still is) very disruptive. Instead of considering an electron as a "point" with no internal structure and zero dimension, it is considered as a loop-shaped "string", vibrating in a "space-time" of more than four dimensions. For this to work, the Universe would have to have 10 dimensions. This is already disruptive and counter-intuitive for a conservative physicist, and for the common man who cannot explain more than four dimensions.

Things change a lot if instead of considering electrons, protons, and neutrons as tiny little balls that move through space, we consider them as strings that can do many other things, for example, vibrate in different ways. Something like music at the atomic level. When vibrating in a certain way we would have an electron, but when it vibrates in a different way we could have a photon or a quark, or any other of the particles of the standard model. The standard model would thus be a particular case of string theory.

String theory and its later extensions such as M-theory move away from the “point-particle” concept.

How is it explained that we cannot see the six additional dimensions to the four known? The theory explains that they are compacted and that they are only relevant at small scales comparable to the Planck length (a very small number). With conventional precision of measurement, strings with a length similar to the Planck length would resemble point particles.

Advancing in string theory, theorists discovered that progress could not be made without incorporating new supporting theories. Today we have 5 string theories. In this context, the most amazing theory in the history of humanity was born in 1995 and is probably the most complicated to understand, known as the M theory. (Although it is not confirmed, M probably comes from Mystery or Magic). M Theory attempts to unify the five string theories into one.

"If you think you understand quantum mechanics, you don't understand quantum mechanics"

Richard Feynman, one of the founders of quantum physics

M Theory is a hypothesis that unifies the five string theories in a single theoretical framework postulating the existence of 11 dimensions in the Universe, within which there are "hypersurfaces" of between 0 and 9 dimensions known as "branes" that serve as an anchor point for the strings. Therefore, M Theory is not a string theory. It is a membrane theory. Well no, there really are strings too. These membranes that emerge "by magic" from the theory itself when we add a dimension are called “branes”. The theory postulates the existence of “p-branes” and “d-branes”. Both names come as apheresis from “membrane”.

This anchoring of the strings in branes makes it possible to understand the nature of elementary subatomic particles and to explain the quantum origin of gravity. The existence of these branes means that there are 10 to the power of 500 (a 1 followed by 500 zeros) different combinations of said branes. Each of them could give rise to a Universe in which the strings are anchored to unique membranes. In each combination, the strings would vibrate in a certain way, with certain music, so the laws of that Cosmos in question would also be unique. Parallel Universes, not Metaverses, living at the same time in this Cosmos that we know...

String theory could be the most revolutionary physical theory in all of human history, but because the mathematics and the intuition it employs are so new and complex, no predictive results acceptable to a theory have been achieved so far. Furthermore, those who doubt the theory argue that it is not "falsifiable" and therefore not scientific. At the moment, string theory is not falsifiable and some critics call it a pseudoscience.

Juan Maldacena, a notable Argentine scientist, has made important advances related to string theory in the last 20 years, especially in the M theory (the M is not for Maldacena). Maldacena has proposed what is now known as “the Maldacena conjecture” or the “AdS/CFT correspondence”. Without going into technicalities that transcend this post, the Maldacena conjecture has profound implications for the study of quantum gravity, the dynamics of a black hole, and the paradox of information loss in a black hole.

Maldacena, who is now at the Institute for Advanced Study in Princeton, New Jersey, demonstrated that theory was equivalent to an easier-to-work-with quantum theory on the boundary of space that didn't include gravity. It's like saying whatever goes on inside a can of soda can be captured by a theory describing only what's happening on the can's Surface. Stephen Hawking and Hertog talking about universal eternal inflation, argue that under given conditions one cannot simply carry on with Albert Einstein's general theory of relativity, but instead must use a maneuver like Maldacena's to view the entire situation in a space with one less dimension. In that alternative space, things are more tractable, they claim, and the physics does not lead to eternal inflation. Instead, a single, well-behaved universe merges.

In short, instead of the well-known traditional model of some balls rotating around another slightly larger ball, what we now have is a kind of tangled nest in which vibrating strings are anchored on a kind of membrane that exists if we consider a Universe of 11 dimensions. Understood?

Image by Thomas Budach from Pixabay 

I write all this to show that theoretical physics is now in a glorious moment of theory transition, transitions to which our generation is accustomed. The field of physics is unpopular because of the strange and complicated mathematics and intuitions that it uses, but its repercussions reach all other human activities since the Universe that we know is only one. One of those activities is economics, especially monetary theory, which has received an unimaginable frontal impact in the last decade.

 

Bitcoin and MMT

Luckily economics and business are easier than theoretical physics.

To be honest, I don't understand how "economic theories" can be made, economics being a social science and therefore subject to the random and extreme subjectivity of human behavior. With electrons and strings, there are no problems, it is relatively easy to predict, but with human beings?

For example, it has been a month since the Argentine Soccer Team was crowned World Champion for the third time, and even today national team shirts with the three stars are sold at values of $1,000, not only in Argentina but in various parts of the world. This behavior is totally irrational and unpredictable and does not respond to any theory. Sure, the Austrian guys will attempt some gorgeous explanations about the theory of value, but let's face it, it's more of the same.

We have lived for several decades immersed in a system that has the bombastic and aspirational name of “Modern Monetary Theory”. There is absolutely nothing of a theory. It is plain and simple a dictatorial system of printing debt in the form of bills managed by corporations to get richer every day through the inflationary tax.

When I talk about corporations, I'm talking about a tangled fabric made up of the great international financial elites, who run the big industries, mainly food, energy, pharmaceuticals, biochemistry, banking, electronics, mining, weapons, steel, transport, oil, entertainment and, the most powerful, -the one that is in charge of telling the world how beneficial these industries are for humanity and for the well-being of all the inhabitants of the Earth- mass media corporations and now, social networks. Shareholders of all these industries are mixed in a kind of sinister coven that runs the world, holding 99% of the total wealth. It is not the central banks that are to be blamed for the issuance of promissory notes. It is their masters, the corporations.

The system works like this.

Corporations, for their daily predatory actions, ask for money from their gas stations: the banks. The banks grant that money that, of course, they do not have. The spell of creation. Corporations receive that money before any other mortal. When it reaches the people, that money is worth much less, due to the inflationary process. Corporations bought the assets they need at a much lower price because they are close to the printer. Blaming the Central Bank for the issue of bills is like blaming the printer instead of blaming the one who wrote the letter. The only thing that the Central Bank does, always by order of its masters, is to endorse at night the outrage that the commercial banks committed in the morning. This is known as the Cantillon Effect, and it happens right under our noses every day.

But a decade ago something similar happened with the discovery of string theory. Bitcoin was discovered. I believe that Bitcoin is not an invention but a discovery. An extension of an existing theory from centuries ago. An attempt to return to the privacy of money, taking it away from governments and financial elites.

Bitcoin is nothing more than a payment method. Each of the other functions attributed to it is based on thinking of this new model with the foundations of MMT and speculative capitalism. Since ordinary people don't need money for anything other than making payments, Bitcoin is perfect for them, because they can use their money for whatever they want, without having to ask permission from banks or anyone else.

Pretending to use Bitcoin to get rich, or to save, or as a store of value that replaces gold, or for anything other than paying something, is not understanding the concept of Satoshi Nakamoto's White Paper, and continuing to operate vulgarly in the capital markets as is done with dollars and other currencies. Bitcoin is much more than that. It is a complete model like string theory, which shatters the standard model, even though very few have yet understood it as such.

Those who want to get rich should play some corporate finance game and not Bitcoin. For this, they have invented DeFi, which are money transfer machines for the masses who want to get rich in a short time, to the most ruthless whales who continue to operate with the standard system, deceiving people of good faith who think that being financially rich is a salvation system for this ungrateful world.

Bitcoin is money backed by energy and computer code. It is not backed by a corporate management structure. That is the new model. That's string theory vs. the standard model. It's a new asset class that the dinosaurs can't and won't understand. And they don't want to understand. The PoW protocol is a safeguard against malicious operations by unscrupulous operators. It is the guarantee that the Bitcoin payment system is safe and can be used without problems. Don't come to me with the expense of energy because this topic has already stopped being discussed a long time ago for being absolute bullshit. The PoW protocol is what makes Bitcoin not lose value and always has an upward trend in the medium/long term. The PoS protocol is itself a highway for the creation of elites and violates the fundamental principles of Satoshi Nakamoto's paper and the concept of decentralization. In return, it offers more scalability and speed. Is either of you in too much of a hurry? Ok, the speed comes from continuing to think with the rules of MMT. A Bitcoin is a Bitcoin forever. The fees that ETH promised to lower when moving to PoS are still alive and kicking, if not increased. Time will tell what will happen with ETH under PoS, but there is no doubt about what will happen with Bitcoin and with the altcoins that operate with the PoW protocol, such as Litecoin, which is a fork of Bitcoin.

They tell me that some hegemonic groups have hoarded enough of Bitcoin to be its "real owners". Tremendous fallacy. The whales that have a lot of Bitcoin can only change its price in the short/medium term, but nothing they can do about the issuance of Bitcoin. Nobody can do it. There are only 21 million. This is what some who continue to think of the inflationary model of the MMT do not want to understand, and then support the idea that the world should be governed by an elite that “supports” financial operations with some tool that, obviously, they handle. If the whales keep accumulating, a nonsensical situation occurs, since a currency that cannot circulate has no value, and then they would be playing against themselves. If Bitcoin were inflationary, then it would make some sense to play MMT with Bitcoin. But that was already thought of by Satoshi Nakamoto when setting an issuance limit.

The underlying issue to be discussed is not Bitcoin, but the model of assets that humanity did not know, which was born as a result of a meta-concept such as the Internet. The bottom line is that the dinosaurs are exposed to a meteor that is fast approaching Earth, and they don't know what to do. I once wrote here in P0x that the corporations were in “ZugsWang”, a chess term that applies to a situation on the board that indicates that any move made by the player who has to move will worsen his/her situation. That is what is happening right now in the world of corporate elites, who are not resigned to accepting that large masses of people are joining decentralization day by day, and they can do nothing except worsen their situation.

Corporations are losing the turtle, as we say in Argentina. They are going to be engulfed by the tsunami before they can find a way to stop the tsunami. Regulations, bans, confiscations, and media attacks, are all actions that make their situation worse. Every day there are more people on the planet who use cryptocurrencies bypassing the banks.

The new string model is not for everyone. It is so simple that very few can or want to understand it. I don't know about you, but I don't have time to waste explaining to anyone that the world has changed.

 

Conclusion

There are basically three types of detractors of Bitcoin, and cryptocurrencies in general:

a- Academics. In general, economists employed by international organizations and corporations who have never in their lives sold a meter of cloth to a Jew or an Arab on the street, but talk about economics as if they knew how, and teach in universities. Some received or are nominated for the more than dubious Nobel Prize. They are the official spokespersons of the corporations. Because they are bought off by the corporations, they loathe the freedom that decentralization affords, and accepting it would mean that they would have to accept that they are dealing with a new asset class that their classical gurus had never imagined. There is one of these very famous specimens, who says that “blockchain is a passing fad”. I remember a dean of a university who told me the same thing about the Internet in 1995. You must run away from this kind of corporate lackey, whose action is not limited to giving an opinion, but also thinking he/she is a professor.

b- Bankers. We must admit the coherence of these subjects. A P2P payment medium like Bitcoin renders banks completely useless. A simple computer code is capable of eliminating from the face of the earth a bloodthirsty and predatory institution such as the banking industry, whose parasitic actions are based on the issuance of debt promoted by themselves that is later recovered with interest paid by all who have an account in a bank and borrow debt. I think you've all heard one of them in particular rant, saying that he's going to squash all Bitcoin advocates like cockroaches and that cryptocurrency is a fucking scam, while the bank of which he is a simple employee offers cryptocurrency custodial services to its clients. Frankly, I pity these guys. He is trying to defend against a virus that is spreading among all thinking people. The shareholders of all banks are soon going to see a dramatic decline in profitability. It's useless boy, you can't stem the tide with a floor dryer.

c - Dinosaurs. They made their enormous fortunes as MMT operators, earning the money others lost in their dark tricks with debt issued by central banks and governments that have been partying for decades. It is the so-called international financial elite, which handles insurance, credit cards, bonds, and other carrion. They are the ones who say that Bitcoin is rat poison. I must say that this type of detractor is nice to me. It must be because of my love of animals. You cannot explain to your dog what a P2P transaction is without asking for permission, without having to trust anyone, and without having to pay fabulous fees to send money anywhere on the planet, and how blockchain technology operates with total transparency. So how are you going to explain it to a dinosaur who doesn't want to see a giant meteor coming toward Earth? If you're smart, these guys can't bother you.

 

All three types of detractors cited missed string theory. They say that a 10-dimensional universe is false and they prefer to continue operating with the oversimplification of the traditional model, which, when managed from the structural point of view, provides them with enormous profits, at the expense of 99% of the rest.

I think it's useless to try to explain string theory to those who cling to the standard model. In any case, as Sun Tzu said in 700 BC, one should not make the mistake of closing all the exits to the enemy, because if he/she does, the enemy will fight desperately with all his/her strength and energy to save himself/herself.

I think we can let them have CBDCs and have fun with them along with the unwary who agree to have them. It's a good move. They can do nothing to stop the next stage of P2P to transfer value. And it will not be necessary to crush them, the transition towards decentralization and the freedom to trade P2P is inevitable.

 

 

Thank you for reading! Decentralize yourselves as much as you can, and much more! Work for yourselves, not for others. When you work for someone else, they pay you what YOUR POSITION is worth, when you work for yourself, they pay you what YOU are worth. No one achieves financial independence by working as an employee. Live long and prosper!

Never forget:

As usual, none of the things written in this post are financial advice and are not intended to replace personal research. My sole intention in writing this post is informative. Several of the things discussed here could be wrong, so in no way can this post be construed as financial advice, and in no way should it replace your own research.

 

 

If you have any questions or comments, please feel free to leave them down below

 

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