In engineering, there is a specific tool for every job and a particular material for every use case.

Imagine you wanted to build a nice outdoor space in your backyard, maybe an outdoor structure. It could provide you with some shade and protection from the elements.

If you prefer the look of natural wood you would be remiss not to choose cedar or redwood. Why? Because they both naturally resist warping and twisting even when exposed to the elements of nature. They also maintain their integrity, defending against rot, decay, and invasive insects. They are simply the best tool for the job. Other wood types simply would not have the same lasting power.

There is always “the best tool” for a job.

Now imagine a harbor full of ships.

These ships used to service a bustling, vibrant seaside economy. Over the years, the aquatic wildlife that was the lifeblood of this economy has either moved on or been over-harvested. This once thriving area has been reduced to a ghost cove.

All the ships remain, abandoned, many of them merely shells of the sea-bearing vessels they once were.

There are some wooden dinghies, which over the years have rotted away, full of holes, many half sunk around the cove, with others inevitably grazing the bottom of the ocean floor.

There are some larger fiberglass boats that still remain. Many of them show cracks and splinters as they have inevitably crashed into each other and many of the rocks that adorn the shore.

Lastly, there is one steel ship. The treated steel has stood the test of time and is still sea-worthy, ready for its next assignment. Creating steel is an energy intensive task, and the finished product demonstrates that the energy used was not in vain. In this case, a steel-hulled ship is more useful and effective at completing its task than a fiberglass or wooden ship. Michael Saylor, MIT (‘87), CEO of Microstrategy and Bitcoin advocate put it this way.

Bitcoin is truth in the same way that we agree that the science of physics is an absolute, unchanging force in our world.

Bitcoin adheres to the first law of thermodynamics.

energy cannot be created or destroyed, but it can be transferred.

Bitcoin miners (ASICS) use energy, (which sidenote, was estimated in 2019 to include 74% from renewable energy sources…)

And use that energy to perform billions of guesses a second, attempting to identify the correct sequence of numbers that will validate the next block to be mined.

Bitcoin mining takes in energy to complete its task and outputs digital energy. No leakage from the system, no destruction or artificial creation of energy, just pure in and out. The Bitcoin Network represents a closed system. The validation of transactions within a new block (which is currently rewarded with 6.25 bitcoin) requires an input of energy. This energy is then translated into digital value that is backed by the work that was required to complete it. A fully closed system with no leakage, or manipulation, consistent with the first law of thermodynamics.

In contrast, our fiat currency takes the first law of thermodynamics and flips it on its head. It has zero firm foundation and does not adhere to the natural world order. Money is created ad hoc by a select group of individuals (energy is created from nothing). Once that monetary energy is released into the system, it inflates and leaks out like a sieve (energy is destroyed.) It is an open system that creates “energy” out of nothing and loses energy outside of its own system. You can read more about that here.

Let’s look at another comparison. Our world survives and thrives because the basic principles of physics are unchanging. Take gravity for instance. At Earth’s surface, gravity acts on objects accelerating at 9.8 meters per second for each second something is in freefall. Birds and planes can achieve flight, athletes can throw and catch, and nature acts in a way that conforms to this gravitational constant.

If this natural constant were to change, the entire system is thrown into uproar.

Everything breaks.. Crushed under a relenting pressure that nothing was designed to handle.

This is how our credit-based monetary systems acts. With the ebb and flows between lowering/raising interest rates, and quantitative easing/tightening, our economy is subject to wild swings, to and fro, all the while our currency is being devalued and inflated away. You cannot build truth upon lies. When the underlying financial system is debt stacked on debt, with a wildly changing monetary supply, the base layer of our money is shifting sand.

This lack of bedrock stability in our base monetary network manifests itself in manipulation and lies from its participants.

Often people look at the Bitcoin price as a measure of its volatility and being identified as a risky asset. What people miss, is the underlying constant and bedrock of stability that is the Bitcoin Network and the accompanying software protocol that provides a reliable system of truth that is uncompromising.

As the world continues to feel unsettled and move further and further into chaos, it is my belief that Bitcoin, a system that follows the laws of physics and is therefore truth digitized, will become increasingly attractive to everyone.

A solid steel-hulled ship amongst a graveyard of lesser vessels.

My goal in writing about Bitcoin is really to document my thoughts on the vast areas of interest that Bitcoin’s light touches. I hope that by reading some of my musings, it will pique your interest and lead you to discover the truth of Bitcoin.

If you are ready to ‘Get Off Zero” and have found my work valuable, please consider using this link to make your first Bitcoin purchase to support my work.

Swan is a Bitcoin-only company that has stayed the course through the ebbs and flows of Bitcoin’s journey. They offer many services, but also rightfully so, advocate for self-custody.