The Incentive Revolution

Every passage, on the record.

1. 00:00Claim

   In Bitcoin, I need to do everything I can to make everyone else around me as productive as possible so that I have access to more energy in the future.

2. 00:31Reference

   This is a game of incentives. Bitcoin, the tool, aligns incentives in a way that has never been possible before. It is through this alignment of incentives that we begin to see how much more efficient the extended order is going to become.

3. 00:31Claim

   I cannot beat specialization. On my own, I can't beat specialization. No matter how hard I try, I can do everything possible with the energy that I'm able to transform from inaccessible to accessible in a day, but there are limitations on that.

4. 01:09Claim

   I simply cannot beat the numbers game. I cannot beat organizations, groups of individuals coming together to transform more energy than I am able to do by myself, through specialization and exchange; that is why the system we currently have is the one we have, because it outcompeted all other forms of organization.

5. 02:12Claim

   I cannot hold back the tide of a group of individuals that have come together to specialize in exchange, no matter how hard I try, and the level those individuals have to be at is significantly lower than someone going at it all on their own.

6. 02:44Idea

   Because being better means having access to more energy reserves. That is what better is. Nothing supersedes that. It all boils down to that. Everything that we are doing boils down to that.

7. 02:44Quote

   Bitcoin is a tool, a machine that takes people's personal incentives and aligns them with the extended order's own ultimate good. And what is good for the individual is now good for the extended order. That is the trick.

8. 03:14Claim

   You transform energy from inaccessible to accessible, you consume what you want in the here and now, and then plug the rest into the system; when you plug in your energy into the Bitcoin system, it's going into other people, it's not going into Bitcoin.

9. 03:45Reference

   And I've explained this before. And we have followed the bread trail of what happens in a Bitcoin transaction all the way through to its completion.

10. 03:45Idea

    Essentially what you're getting is you're getting a fixed percentage of the TASOE, the total accessible supply of energy reserves inside of the system, inside of the economy.

11. 04:19Claim

    The goal of that economy is to build up more energy reserves, because you can do more with more energy reserves; you can plan further into the future. As someone plugging their energy into the Bitcoin system, you get that fixed percentage of TASOE and someone else gets energy in the here and now.

12. 04:51Claim

    When the money isn't linked to energy, this model works quite the opposite; if you have material wealth in the fiat world, you haven't necessarily had to transform more energy, and there's no way of knowing how you managed to acquire the rights to those future energy reserves.

13. 05:27Claim

    For your money to grow you need others to not outpace your own debt creation; you need to be the ultimate debtor, spending more than you transform, because if you don't, someone else will and you'll be working for them. Your only choice is to steal from everyone else around you as much as you can, because anyone stealing more than you, you are working for.

14. 06:10Claim · condensed

    This is how wealth concentrates with individuals who don't transform energy in the first place; it becomes about debt creation, about using an energy pool already built up to siphon from other individuals who don't have the ability to plan ahead and use these systems.

15. 06:56Analogy

    You create debt to buy assets. You are using energy that you didn't transform and buying something that has energy. Who provided that energy? The one in the asset you are purchasing. You can do this because there is a leak in the system, a tool that allows for consumption before production, and if the tool exists, someone is going to use it because of the incentive of wanting more energy.

16. 07:27Claim

    The obvious thing, the tool is used, and who loses in this process? It's the transformers. The energy debtors win everything the extended order transforms. So you load up on debt, you don't miss a payment, and you just never pay it back, and the parasitical class is incentivized for this.

17. 08:28Claim

    It doesn't matter if 99.9 percent of the population does not use these debt creation tools; the simple fact that a single actor can, the leverage of a single bad actor, can ruin the extended order's entire existence, and that makes for an incredibly fragile ecosystem.

18. 09:06Claim · condensed

    If an entity discovers a more efficient way to do something and brings it to market, the price lowers, they attract more energy, and at a certain point it becomes more efficient for that person or company to stop transforming new energy themselves because they can leverage up on what they've already produced.

19. 09:39Claim

    They need to learn the system, learn the rules, learn how to play the game, whether on their own or by paying a profession that looks after financialization; they stop focusing on their specialization, and the benefit to the extended order turns negative while they accumulate more energy via the game.

20. 10:13Quote

    The Fiat world pits every man for themselves. If they have energy, someone else doesn't. Bitcoin flips that concept on its head.

21. 10:47Quote

    This is the war. This really is the fight. This is the most important thing that we can be doing now.

22. 10:47Claim

    This world here that we have unlocked, this new reality, is worth sacrificing for because it is that much better; this future beyond the horizon that I can't see, but I know it exists, is more preferable than today's reality.

23. 11:22Quote

    No one gets de-orange-pilled.

24. 11:22Idea

    Once you see it, once you see the Bitcoin future, at the same time you see the mirror image of that, you see the opposite, you see what the future of the fiat world looks like. You can't see one without the other. No one gets de-orange-pilled.

25. 12:03Claim

    What higher purpose than the flourishing of the entire extended order is out there? This is the fight for everything. It is the hill to die on. It is what will turn the incentives, and therefore the world, upside down.

26. 12:34Analogy

    As I look out and interact with the world around me, I don't know who needs energy right now. That's not something I can answer, but Bitcoin does. It is the central nervous system for the extended order, and it can allocate energy to the exact cell inside the body that can make the best use of it, 24/7/365, with no maintenance or upkeep.

27. 13:06Quote

    It has created an alternate reality where truth is impossible to cloud and it is forced to the forefront.

28. 13:06Claim

    This requires that you fully grasp the idea of Bitcoin closing a loop that has never been closed before; that is what Bitcoin has managed to do that no other technology has done before it.

29. 13:37Idea

    Bitcoin throws a boundary around the participants' energy reserves, not in the physical sense of restricting expansion, not to lock you into place, but in the informational world, which enables infinite growth without the limitations of physical space.

30. 14:17Claim

    The wall protects from outside attackers or bad actors who would wish to bring chaos into the system; the wall is impenetrable. If it can't be overcome, regardless of the energy thrown at it, then this system has a value.

31. 14:51Claim

    Where does innovation occur in ancient civilizations? It occurs in the cities, because there's more information, which is just energy. Information is energy because it is order from chaos, and you know that to create order requires energy; you can't have information without it.

32. 14:51Analogy

    If residents inside this informational wall are free from harm, they can redirect energy that otherwise would have been consumed by defense measures into other areas, so specialization increases and innovation increases because we no longer have to allocate energy to our defense.

33. 15:27Claim

    The walls in the physical world have issues that limit growth; the physical laws of the universe make it hard to expand and contract that wall as necessary, but that simply is not the case in Bitcoin, which can easily adapt to an increase or decrease in energy supplies.

34. 16:01Claim

    If the inhabitants are incredibly successful inside this new system, the walls need to be rebuilt, and in the physical world that means they must be moved, which requires enormous amounts of energy; that puts a cap on possible growth.

35. 16:33Claim

    The wall is a tool for transforming more energy, and Bitcoin is that wall, but without the issues of adaptation; the wall can scale to whatever the extended order can transform.

36. 17:06Quote

    Without the glass, there is no order. The ants will just scatter. There's no separation between the ant colony and the outside world. It's all one. And there's chaos.

37. 17:36Analogy

    The downside is that the growth of the colony is limited by the size of the glass box; no matter how successful it is, it can't easily accommodate more growth. But inside, the ants can go wild with planning and infrastructure because no enemies can gain access.

38. 18:10Quote

    Bitcoin is this ant farm. It is this world inside of another world. The only difference being that it can expand and contract very, very easily with no energy expenditure.

39. 18:46Claim

    Because it's not based in physical space but in the informational one, it isn't limited by geography, so you don't have to be physically next to someone to be in an economy with them; you don't need permission to enter, to leave, or to transact when you are inside.

40. 19:20Quote

    Bigger is better.

41. 19:20Claim · condensed

    Whatever is going to make the extended order the most efficient is what is going to happen to this TASOE. Anything you do to attract more energy adds to the size of the ant farm, and that goes for any ant inside it; anyone able to transform more energy and put it into the system, it grows for everyone.

42. 19:51Claim

    Your informational being is now entering a new land once you join up with the Bitcoin camp, one where it is free from aggression; the physical you might be in an adversarial environment where danger is present, but the informational representation of you is completely free of restraint or danger.

43. 19:51Analogy · condensed

    Imagine what you would plan for, what you would build, what solutions you could cook up on the inside, if your informational self were free of restraint or danger even while your physical self stayed in an adversarial environment.

44. 20:22Prediction

    If you follow this thought process through to the end, would the colony eventually grow to be the strongest ever, the biggest ever, because it's free of threat? Would the colony end up with the most amount of energy reserves? I think so.

45. 20:55Claim

    These reserves are used to further enrich projects, which compound on previous efforts, and the distribution of these reserves happens at the most efficient level possible; everyone is better off because the TASOE has grown and the allocation of energy happens at the individual level.

46. 21:28Claim

    The more decisions that are made locally, the better, because there's more resolution there; entities know their own unique circumstances and can make more accurate decisions about how to allocate their own personal energy than a centrally planned system can.

47. 22:02Prediction

    This is why it's going to outcompete the legacy system, because the legacy system cannot incentivize for this sort of behavior; there isn't a boundary around all the energy the economy is sharing, because we didn't have absolute scarcity before. Now that we have a constant, we can use that power to make the extended order more efficient.

48. 22:33Prediction · condensed

    As we go through this adoption phase, the growth is so monumental that a lot of the attention comes from the ability to compound your initial energy allocation to this network, and that is going to go away; it will simply be the most boring thing in the world, and you will not be able to grow your wealth just by holding it.

49. 23:03Prediction

    You will not be able to grow your energy reserves 50 years from now by using Bitcoin and just hodling it. You're going to have to do something, because you have to plug energy into the system or your stack will only get smaller, no matter how much you have, if you are not contributing.

50. 23:41Prediction

    That's when this coordination will hit full speed and we will see just how inefficient we have been and just how powerful this tool is going to be for allocating energy to the exact end user that is going to be most efficient at returning that energy with more than it pulled from the system.