The Energy Gap

Every passage, on the record.

1. 00:00Claim

   Bitcoin is going to eventually take over the world and win, causing an increase in energy efficiency and transformation we've never seen before. Once you realize that, there isn't much to do except wait for the extended order to realize what has taken place and what tool it now has available to transform energy more efficiently, which means an increase in energy reserves, which means everyone is better off in the end.

2. 00:34Idea

   As long as you have a certain percentage of the TASOE, the total accessible supply of energy in the physical world or in the informational world as well, you don't really need to do anything else.

3. 01:41Claim

   There's such little competition. You don't even have to be that smart. All you have to do is be in a position to realize why Bitcoin is going to win. As soon as you understand that, you have a significant advantage. Now all you have to do is point to any problem that Bitcoin can touch and improve, which is almost everything, and come up with a solution. Because there's not a lot of competition, you've got a fantastic start, and you're going to take over the world.

4. 02:19Claim

   There is no end in sight for the struggle for Bitcoin companies. There is no overnight success. It's just not going to happen, because there is an enormous gap that needs to be crossed. That is what this episode is going to be talking about: the problem that faces Bitcoin companies, which they will be relieved of once the bridge is complete.

5. 02:57Idea

   We're going to talk about building this informational bridge, what needs to happen for that bridge to get built, and what the results of it are. If you are outside the Bitcoin space and haven't talked to these companies, you don't understand whether they're able to generate energy from their activities at the current position they find themselves in. The answer is no, there just seems to be nothing behind it, except there is a solution on the horizon, and that is this idea.

6. 03:30Claim

   The main problem is that no one understands Bitcoin, and people that do are rational, so they will seek to spend anything other than Bitcoin. It makes no sense to spend Bitcoin at the moment. These individuals have done the work to see why it will win, and they understand absolute scarcity. So the easy money will drive out the hard money. If you are a business inside the space looking to highlight areas of usefulness that require the transaction of Bitcoin between multiple parties, you can see how this would be detrimental to growth.

7. 04:07Claim

   We are restricting growth because it's such an enormous opportunity for people in the space to increase their energy reserves; there has never been this possibility before. But if you're a company in this space looking to build, number go up is required for growth. Number go up is everything, which is convenient for the Bitcoin community, because number go up is baked into the sauce. The protocol demands it by its very nature.

8. 04:41Quote

   Number go up is another way of saying energy goes up, and it takes energy to transform energy.

9. 04:41Reference

   All of the solutions, both financial ones and others, Bitcoin's ability to push someone in the informational realm by limiting their movement and demanding physical costs, all require number go up. You need enough hodlers to feel as though they have enough sats to start spreading those sats through the environment to make a meaningful difference.

10. 05:12Claim · condensed

    Adoption can happen from both sides. It can happen from the old system pushing entities to Bitcoin, as people watch the fiat world around them crumble and go looking for answers. Or it can happen from individuals seeking a solution to their own problems, seeing opportunities. Those opportunity seekers are going to be significantly smaller in number than the people squeezed out of the fiat world.

11. 05:12Analogy · condensed

    They're squeezed from one side by the fiat world crumbling around them, or they come from individuals seeking a solution to their very own problems. Those opportunity seekers are going to be significantly smaller than individuals who are squeezed out of the tube of the fiat world.

12. 05:46Claim

    Educating people on Bitcoin is necessary before the vast majority of Bitcoin businesses succeed, because we have an information issue, which is an energy issue. This can be advantageous for individuals who recognize the information before others, made possible by the architecture of the system itself. But there has never been an opportunity like this before, because there has never been a closing of the extended order's energy loop, the TASOE, the total accessible supply of energy. The discovery of this idea means this could not have been possible before and will never be possible again.

13. 06:28Claim

    Viewed through this lens, it is certainly worth the energy to invest in understanding this space as quickly as possible, at the expense of all other energy transformation activities. That's how important it is.

14. 06:28Claim · condensed

    The problem is nobody understands Bitcoin, but that probably isn't a problem in the sense most people think of a problem: as a matter or situation regarded as unwelcome or harmful and needing to be dealt with and overcome. The alternative, more mathematics and physics based definition would be an inquiry starting from given conditions to investigate or demonstrate a fact, result or law. Which view we take of the word guides our path forward on how to solve for it.

15. 07:33Claim

    It is harmful to those individuals; that is the nature of absolute scarcity, that it has never been possible before. That's when it's going to hit you like a sledgehammer, right when you least expect it. You're going to think you understand it, until everyone decides this information is spreading faster and faster and they now understand, and then absolute scarcity is over. To those that come to the party late, they are going to be in a much more precarious situation than those that understood before them. It is an information game, a computation game.

16. 08:05Claim

    How quickly you acquire new information and process the connections to develop the knowledge necessary to understand what this new system means for the extended order, the larger the advantage you will have in commanding energy reserves in the future, as it should be. You've proven yourself to be a good steward of energy, the exact kind of individual that life itself wants: controlling energy that allows things to go from disordered to ordered, to swim against the current.

17. 08:37Analogy

    There is a gap that now needs to be bridged in the informational world. How do you bridge a gap in the physical world? Energy, lots of it, is required to overcome a set of circumstances that doesn't allow you to get from point A to point B without some amount of energy being exerted. You can transform a small amount of your own energy into kinetic energy and move your body up and down the ravine to overcome the gap one time, and that's a very small amount relative to the extended order's total accessible supply of energy, the TASOE. If someone else wants to get across, they need to transform similar levels of energy themselves; there is no significant physical efficiency increase. Just because you cross the gap doesn't make it easier for others to cross behind you.

18. 10:19Analogy

    The experience may make the next passage easier and more efficient, but the energy still needs to be transformed. The person with that experience might pass on the information they gathered when originally bridging the divide: maybe they become a tour guide for individuals who want to get across, saying, I have this information that will allow us to do it more efficiently. They have energy in the form of information: a portion of the energy transformed in the original process of crossing that gap has been converted to information energy stored in their brain.

19. 11:27Quote

    Even to maintain that energy requires energy. It's energy all the way down.

20. 11:27Claim

    If they have this little business helping people across the gap, they can use the information energy they've acquired through transforming energy in the physical world to save their customers' energy, a service that has value because it allows for more energy to be transformed. If they've developed a certain path that gets you across faster, we need less energy in the physical world to bridge the gap; the more information we have, the more energy we have access to. But this would be quite small, contained to the individual guide, the Bitcoin Sherpa crossing this gap. On a relative basis, it's going to be quite small.

21. 12:31Claim

    What if we want to increase efficiency in the physical world by orders of magnitude for the entire extended order? What if there is a way to transform energy to bridge the gap for good, making what required lots of energy to get from one side to the other now require almost zero energy from future participants? But to build that bridge we need way more energy at the outset versus the singular climber. Lots more. Lots and lots more.

22. 12:31Analogy

    In the physical world we would build a bridge: no more hiking up and down, just simply walk across or drive across. Easier equals less energy. Less energy for the same result equals more efficient. More efficient is better because that leads to more energy reserves.

23. 13:02Quote

    Easier equals less energy. Less energy for the same result equals more efficient. More efficient is better because that leads to more energy reserves.

24. 13:33Quote

    It takes money to make money. In the real world, it takes energy to transform energy.

25. 13:33Claim

    If you understand that information is energy, you can begin to see what the path ahead looks like and where there are bridges to be made. We're still at the stage where we are passing these informational gaps with the help of guides, Bitcoin's Sherpas. The bridge has not been constructed. Guiding individuals in the informational realm with knowledge of more efficient energy transformation is what is currently taking place.

26. 14:04Claim

    That happens because the information has not built up to a sufficient level; there hasn't been enough data processed to get us there. But everything is an information game, even if we don't see it that way most of the time and even if the vast majority of people never recognize it. Getting clear on all things information seems like a logical next step if we want to keep track of what's happening in the Bitcoin world.

27. 14:37Idea

    Before information, there is data. Data is a realization of entropy at work in the universe around us. Data is meaningless. It is raw and unorganized fact, orderless. To be valuable, which means to be of any use, it needs to be processed. Guess what requires energy? Processing. Guess who needs to do the processing? Life. Because it then leads to information, which can take energy from the physical world and teleport it to the informational realm outside of the physical.

28. 14:37Quote

    Data is meaningless. It is raw and unorganized fact, orderless.

29. 15:12Quote

    Information shared is energy. Information not shared is also energy, but it just returns less on the initial investment.

30. 15:12Claim

    When you communicate, you are sending energy. The form of communication can be more or less efficient at this process, but the fact remains the same. Information comes from the processing of data, which is going from disorderly to orderly. The creation of order, that is what we are after.

31. 15:44Claim

    It's not enough just to have the energy to build the bridge. We need to know how to build the bridge. We need the engineers to have the information passed to them: how to build the bridge, how to build the materials necessary in the first place. This all stacks on top of itself; it's just an accumulation of energy.

32. 16:15Reference

    The sharing of information means we don't have to run through these processes again. Although you can if you want to. Don't trust, verify.

33. 16:15Claim

    Around Bitcoin, we are getting into the stage now where it's been around long enough, been studied long enough, to start to get our bearings on what this data, when crunched and processed, begins to look like as information on the other side. Now it's about getting access to that information. For the increase in efficiency to really make inroads into the extended order, Bitcoin needs something else: it needs attention.

34. 16:45Claim

    The unfortunate state Bitcoin finds itself in is directly related to the fact that it solves a problem: it bridges a gap that most of the extended order doesn't realize is holding it back from progressing in the first place, from energy scarcity to energy abundance, which changes everything. There simply isn't enough of the population of the extended order who have access to this information, who are aware of it. It has not been brought to their attention.

35. 17:18Claim · condensed

    The most obvious thing, which hopefully you would have done a long time ago, is to use Bitcoin, to store your energy in Bitcoin. That's where the real win is. That's the answer that provides 99 percent of the future energy. You're in a very unique position.

36. 17:53Claim

    Once that's out of the way, you can start tracking the adoption of these ideas in the extended order, and that's going to confirm the thesis that made you exchange your energy for Bitcoin in the first place. You've done the hard work to realize something is not right in the fiat world, and then you can track the changes in the physical world to make sure you're not crazy, that this isn't cooked up on your own and simply isn't working.

37. 18:44Claim

    You realize it's an energy game, you want maximum energy reserves. The method you've chosen for securing future energy is to loan your excess supply to the extended order operating in the Bitcoin economy. If you are right, it looks like a very sound strategy.

38. 19:15Claim

    It is the most technologically advanced form of money that life has ever known. We know it's a tool for increasing energy efficiency, but a tool without the information on how to apply it lacks utility. The individual actors inside the extended order must process the higher level information themselves. Another way of saying the same thing is that it must attract attention. Bitcoin has to attract attention. It is both the problem and the solution.

39. 19:48Idea

    That leads us down another rabbit hole, which is attention. What is attention and how can Bitcoin attract more of it? I like the definition of attention as follows: a mechanism for catalyzing information processing toward the conscious and voluntary regulation of actions, thoughts and emotions. If you can attract attention, you are attracting energy. Bitcoin needs more energy to build bridges. There isn't enough energy in the system to do it now.

40. 19:48Quote

    If you can attract attention, you are attracting energy.

41. 20:21Claim

    We've got engineers, we've got the Sherpas, all of that information stored in those individuals. That is energy. They have the ability to do these things, they have crossed the gap and are still, at the moment, leading others across. But we are far from the moment the bridge is fully constructed and traffic really starts to flow.

42. 20:21Prediction

    The dribs and drabs of today's Bitcoin increase or decrease in valuation will seem laughable when we go from gradually to suddenly. When the ribbon is cut on the bridge, it will be another world.

43. 20:51Prediction

    It can't be killed and the number go up. Both things are all but essentially guaranteed at this stage. And no, I understand they're not fully guaranteed, everyone has to do it, but the incentives are aligned so that it is unstoppable.

44. 20:51Quote

    Bitcoin has a funny way of revealing its genius slowly as you peel back more and more layers from your incomplete fiat understanding of the world.

45. 20:51Claim

    It should be of no surprise then to realize that Bitcoin is designed to attract attention.

46. 21:24Claim

    To grab attention, it needs to be a disruption. You need to break expectations; we pay attention to things that violate our expectations of the world. Nobody in fiat land expects a non-physical form of money to be possible. The idea is met with serious skepticism by all, as it should be. The first time anybody hears about Bitcoin, it should be met with serious skepticism.

47. 22:29Claim

    This draws attention because people can't understand how others could be mixed up in all of this. They want to understand, and that creates the situation where they are willing to expend the energy to bridge the gap themselves. That's how high the disruption must be: you have to break expectations to such a level that people are going to make that journey up and down the ravine to get to the other side.

48. 22:59Claim

    Then you have reward: to reward is to create desire. To attract attention, you have to offer the possibility of extrinsic and intrinsic rewards. Bitcoin does both on a scale never seen before. It incentivizes the delay of energy consumption by making it the most costly activity ever realized. Conversely, it incentivizes sharing by rewarding all contributors without fail; it cannot be any other way, and you don't have to trust anyone because this effect cannot be circumvented in any way. It's baked into the code.

49. 23:33Claim

    The next one is establishing credibility: we pay huge amounts of attention to reputable sources. Bitcoin works and has continued to work. It can't break trust because it is open source code. Nothing can change that. That is the ultimate reputation game changer.

50. 24:07Claim

    Number four is mystery: you have to leave things incomplete. No one understands the implications of the introduction of such a vastly more powerful tool in the extended order. This drives energy attraction because people want to solve for this. They want to see what is next. The mystery compels people to act.

51. 24:37Idea

    The last one is acknowledgement, a sense of community. This is the TASOE, the total accessible supply of energy. You are, regardless of your physical location, a member of the Bitcoin economy if you hold sats. Masters of attention realize you need to acknowledge users. This acknowledgement happens in Bitcoin when energy is distributed through the system according to your share of the TASOE. No one can tamper with that ever.

52. 25:10Claim

    For Bitcoiners and business builders, energy needs to be continually invested to get ready for the construction of the bridge. Until it's built, it is about surviving and having realistic expectations for returns. If you can stay alive and in a position to be useful once the bridge is complete, the potential to unleash an enormous amount of energy is within reach.

53. 25:10Prediction · condensed

    Once the bridge is built, the world will need the solutions on offer.

54. 26:21Quote

    The mode is don't die.

55. 26:21Claim

    The solution you've come up with, the energy efficiency you've unlocked, will be useful, but it's not useful yet, at least not useful enough to grow large companies with and build an extreme energy reserve that lets you do things outside your immediate concerns. It's all about surviving, because the tools will be necessary, but they won't be necessary yet.

56. 27:00Claim

    While the fiat system is still in place, these things are going to look unmanageable, unrealistic that they succeed. But as long as you realize the number go up technology is baked in, absolute scarcity is real, and it has never been seen before, and the opportunity has never been possible until now.

57. 27:16Claim

    If you are thinking about constructing or building an idea in the Bitcoin space that will eventually turn into a business, there has to be realistic expectations on what that timeline might look like and how things have to take place for that to be successful and manageable.

58. 27:42Claim

    One of those things is an increase in energy, which is number go up technology. So for now, on a personal level, it's use Bitcoin every way that you can, because it's a step up in efficiency across the board. From a business standpoint, it's stay alive, explore solutions. But the success will not come until a significant amount of attention has been grasped by Bitcoin itself, has been processed, and people start to understand the problem it is solving for.

59. 28:15Prediction

    When that bridge is fully complete, that is when we will start to see the suddenly part of gradually, then suddenly.