I'm reading a Culture novel again now, for the first time since getting properly into Bitcoin and AI

There is a lot of AI in those stories, so it's interesting to read it now that it seems more realistic

And they're always pointing out that the Culture isn't so "organized"; no hierarchies and laws and so on. I guess it's what some anarchists would hope is possible

(They still have extraordinarily powerful armed forces though)

"Just transitory"

@Bugle.News #40HPW🎧 , monitoring the STRC de-peg

I enjoyed this much more than I expected I would.

I love Steve Keen's work, he's excellent on economics and it's history, especially on how fiat works.

I was a bit worried that Peter McCormack would be too ideological, but he was willing to learn and you can see that they both enjoyed this discussion.

Keen isn't a bitcoiner (yet); they didn't really discuss bitcoin here. We need a way to combine his expertise with the facts about the world today (e.g. the existence of bitcoin)

https://youtu.be/6LPpih9-hwE

This debate is interesting, about economics during and after hyperbitcoinization. Some good points, but I also wish I was there to intervene and point out some historical facts that they might not be aware of

Around 36:30, Gammon is pointing out that, after hyperbitcoinization, people will want to borrow Bitcoin and generally that there will be some demand for credit creation and fractional reserve banking. While that's true, it's misses the point that credit creation is difficult when inflation is low.

Today, I wouldn't want to borrow a bitcoin. Even if I didn't have to pay interest on it, I know it would be very difficult to repay the bitcoin in a year from now (unless, of course, I just sat on it). When an asset (like Bitcoin) is going up in value - and also when it finally settles to its final value - then it's difficult to borrow it because it's difficult for the two parties (the lender and the borrower) to agree on a positive number as the interest rate.

In the opening minutes, Gammon points out that the US money supply increased as much in the late 1800's - when the US was on a gold standard - as it did between 2003 and 2023. While the discussion on that was interesting, they didn't point out that the late 1800's was a period when gold mining was increasing the supply of gold at a very fast rate, thanks to improvements in mining technology. So basically, the economy did well during that period because of the inflation that was introduced by the gold standard.

Economies can sometimes do very well when the money supply ('raw' money, and/or credit) is increasing quickly (late 1800's), and also when there is good regulation of the financial system (US from around 1940 to 1970).

Bitcoin's instant private cash settlement of the hardest possible asset will have dramatic impacts on the financial system, many of them bad. On *average*, I have some optimistism that the pros will outweigh the cons, but it will still have some of the harmful effects due to its deflationary effects

https://www.youtube.com/watch?v=zECVTxmb-DI

Fun prediction:

Strategy has been hammering STRC this week, causing the price to de-peg to $93, and using the proceeds to buy a lot of BTC