WIKILEAKS FOUNDER JULIAN ASSANGE: “Bitcoin is an extremely important innovation, but not in the way most people think.
Bitcoin's real innovation is a globally verifiable proof publishing at a certain time.
The whole system is built on that concept, and many other systems can also be built on it.
The block chain nails down history, breaking Orwell's dictum of 'He who controls the present controls the past and he who controls the past controls the future'.”
🧵 Technology is rewriting the economic rulebook, and it's time to pay attention. As innovation accelerates, it's forcing us to rethink long-held economic assumptions. Let's unpack why this matters and what it means for our future.👇
The purpose of crypto is to build a code-based order, because the rules-based order is unfortunately collapsing.
That code-based order covers some of what international law once protected. It guarantees property rights, smart contracts, rule-of-code, privacy, secure voting, and user accounts across borders. Even in the face of debanking and denaturalization, the code-based order means you retain your onchain currency and onchain identity.
It is true that the crypto networks that buttress the code-based order are supported in significant part by finance and lotteries. But all 50 states of the US are also supported by finance and lotteries. The question is whether the world gets something better, on balance, for that cost.
As nationalism and socialism rise, the code-based order ensures that international capitalism continues. Anyone from anywhere has equality of opportunity on the Internet. You can sign a smart contract across borders with someone without knowing (or needing to know) their race, religion, accent, ancestry, or other likely irrelevant attributes.
Similarly, as more companies leave failing states like Delaware and California…the code-based order will protect these corporate refugees. The entities themselves and all their contracts can now be put onchain. They can dock in country X and move to country Y at the press of a button. Redomiciliation becomes as common as incorporation.
Moreover, as the politically disfavored emigrate from communist states, the code-based order also protects their property and identity via cryptography. And, if all goes well, it also adds a layer of unbreakable privacy.
In short: the West is entering a period of failing states just as the East sees the rise of the all-powerful state. The balance to both of these is the code-based order that Satoshi laid the foundations for.
That’s what cryptocurrency was built for. If and when your state fails, or turns against you, the Internet will be there for you.
During the election, experts -- including 16 Nobel Laureates -- promised inflation would soar under Trump.
Instead, it collapsed.
Was it pure bias? Or are mainstream Keynesian models broken.
BREAKING: AI can now analyze any stock like a Wall Street analyst (for free).
Here are 10 insane Claude prompts that replace $2,000/month Bloomberg terminals:(Save for later)
LIQUIDATION CONTAGION
Wealth taxes are even worse than you think. Any asset held by Californian billionaires or Dutch citizens is now at risk of experiencing forced liquidation pressure.
So: it’s not just that you don’t want to hold assets as a Dutchman. You also don’t want a Dutchman to hold your assets. Because the logic of forced liquidation is contagion.
Let’s think it through.
(1) First, suppose there is an asset with a total market cap of $10,000, with 10 shares total, of which 1 share each is held by 10 different holders, all in the Netherlands. To simplify the math, assume the Dutch holders bought those shares at par, or close to $0.
(2) Now suppose today is the unrealized cap gains tax day, and the share price is $1,000 per share. Each Dutch guy is hit with a 36% tax, and owes $360. The first guy sells his one share, gets $1,000, and pays $360 in tax while retaining $640.
(3) But the first guy’s sale reduces the market price to $960 per share. So when the second guy sells, he only retains $600 after paying $360 in tax.
(4) Now assume that by the 7th guy, all the selling has pushed the share price to collapse to $200 per share. This is a very reasonable scenario if 60% of the cap table has suddenly been dumped. Indeed it might go much lower.
(5) At $200 per share, the 7th guy actually has to go into debt to pay the tax as he owes $360. He sells his one share, pays all $200 of the proceeds in tax. And still owes $160 more in tax.
(6) The 8th, 9th, and 10th guys are even more screwed. By the time they sell, the price will likely have crashed to $100 per share or less. As with the 7th guy, even 100% liquidation will not cover their tax burden.
(7) So we immediately see many negative things about the Dutch unrealized cap gains tax bill.
(a) First, it will cause large simultaneous forced liquidations. Everyone must sell 36% of their stake near the same time.
(b) Second, it may be literally impossible to pay if a critical mass of the cap table is all subject to it at the same time. In the example above it was 100% Dutch holders, but has it been just 60% the result would have been much the same: a collapse in the share price.
(c) Third, that means it would be disastrous to have too many Dutch citizens (or Californian billionaires!) on the cap table. Their forced sales will crash your share price.
(d) So, you might have to start mass blocking those resident in wealth-taxing jurisdictions from investing in your companies.
(e) This in turn makes the poor Western European guy even poorer, as he gets locked out of high growth assets.
To be clear: I really do feel bad for the formerly Flying Dutchmen, now Crying Dutchmen. They invented much of modern capitalism. They founded New Amsterdam, now New York. They’ve punched way above their weight. I wish them only the best.
Nevertheless…they should prepare for the worst. This may be a tough century for Western Europe. The first ones out might get to freedom, while the slowest may be stuck behind a new Iron Curtain, spending a century paying off the debts their states incurred over the last century.
Because the long run fruits of Western Keynesianism are the same as Soviet Communism, in the sense of wealth seizure and pauperization.
I mean, if you knew the future, you wouldn’t want to co-own a farm with a Russian in 1916. For similar reasons, you might not want to co-own a share of stock with Dutch national in 2026. Or with anyone in a seizure-curious jurisdiction…which unfortunately includes much of Western Europe, Canada, and Blue America.
You instead want assets that are not held by those subject to forced liquidations. Now, I grant that this is an unusual way to rank assets…Dutch holders considered harmful?!? Yet it might sadly be necessary to minimize your exposure to liquidation contagion.
PS: guess which crucial stock is most held by the Dutch? ASML. So: this unrealized cap gains tax may not literally be a communist plot, but it would have the same effect.
Elon Musk just said what no economist will: the entire system is about to break and nothing can stop it.
AI and robotics aren’t generating growth. They’re destroying the scarcity framework economics depends on.
Musk: “It will hit us like a supersonic tsunami.”
Production compounds exponentially. Money supply grows linearly. Productivity sustaining permanent double-digit expansion. Numbers that sound impossible becoming baseline.
Not evolution. Replacement.
Musk: “Prices collapse hard.”
Not decline. Implosion. AI strips out labor costs, eliminates production errors, removes every inefficiency keeping goods expensive. Manufacturing anything approaches zero marginal cost while quality accelerates.
Governments will react on instinct. Print money. Inject stimulus. Playbook designed for scarcity economies colliding with abundance they have no framework to understand.
Musk: “GDP metrics are already meaningless.”
Every economic model assumes constrained labor, limited output, gradual improvement. AI doesn’t work within those boundaries. It deletes them as variables.
Production explodes. Central banks flood liquidity. Prices collapse regardless because physical abundance scales faster than any monetary intervention can match.
The production wave outruns policy response. Always.
Deflation signals crisis in every historical model. But this isn’t demand collapse. It’s supply going infinite.
The economy isn’t failing. It’s transforming beyond tools built to measure scarcity.
Power belongs to whoever controls the systems generating unlimited output. Money becomes secondary when production costs vanish. Policy makers are steering with instruments calibrated for limits that stopped existing.
This already started. And the people running things have zero answers for what happens when their entire profession becomes obsolete overnight.
Winners write history.
So: if you do not write the history, you will not win.
Fortunately, the Bitcoin blockchain is the most unfalsifiable form of history ever invented.
A cryptohistory.