Dilution not Inflation

We have to push back against the political wordsmiths. Using the term inflation to describe this money phenomenon is a sham that favours the money printers. in the past people have used the words strengthening and dilution and I think this is much better. 

Inflation implies that what goes in (the money printing) is not material and that the surface is what is of importance. I don't think that this balloon analogy relates to reality. You could say in this image the surface was the market of prices, but the market is influenced of the whole of the money supply.

Deflation also, is such a deflating word, no wonder they picked it, they want it to make you feel sad. The terms have been chosen to maximise the money printers disguise and reduce it's psychological footprint in the publics mind.

In truth, during what we call "deflation" the pool of money becomes more potent. The metaphor of the pool which is a good description, is broken down when the balloon inflation is included. This creates a convenient confusion for the state. The term "Dilution" is more accurate. The pool of money gets bigger and its potency reduces. All of the sudden your brain doesn't hurt so much.

In the pool metaphor inflation money is added to the pool and in doing this the strength of the money is diluted, something that you don't want happening. You can see easily that this disadvantages savers.  I think its much clearer, or is it just a boozy metaphor? Let me know

To me the word is dilution not inflation

 

Ethereum is/was Bitcoins Greatest Sidechain

Despite our resentment as bitcoin purist's we can't deny that there has been a lot of development on Ethereum over the years. We call it a scam and it is pretty scammy, dishonest at the core (see my previous article). Though it has been a major distraction, we can learn a lot from what has happened and how it has fallen. Bitcoin gets stronger from attacks and this is no different, but we can learn a lot from the choices that were made in etherium and how they have slow led to its decay and fall from grace.

There have been so many well-funded projects, programmers even amateur devs maybe, have been getting rich. It is not (or it wasn't) uncommon to find a relatively unknown project with an ERC20 token that has a billion-dollar market cap. That market cap means that if the developers are taking 10% they have more than enough money to work on the project for life. It means we have seen a lot of fast development in the Ethereum ecosystem. 

This wild funding has been used to wrap bitcoin, to exchange bitcoin and to do all sorts of things, NFT's and finance rip-offs. Lots of bitcoin has been moved around here and it has created value for bitcoiners wanting to get spendable money out or wanting to exchange their forks and altcoins. It has had the highest bitcoin volume of all the sidechains, I like to think of it like this, yes it's a shitcoin, but this has had the biggest objective utility for bitcoiners for many years. It was never going to replace bitcoin (even though they said they used to say they would), but it did have a use, though many of these are only experimental we bitcoiners get to learn about many things before they can affect the mainchain.

With etherium for me at first it all seemed too good to be true and it turns out it was. The altcoin development ecosystem sits on shaky foundations. It stands at odds to honour and prudence. Despite the potential security flaws and deception, we have to admit that the methods have coloured our vision for what could be our future and stand as contrast so we can define bitcoin in the best way. I wonder if the  anarchy that creates them and allows them may be necessary. 

With the rise of Liquid, RSK, RGB, Taproot Assets, Lightning, nostr, BRC20 and layer 3 how long will it stay on top. We might need to reorganise coin market cap, with the demise of etherium and all its decendents and offshoots. I hope that bitcoin can learn from it's rebellious but prosperous, now foolish and forgotten son Etherium. BItcoins son that let its own sons (the grandchildren) free and then succumbed to fear and changed his mind for the worst to hold onto power.

 

BitVM

The white paper is here and we apologise to etherium, but we can’t stop it. Virtual machines, general purpose computing will be running on the Bitcoin network.