Bitcoin’s Game Theory Has Endless Possibilities

Read "A Look At The Game Theory Of Bitcoin," the archetypal portion of this series, here.

In this nonfiction I volition suggest imaginable routes for Bitcoin’s crippled mentation to play out. So, what is crippled theory? In layman's terms, if you are playing immoderate crippled of strategy, whether it beryllium chess, basketball, football, Battleship, Monopoly oregon checkers, immoderate determination you marque successful the crippled volition person to beryllium countered by your opponent. The strategical decisions that you and your hostile marque volition yet find who wins and who loses the game. This is crippled mentation successful its astir simplistic form.

Undoubtedly, the countries with the highest ostentation rates volition follow bitcoin archetypal and volition beryllium the top beneficiaries. Countries similar the U.S. whitethorn instrumentality a longer time, arsenic they volition inactive beryllium hyperinflating their currencies with their almighty seigniorage they hold. When these superpowers bash yet follow bitcoin, each the countries who adopted it archetypal will get an economical boost and beryllium lifted to a much adjacent playing tract with the astir almighty countries. This is however almighty Bitcoin tin beryllium for a state who willingly accepts it.

Small countries successful Latin America, Africa and galore different regions of the satellite whose wealth is collapsing volition beryllium anxiously and excitedly watching advancement of bitcoin. They basal to payment the astir from it.

All tiny countries volition astir likely proceed to beryllium bullied and belittled by the International Monetary Fund, cardinal banks, G7 countries and different cardinal authorities to not judge bitcoin successful instrumentality for promises of "free money, extortion and support." These almighty entities volition effort everything successful their powerfulness to forestall Bitcoin’s anticipation and prosperity from spreading due to the fact that wide Bitcoin adoption means their powerfulness volition beryllium gone forever. Central authorities up to this constituent person been ruling with fear, lies, fiat enslaved wealth and taxation. The U.S. chess pieces volition proceed to onslaught Bitcoin with little Moody ratings and mendacious narratives connected countries who follow her. The IMF could apt halt providing funds to the countries that judge this caller technology’s powerfulness of anticipation and dependable money. When the satellite sees the state that Bitcoin tin connection them from the shackles of their dishonest rulers, galore much places volition clasp bitcoin. The acheronian of the fiat satellite volition beryllium swept distant and axenic monetary airy volition radiance distant from the beacons of Bitcoin.

One of Bitcoin's top crippled theoretic events we whitethorn spot play retired is erstwhile the world's vigor companies similar Exxon Mobil, Saudi Aramco and others commencement mining bitcoin. This is an inevitability due to the fact that they tin person their excess energy resources into integer energy. Imagine what a satellite volition look similar erstwhile Saudi Aramco decides to commencement denominating their lipid prices successful satoshis. The crushed that this is highly likely, is twofold: The archetypal crushed is due to the fact that of the unfairness of the petrodollar system, as explained successful large item by Alex Gladstein. What amended portion of relationship to take to regenerate this strategy than bitcoin, due to the fact that nary 1 tin manipulate it? Secondly, lipid companies volition beryllium capable to marque wealth done the mining of bitcoin. What lipid institution does not privation to marque much money? One of my Bitcoin brothers, @harvardhodl, believes that vigor companies volition go the caller banks of the world. In his ain words, "energy companies volition make the bitcoin and person the accidental to clasp it connected their equilibrium expanse by subsidizing it done the merchantability of energy." I highly respect his opinions due to the fact that helium works successful the vigor assemblage and has a pulse connected its interior workings. I besides highly urge you perceive to his fantabulous podcast, “Bitcoin for the People.”

The U.S. has efficaciously go the archetypal satellite powerfulness to let Bitcoin to flourish. Here are the strategical moves that the U.S. has made successful this chess crippled with Bitcoin:

1. The U.S. adopted the net protocol (TCP-IP) and does not modulate it's net companies similar China. Bitcoin is the autochthonal wealth of the internet. Inevitably, much U.S. regulations volition look to effort to power Bitcoin, but U.S. lawmakers volition beryllium "raking leaves successful the wind" with their regulations due to the fact that they volition recognize that they cannot power an unfastened protocol, conscionable similar they can't power the internet.
2. The Internal Revenue Service taxes bitcoin arsenic an intangible property, conscionable similar tangible existent estate.
3. The CFTC has deemed bitcoin to beryllium a commodity.
4. The U.S. banal marketplace has allowed mining companies, similar Bitfarms, Hut 8 and Marathon, to database arsenic nationalist companies. Core Scientific mining institution volition apt beryllium next.
5. Mining companies are rapidly propagating successful states similar Texas, Wyoming, Washington, New York, Kentucky and Georgia. States are warring among themselves to pull mining companies to their economies.
6. America has more than 35% of the Bitcoin mining hash rate.
7. Governors and senators are lobbying for Bitcoin
8. Bitcoin has go mainstream among stars similar Tom Brady, Kevin O’Leary and galore different beloved and fashionable U.S. athletes, celebrities and stars.
9. Major outgo apps similar Cash App and PayPal let for the purchasing of bitcoin.
10. 46 cardinal Americans ain bitcoin, oregon ~17% of the U.S. population.
11. Intel and Jack Dorsey's company, Block, are going to commencement designing Bitcoin mining ASICs, making mining much accessible to mundane Americans.
12. Regular, mundane Americans will beryllium capable to buy bitcoin astatine 300 section assemblage banks sometime this year.

All of these moves are a portion of Bitcoin crippled theory.

The U.S. volition beryllium forced to follow Bitcoin arsenic a antiaircraft move, different it's satellite reserve currency presumption could beryllium lost. All currencies since the advent of fiat person failed and the U.S. dollar volition beryllium nary different. U.S. senators, governors, presidents and the subject volition usage bitcoin to triumph elections, pull Bitcoin companies to their states and the federation and combat the currency wars we presently are in. Bitcoin volition service arsenic a antiaircraft and violative determination to let the U.S. to clasp its presumption arsenic a superpower. But Bitcoin belongs lone to the world.

Russia mightiness follow Bitcoin earlier the U.S. successful a strategical determination to summation a headstart against their age-old rival. If this happens, successful the words of Max Keiser, "a planetary hash contention volition begin," and that volition commencement a concatenation absorption among G7 countries. The capitulation of Russia volition beryllium owed to the information that they volition recognize the correlation betwixt golden and bitcoin, which they person been aggressively buying since the 2008 crisis. Russia has a batch of inexpensive vigor and they volition commencement to excavation bitcoin erstwhile they recognize however overmuch wealth they tin make, fixed this excess energy.

Another Bitcoin crippled mentation lawsuit could hap if Turkey decides to acquisition bitcoin with it's hyperinflated, worthless fiat currency, the lira. This volition beryllium the astir important strategical determination for a state who has a hyperinflated currency. The quality of this determination is that Turkey volition beryllium capable to people worthless fiat to bargain wealth that is appreciating astatine astir 170% per year. Essentially they volition beryllium mimicking what the U.S. has been doing since 1971 — printing fiat to summation economical prosperity. The lone quality successful Turkey's lawsuit is that they are not invading countries to bash this — alternatively they are conscionable breathing beingness backmost into their country's failed system by becoming immense beneficiaries of the archetypal mover's advantage. Turkey volition commencement a concatenation absorption among each the different inflation-ridden countries to travel suit and the satellite volition look connected with utter disbelief arsenic bitcoin rapidly gets adopted. G7 countries volition nervously observe these happenings and commencement their capitulation adjacent earlier.

There volition beryllium large dissension during the modulation from a fiat satellite to a Bitcoin satellite — but this volition not beryllium Bitcoin’s fault. Wars whitethorn beryllium fought: not needfully kinetic wars, but possibly adjacent cyber wars. Rulers bash not privation to let for Bitcoin. Why would the rulers of the satellite not tendency a satellite similar this? The elemental reply is that successful the fiat world, the affluent get richer and the mediocre get poorer. In a Bitcoin world, each radical are treated reasonably due to the fact that the wealth is:

• Open to all
• Immutable
• Universal
• Ungovernable
• Fair
• Empowering

Bitcoin's crippled mentation is an elegant, organic, phenomenal and almighty happening to spot unfold.

This is simply a impermanent station by Jeremy Garcia. Opinions expressed are wholly their ain and bash not needfully bespeak those of BTC Inc. oregon Bitcoin Magazine.