God’s Currency – Bitcoin

**If there is a currency in this world that “doesn’t need to trust anyone”, Then it must not look artificial. **

Introduction: A currency that doesn’t look like an artifact

Why is there, for the first time in human history, a currency that “doesn’t require trusting anyone”?

Before talking about Bitcoin, it’s necessary to put one thing aside: the price.

If the value of a currency can only be proven by its rise and fall, then it is not discussing a currency but a speculative product.

Almost all monetary systems in human history have one common characteristic - they need to be managed.
Someone needs to decide how much to issue, when to adjust, and whether to make exceptions in a crisis; Someone needs to be responsible for the rules, and someone needs to step in when the rules fail.

Bitcoin is trying to take a completely different path.

It doesn’t promise stability, it doesn’t promise growth, it doesn’t even promise good decisions.
It only does one thing: write down the rules and let the system run on its own. **

In this sense, Bitcoin is not a smarter management solution; It is a kind of abandonment of “management itself”.

This choice does not stem from technical confidence; It is more like a realistic assessment of mankind’s long-term governance capabilities.

Chapter 1

Bitcoin is not a flash of genius, but an inevitable product of the times.

1.1 The lifting of the ban on cryptography: technology sinks to the people for the first time

“A specter is haunting the modern world, the specter of crypto anarchy.”
—— Timothy C. May

20 In the 90 century, cryptography was first “released” from the military and national security agencies and began to enter the civilian field.

Prior to this, high-strength encryption algorithms had long been regarded as arms in the United States, and their dissemination and use were strictly restricted.
This is not a technical issue, but a power issue - who can have “communication capabilities that cannot be spied on”**.

With the popularity of the Internet, individuals have begun to realize: The Internet is amplifying the power of power to monitor individuals, not the other way around.

1993 In 1998, Eric Hughes wrote in The Cypherpunk Manifesto:

“Privacy is necessary in an open society.” “We cannot expect privacy handouts from governments, corporations, or other large faceless organizations.”

(Original:https://www.activism.net/cypherpunk/manifesto.html ）

The core position of the code punk is not radical, it’s just an extreme reality:

If privacy is a right, then it cannot rely on the goodwill of others, but only on mathematics.

This idea will later be extended directly to the monetary sphere.

If the communication should not be trusted, it should not be. Why should wealth need to be trusted?

1.2 Two failed experiments before bitcoin

a. Failure to centralize the currency (trustee)

David Chaum, the digiCash that was introduced in the 1980s, was an important pioneer in the history of digital currency.

It makes anonymous payments by means of blind signatures and is highly technologically advanced. However, digiCash relies on a centralized company to issue and liquidate the currency.

This means:

The existence of the system ultimately depends on whether a legal entity is allowed to exist.

In 1998, DigiCash went bankrupt. It’s not technology. It’s technology.Governance structureBeating.

b. Failure of purely technical programmes (non-resolution coordination)

The programmes b-money, Bit Gold, Hashcash have introduced key ideas such as decentrization books, workload proof, etc.

But none of them answered one question:

How can the system be coordinated on an ongoing basis without trust?

The technology is correct, but the system cannot be self-sustaining.

Logical conclusion:

Bitcoin is not the first system to solve currency problems. But it is the first system to address both “trust” and “coordination.”

Chapter II

Why not bitcoin? A logical chain of constant questioning.

“A” is “B” the reason? If not, keep asking; If so, is it the only reason?

The conclusions follow:

• Scarcity is not the answer.
• Centralizing is not the answer.
• Security is not the answer.

These characteristics are important, but not the most important. They work together for one.The bottom problem.。

Chapter III

The answer to the end of the line - a reason not to pursue it.

Bitcoin was the first.**There’s no need to trust anyone.**It’s not like it’s the same thing. The monetary system is still functioning on a long-term basis.

In the first sentence of the Bitcoin White Paper, Chung wrote:

“A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.”

(Original:https://bitcoin.org/bitcoin.pdf ）

It’s not about “points to point,” but it’s not about “points to point.” It’s about…without going through。

Not to bypass the bank. It’s going around.The presumption of trusting an intermediary itself。

Chapter IV

Why is “no trust” so important?

4.1 At the individual level: People change

• Power changes position.
• The temptation changes the principle.
• History’s “reliable people”, when given enough power, almost all will fall apart.

The problem is not that people are bad, but that people change.

4.2 At the organizational level: Incentives precede ethics

• Corporate responsibility to shareholders
• Government financial responsibility
• Central banks are responsible for stability.

In the event of a conflict between the “system survival” and the “rules commitment” , there is no reason why this is not the case. History has never stood on the side of promises.

That’s right.A tombstone for the money system.。

4.3 Institutional level: exceptions are negative

• State of emergency
• Special periods
• Very powerful.

The human problem is not the occasional loss of faith. It is the systemic inability to be credible in the long term.

Chapter V

The only way for Bitcoin to fail is for mankind to become credible again.

The word “credible” here is not moral good. It’s in the sense of the system.No exceptions.。

5.1 Definition of “failure”

First, three hypocritical failures are clearly excluded:

• It’s not a failure.
• It’s very volatile. It’s not a failure.
• Disclaimed by mainstream public opinion.

Bitcoin’s failure can only be: Human society no longer needs a monetary system that “does not need to trust anyone”.

5.2 Design premises for bitcoin

It does not assume that:

• People are good.
• People are rational.
• People keep their promises.

It assumes only that:

• Mathematics established.
• The cost is real.
• Incentives can be validated

5.3 Inverse proposition validation

If humans become credible again:

• No audit required
• I don’t need a contract.
• There’s no need for oversight.
• No need for monetary policy constraints

Calm conclusion:

At that time, bitcoin could really disappear.

5.4 Closed Logic Ring

As long as power is concentrated, incentives are distorted and information is asymmetrical as ever, the government will not be able to do so. “Systems without trust” still have meaning.

• Bitcoin doesn’t exist because it’s perfect.
• It’s because it’s not perfect.

Chapter VI

Why does it look like “God’s Currency”?

6.1 No managers

• Nakamoto is gone.
• None CEO
• No meeting

6.2 Non-changeable rules

• I’m not saving the city.
• I don’t understand.
• Uncompromising

6.3 More like natural law than institutional design

• Like time.
• Like entropy.
• Like gravity.

That’s why it’s more like a simulation of the laws of nature. It’s not the product of the design of the system.

It does not require understanding, but compliance.

It’s at the end.

When you understand all this, You’ll find an ironic reality.

When people decide to vote for bitcoin, And you’re making a deal.

There’s something valuable that comes from it that allows you to make mistakes.
There’s a risk that something must depend on you forever.