Impact

Unlike most people, I believe that blockchain technology is far more important to society than AI. Don’t get me wrong—I’m not saying that AI isn’t important. But here’s a useful way to think about it: if AI were a new computer chip that’s 10x faster than the previous generation (allowing us to do all sorts of incredibly cool shit), blockchain technology in this analogy would be a discovery in semiconductor properties that enables us to reinvent CPUs from the ground up.

In other words, blockchain technology is a deeper advancement in our technological stack; it represents a change in what we can do with money, a fundamental building block of complex societies.

But because this change is so profound, it takes time for people to understand its implications, and even longer to apply the tech in ways that significantly impact people's lives. Almost 16 years after the first block was mined and we have barely begun this process.

The “one important truth” (a la Peter Thiel) that few crypto people agree with me on (I assume it's due to their uncritical acceptance of bitcoin’s “21m” narrative) is that cryptocurrency needs to be inflationary.

Basic monetary principles sat that if you want a thriving economy the currency has to grow along with GDP. If the currency is “fixed" people will not want to buy stuff bc the price of goods will have to drop in relation to the currency (supply & demand).

But if producers don't expect to sell as much they'll cut down production. So a “fixed” currency leads to economic stagnation (or worse). If the amount of money in circulation increases proportionately to GDP growth you can have a thriving economy & a stable currency.

Question is how serious are we about crypto competing with, or even replacing, fiat currency. If we're serious we need to adopt cryptoeconomics that promote a thriving economy. We can't just pretends that deflationary monetary policy will "fix the world." It won't.

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