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0 sats \ 0 replies \ @gnilma 20 May 2023 \ on: Is bitcoin based on human greed? bitcoin
An alternative way to put in, and in my opinion, a better way to put it, is that bitcoin is based on better incentives.
The open and permissionless mining network incentivizes open competition. The open and permissionless monetary network incentivizes open and permissionless transactions.
The ultimate private property rights incentivize trade and peace, instead of coercion and violence, as violence is no longer profitable due to property unable to be easily seized.
The predictable monetary policy and immutable ledger allows users to accurately plan for the future and limits destruction of capital due to a monetary policy that can change on a whim; in other words, future stability.
The absolute scarcity incentivizes long term thinking / low time preference / savings / accumulation of capital / whatever you like to call it, but it is the fundamental building block of civilization and innovation.
The decentralization incentivizes trust in a trust minimized system. You trust that it is for everyone's best interest in the network, even if they are bad actors, to follow the consensus rules of bitcoin; because if they don't, they will be rejected by the network and will not be allowed to participate.
Calling it "greed" might be just another way of saying "aligned to human incentives". According to Mieses, all humans act according to their own reasons. Humans have the ability to reason and are able to direct it to the meeting of their ends.
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It is normal for a human to want what they desire and act to obtain it. If that is what we call "greed", then greed promotes human action.
I think what is so special about bitcoin, as outlined above, is that the rules of bitcoin are designed with moral and good incentives; whereas, the current fiat system rules are designed with evil and bad incentives.
Greed is just another human action booster; it is neither good nor evil. It is simply that insatiable feeling of wanting more, which causes human to act according to their own. Rather, it is the rules of the system in which the human resides that determines whether the greed is good or bad, whether the greed promotes moral or evil actions.
After the wall of text (sorry I tend to go on and on to drag a point and repeat...), to answer your question, yes, I think bitcoin is based on human greed. I also think bitcoin is a system designed to leverage human greed to incentivize humans in acting in a moral and self preserving manner; and I would say, this type of greed is absolutely good!
P.S. The topic you raised was very interesting and I couldn't resist pulling myself away from TOTK to type up this reply. Time to get back to my adventures with Link in Hyrule now. TOTK all day, everyday...