All 31 articles of “Invite Satoshi Nakamoto to Welcome the New World” have been published. I started to study cryptocurrencies systematically in 2018. The sign that I basically understood cryptocurrencies was the article “Getting out of the Misunderstanding of Blockchain” (chainless.hk) published in 2021. “Invite Satoshi Nakamoto to welcome the new world” results from my further in-depth research. The article was first serialized on Bitpush on November 17, 2022, and it has not been modified this time. All the conclusions are being verified step by step.
Why use the phrase “welcome the new world”?
The new world has arrived
The industrial revolution was born in Europe, and the information revolution was born in the United States. Since the birth of the world’s first electronic computer in 1946, in the past 78 years, the information revolution has almost conquered all industries and achieved absolute victory. In the industrial age, a corresponding financial revolution was born, and legal currency replaced gold as a measure of wealth, forming a political, economic, and legal system based on legal currency. These systems are adapted to the industrial age, not the information age. The information age finally facilitated the decoupling of fiat currency and gold. But new problems have emerged. For example, due to the rapid arrival of information, the Federal Reserve’s monetary regulation policy has lagged behind, and the currency is over-issued. Despite this, the most valuable currency is still the US dollar. Unfortunately, according to Jan Nieuwenhuijs, an analyst at Voima Gold, wrote in 2020: “The spot gold price broke through $2,070 per ounce on August 6, setting a new record high, and the value of the US dollar relative to gold has shrunk by 99% since the 1930s.” It is less than 100 years. Figure 1 clearly shows that the Internet wave that began in the 1990s, the second wave of the information revolution, further accelerated the depreciation of the US dollar. A financial revolution corresponding to the Internet is not just brewing; it’s here and urgent.
The financial storm that began in 2007 gave birth to Bitcoin, born for the Internet age and to destroy the fiat currency system. Therefore, the founder had to choose anonymity. The first half of the 15 years has basically completed the task of issuing Bitcoin, and the transition between the first and second half began with the fourth cycle of Bitcoin. Financial giants represented by BlackRock have contributed to the arrival of the turning point. As early as Chapter 13 of this article, the Bitcoin natural growth curve has described that the fourth cycle of Bitcoin is the turning point cycle, and the Bitcoin price forecast of $60,000 is so coincidental. In the fifth cycle, Bitcoin will reach a price of $200,000. The curve does not consider the impact of inflation on the curve. According to the natural growth curve, Bitcoin has a total of 6 large-scale rising cycles since the fourth cycle. I don’t know what specific event will trigger the rise in Bitcoin prices, but there must be a big event: the power of the trend.
Bitcoin needs an official consensus
Chapter 11 of this article explains why global consensus needs official consensus. This view is different from the anti-government view of cypherpunks. Without official consensus, the financial revolution brought about by Bitcoin could not have succeeded. As the second half is mainly the application of Bitcoin, it is manifested as a financial revolution, which is not what the technical experts in the first half are good at. Excellent financial and application product experts and politicians have come to the stage. US presidential candidate Donald Trump recently proposed using Bitcoin or “crypto checks” to repay the US government’s $35 trillion national debt; Senator Cynthia Lummis proposed the BITCOIN Act of 2024 on July 31, 2024. The bill aims to enhance the financial security and leadership of the United States by establishing a national Bitcoin reserve. They are sensitive to the imminent debt crisis. If it is not resolved, the financial tsunami can no longer be used to measure future financial disasters. In this regard, I described how to use Bitcoin to repay US debts in Chapter 12 of this article two years ago in “The Plan to Achieve the Bitcoin Dollar Standard.” The emergence of these proposals is not accidental. Look at how similar our ideas are, but it should be pointed out that the official consensus has never been proactive, under pressure, or guided by public opinion. It is the general trend.
Crucially, we must establish legal systems that are compatible with Bitcoin and the Bitcoin standard
The general trend does not deny the role of excellent politicians, especially at the turning point in history; politicians’ foresight is needed to solve the constraints of production relations. The biggest problem for Satoshi Nakamoto is that he cannot come out. The biggest problem in the development of cryptocurrency is also legal. For example, Americans do not have to pay taxes on crypto assets, but they have to declare them. Satoshi Nakamoto did not declare his Bitcoin holdings for 14 years. How could Satoshi Nakamoto come out? Let a bright and rich person like Musk not play a role is a massive waste of talent. The US presidential candidate Robert Kennedy proposed that Bitcoin should be tax-free. Naturally, there is no need to declare it. He is a lawyer. His proposal created conditions for Satoshi Nakamoto to appear. If it is realized, it will be a major benefit to accelerate the development of Bitcoin.
Regulation is a big problem. Satoshi Nakamoto developed a system that does not require supervision. We do not need an increasingly large government to supervise it. Bitcoin is a revelation with rich ideological connotations. I organized Satoshi Nakamoto’s thoughts and my own learning experience into two columns: “The Insights from Satoshi Nakamoto Thinking” has a total of six articles; “What Satoshi Nakamoto did not think of, did not say…” has a total of 5 articles (chainless.hk). Based on my research on cryptocurrency, I wrote to the Hong Kong Securities and Futures Commission on July 21, 2023, proposing my regulatory ideas, but there was no response at all. Expressing my thoughts publicly may be more beneficial because they are the passive party.
Community building calls for Satoshi Nakamoto
After all, the Bitcoin system is just a project, and it is impossible to propose a perfect solution. Later, the partners developed a community autonomy system, which has been filling the vacuum caused by the leader’s departure. Amir Taaki’s BIP Bitcoin Improvement Proposal seems to be a small step, but it is great and has opened the process of community autonomy.
“Community autonomy” is a system that is genuinely suitable for the Internet, and it is used to solve the problem of customers being both users and contributors. It is a natural evolutionary behavior corresponding to the “corporate autonomy” in the Roman era. With the deepening of the cryptocurrency revolution, a legal and financial system based on community autonomy will inevitably develop. This system emphasizes autonomy more than regulation. Who understands the community well is, of course, Satoshi Nakamoto.
It is not accidental that this financial revolution was born in the United States. The United States has a democratic tradition. From the trend point of view, the United States will have a president supporting cryptocurrency to complete the legal and financial system suitable for Bitcoin and Bitcoin Standard. Whether Satoshi Nakamoto will appear depends on the US election. Americans are fortunate. Not only do they have Satoshi Nakamoto, but they also have an excellent political system. “Let the cryptocurrency revolution happen in the United States,” and only American politicians have the mind, courage, and creativity to destroy the old world and build a new one.
The new world needs a financial scale with an unchanging
On the third day after the Bitcoin system was published, Hal Finney, one of the founders of Bitcoin (see Chapter 6 of this article), published a prediction for Bitcoin that if Bitcoin can become the main payment system, the price of the coin will exceed 10 million US dollars per unit.
Becoming a major payment system requires a ruler for Bitcoin, and the idea that Bitcoin itself is a ruler is due to early technicians’ inadequate understanding of finance. To solve this defect, I proposed the “The Plan to Achieve the Bitcoin Dollar Standard” (see Chapter 12). My friend Mr. Tang Wanchuan read this article and thought that there was nothing wrong with the theory and that a financial ruler with an unchanging scale could be realized, but the Federal Reserve would not give up its interests, so it would not be easy to achieve. That is indeed the case with the proposal of Cynthia Lummis in the United States, so the Bitcoin dollar standard has only theoretical value. In May 2023, I proposed the DW20 token based on the Bitcoin BRC20 protocol. The issuance principle is the same as Bitcoin and does not require the Federal Reserve or Satoshi Nakamoto. Like USDT, it does not require separate accounting or a separate community. Unlike USDT, it does not need to be anchored to the US dollar, so DW20 has the conditions to be a standard currency and has the possibility of becoming a financial scale with an unchanging scale. Rome was not built in a day. It will take about 34 years to realize the financial scale and complete the transition from the US dollar standard to the Bitcoin standard.
A related project, the chainless platform, is being airdropped. In 8 months, there have been 700,000 registered users. All airdrops are for 50 million users. The official version will be launched in early 2025, and all the codes will be made public. The chainless platform is hoped to gradually meet Hal Finney’s requirements and become the main payment and settlement system supporting Bitcoin. DW20 will become a more stable financial scale than the US dollar, and we hope to contribute to humanity’s progress.
The financial meaning of the peer-to-peer cash system is bubble-free financial systems
Satoshi Nakamoto created the peer-to-peer cash system to solve three problems:
- Excessive central bank currency issuance
- Commercial bank bubble lending
- The inconvenience of small payments
Solving these three problems is a bubble-free financial system. In my article “From Peer-to-Peer Cash System to Bubble-Free Financial Systems,” I explained that a bubble-free financial system could be achieved with Bitcoin as the standard. There will be no inflation, and morality and kindness will return. This ideal world was pursued by utopian socialists, Hayek, and cypherpunks. Their ideas were more grounded than one another. Today, we are closer to achieving a fair society than we were.
Key points and vision of a bubble-free financial system
The above article on a bubble-free financial system is very lengthy. Summarizing and modifying Satoshi Nakamoto’s theory, the global bubble-free financial system has the following key points:
- Without a central bank, there is no source of bubbles. Rescue is still needed, and there are ways to do it.
- Financial markets are automatically stable. Economic development only corresponds to productivity development. There are very few bubbles.
- Reduce regulatory costs and improve financial efficiency. Financial disintermediation.
- Support anonymity, real names, openness, fairness, justice, and reduce corruption and fraud.
- A single-layer cross-chain financial system, with no clearing but only settlement.
- Establish legal and financial systems based on community autonomy.
- Provide ideas for innovation in production relations, such as using Satoshi Nakamoto’s ideas to regulate artificial intelligence, see “Grading Artificial Intelligence with Cryptocurrency Practices” (chainless.hk). Why can this be done? Because the ideas of cryptocurrency are ahead of the times.
Postscript
The new world does not come in an instant; it is a process, and this process originated on January 9, 2009, the birth date of Bitcoin. The second node is a day in 2025, the birth date of the Bitcoin standard. We will officially launch the chainless platform that matches the Bitcoin standard. All articles are public and can be viewed on the chainless website chainless.hk. People from all walks of life are welcome to give us advice.
This article can be freely quoted and published.
