In today’s Exponential Investor:

  • Ford didn’t ask the horse breeder
  • Dimon doesn’t get it
  • More certainties

When Henry Ford was thinking up a revolution in manufacturing, do you reckon he got advice from a horse breeder?

I mean, clearly the preferred power unit back at the turn of the 20th century was of the equine persuasion.

Hence, if you were looking at ways to innovate transportation, surely, you’d get advice from those who’d excelled in such an area for decades prior.

Revolutionaries don’t consult reactionaries

However, I’m pretty sure that Ford didn’t even think about horses when he was retooling how the world would build, assemble and produce the greatest technology revolution of its era.

Why would he.

He wasn’t looking to build a better horse. He was trying to revolutionise the world with something that didn’t improve on it but did away with it (as a mode of transport) altogether.

It would stand to reason that if you were trying to upend an entire industry, trying to revolutionise the world as we know it, you wouldn’t really care what the legacy “experts” thought about it, would you?

So, when we start talking about cryptocurrency, crypto networks, programmable money, or the crypto revolution, why does anyone care what the like of Warren Buffett, George Soros, Jamie Dimon or anyone else like them thinks?

I tell you what, I couldn’t give a stuff what their views on bitcoin or crypto were. Not only because they’re in the game of protecting their self-interests, but because they actually have no idea what they’re talking about.

Yes, these legacy financial system “gods” (as many hold them up to be) know as much about bitcoin and crypto as [insert any inanimate object you can see around you].

We’re not assuming they know nothing by the way. We know for certain, 100% guaranteed that they’ve got no idea.

Certainties are hard to come by

Admittedly certainties are hard to come by. This is particularly true when it comes to the financial system.

But knowing that someone like Jamie Dimon has no idea about bitcoin, for example, is a guaranteed certainty.

At an event this week hosted by the Institute for International Finance, Dimon had this to say,

“I’ll just challenge the group to one other thing: how do you know it ends at 21 million? You all read the algorithms? You guys all believe that? I don’t know, I’ve always been a sceptic of stuff like that.”

Well Jamie, yes, we all do read the algorithms. And yes, we all do know it ends at 21 million. Well actually technically it never gets to 21 million exactly, it’s fractionally short, at 20,999,999.99999999.

How do we know this? How can we be certain?

We read the algorithms. We can do this because the bitcoin code allows us to. We know this because it cannot be changed. It is etched into the very fabric of what bitcoin is.

So, there is no scepticism here, and certainly not from people who actually know what they’re talking about. We 100% are certain and believe that’s what’s going to happen with the creation of bitcoin, because the code proves that it is 100% certain.

What we can’t be certain of is the motivation of Dimon or the other legacy financial system “gods” listed above. We can’t be certain they give a toss about anyone that isn’t on their executive level. We can’t be certain they have any interest whatsoever in helping the average investor get ahead in life.

Block reward to zero

Source: bitcoin’s code

See that above?

That’s what certainty looks like.

It’s what guarantees that bitcoin’s block reward will halve ever 210,000 blocks. After 64 halvings, the reward will be zero. Albeit it will happen before then as it’s estimated after 33 halvings, the reward will be rounded down to zero as it becomes infinitesimally small.

Again, we know this because the code guarantees it.

This is what makes bitcoin so powerful. This is what makes it so different from our legacy systems. It’s what makes people like Dimon look like idiots when they question these certainties and ask, “You all read the algorithms?

Yes, anyone can. He could too if he truly gave a stuff about it. But he doesn’t. So we don’t care what he thinks.

The beauty in bitcoin is its eloquent, simple design. Its code is a work of art. Its impact on the world is like nothing else. A disruption to global finance like never before.

And a lot of that disruption, the revolution at hand, is down to things like certainty from code.

That’s incredibly exciting because on 16 November 2021, in just over one month’s time, there is another certainty that’s going to completely change how we look at bitcoin.

This certainty is as certain as bitcoin’s reducing block subsidy, which I’ve shown you above. It’s locked in, it will happen, guaranteed.

And when it does happen, I’m of the view it’s going to set the stage for the biggest bull run we’ve seen not just in bitcoin, but a sub-set of other crypto that could run even harder.

All you need to do is understand what this certainty is, why it’s happening and what it’s going to deliver to the wider crypto ecosystem.

Know this, and you’ll have more knowledge, insight and smarts than Jamie Dimon or any other legacy financial system billionaire.

You will be streets ahead of them and anyone else who doubts the power of the crypto revolution.

Until next time…

Sam Volkering
Editor, Exponential Investor