Bitcoin’s Secret: Energy & Internet Power Your Life! | Hashpower Academy

Video Transcript:

Everything about your life and how you live it requires your complete dependency on these two systems, the electricity grid and the internet. Everything about your life boils down to energy and information. The costs of everything and the output rewards of all your time and energy being spent, money. And the internet comes into this because we have seen over the last few decades the complete de dematerialization of the high street. I remember growing up as a kid there being endless amounts of shops and Toys R Us and everything else and year after year after year the entire high street has transcended to the internet. But that deterioration on the physical side of things is quite a problem. Now where am I going with this video? Well, here’s the thing. We as humans now live in this boundary layer between these two worlds that we operate in. The majority of kids with their heads completely buried in the internet and the physical world always being there, always adhering to the laws of physics. And there’s this thing called money. Everything that we consume our time and energy working to gain to then spend to enjoy our time and energy on this earth. And that circular economy is fundamental. And where Bitcoin gets rid of the inefficiencies of the current monetary system is that the more we ensure the fundamentals of how we live are sustained and prosperous such as a functional electricity grid, just think of uh Spain at the moment. They had a massive power cut and people died. And that’s what happens when civilizational infrastructure stops working. It’s a serious problem. And it’s the same with our financial system. Whenever there’s a financial crisis, it tends to be the the little guy that foots the bill. And that’s not what we need in society. We need systems and infrastructure layers that go very deep to the heart and the core of how our society functions. the very people up in cherry pickers fixing things in the rain whilst you sit comfortably scrolling through, yes, it’s cliche, your cat videos or this video for the matter. What I’m trying to get at is these infrastructure pieces that hum away and tick along in the background without any second thought to the 99.9% of the human population, that’s probably not going to change. But if you are a Bitcoiner, you have some sense of understanding that societal issues of a whole, there’s something deeprooted to it. And many Bitcoiners have fully concluded with constant observations of many things and criticism of their own conclusions of we have a broken form of money. And what Bitcoin introduces is a couple of things that yes, there is a countless amount of financial aspects of a fixed supply asset. So it’s stock to flow ratio. The rate of a new increasing amount of money in circulation is not imbalanced to the amount of time and energy people spend acquiring said money. And that commodity money aspect of Bitcoin having such a scarce production rate. In fact, the ETFs right now are absorbing multiple amounts in terms of the amount of Bitcoin per day that’s available versus the the 10 times as much that they are purchasing themselves. And everything comes down to these infrastructure layers. It sounds boring maybe, but here’s the interesting thing. What Bitcoin does is it creates this circular economy between these two most important systems. We have our electrical grid which remains stable with economics. Let me repeat that. Our energy system that keeps everything functioning remains stable through economics. Because if the price of energy deviates too high and low, that is a representation that there’s too much supply or too much demand or vice versa on the electrical grid. And the price is what is used to settle the trade and transfer of energy so that the grid always remains balanced. Again, an energy system that keeps us all functioning and keeps the internet running. Our energy system is sustained by economics or finance shall we say. And this is where it gets a little bit interesting. What does Bitcoin do? Bitcoin does it the other way round. That’s its key phenomena when it comes to the context of energy is all of the problems with money in our financial system. It solves with energy as its security model, proof of work. That those that wish to issue the currency that other people spend and buy with their time and energy working. If you wish to issue that very same currency, you have to pay a cost in energy. But the fact that you went out and built energy infrastructure and compute infrastructure and consumed electricity and took those risks to not even buy the money but protect and project the network itself. Well, you get paid potentially at a lower price. But that that difference between the price of Bitcoin in dollars versus the price in electrons, that gap is fair. That those that produce by building out civilizational infrastructure of networking, the blockchain, data storage for us to settle in a peer-to-peer way. The true phenomena behind Bitcoin is not just its financial aspects, but it’s bringing a security model from the physical world. The laws of physics into the digital world where the laws of physics don’t exist. Copy paste shouldn’t technically exist in a physical sense. But that ability, say for you to listen to me speak, um, I’ve consumed x amount of energy recording this video, but if a thousand different people watch it or a million, shall we say, that I I couldn’t have consumed this energy a million times over speaking to a million people. The power of the internet is this ability to project. And I’m uh sort of enjoying that journey right now with this educational material that I’m putting out. I think I’m going to stop it there. Uh but the key takeaway is this. We have our most important infrastructure in the physical world. There’s obviously water systems and all these other sorts of things. But energy infrastructure that maintains our physical world is sustained with financial architecture. And we have now a financial architecture operating in the digital realm which is not just our local uh survival but our global trade and ability to economically prosper. Everything to do with finance in the digital wild west secured by energy systems. Thank you for listening. I hope you enjoy and I’ll see you in the next video. We have loads of stuff so get in the comments, questions, queries, emails, all of it. See?