Jesse Berger - Magic Internet Money

Magic Internet Money

A Book About Bitcoin

Jesse Berger

Copyright 2020 Jesse Berger

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in a data base or retrieval system, without the prior written consent of the author.

This book has been carefully researched; however, due to the complexity of the subject matter and the continual changes occurring in the subject matter, the author cannot be held responsible for errors or omissions, or consequences of any actions resulting from information in this book. The author makes no representations or warranties with respect to the accuracy or completeness of the contents of this book.

The advice, strategies, and material in this publication are provided for information purposes only and may not be suitable for the reader. The analysis contained herein should in no way be construed as being either official or unofficial policy of any governmental body. Laws, regulations and procedures are constantly changing, and the examples given are intended to be general guidelines only.

This book is sold with the understanding that no one involved in this publication is attempting herein to render professional advice. It is recommended that financial, legal, tax, and other advice or assistance be obtained before acting on any information contained in this book. Personal services of a competent and experienced professional should be sought.

ISBN (Paperback): 978-1-7771284-0-1

ISBN (e-Book): 978-1-7771284-1-8

ISBN (Audio): 978-1-7771284-2-5

Edited by: Catherine Leek of Green Onion Publishing

Interior Design and Layout by: Kim Monteforte of Kim Monteforte Graphic Design Services

Cover Design and Illustrations by: Daphne Mariano

This book is dedicated to my role models:

Mom for your courage, your wisdom, and for always looking on the bright side.

Dad for your poise, your resolve, and for teaching me to play both sides of the ball.

Contents

What Is Money?

Chapter 1: Narrative

1.1 Once Upon a Time

1.2 From Seed to Sapling

1.3 Down the Rabbit Hole

Chapter 2: Origins

2.1 Immaculate Inception: Satoshis Vision

2.2 Genesis: A New Hope

2.3 Open Source: The Internet Strikes Back

2.4 Consensus: The Return of Integrity

2.5 E-Money: Fully Charged

2.6 Fixed Supply: The Promised Land

2.7 In Memoriam: The Shrine of Satoshi

Chapter 3: Money

3.1 The Root of All Good

3.2 Sound Money Redefined

3.3 A Very, Very Brief History of Money

3.4 What the Fiat!

3.5 Fiat Functionality

3.6 Bitcoin on Point

3.7 Bitcoin Functionality

Chapter 4: Growth

4.1 The Root of All Growth

4.2 The Value of Price

4.3 Time Is Money

4.4 Calculated Risk

4.5 Divestment Advice

Chapter 5: Innovation

5.1 Evolution & Revolution

5.2 The Smart Money

5.3 Blockchain 101

Chapter 6: Resilience

6.1 An Unstoppable Force

6.2 Teamwork Makes the Dream Work

6.3 An Immovable Object

6.4 Harder, Better, Faster, Stronger

Chapter 7: Scarcity

7.1 Limited Edition

7.2 $: A Sea of Fiat

7.3 Setting a Precedent

7.4 Pushing Limits

7.5 Making a Statement

7.6 No Second Chance for First Impressions

Chapter 8: Competition

8.1 A New Frontier

8.2 Bitcoin Versus Fiat

8.3 Bitcoin Versus Gold

8.4 Bitcoin Versus Crypto

8.5 Bitcoin Versus Forks

8.6 Bitcoin Versus Stablecoins

Chapter 9: Governance

9.1 Fair Is Rare

9.2 Tilted

9.3 Balanced

9.4 Ground Rules

9.5 Lead by Example

Chapter 10: Freedom

10.1 The Golden Rule

10.2 The Dependency Trap

10.3 Home of the Brave

10.4 Capital Control

10.5 Moral Hazard

10.6 Amoral Safeguard

10.7 Unchained

Chapter 11: Drawbacks

11.1 Mind the Gap

11.2 Ease of Use

11.3 Speed & Scale

11.4 Full Custody

11.5 Dark Mode

11.6 Mining

11.7 On Apathy & Atlas

11.8 Upset the Setup

Chapter 12: Outlook

12.1 Monopoly Money

12.2 The Debtors Dilemma

12.3 From Sapling to Sequoia

12.4 Forward Guidance

12.5 The Bottom Line

Resources

Endnotes

Key Terms

Acknowledgments

What Is Money?

Fix the money and you fix the world.

Marty Bent, Tales from the Crypt Podcast

Money is always and everywhere a social phenomenon in the sense that any change to its value or usefulness affects our behavior, because it constitutes half of every transaction that perpetuates society. Given this, why do we seldom question the merits of our current monetary system? Why do we allow it to function without justification or consequence?

Perhaps our attention is so squarely focused on quantity on having enough money that we regard its qualitative properties as a foregone conclusion. In overlooking it as an instrument that works best when finely tuned, we chase it like a fish does bait, unaware of the fact that our meal comes with strings attached. This blind spot is the greatest obstacle preventing us from seeing how modern money is negatively affecting our wealth and well-being.

Today, money is controlled by masters who, obscured behind a veil of prestige, pull its strings like a puppeteer, leading us astray like the pied piper. Operating under the guise of promoting prosperity, they deceive us into discounting their dismal track record, which perpetuates economic inequality by continuously diluting the value of our money, affecting how we use our time and efforts.

Enter Bitcoin. It was purpose-built to restore the uplifting capacity of money and challenge the proficiency of the legacy monetary system. It incentivizes collaboration by acting as an impartial and mutually beneficial medium that, if increasingly chosen as the preferred basis for commerce, has the potential to generate remarkably positive economic and social changes.

To understand how, Magic Internet Money explores a variety of related subjects, describing them in broad strokes. It assesses what money is, how it works, why it is useful, and why it has value. It examines how money could best function for the benefit of everyone equally and for all time and why Bitcoin is best suited for this purpose.

One of the special facets of Bitcoin is that it has no throne. No king or queen can assert their dominion, no CEO can determine its agenda, and no government can legislate its activities. With no central authority, the responsibility to manage, promote, and protect its livelihood resides with its users, each of whom understands and values Bitcoin on their own terms. As a community, they openly share knowledge and ideas about Bitcoin, some of which will be echoed in the pages ahead.

If after reading this book you find yourself curious to learn more, I have included a list of resources at the end. There, you will also find a list of key terms that you can reference should you require clarification on any of their meanings, but you do not need to understand them before starting.

Personally, I first heard about Bitcoin in 2011 while working in the investment industry. I watched from the sidelines as its price soared from under $1 to $30, leading me to believe that I missed the boat. Only in 2017 did I finally try using it for the first time, and that proved to be a necessary step in deepening my appreciation for it. If I could share any advice regarding Bitcoin, it would be that it is never too late to begin experimenting.

Professionally, I studied economics and philosophy prior to starting out as a retail banker and investment adviser. During that time, as I grew my knowledge of the financial sector, I made a few trips to the World Series of Poker , which helped me better understand how to put risk and reward into perspective, and to be accountable for my choices. I then went on to earn my MBA, where I led the winning team of The Economist s global investment case competition, defeating over 25 schools from around the world. Afterwards, I worked as a finance and market research consultant, before becoming a certified blockchain professional and venturing out on my own into the wonderful world of Bitcoin.