To investors, The situation in Canada has received international attention across the internet. People are wondering how a liberal, democratic country could descend into authoritarian chaos so quickly. Disagreeing with subsets of your population, or opposite sides of the political debate, are an expected component of democratic societies, but the shocking aspect is how the Canadian government has decided to react. Rather than meet with the protestors to hear their complaints or encourage their protesting within a designated area of the city, the Canadian leadership has responded to dissent with a ruthlessness that is usually reserved for dictatorships. As David Sacks wrote over the weekend, “A Social Credit System Arrives In Canada.” In the piece, Sacks argued:
It is pretty incredible to watch this play out in real-time. There are individuals who are being financially sanctioned in a way that was previously reserved for enemies of war. Take the Russia - Ukraine situation as a current example. The United States is threatening financial sanctions, including potential removal from the SWIFT system, if Russia chooses to invade Ukraine. There is not much difference between the threat of sanctions to Russia and the current financial sanctions that are being levied against Canadian citizens by their own government. That is wild to think about. If there is one positive outcome of this situation though, it is that millions of people in the western world are being alerted to the perils of financial censorship. Previously, most people thought these authoritarian measures would never happen in their own countries. Canada has made them change their mind and start paying attention. This morning, co-founder of Basecamp and creator of Ruby on Rails David Heinemeier Hansson (known as DHH), wrote a piece titled “I was wrong, we need crypto.” He started with the following excerpt:
You have to give DHH credit for the intellectual humility necessary to admit you were wrong in public. But his journey is not that dissimilar from many others. The idea of bitcoin as freedom technology was a distant thought because it has been hard to see dystopian or authoritarian environments in the western world. Sure, maybe those situations play out in the developing world far away, but that couldn’t possibly happen in my country, right? RIGHT??? DHH continues his write-up with the following comments:
Ultimately, bitcoin serves as the chaos hedge. It is insurance for a dark, dystopian world that everyone hopes won’t become reality. The hard part about technologies that bring freedom, security, privacy, and sovereignty is that the mainstream population doesn’t actually care about these ideas. They want convenience. There is a disconnect between the conversation and the actions when it comes to these topics. This is an area that bitcoin is drastically undervalued and misunderstood. Bitcoin is a freedom technology disguised as a get-rich-quick scheme. Millions and millions of people join the revolution initially to make money, not to adopt a secure, censorship-resistant currency. Economic incentives run the world. Show someone how they may get rich and you’ll watch adoption follow. That is exactly what bitcoin has done. It is the best performing asset over the last decade, including a 150%+ compound annual growth rate during the decade. Here is the catch though — millions of people come for the profits, but stay for the revolution. Bitcoin has a unique way of teaching economics, computer science, personal finance, mathematics, philosophy, geopolitics, and much more. In fact, I’d argue that most bitcoiners have learned more from the bitcoin community than they did in school. This is what hardens the bitcoin holders. They don’t care about price fluctuations. Name another asset where it goes down 20% multiple times a year and there is a 50% loss in price every year for the last 4 years, yet majority of the investors continue to hold for the long term? Bitcoin isn’t about profits. The investors and holders have no plans to sell. Bitcoin is a freedom technology. It is a peaceful protest that arms the average citizen with a censorship-resistant technology that prevents their government from enacting authoritarian measures that encroach on their basic rights. Without the freedom to transact, you have no freedom. Canada has awaken the western world to the perils of financial censorship. Bitcoin is the solution. It is just a matter of time before millions more realize it. Hope you have a great day. Talk tomorrow. -Pomp If you are not a subscriber, join 215,000 other investors who read my personal opinion on finance, technology, and bitcoin each morning. SPONSORED: Bitwise is one of the largest and fastest-growing crypto asset managers. As of December 31, 2021, the company managed over $1.3 billion across an expanding suite of investment solutions, which include the world's largest crypto index fund and other innovative products spanning Bitcoin, Ethereum, DeFi, and crypto equities. Whether you’re an individual, advisor, or institution, Bitwise provides intelligent access to crypto with your unique circumstances in mind. Visit www.bitwiseinvestments.com to learn more. Certain of the Bitwise investment products may be subject to the extreme risks associated with investing in crypto assets. Visit www.bitwiseinvestments.com/disclosures/ to learn more. Podcast SponsorsThese companies make the podcast possible, so go check them out and thank them for their support!
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