• Bitcoin is not just a technology, but an entire techno-socio-economic transformation.
• If it proves to be superior across all dimensions of money, it could completely replace the old guard and become global money.
• Such a transformation requires temperance, patience, humility and realism from the Bitcoin community.
The Techno-Socio-Economic Transformation of Bitcoin
Bitcoin is often seen as a new technology that may quickly “take over the world” as a widely adopted form of money. Aleksander Svetski points out that this assumption underestimates the magnitude of this transformation: Bitcoin is not just a technology, but an entire techno-socio-economic shift that has great potential upside if it proves to be superior in all dimensions important for money. Therefore, temperance, patience, humility and realism are essential for its success.
The Benefits Of A Paradigm Shift
If fixed in supply and going for global money, Bitcoin could become the most liquid and valuable “unit of value” on Earth – completely replacing traditional forms of currency with its own paradigm shift. This kind of transformation is much bigger than simply carving out a new market; it has winner-take-all potential if successful.
The Challenges Of A Paradigm Shift
Successfully becoming global money will require much more than simply adopting the latest technology or products – starting from rethinking how we view money itself to adapting to regulations and social acceptance on a global scale. The challenges associated with such an ambitious undertaking are immense and require insight into various aspects such as economics, politics, psychology and sociology in addition to technological innovation.
Maturing In Our View Of Bitcoin
Rather than projecting technology adoption curves onto Bitcoin too quickly or expecting rapid worldwide adoption, Aleksander believes that maturing our view of Bitcoin requires us to adopt lower time preferences – being patient yet realistic about what can be achieved in terms of adoption rate over time while still believing in its potential long term success.
It’s clear that becoming global money won’t be easy for Bitcoin – but nor should it be underestimated either; its potential upside is enormous if successful! Maturing our view requires us to adopt lower time preferences so we can remain both patient yet realistic about what can be achieved over time while still believing in its long term success.