Bitcoin Maximalism and Sh!tcoins

The Yin and Yang of Bitcoin

To be a Bitcoin maximalist is to hold Bitcoin as the pinnacle innovation in cryptocurrency. I have mixed feelings about Bitcoin Maximalism, as it often takes on a toxic form. Toxic in the sense that all other cryptocurrency projects, and monetary endeavours are given derogatory labels such as “shitcoin”. The problem is that most cryptocurrencies are just that; total shit [ see diarreah coin worth $9 million ]. On the other hand, I believe that there are a handful of good projects, that have earned the value that they’ve accrued. These projects are innovating at the edges, trying something different, and genuinely trying to solve problems in the world. These are coins that I don’t feel deserve the title of shitcoin. How does one discern the difference between shitcoins and projects who’s aim is to improve the state of the world?

The Maximalists Philosophy

Bitcoin Maximalism is likened to the immune system of the Bitcoin ecosystem. The individuals that embody this philosophy most vocally are a self anointed cohort of the Bitcoin community. In general, they believe they are performing a vital role in the Bitcoin community. I agree with this. It is vital. The fervour with which they stick to their doctrine is admirable and essential, but resembles the makings of a cult.

I agree with their intent, but often I find myself scratching my head at the means through which their intent is manifested. To put it simply, some people do not have a way with words. Some people wield words like a blunt instrument bludgeoning their arguments with harsh language. Others weave a tapestry using a sewing needle, revealing beauty in the way they’ve chosen to articulate their position.

Regardless of which method is taken, the underlying message is more or less the same underlying philosophical concepts that underpin the Bitcoin movement. These are the pillars on which I perceive Bitcoin Maximalists to be standing upon.

Fix the Money, Fix the World

This has all the hallmarks of a meme. It’s a big enough statement, in few enough words that makes you think about the deeper meaning. However, it is such a big statement that it draws easy criticism. The world cannot be fixed by fixing the money, because there is more wrong with the world than just the money. This much is obvious.

That being said, the monetary framework that every nation is built on is a ruinous problem, and one that is addressable today. Therefore “Fix the Money, Fix the World” is not so much a literal statement, as it is a call to action. It is a recognition that we have the tools and the knowledge to put in place, a better financial system than the one we’re currently operating with.

We know there is corruption throughout the political class, and the uber-rich. So why wouldn’t we put in place a system that has transparency and the ability to audit built into it?

We know that 25% of the population of the planet is underbanked or unbanked. So why don’t we give them access to a free and open monetary network?

We know that the wealth gap is getting wider through means such as the cantillon effect. So why don’t we adopt a money that is inflation proof?

We need people like Bitcoin Maximalists to remind us why we’re on this journey together in the first place. We’re here to adopt a better monetary system for the planet, but we’re arguing about the details of how to get there.

Unchanging, Leaderless Governance

Do not leave humans in control of the monetary system. We have, and will continue to fail at the administration of it. Not for any fault or malice of our own necessarily; we will fail because we make errors. We can’t help it, but we also cannot afford to make any more errors with our monetary system than we already have. By electing an unbiased, tamper proof monetary system, free of centralized control, we are able to liberate ourselves, from our own undoing.

Our current monetary system has several levers we can pull in the event we find ourselves on the precipice of catastrophe. Two of those levers are the ability to modify interest rates, and the ability to modify the money supply. For better or worse, we have granted ourselves the ability to modify the monetary system at its most fundamental level. The hypothesis is that humans are incapable of administrating a system as complex and multifaceted as our modern day economy. In my opinion, the fact that we’ve convinced ourselves that we are able to avoid every impending recession is an egregious act of hubris.

Bitcoin is a system that is free from levers, and free of a pilot’s seat. No oval office. No federated Bitcoin council. Intentionally, permanently, leaderless. Altcoins that have any notion of leadership are rejected on the basis of the above model. This opinion, I get deeply. Bitcoin’s leaderless approach is a genuinely novel way of approach monetary policy, where leadership in other coins is a return to where we came from.

Altcoins are Inflation

The Bitcoin codebase may be copied, modified, and launched anew an infinite number of times. None of those newly minted blockchains are Bitcoin, and represent a return to inflationary thinking. To be a Bitcoin Maximalist is to commit wholly and absolutely to a finite monetary policy mindset. It doesn’t matter if your new altcoin has a finite supply, because through the lens of Bitcoin, it is a dilution of value that would have otherwise accrued to units of bitcoin. If there is anything that Bitcoin stands for, it is the commitment to a finite supply of 21 million Bitcoin. 21 million units to measure all value in existence. No more, no less.

The crazy thing is, that this could actually work. We logistically do not need any other yardstick for measuring value in our society. Countries have different currencies, but this difference in monetary unit only further divides us as citizens of the earth. The Bitcoin vision is one where friend and foe are united under a single world currency.

Toxic Bitcoin Maximalism is an Auto-Immune Disorder

The analogy of Bitcoin Maximalism being the immune system of Bitcoin can be extended to make sense of strong language on social media channels. An auto-immune disorder is where your own body’s immune system attacks itself, doing harm to the body (the broader Bitcoin ecosystem), rather than just the infection (altcoiners, nocoiners, shitcoiners).

This auto-immune analogy is apt for what many see to be happening with Bitcoin Maximalists that go beyond friendly explanations. There is a tendency for some maximalists to wade into condescension, patronization, and unproductive insults. The danger of becoming toxic with those who don’t share your opinions or beliefs is that you are turning these people, and others, away from Bitcoin, thus slowing the rate of adoption. The counter argument to this point is that Bitcoin will be adopted on the large scale with or without this toxicity.

I tend to reject this from the perspective that every single person using Bitcoin is another node in the network. Each person amplifies the network effect of Bitcoin, bringing more value to the overall system. As someone who suffered in the past from an auto-immune disorder, it is an unwelcoming, and frustrating thing to experience. I would rather be a part of a Bitcoin community that patiently, and repetitively re-articulates the base case, and the details on an as-needed basis.

Altcoins Support Bitcoin

This is an extremely unpopular opinion among the Bitcoin Maximalist community. I’ve tried to shake this opinion out of yearning to be all-in on Bitcoin. Much to my chagrin, I have not been able to rationalize how Bitcoin would be better off without altcoins. They are the yin to Bitcoin’s yang. Or, if you prefer, the evil to Bitcoin’s good. They are the other side of the same “Bit”-coin.

Innovation Takes Place in Altcoins

One of the projects I’ve written about recently is Cardano. I refuse to accept that Cardano should be lumped into the category of shitcoin along with Doge and SHIB. It is a fundamentally different project, with different people behind it, with intentions that seem to be in the spirit of solving problems.

I renewed this conviction after listening to Charles Hoskinson's 5 hour episode on Lex Fridman’s podcast recently. It was a great opportunity to hear the mind behind Cardano articulate the reasons why they are doing what they’re doing. This is not the mind of someone who is motivated by money, but instead by their intention to further human understanding and alleviate suffering. They have the opinion that Cardano does this better than Bitcoin. Thats amazing, because if Bitcoiners are smart, they can learn from the innovations of others projects.

Altcoins Support Bitcoin

If you haven’t already read my letter on how Bitcoin scales, then I recommend doing so. One of the way it scales, is through other blockchains. These other altcoins are digging into niches where Bitcoin is unable to penetrate, for whatever reason. May it be that the group doesn’t resonate with the vision of Bitcoin, or its simply not the first cryptocurrency they’ve heard of. The point is, that even DOGE, which has turned many nocoiners into cryptocurrency holders are now well aware of Bitcoin, along with the rest of the cryptocurrencies.

We Need Die Hard Bitcoiners

Part of the inspiration for this letter was given to me after watching Jack Mallers (Founder and CEO of Strike) give his speech at the Bitcoin Miami Conference. Jack is partially responsible for El Salvador adopting a nationwide Bitcoin standard. When Jack was on stage, he was emotionally charged by what he was doing. He was in tears as he seized the opportunity to be the first to tell the people of the world that Bitcoin would now be a country’s legal tender. He finished off his speech by declaring that “Bitcoin is a hill he would f***ing die on”. How many people would be willing to die for DOGE? Or NANO? Or Bitcoin Cash? We need people that would go to the ends of the earth for global monetary sovereignty at the individual level. Bitcoin maximalists are a part of this, we need them. Just like we need intellectually gifted critiques of Bitcoin. It’s the only way we can show the toxic maximalists a proper oppositional force to their less than favourable approach.

Regards,

Keegan Francis