October 31 is a day celebrated around the world in many different cultures. It originates from the ancient Celtic spiritual tradition of Samhain, and has always been a symbol of death and renewal. It turns out that history is filled with landmark events on this date which propel human civilization forward.
On October 31, 1517, Martin Luther nailed his Ninety-Five Theses onto the door of All Saints’ Church in Wittenberg, criticizing the indulgences of the Roman Catholic Church. It started the Reformation which would later lead to the separation of Church and State. Exactly 11 years ago, on October 31, 2008, a link to a paper authored by Satoshi Nakamoto titled Bitcoin: A Peer-to-Peer Electronic Cash System was posted to a cryptography mailing list, challenging the authority of central banks and their monetary policy abuses.
History will look back on the Bitcoin whitepaper as the beginning of the separation of Money and State. For all libertarians and sovereign individuals, myself included, it is an aspiration worth striving for.
As a polymath and Bitcoin maximalist, I see Bitcoin as a portal to ideas of great thinkers of which I’m a student: Gustave Le Bon’s crowd psychology, Eric Hoffer’s fanatical mass movements, Nassim Nicholas Taleb’s antifragility and skin in the game, Friedrich von Hayek’s distributed knowledge and monetary competition, Jorge Luis Borges’ illusion of reality, Friedrich Nietzsche’s will to power, John Nash’s game theory, and much more that I’m yet to discover. It never fails to amaze me to see how these ideas, through Bitcoin, are playing out everyday right in front of our eyes, and I’m grateful to be part of the greatest social revolution of our time.
It is a very common clever device that when anyone has attained the summit of greatness, he kicks away the ladder by which he has climbed up, in order to deprive others of the means of climbing up after him. In this lies the secret of the cosmopolitical doctrine of Adam Smith, and of the cosmopolitical tendencies of his great contemporary William Pitt, and of all his successors in the British Government administrations.
Any nation which by means of protective duties and restrictions on navigation has raised her manufacturing power and her navigation to such a degree of development that no other nation can sustain free competition with her, can do nothing wiser than to throw away these ladders of her greatness, to preach to other nations the benefits of free trade, and to declare in penitent tones that she has hitherto wandered in the paths of error, and has now for the first time succeeded in discovering the truth.
When Friedrich List wrote these paragraphs in The National System of Political Economy in the 19th century, the U.S. was a newly industrializing nation. Today, it is at the pinnacle of technological achievements. Here are the hard truths about national economic development: climbing your way up requires unorthodox tools; staying on top takes hypocrisy to deny latecomers those very same tools.
John Atkinson created irreverent summations, in the fewest words possible, of some of the most famous works of literature. Here are my own for the Four Great Classic Novels of China:
- Romance of the Three Kingdoms: Empire splits into three parts. Then reunited.
- A Journey to the West: A monk, a monkey and a pig take forever to get to India.
- The Water Margin: 108 outlaws vs. government. Government wins.
- The Dream of the Red Chamber: A rebellious rich kid is spiritually awakened.
Fanatical experiments cannot be sustained without creativity. To paraphrase a wise man from the last century, the way the Nazis or the Communists sell their holy causes is no different from the way capitalists advertise their Gucci bags or cigarettes. The techniques we found in the imperialistic tendencies of the Nazis and the Communists are in fact based on the methods of industrial enterprises.
Today, when theorists in Beijing talk of socialism with Chinese characteristics, they are perhaps admitting that the success of the authoritarian experiment will always depend on the creativeness proceeding in the outside non-authoritarian world. If there were no free societies outside of China, they might have found it necessary to establish freedom by coercion.
How I imagine Jorge Luis Borges would write about Bitcoin:
In Bitcoin we find the idiosyncrasies of each of its forks to a greater or lesser degree. Every fork modifies our conception of the original Bitcoin, as it will modify the future. If the forks had never existed, we would not perceive the qualities in Bitcoin. In other words, Bitcoin would not exist. The fact is that the sum of all the forks creates Bitcoin. Bitcoin is faithful to its own forks.
Nassim Nicholas Taleb uses two criteria to filter ideas and books. First, the Lindy Effect: the more the book has been around, the longer its future life expectancy. Second, the more skin in the game, the more convincing the idea is. In practice, I am attracted to books that look ancient, and look at how far the author is prepared to pursue his/her ideas.
In most Chinese cities, I seldom find bookstores where you can buy the Book of Lord Shang (商君書) and Guiguzi (鬼谷子) together, except in Beijing. I think the only reason is that readers in Beijing have skin in the game as they rub shoulders with Leviathans and Machiavellis every day.
Shang Yang (商鞅) and Guiguzi (鬼谷子) predated Thomas Hobbes and Niccolò Machiavelli by over 1,500 years. And unlike today’s members of the “intelligentsia”, they have real skin in the game, more so than their rival Confucians. Shang Yang was literally torn to pieces for executing his reform ideas which paved the way for Qin’s universal rule. Guiguzi bred Su Qin (蘇秦) and Zhang Yi (張儀), two preeminent rhetoricians that are rivalrous yet mutually-reinforcing in the Warring States period. In the end, one was (again) torn to pieces, the other died in exile.
Therefore, their books are great, per Lindy Effect and skin in the game. The same principles apply to other fields. Among Republican China’s men of letters, I think Wang Guowei (王國維) is the best. He was a rarity by drowning himself in Kunming Lake in the Summer Palace in 1927. Cao Xueqin (曹雪芹) personally experienced the fall of his illustrious family from its height, dying in poverty. Hence, I think the Dream of the Red Chamber (紅樓夢) is infinitely better than F. Scott Fitzgerald’s Great Gatsby. I too love Nietzsche, who died of insanity, and Yukio Mishima (三島由紀夫), who committed ritual suicide.
Skin in the game is something to aspire to.