The Nature of Rationality, Right?

Speaker 2
Well, that's a great example. And we touched on this in an earlier episode, right? The nature of rationality, right, it involves ratios, right? So you have numerators and denominators. And the problem with fiat and elastic words, fiat currency and elastic words in general is that you have denominators that fluctuate, right? So it actually causes a breakdown in rationality. And what are we trying to do with, you know, pursuing the work of soul and getting our terms very precise and Mises, right? Mises is very terminologically precise and everything that he writes, all the Austrian economists. And you're trying to get a very sharp, hard, precise denominator. Well, that's the same thing Bitcoin is, right? It's a fixed denominator, 21 million, you can't change it. So in the, you know, the proverbial tide goes out and you see who's swimming naked. Well, Bitcoin's going to tell you the truth, right? And that's probably what you're seeing in Lebanon today is the currency is going to zero. What does that mean? What's the equivalent of that? Bitcoin's going to go to infinity in terms of the Lebanese currency.
Speaker 1
And help me. Now I want to ask kind of a hard question for Max because hey, the nineteenth translated one and you are trying to think about what happened. And to kind of… you know, dreaming about the Bitcoin increasing 12 times in price, but when I realized what that actually means, I worry about that a lot too. It's like, okay, you know, what if a Bitcoin is worth a million dollars, but a hamburger costs $100,000. That's right. Anyway, so there are guys two paradoxes to tease out there. It's like, how do we make sure that this conviction about reality or our models for reality doesn't become a religion? Because then we are just recipients of another hangover and that doesn't help anybody. And it becomes this kind of self-fulfilling behavior where you believe in Bitcoin no matter what, but you know, empirical evidence be damned.

Civilization as Coordination at a Distance | The Aneesh Karve Series | Episode 7 (WiM286)

The "What is Money?" Show

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