Jesse Myers, author of the Once in a Species newsletter, dives into the human inclination towards scarce assets, attributing this to our evolutionary history. He discusses how early money systems may have allowed Homo sapiens to outcompete Neanderthals. The conversation touches on primitive currencies, creativity in early humans, and why Bitcoin epitomizes this age-old search for perfect scarcity. Myers presents Bitcoin not just as a currency, but as a reflection of human nature and a potential game-changer in societal norms.
Humanity's intrinsic value for scarce assets is hardwired into our DNA, influencing our societal and economic developments throughout history.
Bitcoin epitomizes the ultimate evolution of money, representing the perfect culmination of humanity's quest for digital scarcity and value protection.
The cognitive and social advancements of Homo sapiens, driven by genetic mutations, enabled the creation of money and facilitated intertribal cooperation.
Deep dives
The Core of Humanity: Valuing Scarcity
The fascination with scarcity is a fundamental aspect of what makes humans unique. This innate value for scarce resources is believed to be embedded in our DNA, shaping human behavior and societal progress throughout history. The transition from primitive forms of money, such as seashells and early collectibles, illustrates this ongoing affinity for scarcity. As societies developed, the understanding and appreciation for scarce assets laid the groundwork for the economic systems we utilize today.
Bitcoin as the Apex of Scarcity
Bitcoin is positioned as the ultimate evolution of humanity's pursuit of scarce assets, representing a perfect synthesis of value and technology. Unlike previous forms of money, Bitcoin embodies absolute scarcity in a digital format, offering a shield against inflation and an alternative to traditional fiat currencies. The historical process of monetary evolution reveals that humans have consistently gravitated towards increasingly scarce commodities, culminating in Bitcoin's unique characteristics. This development is seen as not merely a financial innovation but a pivotal moment in human history.
Neanderthals vs. Homo Sapiens: The Competitive Advantage
When Homo sapiens and Neanderthals coexisted, the former exhibited a significant competitive advantage thanks to their advanced cognitive capabilities. This advantage can be traced to a genetic mutation that enhanced abstract thinking and intertribal cooperation, allowing Homo sapiens to create social constructs like money. This innovation enabled more effective cooperation among larger groups, facilitating trade and mutual support, which Neanderthals lacked due to their limited social organization and reliance on violence. Consequently, Homo sapiens could thrive in shared territories that Neanderthals could not.
The Role of Money in Intertribal Cooperation
The advent of money allowed Homo sapiens to forge strong intertribal bonds, changing the dynamics of social interactions across territories. By enabling a fair medium for exchange, regular trade relationships alleviated the tension and violence common in Neanderthal interactions. Money facilitated cooperation among various tribes, allowing them to share resources and collectively defend against threats, which, in turn, led to higher population densities. Consequently, this shift empowered Homo sapiens to dominate their environments, outcompeting Neanderthals and fostering the development of complex societies.
Neuroscience and the Evolution of Thought
Recent neuroscience findings suggest a critical genetic distinction between Homo sapiens and Neanderthals that contributed to the former's superior neurological development. This genetic mutation led to the enhanced production of neurons in essential brain regions, responsible for abstract thought and complex social interactions. Such advancements likely provided Homo sapiens with significant advantages in various aspects of life, including communication, planning, and artistic expression. Understanding this evolution gives insight into the unique capacities of our species and underscores the profound impact of human cognition on societal progression.
Jesse Myers is the author of the Once in a Species newsletter.
In this episode, we discuss why humanity’s obsession with scarce assets may be hardwired into our DNA and how this evolutionary trait could explain Bitcoin’s inevitable rise.
We also get into how early humans monetised scarcity, why Homo sapiens may have outcompeted Neanderthals through money-based cooperation, and how Dunbar’s number and inter-tribal trade shaped civilisation. Finally, we explore why Bitcoin represents the culmination of a 140,000-year human search for perfect scarcity — and why Jesse believes we are in the early innings of a species-wide gravitation towards Bitcoin.
