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Space Aliens and Why Bitcoin is the currency of the future

November 11, 2017

I can explain why bitcoin is the currency of the future by pulling out my astrophysics hat and talking about space aliens, and they pulling out my investment banker hat and talking about making money trading with space aliens.

Suppose tomorrow flying saucers land and little green men come down to earth and announce that they’ve been watching us for a lot time.  This is all cool.

Now since I’m an investment banker, and I notice that they have all of this cool technology, I want to trade stuff with them.  It turns out that I want their hyperspace drive, and they want to buy fingernail clippings because it turns out that human fingernails happen to have a chemical which the space aliens find tasty, that’s all the rage among the young hatchlings on planet Kudzu.

So I want to do a deal, I want to buy their hyperspace drive.  They want human fingernail clippings.  What do we pay with?

It turns out that planet Kudzu doesn’t take US dollars.  However, I can explain to them the concept and mathematics of bitcoin.  Since it’s based on mathematics and not politics, it turns out that bitcoin is worth something on planet Kudzu.  Now it turns out that planet Kudzu has this similar thing called Kudzu coin, which uses a different algorithm, and then explain to me how Kudzu coin works, and we start trading.

The important thing is that we have a currency that is based on mathematics and not politics.

OK.  I don’t see flying saucers.  But…..

I do see Tanzanian farmers and Chinese factory workers.  It turns out that lots of people in China happen to want to buy this thing called “coffee” and lots of Tanzanian farmers want to buy Chinese manufactured goods.  The trouble is that the Tanzanian farmers need Tanzanian shillings and Chinese factory workers need Chinese Renminbi.  Trying to work through the politics of it all is a nightmare, so the easiest thing is to rely on mathematics.  Putting on my astrophysics hat, I realize that the problem that you have trying to buy and sell stuff between China and Tanzania are *exactly* the same as doing trade with space aliens.  And putting on my investment banking hat, I realize that there’s a ton of wealth you can generate if you can exchange fingernail clippings for hyperspace drives, or coffee for automated spice grinders.

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