Knowledge acquired through the lapse of time is always superior to newly acquired knowledge.
However brief the history of bitcoin, it is replete with individuals who made monumental blunders in hindsight. They acted on the best information available to them. But knowing what we know today, we find their choices unbelievably ludicrous. No rational humans would have acted in the way they did right? Wrong! They were merely the first in a long line of historical footnotes that will continue in perpetuity. Some of these people have died, some locked up, some too embarrassed or scared to share, and the rest reported as drab columns by editorials eager to fill quota.
I’ve had the fortune of interacting with many of these fascinating people on social media. Perhaps not directly, but I followed a lot of them in loose circles of trust. To the people I will butcher, misrepresent or make look bad, mea culpa, mea culpa, mea “maximalist” culpa. It was either going to be me or a less empathetic maximalist.
While Scrolling through twitter, reddit and 4Chan in 2013, I realized the hacks, the cons, the comedy, the camaraderie were all too intense for a tiny community very few had ever heard of. This was history unfolding everyday in realtime. So I created multiple anonymous accounts for the dual purposes of trolling and investigation. I wanted to get a better sense of what was happening behind mainstream editorials, because a lot of teachable moments were being wasted behind tasteless commentary. Back then our collective strategy was to create memes and hope posterity would learn from them. Turns out it requires a lot of education to understand memes and many people simply don’t have a basic foundation. If history is not studied, it is bound to be repeated for better or worse.
But is it really worth studying the circumstances of early bitcoiners?
The simple answer is yes. To illustrate, imagine a farm boy who visits a big city for the first time. He wouldn’t know how to use PayPal, Venmo, Alipay, Apple Pay or any payment alternatives we take for granted today. As a result, he would be at an unfair disadvantage against city dwellers who grew up with digital payments. Our farm protagonist wouldn’t know how to receive remuneration for his services. He would likely get swindled when he uses his first credit or debit card. He would make many mistakes before getting up to speed with everyone else. His journey to prosperity would begin at a terrible disadvantage.
Now fast forward to 2030 or any future you are comfortable with; people who don’t understand how bitcoin works will be at a similar disadvantage to our farm boy. They will not know how to setup a secure wallet or how to purchase or earn bitcoin privately. They would obligingly give away their bitcoin because Elon Musk1 promised to give back double on twitter. Or they would sell their bitcoin because China banned it for the umpteenth time. These are comical but real lessons many people experienced the hard way.
If you were lucky enough to embrace bitcoin early, it is likely that you have already made some of these mistakes. But as bitcoin reaches wider acceptance, and appreciates in value, these mistakes will only become more expensive. Losing a hundred bitcoins in 2011 is not the same as losing a hundred bitcoins in 2022, and it won’t even come close by 2033. You could learn from your own experience or from the experiences of others. History has proven it is more cost effective to learn from the latter.
This book is a curation of other people’s mistakes and triumphs, for your education and entertainment. While reading, you might be tempted to think you could’ve done better. Perish the thought. You would just as likely have ended up a footnote. The knowledge here will save you time and prevent you from becoming that disadvantaged farm boy. You would be standing on the shoulders of proverbial giants, in a world where a virtual currency is poise to overtake government issued money in adoption, trust and mass appeal. It is simply paramount that you understand how bitcoin works in modern society.
If you are just learning about bitcoin and would like to understand the do’s and don’ts of this financial revolution, then this book is for you. If you are an old timer who has seen a few exchange hacks and darknet cons, then this will make for an interesting read while reinforcing what you already know. It will also make a great gift for your friends who have many, yet simple questions about bitcoin. All the popular anecdotes from the early days up until 2022 in one place. Since Bitcoin is never done, there will always be new lessons to draw from. As new lessons arise, I will document them on an open source version with help from friendly contributors.
This is not a genesis book. Many brilliant authors have covered that in early publications. This is not a technology book for developers or nerds either. It is a high level exploration into how bitcoin works, along with a set of rules you must follow in order to take advantage of it. It marries technology to social contracts that will keep you and your bitcoin safe. If you follow the rules, you will reduce the odds of losing your bitcoin to criminals, hackers or even worse, the State.
Every chapter comprises a technical or philosophical introduction followed by a concise story to help it stick and finally a word of advice from an expert. All the stories are fact checked and have been verified from direct sources or the closest alternatives. While some laws may seem overwhelming on first inspection, you must remember that securing bitcoin means becoming your own bank. You are the customer and custodian. There is no amount of paranoia enough to ensure that generational wealth is preserved and passed on accordingly.
Will there be tales about other cryptocurrencies?
No! Compared to what every other altcoin is doing, bitcoin’s singular vision of replacing the world’s money is preternatural. That is not to say that there isn’t some good outside of bitcoin but it is simply cleaner to focus on the big picture. Bitcoin leads, everything else follows. Eventually, someone will write a version of this book for altcoins which will reinforce my point, but by then you will have already mastered important principles in using public key cryptography in the real world.
By the end of this book you will understand the properties of bitcoin that make it amenable to the underlying laws. You will be able to mansplain or “womansplain” at cocktail parties like a pro. I trust that I can remind you of things you already know, bring to your attention things you may have missed and urge you to take certain actions so you can control of your financial sovereignty. While bitcoin is inherently secure, the human element will always remain the weakest link. Obedience of these laws closes the weakest link. Transgression of these laws opens up unnecessary attack vectors to both your finances and physical well-being. Now let’s jump down the rabbit hole.
Did you enjoy the introduction? Then you will really love "CHAPTER 1" about unfortunate early investors from 2010 and 2013 who didn't know what to do with their treasure. But before that, leave a comment to let Lord Thoth know that you haven't forgotten him. If you spot a typo, you will become an honorary contributor here and on Github for the world to see. And finally, subscriptions make Lord Thoth stronger.
Elon Musk is the CEO of Tesla and Space X. He is also a mischievous billionaire known for taking the piss when you least expect.
Very interesting and insightful read, look forward to more!