Bitcoin laws have been working for 6,000 years in history and economy

Asher Idan
8 min readMay 8, 2024

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1, Introduction: The Spiral Scalability of Civilizations

All of history is a spiral struggle between “extended Moore’s Law”, which deals with technology as an accelerator, and “extended Metcalf’s Law”, which deals with networks as an scalable glue. From a worm brain to a human brain, from a hunter-gatherer family with 50 people, to a Chinese city with 50 million people, from small universe to unending universe.

https://giovannisantostasi.medium.com/

2, Power Laws in Bitcoin price, in Biological Metabolism, and in Civilizations Scalability

3, Chaotic Complex Networks

3,1 Chaotic networks are two or more networks that are connected together, so that they show non-random behavior, but also not deterministic, but chaotic. Examples of such networks: the neuron network that controls our actions network, the network that controls our perception, the predator-prey network in animals, the neuron network that supervises our inhalation and exhalation, the network of our insights, the language control network, and more.

Periodic phenomena can be regular or chaotic. A pendulum in a vacuum and without gravity, will continue to oscillate to infinity, as in picture a. Thus a wheel will continue to spin ad infinitum.

However, due to an internal factor (the disintegration of the wheel or the pendulum), or an external factor (friction, gravitation, etc.), the endless rotation or oscillation will stop. The pendulum and the wheel will start to stop, as in picture b. The stopping point is called an attractor, because the movement is drawn to it over time, like a hole in a bathtub, to which the water is drawn in a vortex.

What happens when you turn a wheel and swing it like a pendulum?, here we have interaction and iteration between two or more phenomena (like N² and 2^n) and then we get not a point of attraction, but a network of attractions or an attraction space, as in this picture.

3,2 In the social network of viruses there are cyclical regulation mechanisms such as exist between predators and prey:

This week, another leap was made in understanding the fundamental law of all networks: not only the bacterial network works like the Bitcoin network, but also the virus network.

If the predators increase too much, then the prey decrease. But then the predators have nothing to eat and the predators decrease and then the prey increase again.

Bitcoin has similar cyclical chaotic feedback mechanisms every 4 years: the crossing mechanisms of Bitcoin’s miners’ wages-the bankers reduce the miners-predators and then more people (can buy bitcoins) Another mechanism of regulation is the difficulty adjustment mechanism that makes it easier for the miners when the users of bitcoin multiply exponentially according to law Metacalfe N².

https://www.quantamagazine.org/viruses-finally-reveal-their-complex-social-life-20240411/?mc_cid=d55f4d909a&mc_eid=000b6db04a

What do swarms of bacteria, Bitcoin network, flocks of birds, neural networks of artificial intelligence, and Facebook and Tiktok have in common? They are all types of collective artificial intelligence. All of them are simultaneously neural networks and social networks that process themselves to know, in a non-Euclidean space-time. They are all manifestations of the fifth force, the network force

Why do networks of humans, and swarms of bacteria and ants, and neuron networks of artificial intelligence, work exactly according to one formula, even though there is a huge difference between a single neuron and a single person and a single bacterium???

Because they transmit information at a speed greater than the speed of light (quantum entanglement, entanglement) within the network, and the entanglement is through neurotransmitters but without neurons, and each band and network is like the body of one organism. The transition from separate individuals to a unified body usually occurs when an external danger appears. Because then the network-body is able to become a very fast internet and a very fast computer, which faces the danger: enemy, hunger, etc.

https://www.quantamagazine.org/how-is-flocking-like-computing-20240328/?mc_cid=daab7c2b1c&mc_eid=000b6db04a

4, Random networks tend to become organized through a phase transition

4,1 A distributed swarm of individuals (gas phase), can become a multicellular organism (in liquid or solid phase), with differentiation into organs: reproductive organs, defense organs, transport and lifting organs, etc. The transition to a multicellular organism happens in the event of a lack of food (organic energy) or due to the threat of a predator.

What causes the Bitcoin network to turn after the halving into a multicellular fungus-like organism, with differentiation into organs of reproduction and distribution?

The answer: Moore’s law (n (2^n) doubles the money production capacity by the miners, 4 times every 4 years, and the crossing only reduces it by 2 every 4 years. The network grows according to Metcalfe’s law (N²), therefore the population increases rapidly more than the growth rate in food (N²>2^n), therefore throughout the 3 years after the crossing year (2012–2015, 2016–2019, 2022–2024), the difficulty adjustment mechanism regulates the amount of energy continuously according to the size of the population. But per year After the crossing (2013, 2017, 2021, 2025), there is an “energy hunger” and the bitcoin swarm becomes a multicellular organism with rapid exponential growth in prominence (in price), which results in a rapid distribution in the form of a fomo.

Therefore, in the days after the previous halves, the reward was cut in half, but in dollars they received tens of percent more.

2012, 25 bitcoins times $10 = $250

2016, 12.5 Bitcoins times $600 = $7,500 (30 times the previous crossing).

2020, 6.25 Bitcoin times $10,000 = $62,500 (8 times the previous crossing).

2024, 3.125 bitcoins times $60,000 = 187,500 (3 times the previous crossing).

And the distance between the halveings also kept getting shorter: 44 months in 2012–2016, 42 months in 2016–2020, 41 months in 2020–2024. That is, from 4 months, to 2 months to 1 month.

4,2 How can states be dismantled or united in consciousness engineering? There are three states of accumulation of groups or networks of humans: a, solid and stable. B, amorphous liquid. C, a gas with very little contact between people, like a family whose members are scattered over dozens of kilometers. When water is cooled, it changes shape and turns into ice at 0 degrees. And if they are heated they turn into gas at 100 degrees, so do groups and countries disintegrate and unite at a certain threshold of temperature.

How can a country be disintegrated by socio-political engineering? What is the equivalent of 0 degrees for uniting people? What is the equivalent of 100 degrees for the dissolution of nations and states?

Recently, mathematicians have shown that random networks tend to become organized with division of labor and division of roles because of a critical degree of threat or density. They change rapidly when a certain critical mass arrives,

https://www.quantamagazine.org/elegant-six-page-proof-reveals-the-emergence-of-random-structure-20220425/ ,

4,3 Ant trail and the Bitcoin Price

The intriguing question is: how do ants navigate in such straight paths? Considering that ants have limited vision, and short-term memory, and lack sophisticated geometric analysis abilities, it’s remarkable that they exhibit this behavior.

https://medium.com/@uriitai/ant-trail-with-minimal-energy-293ef826e949

5, The Power Laws of the Universe and of the Brain

Why is there such amazing symmetry? The universe network has 10 to the power of 90 (10⁹⁰) qubit type neurons, with 10¹²⁰ connections. The brain network has 10 to the power of 9 (10⁹) neurons, with 10 to the power of 12 synaptic connections? Is the brain a miniature map of the universe?

6, The Myth of Scarcity.

“And Joseph collected all the money that was in the land of Egypt and in the land of Canaan in fragments, which are fragments, and Joseph brought the money to Pharaoh’s house, and the money came from the land of Egypt and from the land of Canaan, and all the Egyptians came to Joseph, saying, “Bring us bread, and why should we die against you, for there is zero money?” If I run out of money 17 And they bring their stocks to Joseph, and Joseph gives them bread in the horses and the stock of the sheep and the stock of the cattle and the animals, and they eat bread from all their stock that year, and they come to him in the second year, and they come to him in the second year. Unless we are a nation and our land 19 Why should we also die in your sight, we and our land, buy us and our land with bread and we and our land will be slaves to Pharaoh and give seed and we will live and not die and the land will not be given as Joseph cleansed all the land of Egypt to Pharaoh because the Egyptians sold every one of his fields because the famine was strong on them and the land was for Pharaoh 21 And he took the people with him to the cities from one end of the border of Egypt to the other. 22 Only the land of the priests did he not buy, because it was a law for the priests from Pharaoh, and they ate their portion which Pharaoh gave them, therefore they did not sell their land. And you sowed the land as a jar, and it was in grain, and you gave a fifth to Pharaoh, and a fourth of the hand shall be for you to sow the field, and for you to eat, and to bless your houses, and to eat for your servants.” Genesis Chapter 46

Anderson B, 1983 https://www.amazon.com/Imagined-Communities-Reflections-Origin-Nationalism/dp/1784786756

Gellner E. 1997 https://www.amazon.com/Nationalism-Ernest-Gellner/dp/0814731139

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Asher Idan
Asher Idan

Written by Asher Idan

Lecturer and Consultant in top Universities in Israel, China, USA,

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