Crypto News

Bitcoin And The Pedagogy Of The Oppressed

Published

1 year ago

November 7, 2023

This article is featured in Bitcoin Magazine’s “The Withdrawal Issue”. Click here to subscribe now.

A PDF pamphlet of this article is available for download.

I have taught teenagers mathematics for my entire career. More recently, I also found great joy in teaching people about Bitcoin. Among the lessons I have learned through the years is that in order for a student to truly learn a new and challenging concept, they need to feel comfortable and have a voice in their learning process. Today, the most effective teachers are able to foster a dynamic community of engaged students that have agency in what and how they learn. But this wasn’t always so.

In Paulo Freire’s foundational book, Pedagogy of the Oppressed, he established a framework of teaching and learning that he called the “banking model of education”. It will not surprise Bitcoiners to learn that Freire’s use of banking is meant as a pejorative. Written in the late 1960s, the book compared the era’s dominant teaching method to a teacher filling an empty vessel with deposits. The bank — in this case, a piggy bank — is the student. Under this model, the teacher embodies the active role of deciding what gets taught and what constitutes true knowledge. He or she serves the agenda of the oppressor — even if unwittingly — by choosing what and how much knowledge the students will receive. At no point can the teacher give enough information or encourage enough critical thinking to threaten the world created by the oppressor. By contrast, the student is a passive receiver of knowledge. The student has no agency and can make no decisions about their learning. The student receives deposits, but is unable to do anything with them. Success for both individuals in the relationship is defined and measured by the deposits made into the bank.

Freire explains: “The more completely she fills the receptacles, the better a teacher she is. The more meekly the receptacles permit themselves to be filled, the better students they are” (page 72). The key to this framework is to understand teacher and student as opposites. The teacher is the authority and the student is an object to be manipulated. In this old system, the teacher issues directives and makes deposits, while the student is passive and has no ability to question authority or be involved in their own learning process. It is important for me to note that in 2023, thanks in large part to Freire’s work, this is no longer how most good teachers operate or measure their success. This is not how I run my classroom. As a Bitcoiner, I’m not sure I could.

Moving beyond the classroom, it seems apropos to extend this bank metaphor about education to banking itself. Outside the classroom, most people trying to learn about the legacy financial system have at some point felt like the meek vessel receiving deposits that were chosen by someone else. What people learn about how the banking industry works, how much they learn, and the opacity of the lessons all seem to be decided by someone in a position of authority, acting — even if unwittingly — for the benefit of the oppressor. Banks are far too profitable to allow regular folks to learn too much about them. In Freire’s language the banking industry is serving the role of the teacher and oppressor, while regular folks are the passive vessels. The students. The piggy banks. The oppressed.

The main trouble with the banking system of education is poignantly summarized in the book: “The capability of banking education to minimize or annul the students’ creative power and to stimulate their credulity serves the interests of the oppressors, who care neither to have the world revealed nor to see it transformed” (page 73). It is hard not to read such a sentence and think critically about how our financial system — something we interact with everyday — is taught to people. The dominant forces working within the financial system have no desire to have regular folks understand the role of the central bank, how money is created, why inflation happens, the details of fractional reserve banking, the relationship between government and banks, or the boom-bust business cycle and what causes it. The way finance is taught simply serves to “annul” our creativity and “stimulate” our credulity. The ability (or even the desire) to question the system is eroded. Those in power have no interest in revealing their world or having it transformed.

In Freire’s framework, the banking system of education is so pernicious because the tranquility of the oppressor “rests on how well people fit the world the oppressors have created, and how little they question it” (page 76). We saw earlier this year how impactful it is to question the systems that the banks have created. Bank runs, like the one that devastated Silicon Valley Bank in March, serve to question the world of the oppressor. Among many other things, a bank run is a challenge to authority and an explicit refusal to trust. Once relegated as a relic of the past, apparently bank runs are very real and can cause an unsettling recalibration of one’s understanding about how a bank works. And as we saw in March, the bank run at SVB wasn’t contained and was barely controlled. There were immediately contagion concerns about the regional banking industry. Indeed, this is the threat to tranquility that the banking sector does not want. Regular folks who have never needed to question their bank began to do so, even though they weren’t supposed to. To be clear, the oppressor’s industry isn’t being transformed by a bank run; it is being revealed.

Taking your money out of a bank is just one of the ways that us regular folks (students in Freire’s framework) can take agency and control of our learning and understanding of how money works, both within the old system and likely new ones. At the heart of a bank run are the very foundations of Bitcoin’s ethos; self-custody, don’t trust, verify, and question authority. It is no surprise to Bitcoiners that banks don’t want you thinking like this. It is far more profitable to keep people ignorant. To trust the banks is to continue giving them low-interest loans with which they can take risks to reap huge profits while our government serves as their backstop. To trust the banks is to not understand that your “money” is really the bank’s liability. Folks rushing to withdraw their funds from SVB were asking dangerous questions, perhaps for the first time. These people are Bitcoiners that just don’t know it yet.

Bank runs are just the beginning of this next stage. As we students wake up to our power and agency, the cracks in the old system grow. Whether it is a bank run or orange pilling a friend, we have the power to question the old system. Indeed, questioning the old system is all that is needed to topple it. Each new Bitcoiner is another leak in the dam. The people in charge of the legacy financial system will try to distract and redirect, but once you see the inevitability of the dam breaking, there is no unseeing it. Learning about Bitcoin is a self-directed, interdisciplinary journey in which people need to take responsibility and control over their learning process. Bitcoiners are decidedly lifelong learners. This is precisely what Pedagogy of the Oppressed advocates in respect to the “banking system of education”. People should learn about things that are important to their lives and have agency about how they learn. I see this happening in every corner of the Bitcoin community.

And what is your role? My role? It is certainly not to be a “well intentioned bank-clerk teacher” that unwittingly promotes the facts that the oppressor wants promoted. The most impactful thing we can do is to encourage curiosity within our pre-coiner friends and have them take control of their learning journey. By learning about Bitcoin in any serious way, one will necessarily learn about the legacy financial system and all of its flaws and exploitation; in many ways, it is better for the person you care about to discover that on their own. As a Bitcoiner, your role is to provide resources, kindle creativity, keep an open mind, and learn as you teach. And, perhaps most importantly, your role is to meet people where they are in their journey. As Freire correctly points out, “one does not liberate people by alienating them” (page 79). It is critically important to provide resources and guidance that empowers learners and makes them feel motivated to discover more.

It is painfully clear that we, as a society, do a horrible job of educating people about the financial system. This is no coincidence and no mistake. The oppressors cannot maintain their system while also encouraging the students to ask why it exists or what it accomplishes. Bitcoin provides a better pedagogy, one in which the student is empowered to take an active role in their learning and explore the how and why for themselves. I believe this Bitcoin pedagogy is the new pedagogy of the oppressed, a way of teaching and learning that is designed, from its inception, to liberate people. And we need you. If you are reading these words, you should be thinking about yourself as a teacher-learner for Bitcoin, and you are just in time. This new pedagogy, and your involvement in it, is of paramount importance as we enter the “then they fight you” phase in Bitcoin’s journey.

Each week we are faced with damning new narratives about Bitcoin. It’s unsettling for those who have done the hard work of understanding the best monetary technology the world has ever known. These damning (and false) narratives are simply deposits being made into regular folks by the banking industry, the media, and politicians. These entities are deciding what constitutes true knowledge and how much of it you are allowed to have. They are acting, even if unintentionally, to dull your ability to question the old system. Each attack on Bitcoin is really meant as a defense of the profit-making system the oppressors have created. As Freire notes, “the interests of the oppressors lie in changing the consciousness of the oppressed, not the situation which oppresses them” (page 74). This remains fundamentally true today in the relationship between banks and their customers.

Referring to the oppressor-teacher attempting to stifle any threat to a profitable system, Freire says “thus they react almost instinctively against any experiment in education which stimulates the critical faculties” (page 73). Indeed, powerful forces are currently using the old banking system of education to react against bitcoin as an experiment in money. This is because Bitcoin, undoubtedly, stimulates the critical faculties and encourages people to question the authority of the old system. The threat to their system is not just that bitcoin is better money, but it is also that it encourages better learning about money.

As you continue to teach and learn about Bitcoin, remember that the oppressor does not want you in charge of your learning. They don’t want you to be able to question their system. They do not want their world revealed or transformed. They want you and everyone you care about to be piggy banks and remain oppressed.

Bitcoin, of course, doesn’t care about what they want.

References

1. Paulo Freire, Pedagogy of the Oppressed, thirtieth anniversary edition. ed., trans. Myra Bergman Ramos (New York, NY: Continuum International Publishing Group, 1993).

C. Jason Maier

cjasonmaier@gmail.com

www.BitcoinProgressive.com

This article is featured in Bitcoin Magazine’s “The Withdrawal Issue”. Click here to subscribe now.

A PDF pamphlet of this article is available for download.

This is a guest post by Jason Maier. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Jason Maier, author of The Progressive’s Case for Bitcoin, explains the status quo in education, and how fiat currency is enabled by financial maleducation. From “The Withdrawal Issue”.

Crypto News

David Bailey Forecasts $1M Bitcoin Price During Trump Presidency

Published

4 hours ago

January 21, 2025

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In an in-depth discussion on the Hell Money Podcast, David Bailey, CEO of BTC Inc., shared insights into Bitcoin’s transformative potential, its geopolitical implications, and its role as a cornerstone of a new global economic framework.

“I see this happening so much faster than anyone can appreciate. Within 10 years, Bitcoin will become the reserve asset of the world.”

00:00 Intro
07:15 Bitcoin soft forks
11:00 Bitcoin vs. Crypto in US policy
19:20 How much political power does Bitcoin have?
23:50 Bitcoiners are politically homeless
26:20 Strategic Bitcoin Reserve
29:00 Bitcoin development and ossification
32:00 Separation of money and state
33:40 Raise your time preference
35:20 SBR as a way out of USD global reserve status
41:00 Will they eventually fight us?
43:00 Incentives as a political movement
46:30 What happens next?
49:15 Bitcoin Vegas & Inscribing Vegas 2025

The Political and Economic Power of Bitcoin

Bitcoin has evolved into a significant political and financial instrument. Its decentralized nature, immutable ledger, and finite supply make it an attractive alternative to traditional fiat currencies, particularly during periods of economic uncertainty. Bailey emphasizes that Bitcoin is no longer merely a speculative asset but has become a political force capable of influencing policy and elections.

“Within the next four years, Bitcoin will be the most widely held asset in the world. This isn’t a special one-off moment—it’s the changing of the guard of the world order.”

As Bitcoin gains adoption among individual investors, corporations, and governments, its ability to sway decisions in both the public and private sectors continues to grow. This makes Bitcoin a strategic tool for economic stability and a hedge against systemic risks such as inflation, currency devaluation, and geopolitical instability. Understanding this evolution is crucial for investors looking to align their strategies with Bitcoin’s increasing influence in global finance.

Strategic Bitcoin Reserve: A Game-Changer for Economies

Bailey highlights the concept of a Strategic Bitcoin Reserve (SBR) as a key driver in Bitcoin’s path to becoming a global reserve asset. If a major economy, such as the United States, were to adopt an SBR, it could trigger a domino effect, with other nations racing to establish their own reserves. This global competition could significantly accelerate Bitcoin’s transition from a speculative asset to a fundamental part of national and international financial strategies.

“If America gets an SBR, China gets an SBR. If America and China have an SBR, within 12 months every country on the planet will have an SBR. The game theory effects of us kicking this off, in my opinion, are like the biggest catalyst possible for hyperbitcoinization.”

An SBR offers governments the ability to hedge against inflation, protect their economies from devaluation, and diversify their reserves. Unlike gold, Bitcoin is easily transferable, highly divisible, and operates transparently on a decentralized network. For investors, national adoption of Bitcoin reserves signals long-term stability and growth potential, reinforcing the case for allocating a portion of portfolios to Bitcoin and related assets.

Orange-Pilling Trump: A Strategic Advocacy Moment

One of the most intriguing aspects of David Bailey’s efforts in advancing Bitcoin’s adoption was his strategic engagement with former President Donald Trump. Bailey discussed how Bitcoin advocates pitched Bitcoin to Trump as more than just a digital currency, emphasizing its economic and political advantages. By framing Bitcoin as a tool for strengthening American competitiveness and financial independence, Bailey and his team successfully captured Trump’s interest.

“We are within a couple of years of being the most powerful political faction in the United States. And not just the United States—there are bitcoiners embedded in power structures across the planet.”

Bailey’s team leveraged Bitcoin mining as a key entry point in their discussions, highlighting the economic benefits of Bitcoin mining operations in the United States, such as job creation and energy innovation. This approach aligned Bitcoin with Trump’s “America First” policies, presenting it as a way to bolster the nation’s energy independence and economic strength. These discussions laid the groundwork for a broader understanding of Bitcoin’s strategic value at the highest levels of government.

Governance and Innovation in Bitcoin

While Bitcoin’s decentralized nature is its greatest strength, it also presents challenges in governance and technological adaptability. Bailey underscores the importance of continuous innovation, particularly through mechanisms like soft forks, to ensure that Bitcoin remains scalable, secure, and competitive. Without these updates, the risk of ossification—where the network becomes resistant to necessary changes—could hinder Bitcoin’s evolution.

“Bitcoin gives governments a really elegant way out of the money-printing trap. They can print money, buy Bitcoin, and as the price of Bitcoin goes up, they’re still solvent. Later, they can peg their currency to Bitcoin.”

The Bitcoin community must navigate these governance complexities with a focus on collaboration and forward-looking solutions.

Hyperbitcoinization and the $1 Million Price Target

Bailey predicts that Bitcoin could reach a value of $1 million per coin within the next four years, driven by its growing adoption and the systemic challenges faced by traditional financial systems. This projection signifies more than just a price milestone—it represents a fundamental shift in the global economic order. Hyperbitcoinization, as Bailey describes it, involves Bitcoin becoming the default reserve currency, complementing or even replacing traditional fiat currencies.

“When we get to a million bucks, which I think can happen over the next four years—in my personal opinion, I think it’s possible—the Federal Reserve is, like, going to be completely impotent.”

This transition would have profound implications. Bitcoin’s decentralized nature would democratize access to financial systems, reduce reliance on central authorities, and promote greater economic inclusion. For investors, the journey toward hyperbitcoinization offers unparalleled opportunities as Bitcoin’s dual role as a store of value and medium of exchange becomes increasingly evident.

Interview Key Takeaways

Political Leverage: Bitcoin’s influence on policymaking and elections underscores its role as a hedge against political and economic risks.
National Adoption Trends: The adoption of SBRs by major economies could catalyze global Bitcoin adoption, creating a favorable environment for long-term investment.
Technological Resilience: Continuous innovation, including scalability solutions like the Lightning Network, is essential for sustaining Bitcoin’s growth and usability.
Portfolio Diversification: Bitcoin’s uncorrelated performance relative to traditional assets makes it an attractive addition to diversified investment strategies.
Economic Stability: In an era of rising inflation and monetary instability, Bitcoin provides a transparent, secure, and decentralized alternative to fiat currencies.

The Future of Bitcoin in the Global Economy

David Bailey’s insights provide a compelling vision of Bitcoin’s transformative potential, offering investors a clear opportunity to align their strategies with a rapidly evolving financial landscape. By understanding and leveraging Bitcoin’s role in fostering economic resilience and innovation, investors can position themselves to benefit from its adoption as a global reserve asset and a tool for long-term portfolio growth. As the world confronts challenges such as inflation, currency instability, and geopolitical uncertainty, Bitcoin emerges as a beacon of financial stability and innovation. For investors, the implications of Bitcoin’s growth extend far beyond speculative returns—it represents a strategic opportunity to participate in the evolution of the global financial system.

“It’s like, well, once that happens, then it’s not $1 million or $10 million. It’s like, it is the reserve asset of the world.”

In the coming decade, Bitcoin’s role as a stabilizing force and driver of innovation will become increasingly evident. Its seamless integration into national and corporate strategies, combined with its adaptability, positions Bitcoin as a cornerstone of future financial systems. Bailey’s vision challenges investors to consider the profound implications of a decentralized monetary system that prioritizes transparency, inclusion, and resilience.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.

David Bailey Forecasts $1M Bitcoin Price During Trump Presidency David Bailey, CEO of BTC Inc., shares bold predictions for Bitcoin’s future, including its potential to reach $1 million during the Trump presidency. This article delves into the political, economic, and technological forces shaping Bitcoin’s role as a global reserve asset and highlights key strategies for investors to align with its transformative potential.

Crypto News

Trump Did Not Free Ross On Day One Because Of Course He Didn’t

Published

7 hours ago

January 21, 2025

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I’m not here to say “I told you so.”

In my Take from October 4, I did write that Donald Trump does not give a damn about Bitcoin, and in my Take from November 5 I wrote he just wants in on the crypto scam. But I didn’t mention Ross Ulbricht in either of these, largely because even I expected Trump to at least follow through on his promise to free Ross. It’s an easy promise to keep, without any real downside for Trump; after more than ten years in prison Ulbricht deserves to be free.

I didn’t really expect Trump to free Ross on day one of his presidency, however. Inauguration day is quite a busy day for a new president, I’m sure.

Having said that, it is what Trump himself said he would do. Of course Trump also said that he would have resolved the war in Ukraine by now — apparently they’re still fighting.

Trump is a bullshitter. He will just say whatever he wants or whatever people want to hear, with no regard for the truth. He may in fact well have the most recorded lies out of any human being in history: Fact checkers from The Washington Post have for example counted over 30,000 false or misleading claims during his first term as president alone.

Still, it is also true that Trump had a busy day yesterday. He signed 26 executive orders (a record amount for a first day president), and pardoned over 1500 of his supporters; those who stormed the US Capitol Building on January 6th four years ago. Yes, that means the QAnon Shaman walks free before Ross Ulbricht (H/T Trey Walsh)… but let’s just hope that Elon Musk is proven right in the next few days, and Ross will be freed too.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Trump Did Not Free Ross On Day One Because Of Course He Didn’t Donald Trump broke his campaign promise to free Ross Ulbricht on day one of his presidency… let’s hope he follows through in the next couple of days after all.

Crypto News

Advanced Mathematical Projections for the Bitcoin Bull Cycle Peak

Published

7 hours ago

January 21, 2025

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The current Bitcoin bull market presents a compelling opportunity for investors seeking precise, data-driven forecasts regarding the timing and magnitude of the next price peak. In a rigorous analysis presented by Bitcoin Magazine Pro, lead analyst Matt Crosby applies a sophisticated blend of historical data, moving average analysis, and statistical modeling to predict the forthcoming Bitcoin bull cycle peak.

Crosby’s findings project October 19, 2025, as a pivotal date, with Bitcoin reaching a median price of $200,000 and the potential for peaks extending to $230,000 when accounting for statistical outliers.

Access the Comprehensive Analysis

For an in-depth understanding of the mathematical methodologies and the complete analysis, refer to the full video presentation available on Bitcoin Magazine Pro’s platform.

The Pi Cycle Top Indicator: An Analytical Benchmark

Central to Crosby’s predictive framework is the Pi Cycle Top Indicator, renowned for its precision in identifying Bitcoin’s cyclical price peaks within narrow temporal margins during past bull markets. The indicator functions by employing two critical moving averages:

111-Day Moving Average (111DMA): Reflecting shorter-term price dynamics.
350-Day Moving Average (350DMA) multiplied by two: Offering a broader historical perspective.

The nomenclature “Pi” arises from the ratio of these averages, approximating 3.142. Historically, the intersection of these moving averages has corresponded with Bitcoin’s market cycle peaks:

2017: The indicator predicted the peak with a one-day margin of error.
2021: Accurately identified the exact peak date.

Methodological Precision: From Data to Predictions

Crosby extends his analysis through Monte Carlo simulations, a robust statistical technique that models numerous potential trajectories for Bitcoin’s price evolution. Key facets of this approach include:

Quantifying median daily returns and associated volatility over the preceding 791 days.
Running more than 1,000 simulations to map a spectrum of plausible price paths.
Deriving a median price peak of $200,000, with an average of $230,000 when incorporating extreme data points.

These simulations align with historical patterns, suggesting that the next Bitcoin bull cycle peak will likely occur on October 19, 2025.

Examining Diminishing Returns

To estimate the price range at the projected peak, Crosby evaluates the historical phenomenon of diminishing returns, where each successive cycle exhibits proportionally smaller price increases relative to its moving averages:

2013: Bitcoin’s price exceeded its moving averages by 440%.
2017: This figure decreased to 299%.
2021: The peak was 32% above the moving averages.

Extrapolating this trend and incorporating Monte Carlo simulations yields the following projections:

Median Price Peak: $200,000.
Average Price Peak: $230,000, accounting for statistical variability.

Implications for Investors

Crosby underscores the inherent uncertainties in any predictive model, emphasizing the importance of adapting to evolving market dynamics. Factors such as institutional adoption, macroeconomic trends, and unforeseen events could significantly influence Bitcoin’s trajectory. Nonetheless, this analysis provides a rigorous, data-driven framework to inform investment strategies during the current bull cycle.

Key Insights

Projected Peak Date: October 19, 2025.
Forecasted Price Range: A median of $200,000, with potential peaks averaging $230,000.
Analytical Tools: Pi Cycle Top Indicator and Monte Carlo Simulations, powered by Bitcoin Magazine Pro data.

For ongoing access to live data, advanced analytics, and exclusive content, visit BitcoinMagazinePro.com.

Disclaimer

This article is intended for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct thorough independent research before making investment decisions.

Advanced Mathematical Projections for the Bitcoin Bull Cycle Peak Discover how advanced statistical methods and historical data, including the renowned Pi Cycle Top Indicator and Monte Carlo simulations, are used to project Bitcoin’s next bull cycle peak, with insights into potential price ranges and timing for savvy investors.