Toggle light / dark theme

Originally posted as Part III of a four-part introductory series on Bitcoin on May 21, 2013 in the American Daily Herald. See the Bitcoin blog for all four articles.

With gold prices back in the $1,300-$1,400/oz range it is sometimes difficult explaining to non-gold bugs why owning physical gold is still a good long term strategy. Some define buying gold as ‘an investment’, and others as ‘a hedge against inflation’. I tend to look at it as an insurance policy against hyper-inflation or just simply as sound honest money. However, when describing a strategy of accumulating money (in gold form) in some far-away vault, only to be used in some end-of-the-world scenario, it goes without saying that an image of a miserly old man replaces my likeness in the eyes of my conversation partner. Few people stuff dollar bills in their mattress any more, but hoarding of gold and silver when these were de-facto money was not unusual. Commodity money, which tends to increase in purchasing power over time, is predisposed to this ‘problem’. When you ‘love money’ so much that you hold on to too much of it or for too long a time, then you are hoarding.

Can ‘hoarding’ be defined?

Robert LeFevre once joked that while he was courting his soon-to-be-wife, he was impressed when she told him how much she loved money. Yet after they were married, it turned out that she really didn’t love money. In fact, she would try to find any excuse to get rid of it… in her shopping sprees, of course! Apparently money is no different than other goods and services; you trade one for the other. You trade the lesser valued good for the more valued good. When you make a purchase, you make a choice. You value your money less than the good you are buying. Similarly, when you refrain from purchasing an item, the indication is that your money is of more value than the foregone good. This is the basic premise in anticipation of a transaction, that both sides benefit – otherwise the transaction would not take place.

Hoarding money, be it paper, an electronic account balance, gold or bitcoins is therefore just the same as buying an excessive amount of books, stockpiling on your favorite pasta sauce jars when they’re on sale or refraining from throwing out your old National Geographic magazines. You never know when you might need them. You just prefer what you are hoarding to the alternatives out there. A larger stash of money means you prefer saving the money you have now for a later monetary exchange. That monetary exchange can be a purchase, paying your employee’s wages or giving your granddaughter a gift. But the amount someone saves/hoards is a reflection of their preferences and their understanding of reality with its inevitable uncertainties (and uncertainty is in no short supply these days). The negative term ‘hoarding’ is used, as Rothbard noted, when you are keeping more cash than someone else thinks is appropriate for you to keep. How very objective.

In actual fact, if a significant amount of money is hoarded and ‘taken away’ from circulation, the result is that there is an increased demand for money, which, in a world absent of price and wage controls, results in falling prices. Said differently, the purchasing power of money increases, meaning one would be able to buy the same amount with fewer money units. No evil has been perpetrated.

The dreaded ‘deflation’

The general decline of prices is described by mainstream economists as deflation. According to the Austrian School, on the other hand, deflation is merely the reduction of the money supply. Whether through significant hoarding, widespread bankruptcies or Federal Reserve actions, a drop in the money supply would cause a drop in prices, all else being equal. The distinction is that falling prices are the effect, not the cause. The effect could have other (often positive) causes, such as increases in productivity – the reason for falling prices in the high-tech world, for instance. In a market unhampered by political forces, as long as the quantity of goods rises relative to the quantity of money, prices will fall and the value of money will rise.

A common misconception is that reduction in prices equates to reduced profits and a general decline in the economy. ‘Revenues are not profits’ is one of the first things young accountants learn. Profits are a product both of revenue and of expenses, the money coming in and the money going out. With an increased purchasing power of money, input costs fall as well. Profits can and are made in a deflationary environment. The dreaded ‘deflationary spiral’ is a situation where a drop in prices leads to reduced demand, leading to more drops in prices as well as layoffs, which further hampers demand, and so the situation exacerbates itself. This scenario may occur when the general environment is an inflationary one, where people generally expect prices to rise as a normal, natural phenomenon. Then, through a deflationary cause, symptomatic of an ailing economy (e.g. widespread bankruptcies, rather than increased productivity), prices temporarily start to drop. Most people will see this as a temporary drop and will therefore postpone purchases. However this scenario cannot be an ongoing condition – eventually people need to start buying. In contrast, where the environment is deflationary (e.g. the high-tech industry), the assumption is not that ‘prices must rise’ and that ‘the drop is temporary’. How long has anyone really put off buying a computer, knowing that if they wait just one more month, they’ll get a better one? Eventually, you live with the fact that prices fall. And should prices drop due to positive causes, such as increased productivity, falling prices would actually engender demand. Increases in demand will ensure the firms’ profitability and the workers’ employability.

Deflation is not as bad as you think…

As we have seen, if the general economic environment is one of falling prices and the increase in money’s purchasing power, people would not continuously put off making purchases. Profits will be readily made as goods will cost less and practically create their own demand. But this is not all. Holding on to your money is like having a savings account or owning bonds. Saving for a nest egg in a deflationary environment does not require a high risk approach. Merely setting aside a part of one’s paycheck each month will yield more than social security ever could.

A further impact is that as people save more, interest rates fall. This drop in interest rates is a scenario that central banks across the globe are trying to replicate by ever more money printing. However, a naturally occurring low interest rate does not harm the holders of money much like the coercive version we see before us. Though deflation is thought to be bad for borrowers, debt would actually be cheap and readily available. If profits are made, debt will also be more easily repaid. True, a bad deflation (one which results from bankruptcies and economic woes) is generally bad for borrowers, since the real value of their debt rises and they have no additional profits and cash-flow to enable its repayment.

During inflation, on the other hand, money loses value. There is no doubt that the opposite scenario of constant inflation would be good for borrowers, regardless of the state of the economy. Is it any surprise that a government indebted to the tune of $16.7 trillion would prefer inflation to deflation? Where money is not a commodity, but is 90% debt (due to banks’ 10% reserve requirement), is there any surprise that anyone in the economics profession but the very fringe would tout inflation over deflation?

…but they still make you think it’s bad

The case for inflation and against hoarding or deflation is normally made more through an appeal to emotive factors than to the intellect. ‘Unspent dollars means reduced sales, drops in profit and massive layoffs. If firms go bankrupt, the raw material, capital goods and factories vanish into thin air’. You wouldn’t want that, would you? We already showed that increased saving on a massive scale and a reduction in the money base relative to the goods on the market, in and of itself, would only affect the purchasing power of the money and would not affect sales or profits. Companies may or may not go bankrupt – it all depends on whether their products satisfy the customers, not on quantity of money ‘in circulation’. Assets of those companies that do go bankrupt will only be bought up by another group of people who will try to utilize them better by building a better or cheaper product. Those parts of the economy that people do not value will get a signal that their value is dropping. These signals are important for the efficient functioning of the economy and for the satisfaction of the population at large. Where this signal is manipulated through injection of money into the economy or unnatural interest rate manipulations, a boom occurs, naturally and inevitably followed by the bust.

Going back to their arguments, that money must therefore be spent, is quite the visceral argument since everyone is an employee and everyone’s livelihood depends on other people spending money on them. It appeals to the desire for people to get something for nothing, or at least to earn money for as little work as possible. But in a free market, where people are not forced to buy a good they do not value, the customer is always right. You do your utmost to ensure you appeal to potential or repeat customers. An entrepreneur and all of her employees must strive for others’ satisfaction in order to make a profit – and many do so, successfully. There are no shortcuts in the lives of truly free market participants; you cannot force someone to fork over their money against their will (the case, of course, being different for government agencies funded through taxation). Yet the lazy slob in us all desires just this and the tool to achieve this is inflation. Through a constant devaluation of money’s purchasing power, people trade their money for real goods and services as fast as they can, thus ensuring dollars are not left unspent. Inflation causes fear-driven spending. ‘Spend now before it’s too late and your money becomes worthless’. A mild form of inflation would have the monetary base rise at the same level as ‘economic growth’, thereby keeping the purchasing power relatively stable, but the practical difficulties and the moral dubiousness of robbing one of their money’s value is still present.

An appeal to the intellect and common sense

Money, as a transmitter of value through space and time, must be ‘hoard-able’. It has to be durable so that one can hold on to it without its value dwindling. Holding on to depreciating money is like storing your candles all lit – not the best long-term solution. As I tell my non-gold bug friends, holding on to money in the form of gold is a good long-term strategy. It cannot be printed at will, its production is subject to free market forces of profit and loss, and its purchasing power increases over time. Who would not want money that increases in value? If you are uncertain of the future, the market or the economy, hoard away. One must put aside the red herrings incorporated into the inflationists’ arguments which lead to conclusions that: deflation is evil, saving is bad, debt is good, spending is necessary, etc. Savers, who forego current pleasures and build up future capital, are the backbone of a strong economy. As Doug Casey said, “You don’t become wealthy by spending and consuming, you become wealthy by producing and saving”. As my parents repeated to me time and again, “You cannot spend what you do not have”. And as common sense dictates, “You cannot borrow what someone else hasn’t saved”. Sound money is worth its weight in gold. Resist the arguments put forward on behalf of entities that are massively indebted – there is no evil in hoarding.

Originally posted as Part II of a four-part introductory series on Bitcoin on May 7, 2013 in the American Daily Herald. See the Bitcoin blog for all four articles.

The emergence of money and its importance in enabling trade between people has been well researched and documented in the literature of the Austrian School of economics – Theory of Money and Credit by Ludwig von Mises and Man, Economy and State by Murray N. Rothbard being prime examples. The contribution of the Austrian greats to the understanding of money and its origin made clear exactly what money is (e.g. the most marketable commodity), the different types of media that are employed in exchange between people (e.g. commodity money, credit money, fiat money and money substitutes) and a theoretical explanation for their origin (the Regression Theorem). The Austrian School has also given arguably the most convincing analysis of the relationship between the money type in use, the manner by which it is controlled and the business cycle – emphasizing the importance of sound money. But except for a few sparse outliers, what the Austrian School has yet to do is fully recognize Bitcoin as a valid scholarly and academic topic. With this article, I hope to contribute to its recognition.

Money’s characteristics

Money enabled people in early stages of civilization to go from direct exchange, with difficulties such as the double-coincidence of wants, to indirect exchange. This improved mechanism paved the way for facilitating man’s specialization in his tasks, thereby enabling division of labor within society since each specialized laborer was able to trade his goods for others indirectly with the use of a medium of exchange. Money has taken many forms but there are certain characteristics all forms should have. Aristotle, for instance provided the following four:

  1. Durable – The item must remain usable and retain its characteristics, for which it is valued, over long periods of time (e.g. shouldn’t fade, corrode, rot, etc).
  2. Portable – One should be able to carry it upon their person. A related point is that it would be desirable to have a high value per unit weight, making large quantities portable too.
  3. Divisible – By having uniformity of quality or homogeneity, the item should retain its characteristics when divided into smaller parts or when recombined to a larger unit. Thus, a similar point is the fungibility of the item, meaning that the units can be substituted for one another.
  4. Intrinsically Valuable – The intended meaning is that it should have value as a commodity regardless of its property as money, although as I argued in a previous article, value is subjective and therefore extrinsic to the item, so it cannot in itself be intrinsically valuable. A related point is that the item, ideally, would be rare and certainly not subject to unlimited reproducibility – meaning it should be scarce.

Though Aristotle did not specifically mention fungibility, scarcity or other points such as recognizability, stability of supply, malleability etc., these points generally cover the qualities of good money. The fact that there are monies out there (e.g. fiat money) that so blatantly lack an important characteristic (e.g. not being subject to infinite reproducibility) makes the Mises Regression Theorem so interesting, in that it explains how such a money came about.

Man’s desire for convenience

Mises defined money, in its narrower sense, as taking three forms: commodity money; credit money; and fiat money. In its broader sense, money substitutes like fiduciary media are also used. Of all these forms of money, the most convenient are fiat money, credit money and money substitutes. These forms can be represented by pieces of paper (e.g. banknotes or contract) and therefore, as long as there is trust in the issuing entity or in the counterparty, these monetary forms will be accepted ‘as good as’ the money that backs them or the money that is promised in the contract. Banknotes, token money and the like stemmed from the fact that the common man did not want to store large amounts of precious commodities in his home nor carry it on his person. Banks stored the commodities and issued redeemable notes instead. Let’s face it, humans choose the path of least resistance and so convenience is desirable.

The unfortunate situation that arose is that when banks (or their ‘money warehouse’ predecessors) realized that not everyone wants all of their stored gold at once, they started issuing multiple banknotes backed by the same unit of money stored. This fraud has become pervasive and eventually legally licensed by the state. So while ‘hard currencies’ are good, their lack of convenience has led, as a matter of historical fact, to fractional reserve banking. This practice and the expansion of the monetary base introduce anomalies into the economy and bring about the business cycle.

Another aspect that is inherent to commodity money (and most all other money types) is that the payment system has always been separate from money. Whether carrying a bag of coins in one’s pocket or arranging for an armored van, payment requires delivery of money. Banks and clearing houses took on the role to perform this service, charging lucrative transaction fees in the process. Here, too, it became more convenient to use credit money or internet banking, where one just transfers the information about the transaction and where it is just as convenient regardless of the sum involved. No physical asset can be transferred instantaneously and without effort.

As desirable as physical commodities such as gold and silver are, the fact that they become increasingly less convenient the more you have of them has turned out to be their Achilles’ heel.

Division of labor and specialization of tools

As we can see from the above arguments, while commodity money has been the soundest of options, it is not without its flaws. But, remember, this is not an unusual phenomenon. Being self-sufficient and growing one’s own food is also prudent, yet most will concur it has its disadvantages. Humans have discovered that division of labor and specialization makes everyone better off. Specialization, though, is most effective when the tools one uses are also custom-made for the task at hand. Imagine using a gardening trowel as a ladle for your soup, or a battle axe as a butcher knife… This is a facetious comment, to be sure, but why then must we ‘make do’ with an ornamental commodity or a block of highly conductive metal as money? Humans once used flint to start fires because that is what nature provided. Surely, we agree a lighter is much better. Why should we not seek to invent a tool to facilitate monetary transactions, call it money, which would cover the characteristics noted above (Aristotelian or others) as ideally as can be? Then just set it free and see if it acquires value through a catallactic process, much like gold and silver did in the past. As Rothbard said in relation to gold: “If gold, after being established as money, were suddenly to lose its value in ornaments or industrial uses, it would not necessarily lose its character as a money”. If one invents money and it establishes itself, who cares if it has no other purpose?

Whether for the reason of making a more perfect money or just to make a digital form of it, an unknown hacker (or group of hackers) brilliantly devised a new money — Bitcoin. We see that it has already acquired some value and a quick search will show an ever increasing number of businesses willing to trade in Bitcoin. It is already a medium of exchange for a growing number of countercultures. Whether it continues to gather momentum is an empirical question, one for which only time has the answer. But let us not forget this is a free market phenomenon. Nothing about its ownership, mining or its use violates private property rights. As with any good on a truly free market – the only test it must withstand is the test of marketability and popularity within the confines of the non-aggression principle and private property rights.

But does it serve customers’ needs?

By far the best and most academically rigorous description of Bitcoin I’ve seen has been given by Peter Šurda in his Master’s thesis. Konrad Graf has also written extensively on the subject with clarity and insight. I will not do justice to arguments they put forward, but will share their opinion that Bitcoin has superior qualities as it relates to the characteristics of money.

  1. Durable – Bitcoin can exist in any number of forms, be it physical or intangible (yes, you can actually have a Bitcoin coin or card). It can be printed on paper or committed to memory. But at its core, it is abstract and can be made to be as secure as the network it depends upon. Its peer-to-peer nature makes it all but impossible for governments to shut down.
  2. Portable – If it exists in its intangible form, there is nothing more portable than 1s and 0s. A million bitcoins weigh as much as a millionth of one. It is also the most easily transportable good – no shipping costs, insurance, etc. It is, after all, its own payment system. In fact, it is so portable, you can carry backup copies with you or trusted parties, hidden in USB keys and on anonymous servers – this is the only form of money that could pose an insurmountable challenge to those wishing to confiscate your money.
  3. Divisible – Each coin is divisible into 100 million smaller units, meaning that even if each bitcoin rises to $1 million each, we would still have the equivalent of a penny. Likewise, Bitcoin is perfectly fungible.
  4. Scarce (Intrinsically Valuable) – Bitcoin is rare (total quantity will not exceed 21 million units) and is not subject to unlimited reproducibility. This is by design and due to its complete decentralization, there is no one entity that can override this characteristic.

Šurda additionally showed how it was superior in logistics, manipulation, authentication, transaction costs of property rights, counter-party risk, and others. Graf noted its superiority also in purchasing power and stability of supply, lending itself to become a catalyst for deflation (in the good way). And since Bitcoin isn’t a raw material in creating other products, premiums aren’t charged for industry use. Therefore, no other lower-order goods’ costs of production are affected by its potentially ever-increasing value in a deflationary environment.

Best of all, this is a commodity money that does not need money substitutes and it doubles as its own payment system. This leads to two very desirable outcomes. Banks would no longer be needed as ‘money warehouses’. Individuals could store their own bitcoins, much like they store their cat photos on their hard drives or online. Many libertarians wonder how to make fractional reserve banking illegal. You would not need to – it would come about naturally since this ‘service’ would no longer be required. Banks’ role in the business of transferring money would dwindle as well, since paying in Bitcoin is as easy as sending an email. Transaction fees and capital controls would become a thing of the past. Banks would therefore revert to providing useful services, such as pairing up those who want a loan with those who have money to lend. They would finally be forced to innovate, same as businesses across the spectrum have been doing since the dawn of civilization.

Conclusion

Bitcoin has the making of becoming money in its own right. As of now it is a medium of exchange for a limited group of individuals, but it has already acquired value and is already being purchased for its exchange value. Bitcoin is a free market phenomenon. The value it has was not forced upon anyone and its use is not protected by legal decree.

Professor Hoppe notes the following: “Economic theory has nothing to say as to what commodity will acquire the status of money. Historically, it happened to be gold. But if the physical make-up of our world would have been different or is to become different from what it is now, some other commodity would have become or might become money. The market will decide.”

What becomes money is indeed an empirical question that we can only analyze with hindsight. From the great work done by the economists quoted above, we can uncover another empirical fact – that money has arisen in a spontaneous manner, through the evolution of successive generations of human actors. But let us not conclude that money can only arise spontaneously – it can be purposefully invented and then left to the market to adopt or reject. What we are witnessing is the adoption of a new invented form of money. Money, after all, is a tool to facilitate economic transactions. We must accept – and build into our theories – the possibility of using a tool that is custom-built for this purpose. We must not merely denounce a form of money because its building blocks are not naturally provided or because it does not have other uses. If it meets and exceeds all of the characteristics of money, if it adheres to principles of economic scarcity and decentralization, and if actors on the free market see the value in it and freely exchange goods and services for it – we need to accept this, too, as having potential of being included in our books and scholarly articles alongside the time-honored alternatives. Let us have academic debates about its practical or economic merits and flaws. This is not a winner-take-all situation. Competition in currencies is just as valuable as competition in other areas. Let’s just remember that Bitcoin could well help us achieve a better and freer society with a sounder economy.

Originally posted as Part I of a four-part introductory series on Bitcoin on May 1, 2013 in the American Daily Herald. See the Bitcoin blog for all four articles.

The last couple of months proved a very exciting time for Bitcoin and its new owners, with values increasing from $30 to $260 within a month only to come crashing down in days. It went from virtual anonymity to virtual ubiquity and back again — the only constant being that it’s virtual. The dust has now settled and the talking heads have changed topic, and Bitcoin is slowly regaining strength. But does this mean we can finally, in a quiet and rational way, contemplate what this Bitcoin really is and where it has room to fit into our lives? The answer to that is no, because the concept of Bitcoin is so strange, unintuitive and foreign, no matter when you discuss it and with whom, it will lead to very divisive arguments. So I say now is as good a time as any to dive in and discuss it.

So what is Bitcoin, anyway?

Bitcoin is a virtual currency. It is a string of 1s and 0s, much like a lot of what we interact with in this day and age. It’s something new. It’s unique. It’s controversial. The detractors say it’s only useful for terrorists or drug lords who want to move money around undetected, which no doubt they do. But much like the Internet is so much more than pornography, so is Bitcoin so much more than drug money. E-mail liberated the letter from the postage stamp, Skype liberated telephone calls from crippling AT&T long-distance rates, Facebook liberated photos from the dusty photo album sitting on your shelf unopened. You can think of Bitcoin as what will liberate financial transactions from the grip of the financial institutions and the state.

Technical/dictionary definitions can be found in many places. This short article cannot give a full account. But it will present analogies to make the concept of Bitcoin easier to grasp. Given that Bitcoin is virtual, the analogies can only go so far, but the first step is to think about bitcoins as though they were actual coins forged out of the shiniest and prettiest gold. This is the cornerstone to understanding that bitcoins are in fact a commodity, like a gold nugget turned into a coin and made to become money. The analogy is that the element from which the gold coin is forged requires to be mined. Sure enough, it exists in nature, but it is hidden from plain view. It has to be explored to be brought into useful existence, and this gets exceedingly hard as time goes by and as the easy pickings have all been found. Much the same is with Bitcoin. It is decisively unlike any other piece of software or any other electronic file to which we are accustomed. You cannot just copy and paste it and you cannot just reinstall it ad infinitum. The sense we should be getting is that Bitcoin is a scarce good.

Don’t let go of that mental image as I endeavor to explain a bit about the technical aspect. Bitcoin belongs to a new kind of asset class, one that is called a crypto-currency. Its very existence is predicated upon a network of computers that resides within the internet. This Bitcoin network consists of thousands of individuals who are online and connected to one another at every given second of the day, constantly communicating with one another through pieces of software designed with this one networking purpose in mind. Through complex cryptographic means, each coin and all of its transaction history is known to the network while keeping the identity of the owner of this coin completely private. Due to the fact that transmission from one owner to another (the financial transaction) is broadcast to the entire network, it is made virtually impossible to then use the coin again since everyone knows you’ve already given it away – thus it overcomes the problem of double-spending (think “copy & paste”) the same coin. The analogy to a gold coin (or any physical good) is that only one person can ever hold and own the coin, thus it is scarce (in the economic sense) and one person owning the coin prevents another person from owning it.

As to the technical aspect of ‘mining’ bitcoins, these again are computers running specialized software on this network. Miners solve complex algorithms to discover which string of characters would be the next Bitcoin to be produced. The computations are so complex, and increasingly so, that the computers required are expensive, state of the art computers using up time, space and energy. Inherent in the Bitcoin network design, there is a capacity to the network (21 million bitcoins) and inherent to the mining process, it becomes exponentially more difficult to solve these algorithms. Therefore, by nature, the rate of creation of new coins is decreasing and an upper limit is in place. Today over half are in existence, within 25 years over 99 percent will have been mined and by the year 2140 no more coins will be added to the supply. The analogy to gold mining is that gold is finite and it takes effort to discover it; ‘real world’ resources, time and money, are expended in the process. While, of itself, this doesn’t give Bitcoins their value, it does make it either profitable or not and it incentivizes entrepreneurs where the profit exists. Bitcoins cannot be created out of thin air by a Federal Reserve-like entity. It is a commodity that will attract miners should it be profitable, and likewise detract miners when loss-making conditions arise. It is a product of the free-market.

The value of money and Bitcoin

A brief mention was made that this is a new type of asset class. Also mentioned repeatedly is that this is a commodity. These definitions cause great discomfort to many who view assets and commodities as necessarily objects in the physical realm. Accountants have long held the view that a balance sheet can also be comprised of intangible assets. Value, it was argued, does not come from an object’s tangibility, but rather from its subjective utility by its owner and from its scarcity. Businesses, after all, pay great premiums to acquire others’ brands or to employ people for their talents or ideas. To be sure, a Bitcoin is a string of 1s and 0s and interacts only with software, but when this string of 1s and 0s is useful and its ownership boundaries are clearly delineated (meaning what I own, you cannot own at the same time), then it can be thought of as an asset and it can acquire value based on the subjective view of market participants.

Most discussions on forms of money invariably include references to ‘stores of value’ and to the money commodity as having ‘intrinsic value’. It is important to realize that any good arising from the free market will appreciate in value as more people want it and will act as a store of value as long as its popularity remains so. But with popularity dwindling or with marginal utility dropping any good is subject to its store of value diminishing, gold notwithstanding. Intrinsic value is itself a misnomer. Goods do not have intrinsic value. Goods may have intrinsic properties or characteristics that are valued by society or enable them to be well utilized for a specific purpose. Money’s properties, for instance, would include being fungible, divisible, recognizable, durable, portable, rare/scarce, etc. If a good or a commodity intrinsically has all of these properties, then it is likely, over time, to evolve to become a medium of exchange (money). This good will then acquire value with its increased recognition as a popular and well accepted form of money. But calling this ‘intrinsic value’ is fallacious, albeit somewhat common.

Historically, precious metals, especially gold and silver, have retained their values due to their intrinsic properties mentioned above. This has given rise to people’s perception of them as being a ‘store of value’ and of having ‘intrinsic value’. Another red herring introduced to the argument is that gold has other uses, say in dentistry, aerospace, or jewelry. True enough, this would imply that should the metals lose all perception as being money (a highly unlikely scenario, but theoretically possible), then at least the owner is able to sell off their existing holdings to goldsmiths and other industry participants. The resultant oversupply relative to demand would probably mean gold owners would salvage a few percent of the value at best. Therefore, for all practical purposes, the fact that gold has value other than money (a characteristic Bitcoin doesn’t share) is of little relevance when discussing it as a medium of exchange.

With Nixon’s closure of the ‘gold window’ in 1971, gold has ceased its official role as money. However it is quite evident that as an asset class, precious metals are still highly regarded and form a part of many prudent investors’ portfolios. Payment for goods and services with a Krugerrand or a Silver Eagle would constitute ‘barter’ if one were to go by today’s strictly legal definitions of money payments. But if (or when) the US Dollar system collapses, there is no doubt to an ever increasing proportion of the population that ‘payment’ with gold and silver would arise as legitimate forms of money. The creation of bitcoins has introduced another alternative, one which would be unwise to ignore.

Bitcoin adoption and its rise in value

As long as its acceptance as money is only to a narrow audience, its value will remain low and the possibility of a price collapse is a real risk. But one shouldn’t make the error in deducing, therefore, that it cannot acquire value as people learn about it and accept it. Every commodity starts its life as having no value until someone finds a use for it and starts exchanging it with others who also see the value in its use or its properties. If a commodity acquires value as a medium of exchange through voluntary free-market interactions, and is not forced upon the populace through legal tender laws (as fiat money is), then it no longer matters that it doesn’t have other uses. It will be acquired and exchanged for the sole purpose of acquisition and exchange. In a free market, after all, if people lose confidence or interest in the product – any product (money or otherwise), its value would decrease and potentially reduce to zero.

So why has its value gone up so greatly? Is it all attributed to an irrational bubble-induced craze? Perhaps. But perhaps ever more people are starting to realize that this invention fits the bill. It is fungible, divisible, recognizable, durable, portable, rare/scarce (an in-depth look at each will have to be the topic of another article). When one considers the design of this ‘product’ in light of these attributes, one begins to realize that the properties that led gold and silver to the fore as ‘natural money’ can exist in other goods. People gawk at miraculous inventions that enable us to perform heretofore unthinkable tasks. Transacting in money is no different. Money is simply the most marketable commodity. It shouldn’t surprise us, in this day and age, that someone was able to invent an alternative form of it – and let the free market decide what is more marketable. What we have witnessed over the last few weeks are volatile price fluctuations, as people rush into this craze wanting to make a quick buck. But with more people owning bitcoins and more businesses willing to accept payment in them, Bitcoin is gaining currency. This is exactly the process that took gold from ornament to payment, only instead of taking centuries, it is happening before our very eyes. For those seeking a return to free market currencies, consider Bitcoin as a successful alternative.

LongeCity has been doing advocacy and research for indefinite life extension since 2002. With the Methuselah Foundation and the M-Prize’s rise in prominence and public popularity over the past few years, it is sometimes easy to forget the smaller-scale research initiatives implemented by other organizations.

LongeCity seeks to conquer the involuntary blight of death through advocacy and research. They award small grants to promising small-scale research initiatives focused on longevity. The time to be doing this is now, with the increasing popularity and public awareness of Citizen Science growing. The 2020 H+ Conference’s theme was The Rise of the Citizen Scientist. Open –Source and Bottom-Up organization have been hallmarks of the H+ and TechProg communities for a while now, and the rise of citizen science parallels this trend.

Anyone can have a great idea, and there are many low-hanging fruits that can provide immense value and reward to the field of life extension without necessitating large-scale research initiatives, expensive and highly-trained staff or costly laboratory equipment. These low-hanging fruit can provide just as much benefit as large scale ones – and, indeed, even have the potential to provide more benefit per unit of funding than large-scale ones. They don’t call them low-hanging fruit for nothing – they are, after all, potentially quite fruitful.


In the past LongeCity has raised funding by matching donations made by the community to fund a research project that used lasers to ablate (i.e. remove) cellular lipofuscin. LongeCity raised $8,000 dollars by the community which was then matched by up to $16,000 by SENS Founation. A video describing the process can be found here. In the end they raised over $18,000 towards this research! Recall that one of Aubrey’s strategies of SENS is to remove cellular lipofuscin via genetically engineered bacteria. Another small-scale research project funded by LongeCity involved mitochondrial uncoupling in nematodes. To see more about this research success, see here.

LongeCity’s second successfully funded research initiative was Mitochondrial uncoupling . More information can be found here. This project studied the benefits of transplanting microglia in the aging nervous system.

LongeCity’s 3rd success was their project on Microglia Stem Cells in 2010. The full proposal can be found here, and more information on this second successful LongeCity research initiative can be found here.

LongeCity’s fourth research-funding success was on Cryonics in 2012, specifically uncovering the mechanisms of cryoprotectant toxicity.

These are real projects with real benefits that LongeCity is funding. Even if you’re not a research scientist, you can have an impact on the righteous plight to end the involuntary blight of death, by applying for a small-scale research grant from LongeCity. What have you got to lose? Really? Because it seems to me that you have just about everything to gain.

LongeCity has also contributed toward larger scale research and development initiatives in the past as well. They have sponsored projects by Alcor, SENS Foundation and Methuselah Foundation. They crowdsourced a longevity-targeted multivitamin supplement called VIMMORTAL based on bottom-up-style community suggestion and deliberation (one of the main benefits of crowdsourcing).

So? Are you interested in impacting the movement toward indefinite life extension? Then please take a look at the various types of projects listed below that LongeCity might be interested in funding.

— — — — — — — — —

The following types of projects can be supported:

• Science support: contribution to a scientific experiment that can be carried out in a short period of time with limited resources. The experiment should be distinguishable from the research that is already funded by other sources. This could be a side-experiment in an existing programme, a pilot experiment to establish feasibility, or resources for an undergrad or high-school student.

• Chapters support: organizing a local meeting with other LongeCity members or potential members. LongeCity could contribute to the room hire, the expenses of inviting a guest speaker or even the bar tab.

• Travel support: attendance at conferences, science fairs etc. where you are presenting on a topic relevant to LongeCity. Generally this will involve some promotion of the mission and/or a report on the then conference to be shared with our Members

• Grant writing:

Bring together a team of scientists and help them write a successful grant application to a public or private funding body. Depending on the project, the award will be a success premium or sometimes can cover the costs of grant preparation itself.

• Micro matching fundraiser:

If you manage to raise funds on a mission-relevant topic, LongeCity will match the funds raised. (In order to initiate one of these initiatives LongeCity usually also requires that the fundraiser spends at least 500 ‘ThankYou points’ but this requirement can be waived in specific circumstances.)

• Outreach:

Support for a specific initiative raising public awareness of the mission or of a topic relevant to our mission. This could be a local event, a specific, organized direct marketing initiative or a media feature.

• Articles:

Write a featured article for the LongeCity website on a topic of interest to our members or visitors. LongeCity is mainly looking for articles on scientific topics, but well-researched contributions on a relevant topic in policy, law, or philosophy are also welcome.

Grant Size:

‘micro grants’ — up to $180

‘small grants’ — up to $500

Grant applications exceeding $500 can be received, but will not be evaluated conclusively under the small grants scheme. Instead, LongeCity will review the application as draft and may invite a full application afterward.

Decisions as part of the small grants programme are usually pretty quick and straightforward. However please contact LongeCity with a proposal ahead of time, as they will not normally consider applications where the money has already been spent!

Proposals can be as short or elaborate as necessary, but normally should be about half a page long.

Only LongeCity Members can apply, but any Member is free to apply on behalf of someone else — thus, non-Members are welcome to find a Member to ‘sponsor’ their application.

Please email [email protected] with your proposal.

You can also use the ideas forum to prepare the proposal. For general questions, or to discuss the proposal informally, feel free to contact LongeCity at the above email.

— — — — — — — — —

*** PLEASE alert your friends—Our own continued health and longevity may depend on Steve continuing his work.***

This call for support was also posted by Ilia Stambler on the Longevity Alliance Website, and organized on YouCaring.com by John M. Adams. Eric Schulke has also helped tremendously in spreading the word about the Fundraiser.

Since founding the Los Angeles Gerontology Research Group in 1990, Dr. L. Stephen Coles M.D., Ph.D., has worked tirelessly to develop new ways to slow and ultimately reverse human aging.

Everyone active in the LA-GRG or the Worldwide GRG Discussion Group have benefited from his expertise. His continual reporting of news about the latest developments to the List and his work in areas such as gathering blood samples for a complete genome analysis of the oldest people in the world (supercentenarians, aged 110+) is ground breaking and far ahead of anything that has ever been accomplished before. Publication of this work is expected in collaboration with Stanford University before the end of the year. Other accomplishments are equally notable

CLICK HERE TO HELP!

BRIEF summary of his work: L. Stephen Coles, M.D. Ph.D — Cited in more than 250 scientific articles — Profiled as notable person in Wikipedia — Many other contributions to aging research and advancing long, healthy life

Steve Coles was diagnosed with Adenocarcinoma (Pancreatic Cancer) at the head of the pancreas on Christmas Eve of last year. Pancreatic cancer is particularly insidious. He underwent a Whipple (Surgical) Procedure on January 3rd that produced a beneficial result. The tumor’s complete obstruction to the common bile duct that had caused jaundice and severe pruritus (skin itching leading to scratching to the point of bleeding) was almost immediately reversed in two days. His subsequent chemotherapy with Gemzar over the past three months will hopefully prevent metastases from spreading to other organs. But we won’t know his prognosis until June 7th when a CT Scan will be compared with a baseline scan performed before the start of chemo interpreted by a cancer radiologist.

We now have the opportunity to carry out a personalized chemo treatment regimen created by a start-up company called Champions Oncology in Baltimore, MD; USA affiliated with the Johns Hopkins School of Medicine. Champions is a world class organization that will analyze the tissue sample that has already been sent to them. Then, a custom treatment program will be prescribed for Steve based on a mouse model, since each tumor is unique and pure test tube trials have not been shown to be effective.

Champions Oncology’s service is to test in mice what can work for Dr. Coles. This is done through two steps:

(1) To implant Dr. Coles’s cancer on mice. (This part has been successfully carried out, and it will allow us to test nine different treatment protocols on Dr. Coles’s specific tumor tissue in mice).

(2) Test the treatments on the mice (The treatments have been defined with Dr. James P. Watson, Dr. Coles, and his oncologists.)

Dr. Joao Pedro de Magalhes of Liverpool, UK was the first to propose employing the services of Champions Oncology. They have a good track record. The biggest risk is that the process normally takes so long that the patient dies before the results can be obtained (especially with such an aggressive, malignant cancer, as Dr. Coles’s). Luckily, this part went right. Also, there is a risk is that Step-1 won’t work. Luckily for us, this part went right, too. Therefore, so far, it seems that choosing Champions Oncology’s approach was the right choice. We can’t be sure that Step-2 will be as successful, but we need to try.

In addition to his medical team here in the U.S., our international friends have been active on his behalf. They successfully negotiated a 60 percent reduction in cost.

NOW, YOU CAN HELP IN TWO WAYS:

(1) CONTRIBUTE TO THIS FUND

Time is of the essence. The good people at Champions Oncology have agreed to begin the analysis immediately.

Steve Coles needs your support.

It may make THE difference. Please dig deep and support him by contributing to the fund.

*** Our own continued health and longevity may depend on Steve continuing his work.***

(2) SEND REFERRALS TO CHAMPIONS ONCOLOGY

Champions Oncology is an early-stage for-profit company. Champions is not a philanthropy. Like many companies offering breakthrough technologies, it has light bills to pay, payroll to make on time, and many other typical expenses.

Please think of any oncologists how may refer patients to Champions, then contact any of the individuals listed below so we may get life-saving information about Champions into their hands. Champions is particularly well set up to accommodate physicians and patients in the Eastern U.S., Germany, France, Brazil, and Japan.

We wish to acknowledge the GRG (the Gerontology Research Group—A discussion group of ~400 members worldwide.

We owe a special thank you to The International Longevity Alliance Movement for their support.

Contacts:

1. Edouard Debonneuil [email protected] France Skype ID: edebonneuil

2. Daniel Wuttke [email protected] Germany Skype: admiral_atlan

3. Ilia Stambler [email protected] Israel Skype: iliastam

4. John M. (Johnny) Adams [email protected]

U.S. (949) 922‑9786 Skype: agingintervention

Updates 06/03/2013

by John M. (Johnny) Adams

IMPORTANT MESSAGE: Dr. Coles has received a contribution and is forwarding it directly to Champions Oncology.

So as of now, 10:20 am PDT, we have $6175 of the needed $10,000!

I have contacted YouCaring and asked how to change the “$1475 raised of $10000 goal”.

Supporters

Franco Cortese

donated$100.00

Monday, June 03, 2013

PLEASE donate ANYTHING you can to help save the life of L. Stephen Coles, who has spent his entire professional career trying to save yours!

Aubrey de Grey

donated$300.00

Monday, June 03, 2013

Anonymous

Offline Donation

donated$5,000.00

Monday, June 03, 2013

RetirementSingularity.com

donated Hidden Amount

Monday, June 03, 2013

Anonymous

donated Hidden Amount

Monday, June 03, 2013

Sven Bulterijs

donated$15.00

Monday, June 03, 2013

Anonymous

donated Hidden Amount

Sunday, June 02, 2013

kg goldberger

donated$20.00

Sunday, June 02, 2013

prayers are on the way for more than 65% of deaths. Aging is a cause of adult cancer, stroke and many others age related diseases. Researchers fighting aging are the best people, they are fighting for all of us. Let’s pay them back!

Bijan Pourat MD

donated$250.00

Saturday, June 01, 2013

Maxim Kholin

donated Hidden Amount

Saturday, June 01, 2013

Aging is a disease. Aging is responsible

Anonymous

donated$60.00

Saturday, June 01, 2013

Nils Alexander Hizukuri

donated$30.00

Saturday, June 01, 2013

All the best!

Anonymous

donated$40.00

Saturday, June 01, 2013

Danny Bobrow

donated Hidden Amount

Saturday, June 01, 2013

Steve, win this fight for us all. I send you healing thoughts.

Danny Steve, friends and family, but it is an outstanding, real-world example of the advancing frontier of science and medicine. The entire life-extension community should rally in support of this effort for Steve and for the acquisition of important scientific knowledge.

Cliff Hague

donated $100.00

Saturday, June 01, 2013

Best wishes for a speedy recovery.

Tom Coote

donated $100.00

Friday, May 31, 2013

With Best Wishes!

Anonymous

donated$100.00

Friday, May 31, 2013

Allen Taylor

donated$25.00

Friday, May 31, 2013

Gunther Kletetschka

donated Hidden Amount

Friday, May 31, 2013

john mccormack, Australia

donated$50.00

Friday, May 31, 2013

phil kernan

donated$100.00

Friday, May 31, 2013

Gary and Marie Livick

donated$100.00

Friday, May 31, 2013

ingeseim

donated Hidden Amount

Friday, May 31, 2013

TeloMe Inc.

donated$100.00

Friday, May 31, 2013

Not only is this an important cause for

-Preston Estep, Ph.D.

CEO and Chief Scientific Officer, TeloMe, Inc.

Anonymous

donated$5.00

Thursday, May 30, 2013

Anonymous

donated$60.00

Thursday, May 30, 2013

Larry Abrams

donated$100.00

Thursday, May 30, 2013

Anonymous

donated Hidden Amount

Thursday, May 30, 2013

Anonymous

donated Hidden Amount

Thursday, May 30, 2013

Anonymous

donated Hidden Amount

Thursday, May 30, 2013

Anonymous

donated Hidden Amount

Wednesday, May 29, 2013

I have seen the future of Bitcoin, and it is bleak.

The Promise of Bitcoin

If you were to peek into my bedroom at night (please don’t), there’s a good chance you would see my wife sleeping soundly while I stare at the ceiling, running thought experiments about where Bitcoin is going. Like many other people, I have come to the conclusion that distributed currencies like Bitcoin are going to eventually be recognized as the most important technological innovation of the decade, if not the century. It seems clear to me that the rise of distributed currencies presents the biggest (and riskiest) investment opportunity I am likely to see in my lifetime; perhaps in a thousand lifetimes. It is critically important to understand where Bitcoin is going, and I am determined to do so.

Continue reading “Bitcoin’s Dystopian Future” | >

I recently posted this on the only two other sites that will allow me to express my opinions;

I see the problem as one of self similarity; trying to go cheap being the downfall of all these schemes to work around human physiology.

When I first became interested in space travel several years ago I would comment on a couple blogs and find myself constantly arguing with private space proponents- and saying over and over again, “there is no cheap.” I was finally excommunicated from that bunch and banned from posting. They would start calling me an idiot and other insults and when I tried to return the favor the moderator would block my replies. The person who runs those two sites works for a firm promoting space tourism- go figure.

The problem is that while the aerospace industry made some money off the space program as an outgrowth of the military industrial complex, it soon became clear that spaceships are hard money- they have to work. The example of this is the outrage over the Apollo 1 fire and subsequent oversight of contractors- a practice which disappeared after Apollo and resulted in the Space Shuttle being such a poor design. A portion of the shuttle development money reportedly went under the table into the B-1 bomber program; how much we will never know. Swing wings are not easy to build which is why you do not see it anymore; cuts into profits.

The easy money of cold war toys has since defeated any move by industry to take up the cause of space exploration. No easy money in spaceships. People who want something for nothing rarely end up with anything worth anything. Trying to find cheap ways around furnishing explorers with the physcial conditions human beings evolved in is going to fail. On the other hand if we start with a baseline of one gravity and Earth level radiation we are bound to succeed.

The engineering solutions to this baseline requirement are as I have already detailed; a tether for gravity and a massive moonwater shield with bomb propulsion. That is EXACTLY how to do it and I do not see any one else offering anything else that will work- just waffling and spewing about R&D.
We have been doing R&D for over half a century. It is a reason to go that is supposedly lacking.

When that crater in Mexico was discovered in 1980 the cold war was reaching it’s crescendo and the massive extinction it caused was overshadowed by the threat of nuclear weapons. Impact defense is still the only path to all that DOD money for a Moon base.

Last month a colleague of mine and I visited with Dennis Heap, Executive Director of the National Front Range Airport, at Watkins, CO, the location of the future Spaceport Colorado, and Colorado’s contribution to getting into space.

On April 19, 2012, Gov. John Hickenlooper signed a bill that limited a spaceflight entity’s liability for spaceflight participants and paved the way for Spaceport Colorado’s development. The Front Range Airport Authority situated on 3,900 acres will allocate 900 acres towards the development and construction of Spaceport Colorado and ancillary facilities. The next steps are the completion of an environmental assessment, and feasibility and marketing study. This is expected to be completed by end of 2013.

In the 1995–96 I was Head of Corporate Planning at Westport, a $1 billion seaport infrastructure project in Malaysia, where I created and deployed the 7-hour port strategy, streamlined financial controls, container handling and container tariffs, reducing incoming (wharf to gate) dwell time to zero hours compared to the then world’s largest container port, Port Authority of Singapore’s (PSA) 18-hours. Westport was able to grow substantially, to the point where, in 2011, Westport handled 6.4 million TEUs compared to PSA’s 29.9 million TEUs. (TEU = Twenty-foot Equivalent Units or half a container)

So it caught my attention when Dennis Heap said Spaceport Colorado will be 33 miles (53 km) east of the city of Denver and about 6 miles (10 km) south of Denver International Airport (DIA).

DIA is the 5th busiest airport in the US, and the 11th busiest airport in the world. It is located centrally in the continental United States. Read more about DIA here. The plan is to build a rail link between DIA and the Spaceport.

Denver is the second largest city after Phoenix, AZ, in the Mountain States (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, & Wyoming). It is the 23rd most populous city in the United States. Read more about Denver here.

After our visit with Dennis Heap, I took some photos of the Front Range Airport.

This photo above is of the view of the left side of the runway. In this photo you can see a white smudge just above the fourth plane (from the right). That white smudge is the Denver International Airport. The blue and white streak above ground on the horizon (left to middle of photo) is the majestic snowcapped Rocky Mountains. The city of Denver would be 33 miles (53 km) left or west of the Front Range Airport.

You can see from this picture that the Front Range Airport is a general aviation airport. That white smudge above the first plane (from the left) is the Denver International Airport. Note the clear blue skies. Colorado is the sunniest state in the US with more sunny days than even Hawaii.

This photo above was of the view to the right of the runway. Terminal building and offices are on the right of this photo. And if I have my bearing right, when built, Spaceport Colorado will be visible on the horizon.

I must congratulate Dennis Heap, Front Range Airport, and the many people, county and state officials and private companies who made this a reality. Public and private sectors cooperating to make things happen today. Real people doing real things to get into space sooner rather than later.

—————————————————————————————————

Benjamin T Solomon is the author & principal investigator of the 12-year study into the theoretical & technological feasibility of gravitation modification, titled An Introduction to Gravity Modification, to achieve interstellar travel in our lifetimes. For more information visit iSETI LLC, Interstellar Space Exploration Technology Initiative.

Solomon is inviting all serious participants to his LinkedIn Group Interstellar Travel & Gravity Modification.

It was on a long-haul flight many months ago that I recalled a visit to the National Air and Space Museum [1] to a fellow passenger whom I struck up conversation with. Asking if I could recommend somewhere to visit in Washington DC, I recounted how I had spent an entire day amazing at the collection of historic aircraft and spacecraft on my only visit to that city fifteen years or so previous as a young adult — and as always a kid at heart.

Seeing the sheer scale of the F-1 engine for the Saturn 5 rocket first hand, stepping inside an Apollo command module identical to those used during the Apollo program, not to mention seeing full life-size replicas of the Lunar Roving Vehicle, an Apollo Lunar Module and for some reason what seemed most surreal to me… the Viking 1 Lander. This was enchantment.

However, for all the amazement that such a museum can provide, it is also a saddening reminder that what once was the forefront of human ambition and endeavor has now been largely resigned to history. NASA budgets are cut annually [2] whilst military expenditure takes ever more precedence. A planned six percent budget decrease in 2013 is the equivalent savings to three hours of the Iraq and Afghanistan Wars. Instead of reaching to explore outer-space we are encouraged to get excited about the equivalent billions [3] invested on science exploring the subatomic inner-space world. Meanwhile, we tend to forget that the ambitions of space exploration are not just to satisfy some wide-eyed childhood yearning to explore, but the serious and sobering prospect of needing to ensure that we as a species can eventually colonize to other worlds and ensure we are not counting down the days to our extinction on an ever-more-precarious planetary solitude.

In the face of such indifference, such concepts of lifeboats have become marginalized to what is perceived to be a realm solely for loons and dreamers, or ‘space cadets’ as we used to call them back in the days of school. The trillion dollar question really is what it takes to redirect all that military investment into science & exploration instead. It is down to credibility. Governments shy away from investing public funds when there is a lack of credibility.

It was an easy sell to the public to invest in the military after the tragic events of 9/11 and terrorist threats which were presented largely by propaganda/disinformation to the public as an existential risk to the free world. The purse strings opened and an unforgivable amount of expenditure was invested on the military in the subsequent years. Let us hope that it does not take unprecedented natural disasters [4] to awaken the world to the fact that it is nature which poses much greater existential risks to the survival of our society in the long-term.

[1] http://airandspace.si.edu/
[2] http://www.care2.com/causes/2013-nasa-budget-gutted.html
[3] http://www.ibtimes.com/forbes-finding-higgs-boson-cost-1325-billion-721503
[4] http://rt.com/news/paint-asteroid-earth-nasa-767/

To achieve interstellar travel, the Kline Directive instructs us to be bold, to explore what others have not, to seek what others will not, to change what others dare not. To extend the boundaries of our knowledge, to advocate new methods, techniques and research, to sponsor change not status quo, on 5 fronts:

1. Legal Standing. 2. Safety Awareness. 3. Economic Viability. 4. Theoretical-Empirical Relationship. 5. Technological Feasibility.

In Part 1 of this post I will explore Theoretical-Empirical Relationship. Not theoretical relationships, not empirical relationships but theoretical-empirical relationships. To do this let us remind ourselves what the late Prof. Morris Kline was getting at in his book Mathematics: The Loss of Certainty, that mathematics has become so sophisticated and so very successful that it can now be used to prove anything and everything, and therefore, the loss of certainty that mathematics will provide reasonability in guidance and correctness in answers to our questions in the sciences.

History of science shows that all three giants of science of their times, Robert Boyle, Isaac Newton & Christiaan Huygens believed that light traveled in aether medium, but by the end of the 19th century there was enough experimental evidence to show aether could not be a valid concept. The primary experiment that changed our understanding of aether was the Michelson–Morley experiment of 1887, which once and for all proved that aether did not have the correct properties as the medium in which light travels.

Only after these experimental results were published did, a then unknown Albert Einstein, invent the Special Theory of Relativity (SRT) in 1905. The important fact to take note here is that Einstein did not invent SRT out of thin air, like many non-scientists and scientists, today believe. He invented SRT by examining the experimental data to put forward a hypothesis or concept described in mathematical form, why the velocity of light was constant in every direction independent of the direction of relative motion.

But he also had clues from others, namely George Francis FitzGerald (1889) and Hendrik Antoon Lorentz (1892) who postulated length contraction to explain negative outcome of the Michelson-Morley experiment and to rescue the ‘stationary aether’ hypothesis. Today their work is named the Lorentz-Fitzgerald transformation.

So Einstein did not invent the Special Theory of Relativity (SRT) out of thin air, there was a body of knowledge and hypotheses already in the literature. What Einstein did do was to pull all this together in a consistent and uniform manner that led to further correct predictions of how the physics of the Universe works.

(Note: I know my history of science in certain fields of endeavor, and therefore use Wikipedia a lot, not as a primary reference, but as a starting point for the reader to take off for his/her own research.)

Previous post in the Kline Directive series.

Next post in the Kline Directive series.

—————————————————————————————————

Benjamin T Solomon is the author & principal investigator of the 12-year study into the theoretical & technological feasibility of gravitation modification, titled An Introduction to Gravity Modification, to achieve interstellar travel in our lifetimes. For more information visit iSETI LLC, Interstellar Space Exploration Technology Initiative.

Solomon is inviting all serious participants to his LinkedIn Group Interstellar Travel & Gravity Modification.