The Path to Bitcoin
Ideas / Information theory of value

Information theory of value

9episodes
138first heard, 2024
192most recent, 2026
First said · Ep 138 at 20:33
“The information theory of value, it's a comprehensive framework designed to quantify the value of assets by integrating multiple dimensions of information and resources; unlike traditional theories that focus primarily on factors like labor, utility, market demand, the information theory of value considers the information content, the energy expenditure required to alter or process that information, security, and the potential to generate future information associated with an asset.”
Said now · Ep 192 at 05:04
“What is value? Value is a reflection of an object's utility. What is the utility of the horn? The utility of the horn is that it persists. When it breaks, things die. If your structure in the physical universe, the geometry of it, is not a horn, it will ultimately go away.”

The listening path

  1. 138

    The Information Theory of Value

    The Value Equation: V=ϕ×Io×M×Q+ψ×E. Information Content (Io) represents the amount of original information in an asset, quantified in bits; Energy Expenditure (E)…

  2. 140

    The One Problem

    The only problem worth solving is how to make yourself as wealthy and future-proof as possible, and Bitcoin, the hardest information ever generated, solves it. Your real…

  3. 146

    Bitcoin as a Falsifiable Explanation: Constraint, Knowledge, and the Future of Civilization

    Bitcoin is a physically instantiated, falsifiable explanation: a hard-to-vary knowledge structure that replaces trust with constraint and belief with verifiability. If…

  4. 176

    The Coordination Tax

    Early Bitcoin wealth went to people strange enough to question money itself and willing to burn social credibility, whatever their credentials. That competence inversion…

  5. 192

    The Universe Demands Horns

    Information is physical and verification is asymmetric, and those two facts force a Gabriel's horn topology on anything that wants to keep growing. Most of what the…

In the show’s words

That process Bitcoin is outputting is hard information that you can feel, that you can push, and that's why it's going to be the most valuable thing. Ep 139 · 13:17

This is really the point in the war for money and for more useful information: every step that the opposition takes is one step closer to it all blowing up in their face. Ep 149 · 00:00

The railroad barons owned enormous amounts of capital, and by R greater than G their descendants should own everything by now, their capital should have compounded for 150 years. Ep 183 · 17:24