TL;DR: The development of Bitcoin mirrors the evolution of mixed martial arts (MMA) from isolated, codified fighting styles to an open competition between ideas. This highlights the benefits of free market experimentation over arrogance and intellectual dishonesty. Just as MMA improved by testing different fighting techniques, Bitcoin provides a level playing field for currencies to compete, with it being the “best fighter” that also enables fair competition. In the book Bitcoin is Venice, the first chapter titled “Wrestling with the Truth” opens with an unexpected comparison between the history of Bitcoin and mixed martial arts (MMA). This may seem surprising at first, but there are important parallels that illustrate the benefits of free market experimentation.
Isolated Fighting Styles vs Open Competition
Before the advent of MMA and the UFC, martial arts were largely codified and controlled by certain masters and schools. The techniques and teachings were closed off and not tested against other styles.
This is similar to how national currencies operate in isolation under central banks, with no real competition or testing against alternatives. The incumbent monetary systems are enforced from the top down, with little room for debates over what would actually work best.
When MMA first emerged, it was an open forum that allowed different fighting styles to directly compete against each other. No longer could certain techniques rest on untested claims — they had to prove themselves in the octagon.
Experimentation Reveals Truth
This mirrors the free market discovery process for currencies unlocked by Bitcoin. For the first time, an open competition can take place between national fiats, gold, and apolitical cryptocurrencies. The merits and flaws of each are revealed by the market through adoption and price discovery.
Just as the early UFC events showcased the superiority of Brazilian jiu jitsu, Bitcoin is proving itself to be the superior form of money with its fixed supply, decentralized nature, and censorship resistance.
However, the “match” is still playing out, and intellectual humility is required. The end game is unknown, but a free market battle of ideas tends to arrive at the truth more reliably than arrogant claims of infallibility.
Enabling Fair Competition
Bitcoin operates on two levels. It is likely the ‘best fighter’ in terms of monetary properties. But it also enables fair competition by removing anti-free market measures enforced by governments to maintain fiat monopolies.
Capital controls, legal tender laws, forbidding alternative currencies – these measures try to prevent open competition against national currencies. Bitcoin undermines these through its permissionless, uncensorable, and global nature.
UFC 294 Showcases Short-Notice Fights
The upcoming UFC 294 card provides more examples of open competition determining the truth. The co-main event features Khamzat Chimaev taking on Kamaru Usman on short notice. Despite Usman having been a dominant champion and likely consider to be the favorite with a full camp, the short notice makes it hard to pick against the dangerous Chimaev. His powerful uppercut could lead to a first-round KO.
In a similar vein, the lightweight title rematch between Islam Makhachev and Alexander Volkanovski, organized on short notice due to Charles Oliveira’s injury, seems to favor Makhachev. Although their previous encounter was expected to tilt in Makhachev’s favor, it turned out to be a closely contested battle. Given Volkanovski’s limited time for preparation, the prevailing expectation is that Makhachev will secure a stoppage victory. Nevertheless, in the realm of mixed martial arts, where the truth emerges from equitable and open competition, unpredictability is the norm. The significance of preparation can vary when the pressure intensifies; the fighter with greater determination will ultimately triumph. One certainty remains: we will witness these athletes delivering their utmost effort, mirroring the transparency of transactions on the decentralized Bitcoin blockchain.
Conclusion
The rise of Bitcoin has strong parallels with the emergence of MMA as an intellectual free market. Both teach us that experimentation and humility pave the road to truth and human progress.
The decentralized cypherpunk ethos of “Don’t trust, verify” will continue to reshape society in enormously positive ways. May we each find our own role in this grand human drama, and play it with courage.
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