Podcast Summary: "The 'What is Money?' Show" Episode WiM060 - The Vervaeke Series | Episode 7 | Religion and Other Sacred Canopies

Release Date: October 13, 2021 | Host: Robert Breedlove

Introduction

In Episode WiM060 of "The 'What is Money?' Show," host Robert Breedlove engages in an in-depth conversation with Jordan Hall, delving into the intricate interplay between distributed cognition, religion, social institutions, and the evolving role of money in modern society. This episode explores the profound challenges and opportunities that arise when complex systems interact, highlighting historical parallels and contemplating the transformative potential of Bitcoin as both a monetary system and a psychotechnology.

1. The Power and Pitfalls of Distributed Cognition

Timestamp: [01:26]

Jordan Hall initiates the discussion by addressing the dual nature of distributed cognition. While recognizing its superior capacity for self-correction, Hall warns of its susceptibility to widespread self-deception. He posits that even expansive and powerful distributed systems grapple with fundamental issues like combinatorial explosion and the frame problem.

Jordan Hall [01:26]: "While distributed cognition is more powerful and therefore has more powerful capacities for self correction, it also has tremendous abilities because of creating very powerful and widely permeating self deception."

Robert Breedlove concurs, drawing parallels to institutional rot and the abandonment of the gold standard in the 1970s, suggesting that distorted incentives within distributed systems may impede genuine scientific progress.

2. Historical Analogies: Bronze Age Collapse and Economics of Violence

Timestamp: [04:00]

Hall provides a historical lens to understand the fragility of complex systems by examining the Bronze Age collapse. He elaborates on how technological shifts, such as the introduction of iron armor, rendered established military strategies obsolete, leading to societal unraveling.

Jordan Hall [07:56]: "Chariot warfare, which had become the institutionalization of how military power is wielded in the Bronze Age, is instantly made obsolete... the whole system just unravels."

Robert Breedlove extends this analogy to the "Economics of Violence," highlighting how advancements in technology influence societal structures and power dynamics. He references the impact of the stirrup and gunpowder on feudalism, illustrating how technological innovations can both empower and destabilize existing systems.

Robert Breedlove [11:38]: "Our ability to project force across distance... is what allows us to project our willpower on one another and on the world at large."

3. Religion as a Societal Psychotechnology

Timestamp: [27:28]

The conversation shifts to the role of religion, which Hall defines as an "ecology of practices" that serves as a foundational psychotechnology for society. He argues that religion historically provided the necessary infrastructure for distributed cognition, facilitating the emergence of new social institutions and fostering meaning.

Jordan Hall [28:25]: "Religion was the ultimate curator and cultivator of ecologies of practices."

Breedlove draws parallels between religion and money, emphasizing how both serve as lubricants for social coordination by minimizing the cost of trust and fostering interpersonal connections.

4. Money as a Hybrid Psychotechnology

Timestamp: [39:42]

Exploring the intersection of money and religion, Breedlove articulates how money functions as a trust-minimized asset that reduces the necessity for personal trust in transactions. He likens the symbolic authority of money to religious symbols, noting phrases like "In God We Trust" as indicative of money's quasi-religious stature.

Robert Breedlove [39:42]: "Money is a trust minimized asset... The more effectively a monetary technology can minimize the cost of trust, the more likely it is to succeed."

He further introduces Bitcoin as a modern psychotechnology that embodies these principles, presenting it as a potential instrument to disrupt centralized financial systems and enhance individual sovereignty.

5. The Meaning Crisis and the Decline of Traditional Institutions

Timestamp: [28:25]

Hall addresses the "meaning crisis," attributing it to the erosion of traditional religious institutions and the insufficiency of modern frameworks to provide existential meaning and moral guidance. He underscores the demographic shift towards secularism and the challenge of cultivating new institutions capable of addressing contemporary complexities.

Jordan Hall [34:16]: "The demographics show that is simply not the case for a growing group of people that are soon going to be the majority of people."

Breedlove reflects on personal transformations facilitated by Bitcoin, suggesting that it not only serves as a monetary system but also as a catalyst for moral and personal development.

6. Bitcoin as the Philosopher's Stone: A Unifying Psychotechnology

Timestamp: [49:32]

The dialogue culminates in a profound comparison between Bitcoin and the mythical philosopher's stone. Breedlove posits that Bitcoin, with its fixed supply and decentralized nature, mirrors the incorruptible properties attributed to the philosopher's stone, symbolizing a potential antidote to financial tyranny and a foundation for a new societal order.

Robert Breedlove [49:32]: "Bitcoin is a social institution. It is a psychotechnology hybrid... It is the ultimate defender's advantage."

Hall echoes this sentiment, presenting Bitcoin as a transformative tool capable of realigning social structures towards greater transparency and autonomy.

7. The Role of Austrian Economics and Future Projections

Timestamp: [66:27]

In discussing economic paradigms, Breedlove champions Austrian economics for its focus on voluntary exchange and property rights, arguing that it aligns closely with Bitcoin's foundational principles. He anticipates that Austrian economics will gain prominence as traditional economic theories falter in addressing modern challenges.

Robert Breedlove [66:27]: "Austrian economics is being reincorporated into our understanding of reality... it's a new scaffolding for civilization."

Hall supports this view, suggesting that integrating Austrian principles with emerging technologies like Bitcoin could spearhead a societal renaissance.

Conclusion

Episode WiM060 serves as a compelling exploration of how distributed cognition, religion, and money interweave to shape societal structures and individual consciousness. Through historical analogies, philosophical discourse, and the lens of emerging technologies like Bitcoin, Robert Breedlove and Jordan Hall illuminate the intricate dynamics that underpin modern civilization. The conversation emphasizes the necessity of cultivating new psychotechnologies and social institutions to navigate the complexities of the 21st century, positioning Bitcoin not just as a financial asset but as a transformative agent capable of redefining trust, property, and meaning in human society.

Notable Quotes

• Jordan Hall [01:26]: "Distributed cognition is more powerful and therefore has more powerful capacities for self correction, it also has tremendous abilities because of creating very powerful and widely permeating self deception."

• Jordan Hall [07:56]: "Chariot warfare, which had become the institutionalization of how military power is wielded in the Bronze Age, is instantly made obsolete... the whole system just unravels."

• Robert Breedlove [11:38]: "Our ability to project force across distance... is what allows us to project our willpower on one another and on the world at large."

• Jordan Hall [28:25]: "Religion was the ultimate curator and cultivator of ecologies of practices."

• Robert Breedlove [39:42]: "Money is a trust minimized asset... The more effectively a monetary technology can minimize the cost of trust, the more likely it is to succeed."

• Robert Breedlove [49:32]: "Bitcoin is a social institution. It is a psychotechnology hybrid... It is the ultimate defender's advantage."

• Robert Breedlove [66:27]: "Austrian economics is being reincorporated into our understanding of reality... it's a new scaffolding for civilization."

This episode offers listeners a nuanced understanding of how foundational systems like religion and money influence societal evolution and individual behavior, positioning Bitcoin as a pivotal development in the ongoing transformation.