Now, even if someone does not have the drawbacks of decades-long experience and mental models with a specific asset class, it is still very hard to understand Bitcoin.
Why? Because Bitcoin is the intersection of many, many different fields.
To truly understand Bitcoin, there is no other way than being a polymath.
Even if one has made it as far to (a) realize Bitcoin is something completely new and solely using existing heuristics and mental models will not work and (b) with Bitcoin, more than anything else, we do not know what we do not know — understanding still requires a very broad set of competences.
The correct approach to understand when one starts going down the Bitcoin rabbit hole is therefore to assume one knows nothing and any experience and insight one has from previous aspects of life brings very little to the table.
First principles thinking is required. We can, however, try to define a little deeper what Bitcoin is. Below is listed some different ways of wrapping one’s head around Bitcoin.
Not an exhaustive list.
A living organism
Bitcoin is Free and Open Source software. It is not a piece of IP owned by a centralized joint-stock company that needs to optimize for the bottom line of the next quarter and is incapable of cannibalizing itself. Since the Bitcoin whitepaper was released and the genesis block was mined, we have seen an explosion of experiments, ideas and creative geniuses get involved in Bitcoin and crypto as a whole. To think of Bitcoin as a living, technological organism that adjusts, develops and constantly changes to survive can be useful.
A religion.
Money, as many have learned and realized in recent decade, is just a social construction we are all part of. The value therefore comes from the amount of true believers.
Continuing this line of thinking, one could describe the religion as consisting of:
Prophet: Satoshi. No longer present. Impossible to ask questions.
Convictions: Decentralization.
Rituals: Running nodes. Mining. Hodling.
Holy scriptures: Bitcoin whitepaper. As with all holy scriptures, people interpret them in their own way.
Sacred objects: Genesis block, lowercase bitcoin
Sects: Different interpretations resulting in different factions/sects: small blockers, big blockers, etc.
An emerging economy
The consensus protocol can be thought of as the constitution
The society as the constituency (users on the demand-side; miners on the supply-side)
Core developers as the executive department who write the code and execute on the strategy, but amendments to the protocol (i.e., constitution) require approval from the constituency)
The native token is the internal currency
The investors underwrite the currency
Additionally, many one-liners and memes exist to describe Bitcoin. Not an exhaustive list.
Sound money
Digital gold
“An insurance policy against an Orwellian future”
“A tool for freeing humanity from oligarchs and tyrants, dressed up as a get-rich-quick scheme”
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Finance, like most human inventions, is constantly evolving.
In the beginning it was basic: food was traded for livestock, and livestock for resources like wood, or maize. It progressed to precious metal, such as silver and gold. And now, the next step in financial evolution has come to light.
This new form of currency has been constantly evolving over the past decade, developed by an unknown person and maintained by a collective group of the brightest minds in technology.
It’s a new form of money that is created and held digitally, and the most important part, of course, is that no government owns it, or decides its value – the peer-to-peer network community does.
We call this new money, ‘Bitcoin’.
Historically, U.S. currency has been based on gold – you could give a dollar to the bank and receive a set amount back in gold. In contrast, Bitcoin isn’t based on silver or gold – it’s based on mathematical proofs validated by a public ledger called blockchain technology.
Bitcoin is generated through a complex sequence of mathematical formulas that run on computers; the network shares a public ledger using blockchain technologies that record, and validate, every transaction processed.
A single institution, such as the government, does not control the Bitcoin network.
The idea behind the technology has always been – and remains – one of decentralization – that is, remaining completely independent of a central authority, like a bank, a government, or a country.
Anyone can access the open-source software that makes Bitcoin work, and its those individuals interested that maintain it.
But, who invented Bitcoin? Is it a valid and legitimate currency like USD? And why did nobody think of this before?
But before we begin, let’s talk about the creator of Bitcoin – or rather, the anonymous pseudonym that first published a concept.
How Did Bitcoin Start?
There are many questions about Bitcoin, but the most common one to be asked is, “Who created it?”
That answer is not straightforward, because the identity of the creator remains a mystery. All we have is a pseudonym – Satoshi Nakamoto.
The accounts are no longer active; the coins in his wallet have never been spent.
Satoshi Nakamoto has disappeared from the world, or so it would seem.
Fast Company recently published an article suggesting that Satoshi Nakamoto could be a group of people, including Neal King, Vladimir Oksman, and Charles Bry. Apparently, these three people filed for a patent related to secure communication just two months prior to the purchase of the Bitcoin.org domain. Perhaps it’s a coincidence; perhaps it’s not.
What we do have, however, are facts:
On October 31st, 2008, “Bitcoin: A Peer-to-Peer Electronic Cash System” was posted to a cryptography mailing list, published under the name “Satoshi Nakamoto”. The whitepaper outlined the foundation of how Bitcoin would operate.
On August 18, 2008, an unknown person or entity registered the Bitcoin.org domain.
On January 8th, 2009, the first version of Bitcoin is announced, and shortly thereafter, Bitcoin mining begins.
The mystery that surrounds Satoshi Nakamoto is fitting; privacy was a key value for both Bitcoin, and its users.
Others have tried to claim his mantle – most recently an Australian man named Craig Wright, who has since withdrawn his claim.
While we may never know who first created Bitcoin, we do know that the technology he started has left ripples in the financial industry.
Bitcoin has risen to fame thanks to individuals such as the Winklevoss twins controlling and growing the market, and major events that have defined this new technology’s existence such as the Mt. Gox Ponzi scheme disaster.
The people involved and the events that occur are a constant reminder that this market is unregulated and seem to fall in line with Satoshi Nakamoto’s goal of creating a decentralized network.
What is Bitcoin Used For?
Currency must have value to ensure stability.
The most common way for a person to judge a currency’s value is what they can use it on; Bitcoin is no different, and a host of vendors and merchants now accept it alongside, or in place of, fiat money.
One early adopter of Bitcoin was the computer retailer Dell. In fact, when Dell started accepting Bitcoin, it became one of the largest companies to do so internationally.
While the digital currency may total for just a fraction of the retailer’s total transaction volume, there are other key reasons why the growth of Bitcoin could be aboon for the retailer.
Dell reported earnings of $59 billion during 2015. Traditional transaction fees range from 2 to 3 percent of the purchase price – with Bitcoin, it’s much, much lower, nearing non-existent – saving the retailer a lot of money in the future.
Other companies, such as Expedia and Cheapair, have also started accepting Bitcoin, along with technology conglomerate Microsoft : users can add funds to their accounts with Bitcoin to purchase apps, games, and other types of digital content.
The acceptance of Bitcoin is a strategic decision on the part of these companies, most of which are reaching out to solidify their position with tech-savvy audiences.
There’s a lot of benefit to Bitcoin, and a variety of reasons for its use, including :
Faster Payment: Accepting wire transfers and checks is time consuming, and it can take several days for payment to clear. Bitcoin is faster and can take a matter of minutes, rather than days to process payment.
Lower Transaction Fees: The cost to accept Bitcoins is lower compared to other payment methods, such as credit cards or Paypal.
Independent of Governments: Since Bitcoin is decentralized, you own it – no authority has the right to take away your Bitcoin. People with concerns about mainstream banking systems unravelling find this a major benefit.
Elimination of Chargebacks: Once Bitcoin is sent, that’s it – you can’t chargeback, like you would with a credit card payment, which eliminates ‘chargeback fraud’ often used by criminals and scammers.
Protection Against Inflation: With a fiat currency, the government can print as much money as it desires – this drastically decreases the value of currency, and may result in inflation. In contrast, Bitcoin has a fixed number – after they have all been ‘mined’, no more Bitcoins will be created. Scarcity is an important aspect of currency which protects it from inflation.
Ownership of Currency: With Bitcoin, you own your coins. With other forms of digital fiat – such as Paypal – your assets may be held, and your account eventually suspending, locking you out of your earnings. Bitcoin puts you in control.
Is Bitcoin a Commodity, or a Currency?
Bitcoin is both. While it can be used to purchase items from major retailers, it’s also treated as property by government jurisdictions, such as the IRS.
The IRS issued a guide on Bitcoin for tax purposes, stating it will treat virtual currencies as property for federal purposes. They go on to state that:
In some environments, virtual currency operates like “real” currency — i.e., the coin and paper money of the United States or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance — but it does not have legal tender status in any jurisdiction.
The notice provides that virtual currency is treated as property for U.S. federal tax purposes.
Typically, property is almost always something tangible that can be held in the physical realm.
The IRS goes on to state that:
General tax principles that apply to property transactions apply to transactions using virtual currency. Among other things, this means that:
Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes.
Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply. Normally, payers must issue Form 1099.
The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.
A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.
Bitcoin has garnered a lot of attention over the past decade, despite constant declarations of its death – 99 Bitcoins keeps a running tab of ‘Bitcoin obituaries’.
Despite all of this, Bitcoin’s future has remained bright. Greater adoption rates, and an increasing number of brands accepting the currency (you can get a full list qui) means the long-term view on Bitcoin is that it will see market maturity as time progresses.
Mainstream investing vehicles, such as exchange-traded funds (ETFs) and Futures trading, including Bitcoin will be a major help to reaching that market maturity. Bitcoin Futures are already trading on the Chicago Mercantile Exchange (CME), and legislation to create a crypto ETF is in the works.
These securities will help stabilize cryptocurrency prices and mitigate volatility, which will help the public’s confidence grow in favor of Bitcoin.
It’s important to understand that, much like the early days of 1992, Bitcoin is a new technology – and new technologies can take decades to reach critical mass.
But, much like the Internet, no one wants to miss out on the ‘next big thing’ – and Bitcoin is the biggest thing yet. Constant updates are occurring to Bitcoin thanks to what is called a “hard fork”.
These constant updates ensure that digital currencies continue to experience growth through technological development.
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Unlike the communities traditionally associated with the word "anarchy", in a crypto-anarchy the government is not temporarily destroyed but permanently forbidden and permanently unnecessary.
It's a community where the threat of violence is impotent because violence is impossible, and violence is impossible because its participants cannot be linked to their true names or physical locations.
Until now it's not clear, even theoretically, how such a community could operate.
A community is defined by the cooperation of its participants, and efficient cooperation requires a medium of exchange (money) and a way to enforce contracts.
Traditionally these services have been provided by the government or government sponsored institutions and only to legal entities.
In this article I describe a protocol by which these services can be provided to and by untraceable entities.
I will actually describe two protocols. The first one is impractical,because it makes heavy use of a synchronous and unjammable anonymous broadcast channel. However it will motivate the second, more practical protocol.
In both cases I will assume the existence of an untraceable network, where senders and receivers are identified only by digital pseudonyms (i.e. public keys) and every messages is signed by its sender and encrypted to its receiver.
In the first protocol, every participant maintains a (seperate) database of how much money belongs to each pseudonym. These accounts collectively define the ownership of money, and how these accounts are updated is the subject of this protocol.
1. The creation of money. Anyone can create money by broadcasting the solution to a previously unsolved computational problem. The only conditions are that it must be easy to determine how much computing effort it took to solve the problem and the solution must otherwise have no value, either practical or intellectual. The number of monetary units created is equal to the cost of the computing effort in terms of a standard basket of commodities. For example if a problem takes 100 hours to solve on the computer that solves it most economically, and it takes 3 standard baskets to purchase 100 hours of computing time on that computer on the open market, then upon the broadcast of the solution to that problem everyone credits the broadcaster's account by 3 units.
2. The transfer of money. If Alice (owner of pseudonym K_A) wishes to transfer X units of money to Bob (owner of pseudonym K_B), she broadcasts the message "I give X units of money to K_B" signed by K_A.
Upon the broadcast of this message, everyone debits K_A's account by X units and credits K_B's account by X units, unless this would create a negative balance in K_A's account in which case the message is ignored.
3. The effecting of contracts. A valid contract must include a maximum reparation in case of default for each participant party to it. It should also include a party who will perform arbitration should there be a dispute. All parties to a contract including the arbitrator must broadcast their signatures of it before it becomes effective. Upon the broadcast of the contract and all signatures, every participant debits the account of each party by the amount of his maximum reparation and credits a special account identified by a secure hash of the contract by the sum the maximum reparations. The contract becomes effective if the debits succeed for every party without producing a negative balance, otherwise the contract is ignored and the accounts are rolled back. A sample contract might look like this:
K_A agrees to send K_B the solution to problem P before 0:0:0 1/1/2000. K_B agrees to pay K_A 100 MU (monetary units) before 0:0:0 1/1/2000. K_C agrees to perform arbitration in case of dispute. K_A agrees to pay a maximum of 1000 MU in case of default. K_B agrees to pay a maximum of 200 MU in case of default. K_C agrees to pay a maximum of 500 MU in case of default.
4. The conclusion of contracts. If a contract concludes without dispute, each party broadcasts a signed message "The contract with SHA-1 hash H concludes without reparations." or possibly "The contract with SHA-1 hash H concludes with the following reparations: ..." Upon the broadcast of all signatures, every participant credits the account of each party by the amount of his maximum reparation, removes the contract account, then credits or debits the account of each party according to the reparation schedule if there is one.
5. The enforcement of contracts. If the parties to a contract cannot agree on an appropriate conclusion even with the help of the arbitrator, each party broadcasts a suggested reparation/fine schedule and any arguments or evidence in his favor. Each participant makes a determination as to the actual reparations and/or fines, and modifies his accounts accordingly.
In the second protocol, the accounts of who has how much money are kept by a subset of the participants (called servers from now on) instead of everyone. These servers are linked by a Usenet-style broadcast channel.
The format of transaction messages broadcasted on this channel remain the same as in the first protocol, but the affected participants of each transaction should verify that the message has been received and successfully processed by a randomly selected subset of the servers.
Since the servers must be trusted to a degree, some mechanism is needed to keep them honest. Each server is required to deposit a certain amount of money in a special account to be used as potential fines or rewards for proof of misconduct. Also, each server must periodically publish and commit to its current money creation and money ownership databases. Each participant should verify that his own account balances are correct and that the sum of the account balances is not greater than the total amount of money created. This prevents the servers, even in total collusion, from permanently and costlessly expanding the money supply. New servers can also use the published databases to synchronize with existing servers.
The protocol proposed in this article allows untraceable pseudonymous entities to cooperate with each other more efficiently, by providing them with a medium of exchange and a method of enforcing contracts. The protocol can probably be made more efficient and secure, but I hope this is a step toward making crypto-anarchy a practical as well as theoretical possibility.
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Appendix A: alternative b-money creation
One of the more problematic parts in the b-money protocol is money creation. This part of the protocol requires that all of the account keepers decide and agree on the cost of particular computations. Unfortunately because computing technology tends to advance rapidly and not always publicly, this information may be unavailable, inaccurate, or outdated, all of which would cause serious problems for the protocol.
So I propose an alternative money creation subprotocol, in which account keepers (everyone in the first protocol, or the servers in the second protocol) instead decide and agree on the amount of b-money to be created each period, with the cost of creating that money determined by an auction. Each money creation period is divided up into four phases, as follows:
1. Planning. The account keepers compute and negotiate with each other to determine an optimal increase in the money supply for the next period.
Whether or not the account keepers can reach a consensus, they each broadcast their money creation quota and any macroeconomic calculations done to support the figures.
2. Bidding. Anyone who wants to create b-money broadcasts a bid in the form of <x, y> where x is the amount of b-money he wants to create, and y is an unsolved problem from a predetermined problem class. Each problem in this class should have a nominal cost (in MIPS-years say) which is publicly agreed on.
3. Computation. After seeing the bids, the ones who placed bids in the bidding phase may now solve the problems in their bids and broadcast the solutions.
4. Money creation. Each account keeper accepts the highest bids (among those who actually broadcasted solutions) in terms of nominal cost per unit of b-money created and credits the bidders' accounts accordingly
Napoleon Hill was an American author in the area of the new thought movement who was one of the earliest producers of the modern genre of personal-success literature.
He is widely considered to be one of the great writers on success.
His most famous work, Think and Grow Rich (1937), is one of the best-selling books of all time (at the time of Hill’s death in 1970, Think and Grow Rich had sold 20 million copies).
Hill’s works examined the power of personal beliefs, and the role they play in personal success.
He became an advisor to President Franklin D. Roosevelt from 1933 to 1936. “What the mind of man can conceive and believe, it can achieve” is one of Hill’s hallmark expressions.
How achievement actually occurs, and a formula for it that puts success in reach of the average person, were the focal points of Hill’s books.
” The starting point of all achievement is DESIRE.
Keep this constantly in mind.
Weak desire brings weak results, just as a small fire makes a small amount of heat. “
Napoleon Hill – “Think and Grow Rich”
Desire
Whatever the mind can conceive and believe, it can achieve. “
Napoleon Hill – “Think and Grow Rich”
The Mind
” You are the master of your destiny.
You can influence, direct and control your own environment.
You can make your life what you want it to be. “
Napoleon Hill – “Think and Grow Rich”
The Master of your destiny
” When defeat comes, accept it as a signal that your plans are not sound, rebuild those plans, and set sail once more toward your coveted goal. “
Napoleon Hill – “Think and Grow Rich”
Defeat
” Do not wait: the time will never be ‘just right’.
Start where you stand, and work whatever tools you may have at your command and better tools will be found as you go along. “
Napoleon Hill
Time will never be just right’
” When your desires are strong enough, you will appear to possess superhuman powers to achieve. “
Napoleon Hill
Desires and superhuman powers
” A quitter never wins and a winner never quits. “
Napoleon Hill
Quitter vs. Winner
” The man who does more than he is paid for will soon be paid for more than he does. “
Napoleon Hill
More than you’re paid
” Our only limitations are those we set up in our own minds. “
Napoleon Hill
Limitations
” Happiness is found in doing, not merely possessing. “
Napoleon Hill – “Think and Grow Rich”
Happiness
” An educated man is not, necessarily, one who has an abundance of general or specialized knowledge.
An educated man is one who has so developed the faculties of his mind that he may acquire anything he wants, or its equivalent, without violating the rights of others. “
Napoleon Hill – “Think and Grow Rich”
An educated man
” Every adversity, every failure, every heartbreak, carries with it the seed of an equal or greater benefit. “
Napoleon Hill – “Think and Grow Rich”
The Seed
” More gold had been mined from the mind of men than the earth it self. “
Napoleon Hill – “Think and Grow Rich”
Mind gold
” A goal is a dream with a deadline. “
Napoleon Hill
Goal
” Opinions are the cheapest commodities on earth.
Everyone has a flock of opinions ready to be wished upon anyone who will accept them.
If you are influenced by “opinions” when you reach DECISIONS, you will not succeed in any undertaking. “
Napoleon Hill – “Think and Grow Rich”
Opinions…cheapest commodities on earth !
” We refuse to believe that which we don’t understand. “
Napoleon Hill – “Think and Grow Rich”
Refuse to believe…
” You are entitled to know that two entities occupy your body.
One of these entities is motivated by and responds to the impulse of fear.
The other is motivated by and responds to the impulse of faith.
Will you be guided by faith or will you allow fear to overtake you? “
Napoleon Hill – “Outwitting the Devil: The Secret to Freedom and Success”
Fear
” Remember that your dominating thoughts attract, through a definite law
of nature, by the shortest and most convenient route, their physical counterpart.
Be careful what your thoughts dwell
upon. “
Napoleon Hill – “Outwitting the Devil: The Secret to Freedom and Success”
Law of Nature
” IF – and this is the greatest of them all – I had the courage to see myself as I really am, I would find out what is wrong with me, and correct it, then I might have a chance to profit by my mistakes and learn something from the experience of others,for I know that there is something WRONG with me, or I would now be where I WOULD HAVE BEEN IF I had spent more time analyzing my weaknesses, and less time building alibis to cover them. “
Napoleon Hill – “Think and Grow Rich”
Courage to see thyself
” First comes thought; then organization of that thought, into ideas and plans; then transformation of those plans into reality.
The beginning, as you will observe, is in your imagination. “
Napoleon Hill
Imagination
” The strongest oak of the forest is not the one that is protected from the storm and hidden from the sun.
It’s the one that stands in the open where it is compelled to struggle for its existence against the winds and rains and the scorching sun. “
Napoleon Hill
Strongest oak
” Weak desires bring weak results, just as a small amount of fire brings a small amount of heat. “
Napoleon Hill
Weak desires
” Persistence is to the character of man as carbon is to steel. “
Napoleon Hill
Persistance
” A genius is simply one who has taken full possession of his own mind and directed it toward objectives of his own choosing, without permitting outside influences to discourage or mislead him. “
Napoleon Hill
Genius
” Neglecting to broaden their view has kept some people doing one thing all their
lives. “
Napoleon Hill – “Think and Grow Rich”
Broaden your view
” If you are not learning while you’re earning, you are cheating yourself out of the better portion of your compensation. “
Napoleon Hill
Learning while you’re earning
” Wise men, when in doubt whether to speak or to keep quiet, give themselves the benefit of the doubt, and remain silent. “
Napoleon Hill
Silence
” One who has loved truly, can never lose entirely.
Love is whimsical and temperamental. Its nature is ephemeral, and transitory.
It comes when it pleases,and goes away without warning.
Accept and enjoy it while it remains, but spend no time worrying about its departure.
Worry will never bring it back. “
Napoleon Hill – “Think and Grow Rich”
Love
” TELL THE WORLD WHAT YOU INTEND TO DO, BUT FIRST SHOW IT.
This is the equivalent of saying “deeds, and not words, are what count most. “
Napoleon Hill – “Think and Grow Rich”
” Remember,too,that all who succeed in life get off to a bad start,and pass through many heartbreaking struggles before they “arrive”.
The turning point in the lives of those who succeed usually comes at some moment of crisis,through which they are introduced to their “other selves”. “
Napoleon Hill – “Think and Grow Rich”
The turning point
“Most great people have attained their greatest success just one step beyond
their greatest failure.”
Napoleon Hill
One step beyond your greatest failure
” Awake,arise,and assert yourself,
you dreamers of the world.
Your star is now in ascendancy. “
Napoleon Hill – “Think and Grow Rich”
Dreamers of the world
” Most so called FAILURES are only temporary defeats. “
Napoleon Hill – “Law of Success”
Temporary defeats
” Effort only fully releases its reward after a person refuses to quit. “
Napoleon Hill
Effort and reward
” Fears are nothing more than a state of mind. “
Napoleon Hill – “Law of Success”
Fears
” Whatever the mind can conceive and believe, the mind can achieve regardless of how many times you may have failed in the past or how lofty your aims and hopes may be. “
Napoleon Hill
The mind
” You are entitled to know that two entities occupy your body.
One of these entities is motivated by and responds to the impulse of fear.
The other is motivated by and responds to the impulse of faith.
Will you be guided by faith or will you allow fear to overtake you? “
Napoleon Hill – “Outwitting the Devil: The Secret to Freedom and Success”
Faith vs Fear
” The only limitation is that which one sets up in one’s own mind. “
Napoleon Hill – “Think and Grow Rich”
Limitation
” Every man is what he is, because of the dominating thoughts which he permits to occupy his mind. “
Napoleon Hill – “Think and Grow Rich”
Dominating thoughts
” There is no substitute for persistence.
The person who makes persistence his watch-word, discovers that “Old Man Failure” finally becomes tired, and makes his departure.
Failure cannot cope with persistence. “
Napoleon Hill – “Think and Grow Rich”
Persistance
” The most practical of all methods for controlling the mind is the habit of keeping it busy with a definite purpose, backed by a definite plan.”
And
“A man whose mind is filled with fear not only destroys his own chances of intelligent action, but he transmits these destructive vibrations to the minds of all who come in contact with him, and destroys, also, their chances.”
Napoleon Hill – “Think and Grow Rich”
Mind busy with definite purpose
” Patience, persistence and perspiration make an unbeatable combination for success. “
Napoleon Hill
3 P’s
“Success requires no explanations.
Failure permits no alibis.”
Napoleon Hill – “Think and Grow Rich”
Success
” He had nothing to start with, except the capacity to know what he wanted, and the determination to stand by that desire until he realized it. “
Napoleon Hill, Think and Grow Rich
Determination and Desire
” Nature will not tolerate idleness or vacuums of any sort.
All space must be and is filled with something . . .
When the individual does not use the brain for the expression of positive, creative thoughts, nature fills the vacuum by forcing the brain to act upon negative thoughts.
Napoleon Hill – “Outwitting the Devil: The Secret to Freedom and Success”
Nature
” In parting, I would remind you that “Life is a checkerboard, and the player opposite you is time.
If you hesitate before moving, or neglect to move promptly, your men will be wiped off the board by time.
You are playing against a partner who will not tolerate decisions! “
Napoleon Hill – “Think and Grow Rich”
Life is a checkboard
” Close friends and relatives, while not meaning to do so, often handicap one through “opinions” and sometimes through ridicule, which is meant to be humorous.
Thousands of men and women carry inferiority complexes with them all through life, because some well-meaning, but ignorant person destroyed their confidence through “opinions” or ridicule. “
Napoleon Hill – “Think and Grow Rich”
Opinions
” If you must be careless with your possessions, let it be in connection with material things.
Your mind is your spiritual estate!
Protect and use it with the care to which Divine Royalty is entitled.
You were given a WILL-POWER for this purpose. “
Napoleon Hill – “Think and Grow Rich”
Your mind is your spiritual estate
” Deliberately seek the company of people who influence you to think and act for yourself. “
Napoleon Hill – “Think and Grow Rich”
Company of people who influence you
” Remember, the thoughts that you think and the statements you make regarding yourself determine your mental attitude.
If you have a worthwhile objective, find the one reason why you can achieve it rather than hundreds of reasons why you can’t. “
Napoleon Hill
Worthwhile objective
” Failure always is a blessing when it forces one to acquire knowledge or to build habits that lead to the achievement of one’s major purpose in life. “
Napoleon Hill – “Outwitting the Devil: The Secret to Freedom and Success”
Failure
” All the breaks you need in life wait within your imagination.
Imagination is the workshop of your mind, capable of turning mind energy into accomplishment and wealth. “
Napoleon Hill
Imagination – the workshop of your mind
“Knowledge has no value except that which can be gained from its application towards some worthy end.”
Napoleon Hill, Think and Grow Rich
Knowledge
” The ladder of success is never crowded at the top. “
Napoleon Hill – “Think and Grow Rich”
Ladder of success
” There is one weakness in people for which there is no remedy.
It is the universal weakness of LACK OF AMBITION! “
Napoleon Hill – “Think and Grow Rich”
Lack of Ambition
“One of the most common causes of failure is the habit of quitting when one is overtaken by temporary defeat.”
Napoleon Hill – “Think and Grow Rich”
Temporary defeat
” Love is essential for happiness, but the person who loves so deeply that his or her happiness is placed entirely in the hands of another, resembles the little lamb who crept into the den of the nice, gentle little wolf and begged to be permitted to lie down and go to sleep, or the canary. “
Napoleon Hill – “The Law of Success in Sixteen Lessons”
Love
” The leaders in every walk of life decide quickly, and firmly.
That is the major reason why they are leaders.
The world has the habit of making room for the man whose words and actions show that he knows where he is going. “
Napoleon Hill – “Think and Grow Rich”
Know where you’re going
” ASK any wise man what he most desires and he will, more than likely, say “more wisdom. “
Napoleon Hill – “The Law of Success in Sixteen Lessons”
More Wisdom
” You have a brain and mind of your own.
Use it, and reach your own decisions. “
Napoleon Hill – “Think and Grow Rich”
You have a brain…Use it!
Thoughts are things,” and powerful things at that, when they are mixed with definiteness of purpose, persistence, and a burning desire…
Napoleon Hill
Thoughts are things
” Every person who wins in any undertaking must be willing to burn his ships and cut all sources of retreat.”
Napoleon Hill – “Think and Grow Rich”
No retreat
” The mind has a definite way of clothing one’s thoughts in appropriate physical equivalents.
Think in terms of poverty and you will live in poverty.
Think in terms of opulence and you will attract opulence.
Through the eternal law of harmonious attraction, one’s thoughts always clothe themselves in material things appropriate unto their nature. “
Napoleon Hill – “You Can Work Your Own Miracles”
The Mind
” No man is your enemy, no man is your friend, every man is your teacher. “
Napoleon Hill – “The Prosperity Bible: The Greatest Writings of All Time on the Secrets to Wealth and Prosperity”
Every man is your teacher
” INSUFFICIENT EDUCATION.
This is a handicap that may be overcome with comparative ease.
Experience has proven that the best-educated people are often those who are known as ‘self-made’ or self-educated.
It takes more than a university degree to make one a person of education.
Any person who is educated has learned to get whatever they want in life without violating the rights of others.
Education consists not so much of knowledge, but of knowledge effectively and persistently applied.
People are paid not merely for what they know, but more particularly for what they do with what they know. “
Napoleon Hill – “Think and Grow Rich”
Self-Education
” Then accumulated knowledge is not wisdom?
A Great heavens, no!
If knowledge were wisdom, the achievements of science would not have been converted into implements of destruction. “
Napoleon Hill – “Outwitting the Devil: The Secret to Freedom and Success”
Knowledge vs Wisdom
” The entire world is made up of only two things, energy and matter.
In elementary physics we learn that neither matter nor energy (the only two realities known to man) can be created nor destroyed.
Both matter and energy can be transformed, but neither can be destroyed.
Life is energy, if it is anything.
If neither energy nor matter can be destroyed, of course life cannot be destroyed.
Life, like other forms of energy, may be passed through various processes of transition, or change, but it cannot be destroyed.
Death is mere transition.
If death is not mere change, or transition, then nothing comes after death except a long, eternal, peaceful sleep, and sleep is nothing to be feared.
Thus you may wipe out, forever, the fear of Death. “
Napoleon Hill – “Think and Grow Rich”
Fear of Death
” ‘Master Mind’, meaning a mind that is developed through the harmonious co-operation of two or more people who ally themselves for the purpose of accomplishing any given task. “
Napoleon Hill – “The Law of Success”
“Master Mind”
” KNOWLEDGE will not attract money, unless it is organized, and intelligently directed, through practical PLANS OF ACTION, to the DEFINITE END of accumulation of money.
Lack of understanding of this fact has been the source of confusion to millions of people who falsely believe that “knowledge is power.”
It is nothing of the sort!
Knowledge is only potential power.
It becomes power only when, and if, it is organized into definite plans of action, and directed to a definite end. “
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