Stepping into a new realm, the cryptocurrency system may thrive

Original Title: "In Defense of New"
Original Author: Gaby Goldberg
Original Translator: Ladyfinger, BlockBeats

Editor's Note:
In this in-depth exploration of innovation and the spirit of freedom, we witness the maritime living experiment of Chad and Nadia Elwartowski, as well as the challenges they face in their pursuit of freedom and autonomous living. The article spans multiple fields from history to modernity, from education to healthcare, and to fintech, showcasing how people seek and build new possibilities outside the existing systems. Whether through maritime living, educational reform, self-directed healthcare, or the rise of cryptocurrency, these stories collectively illustrate a theme: how individuals and collectives shape their futures through innovation outside traditional frameworks.

In 2019, Chad and Nadia Elwartowski moved into their new home, 12 miles off the coast of Phuket, Thailand.

Chad and Nadia are seasteaders, participating in a niche yet idealistic and libertarian movement to build a floating city. Since international waters are not under the exclusive jurisdiction of any single nation, they theoretically could establish a new, independent country in these waters, enjoying less government interference. Later, they made history as some of the first to realize their maritime ideal life, hoping to prove that autonomous living can be a distinctly different and better way of life.

"Land may belong to them, but the sea is forever free."

------ Chad Elwartowski

The appeal of seasteading is simple: if you are dissatisfied, you can leave at any time. Floating homes not only provide physical freedom but also bring political and ideological liberation. For seasteaders, if they are unhappy with the direction of their current community, they can even join a new community or create their own.

Many new fields arise from the departure of members from existing systems rather than struggling for change within the old system. Unsurprisingly, existing systems often overlook those who wish to make significant changes to the status quo, which contradicts their very essence. As a result, these members have no choice but to leave and start anew. Fortunately, the future they inhabit is built through participation in new games and following new rules. If you are not careful, you might miss it all.

In hindsight, the obviousness of some examples is self-evident.

Martin Luther published the Ninety-Five Theses in 1517, attempting to reform the Catholic Church, but was ultimately excommunicated, leading to the birth of the Lutheran Church. In 1776, American colonists, dissatisfied with high taxes and lack of representation in the British Parliament, not only sought reform but also established a new nation based on democratic and autonomous principles by signing the "Declaration of Independence." In 1994, young entrepreneur Jeff Bezos, facing the limitations of traditional book retail, did not seek its support but instead founded Amazon in a garage in Bellevue, ushering in a new era of online book sales. These historical events tell us that innovation often does not confront the old system head-on but achieves breakthroughs by forging new paths.

Amazon's first office

One of my recent favorite examples is cryptocurrency.

Bitcoin emerged after the 2008 financial crisis, which revealed significant flaws in the central banking system. With its promise of decentralization and financial sovereignty, Bitcoin attracted many individuals disappointed by the opacity of the traditional financial system. Although many traditional investors and tech experts initially viewed cryptocurrency as a fad, speculative bubble, or tool for illegal transactions, those who recognized its potential have been quietly working away.

Over time, this initially niche experiment has gradually developed into a massive community and ecosystem, tightly connected by shared beliefs and economic incentives. By 2023, Bitcoin has become one of the best-performing assets. Ethereum, with its strong network effects, processes over a million transactions daily on average. Moreover, after the approval of Bitcoin ETFs in January 2024, it achieved capital inflow in just seven weeks, a speed that took gold ETFs three years to reach.

This growth transcends mere numbers; it signifies a fundamental transformation in how people perceive and interact with money. Cryptocurrency networks have opened a new avenue that bypasses traditional financial intermediaries, empowering individuals to take unprecedented control over their financial transactions and identity information. This is primarily a revolution in social concepts, followed by breakthroughs at the technical level.

If cryptocurrency were built within the traditional financial system, it would never survive, as vested interests would resist it to protect the status quo. However, the birth of cryptocurrency occurred precisely outside the system, allowing it to grow freely without the constraints of old rules. Emerging systems are forced to take detours because they do not fit into the traditional framework, and this independence is key to their thriving.

Chad and Nadia's story was not without its challenges. They initially thought moving to the sea would allow them to escape turmoil, only to encounter unexpected difficulties. Within just two months, they found themselves in a desperate escape, pursued by the Thai Navy, accused of violating national sovereignty, a capital offense in Thailand. Fortunately, they eventually made it to safety and chose to restart their lives in Panama.

Although I am not a sailing enthusiast and have never met Chad and Nadia, the attack on their floating home seems to validate their original choice to leave land and venture into the depths of the sea. As Chad stated during his flight on Facebook, "We crave freedom, even if it’s just for a day."

Chad and Nadia's pursuit of freedom and autonomy resonates with the spirit of many innovative movements, such as cryptocurrency. Despite being relatively young, the crypto industry has achieved more in disrupting the traditional financial system than many established industries have in innovating. The rise of cryptocurrency marks an undeniable new trend. In various fields, those marginalized or overlooked by the existing system are building new systems.

Take education, for example. Current student debt in the U.S. has surpassed $1.7 trillion, highlighting the immense pressure on the education system. Confidence in the value and effectiveness of higher education has dropped to historic lows. Last year, even the prestigious Harvard University was rated as having the worst free speech environment among universities, reflecting a regression in some aspects of higher education institutions. More concerning is that in about one-third of U.S. colleges, over half of the students earn no more than high school graduates after graduation, further underscoring the imbalance and failure of the education system.

The education sector is undergoing a transformation, with new educational institutions emerging. The University of Austin was founded in 2021 with the mission to "fearlessly pursue truth," representing a challenge and innovation to traditional educational models. Additionally, Elon Musk is establishing a STEM-focused elementary school in Austin, expected to start enrolling students this summer, further demonstrating the vitality of educational innovation.

At the same time, educational technology startups like Synthesis, Minerva, Primer, and Sora are working to bring high-quality educational resources to students worldwide. Together with public products like MIT OpenCourseWare, Khan Academy, and Stanford Online, they provide new solutions for the democratization and personalization of education.

With the continuous emergence of new technologies, such as the GPT-4o demonstration I recently followed, we can foresee that the existing education system will continue to undergo a process of disintermediation. These tools and platforms are breaking down the barriers of traditional education, offering students more flexible and personalized learning experiences.

Replit's CEO Amjad Masad firmly stated in response to a critical tweet about Mentava: "We are committed to paving a new path for the younger generation to learn, create, and achieve economic independence. Do you think that just because you are trying to control these educational institutions, we will let our children accept your outdated and failed ideas and worldview? You haven't even realized the tip of the iceberg of the grand blueprint we are building."

Self-directed healthcare is becoming an increasingly important field. The U.S. healthcare system is not only costly but also functionally flawed. Despite spending more on healthcare than any other developed country, our performance on key indicators of healthcare quality is relatively poor. In fact, the U.S. lags behind the average in several key health metrics, including having the lowest life expectancy among wealthy nations and an obesity rate nearly twice the OECD average. The cost of hospital services continues to rise, while public health issues are also worsening.

George Orwell sharply pointed out in "How the Poor Die" in 1946: "Hospitals are places of filth, torture, and death, the anteroom to the grave."

Bryan Johnson

The healthcare industry has failed to keep pace with technological advancements due to the dual constraints of regulation and information monopolies. However, self-directed healthcare is gradually rising, representing a movement centered on personal health that encompasses longevity research, functional medicine, biohacking, and more. Self-directed healthcare does not aim to replace traditional medicine but rather carves out a new path that bypasses the traditional system. In this model, individuals can undertake treatments without the approval of medical boards. Innovative companies are emerging in the market, such as Superpower clinics offering personalized digital longevity services, non-invasive neural devices Prophetic for promoting lucid dreaming, and Nucleus focusing on consumer genetic testing.

Dissatisfaction with existing systems is most directly expressed through "voting with one's feet." Just as Chad and Nadia chose to live at sea, more and more people are opting to leave existing communities to join or create new ones. According to the latest data from the U.S. Census Bureau, between 2022 and 2023, traditionally conservative-leaning states like Florida and Texas saw a significant influx of domestic net migration. Meanwhile, more liberal-leaning states like California and New York experienced the highest outflow of domestic net migration.

Domestic net migration, 2022-2023 (Census Bureau)

It is not hard to understand why people in the U.S. make such choices. People prefer warm climates and lower taxes. The COVID-19 pandemic accelerated this trend, making remote work possible and widely accepted.

We are constantly reminded that technology empowers individuals with more choices and control. Old systems and ideas are being replaced by new thoughts. Today, "new" is not just an idea but an action—people are expressing their choices through action.

They are flocking to Miami, where not only are startups abundant, but the entire city is filled with innovative energy. They are also heading to Dubai, where policies are highly attractive to immigrants and investors. At the same time, people are exploring entirely new living communities, such as Prospera, Praxis, Cabin, Culdesac, Vitalia, Zuzulu, Pursuit, and those pursuing a free lifestyle like seasteaders. Companies like Nomad List and CitizenX are making these migrations easier, providing unprecedented flexibility and convenience.

"When experts make mistakes, it is often because their expertise is based on an old version of the world."

------ Paul Graham

Technological advancements and the flow of talent are driving the development of a series of emerging narratives. In this process, choosing the right quests is crucial, and it all starts with selecting the right leaders. This not only means creating entirely new fields but also involves establishing new certification systems to support the development of these fields. Existing enterprises will gradually lose their ability to understand and recognize talent, further exacerbating the differences between old and new enterprises.

The common theme behind all these phenomena is that when new innovations emerge, existing enterprises often reveal cracks at the seams of transformation. However, it is noteworthy that existing enterprises typically do not decline due to direct attacks. Instead, they are surpassed by emerging ideas that thrive without the participation of existing enterprises.

We must firmly believe that we have the ability to do better and maintain an open and celebratory attitude toward this. Cultivating a culture centered on progress is essential. The way we discuss the world is, in fact, the way we shape the world.

Therefore, let us boldly advocate for new ideas. We must not only actively anticipate and respond to future developments but also become drivers of change, shaping it with our own hands.