Imagine two vast reservoirs of water. One sits high above a waterfall, brimming with potential energy. The other rests calmly below, having already plunged over the edge. In financial terms, the upper reservoir is our global economy—laden with debt, inflation, and plenty of capital searching for the next big bet. The lower reservoir is an alternative state of money and value, quieter and ostensibly more stable, yet still receiving an inflow from above.
Between these reservoirs roars a waterfall—a torrent of volatility. By itself, it seems chaotic, but with a bit of engineering, that volatility can be harnessed, much like a hydroelectric dam harnesses the power of falling water to generate electricity. Here’s how it all fits together in the broader picture of debt, inflation, military might, and a possible lower-entropy system.