John Dennehy: Building a Parallel Educational Structure

00:00 Introduction¶

• Timothy Allen introduces the Free Cities Podcast and announces that this episode is the last in a series of recordings from their recent trip to Central America. He also mentions that he will be starting a new series of conversations recorded amongst the freedom and liberty community in Prague.

00:54 Interview with John Dennehy¶

• Timothy introduces John Dennehy, founder of Mi Primer Bitcoin, an education program in El Salvador.
• John explains that My First Bitcoin is a project focused on getting people off zero by providing education about Bitcoin and giving away some satoshis.
• The program primarily uses lightning wallets, which are faster and cheaper than using Bitcoin on-chain.
• Satoshi is the smallest unit of measurement in Bitcoin.

Education Program¶

• 03:33 My First Bitcoin is focused on getting people off zero by providing education about Bitcoin to Salvadorians who are brand new to it.
• 04:18 The intro class involves downloading a lightning wallet and sending/receiving SATs as part of the class. Students get to keep the SATs at the end.

Lightning Wallets¶

• 04:51 Lightning wallets are a layer built on top of Bitcoin that allow for faster and cheaper transactions compared to using it on-chain.
• 05:12 SATs are short for satoshis, which is the smallest unit of measurement in Bitcoin.

Legacy Journalism¶

• 07:20 John discusses his views on legacy journalism and how it has become more opinion-based rather than fact-based over time.
• 08:10 He believes that social media has played a role in this shift and that people need to be more critical of the sources they get their news from.

Bitcoin Adoption in El Salvador¶

• 09:20 John discusses the current state of Bitcoin adoption in El Salvador and how it has been growing over time.
• 10:30 He believes that Bitcoin can be a tool for empowerment, especially for those who are unbanked or underbanked.
• 11:40 John talks about how Bitcoin can help with remittances, which is a big issue in El Salvador.

Future Plans¶

• 13:00 John discusses his plans for the future of My First Bitcoin, including expanding to other countries in Central America.
• 14:20 He also talks about his plans to create a decentralized exchange that will allow people to trade Bitcoin without relying on centralized exchanges.

06:20 Bitcoin Diploma Program in El Salvador¶

In this section, the speaker talks about the Bitcoin diploma program that they have developed for students in El Salvador.¶

The Bitcoin Diploma Program¶

• 06:42 The program is a 10-week course that teaches basic financial literacy and Bitcoin.
• 07:04 The first three weeks of the program focus on basic financial literacy, while week four introduces Bitcoin.
• 07:53 Students are typically 16 or 17 years old when they take the course.
• 08:35 Students are given a blank page with the question "Why Bitcoin?" at the beginning of the workbook and again at the end of the course.
• 09:00 The program helps students understand what money is and how it works.

Impact on Salvadoran Youth¶

• 09:41 The context of El Salvador as a country where Bitcoin is legal tender makes it easier for young people to understand and accept it as a form of currency.
• 10:40 Early on, there was confusion between Bitcoin and the Salvadoran government, but this has mostly been cleared up.
• 11:22 Teaching young people about money is an important part of financial education.

11:58 Bitcoin Diploma Curriculum¶

The Bitcoin Diploma curriculum is designed to cover all aspects of Bitcoin, including its history, mining, and the Lightning Network. The program also includes a section on El Salvador's adoption of Bitcoin as legal tender.¶

Bitcoin Basics¶

• 12:20 The first class covers what money is and how it has evolved over time.
• 12:41 The second class covers the basics of Bitcoin and why it was created.

Lightning Network¶

• 13:04 The third class focuses on the Lightning Network, which is built on top of Bitcoin to make transactions easier.
• 13:25 Students learn how to set up their own node to help support the network.

Mining and Decentralization¶

• 13:44 In the fourth class, students learn about mining and how it supports the network.
• 14:06 They also explore the differences between centralization and decentralization in relation to Bitcoin.

El Salvador Adoption¶

• 14:28 In the final chapter, students learn about El Salvador's adoption of Bitcoin as legal tender.
• They also discuss potential future developments for both El Salvador and individuals involved with Bitcoin.

15:23 Scaling Up the Program¶

The program has grown significantly since its inception. It started in one school with 38 graduates but now runs in three public schools, two mayor's offices, and two community centers.¶

Expansion Plans¶

• 15:48 Every 10 weeks, a new group of students joins the program.
• There is a backlog of people who want to receive the program, so expansion is dependent on finding enough teachers.
• The goal is to continue scaling up the program and actively thinking of ways to do so.

17:42 Introduction to Bitcoin Education¶

The speaker discusses the Bitcoin education program and its funding. They also mention the possibility of exporting the program to other countries.¶

Bitcoin Education Program¶

• The Bitcoin education program offers free classes to students.
• The goal is to remove barriers to entry for everyone interested in learning about Bitcoin.
• The classes are funded through donations from individuals and sponsors.
• There have been over 10,000 attendees so far this year.

Curriculum Development¶

• The curriculum is designed to be interactive and tangible, with a focus on getting people off zero.
• Feedback from previous editions has been incorporated into the latest edition of the workbook.
• The philosophy of Bitcoin is a big part of the curriculum.

International Interest¶

• Mayors and school directors from other countries have contacted the program for assistance in rolling out similar programs in their areas.
• This is the first known example of a Bitcoin curriculum.

21:28 Designing an Orange Pilling Method for Teaching Bitcoin¶

The speaker discusses feedback received on their orange pilling method for teaching about Bitcoin.¶

Interactive Learning¶

• Feedback has shown that more interactive learning methods are better received by students.
• Activities such as trading slips of paper help demonstrate concepts like double-spending.

Philosophy of Freedom¶

• The philosophy of freedom that underpins Bitcoin is an important part of the curriculum.
• Staff and volunteers working on the project are mission-oriented people who believe in this philosophy.

23:19 Understanding Bitcoin in El Salvador¶

In this section, the speaker talks about how Bitcoin is perceived in El Salvador and how it can help break down barriers. He also discusses ways to foster a global community of Bitcoiners.¶

Bitcoin as a Solution¶

• 23:19 The speaker came to El Salvador after the legal tender bill was passed.
• 23:41 Bitcoin is seen as a way to break down barriers and connect people from all over the world.
• 24:01 Graduations are sponsored by Bitfinex, but future ones will be sponsored by individual bitcoiners who can mentor students.
• 25:03 This sponsorship program will demonstrate that Bitcoin is borderless.

Personal Motivations¶

• 25:25 The speaker moved to El Salvador because he saw Bitcoin as a solution for an unsustainable path that would lead to destruction.
• 26:10 Education is important for hyperbitcoinization because there are many misunderstandings about Bitcoin.

26:34 Moving Towards Sustainability with Bitcoin¶

In this section, the speaker talks about his personal motivations for moving towards sustainability with Bitcoin and how education plays an important role in achieving this goal.¶

Importance of Education¶

• 26:34 Education is crucial for hyperbitcoinization because it helps dispel misunderstandings about Bitcoin.
• 27:56 After spending time in El Salvador, the speaker realized that education is the single most important thing for hyperbitcoinization.

Moving Towards Sustainability¶

• 26:54 The speaker believes that the world was on an unsustainable path before discovering Bitcoin.
• 27:13 The pandemic made him think deeply about the world and its future.
• 27:33 The speaker paid people to teach about Bitcoin in Ecuador, but it didn't take off due to the pandemic.
• 28:18 Education is crucial for hyperbitcoinization because it helps dispel misunderstandings about Bitcoin.

29:09 Starting a Bitcoin Education Project in El Salvador¶

In this section, the speaker talks about how he started a Bitcoin education project in El Salvador.¶

Arriving in El Salvador¶

• 29:09 The speaker arrived in El Salvador with his syllabus and talked to every Salvadorian he came across to get their opinion on Bitcoin.
• 29:28 He visited Alzante (Bitcoin Beach), which was the original place where a Bitcoin circular economy was implemented.
• 29:52 The success of Bitcoin Beach encouraged El Salvador to adopt it on a nationwide scale.

Meeting Napoleon, Head of Education¶

• 31:07 Napoleon was an Uber driver who became interested in Bitcoin when the speaker asked if he could pay with it.
• 31:49 Napoleon quit Uber and started his own tech company called Bit Driver, which is like Uber but with Bitcoin. He also became the head of education for the speaker's project.
• 32:52 Napoleon is an amazing teacher and has orange-pilled other drivers to work for him when he has too much going on.

Parallel Systems¶

• 34:00 The Free Cities Foundation is into parallel systems, and the speaker sees his Bitcoin education project as a different form of education that operates outside of traditional structures.

34:49 Bitcoin Meetups in El Salvador¶

The section discusses the importance of being interactive and using Bitcoin. It highlights the monthly meetups held in San Salvador and San Miguel, where attendees are given $5 worth of Bitcoin to encourage them to make their first purchase with it.¶

Monthly Meetups¶

• 34:49 Monthly meetups are held in San Salvador and San Miguel.
• 35:07 Attendees are given $5 worth of Bitcoin to encourage them to make their first purchase with it.
• 35:29 Staff at establishments accepting Bitcoin during the meetup receive a class on how to use it.
• 35:51 The target demographic is Salvadorians who are new to the space.

Encouraging First Purchase¶

• 36:17 The first step is the hardest, so they try to make it as easy as possible.
• 36:39 People often have an "aha" moment when they experience using Bitcoin rather than just hearing about it.
• 37:11 A personal example was shared about a neighbor who had no idea what Bitcoin was until she received some SATS on her wallet.

Future Plans¶

• 38:38 Plans for next year include having sister meetups in other parts of the world connected to El Salvador's meetup.
• 39:00 Attendees from other parts of the world can pay for purchases made by attendees in El Salvador using their $5 worth of SATS.

40:22 Lightning Network and Bitcoin Adoption in El Salvador¶

In this section, the speaker talks about the early days of Bitcoin adoption in El Salvador and how it has evolved over time. They also discuss the potential for Lightning Network to facilitate small transactions and donations.¶

Early Days of Bitcoin Adoption¶

• 40:22 Many people tried to use Bitcoin in El Salvador, but there were issues with sending transactions.
• 40:40 Lightning Network is still in its early stages, and there is a lot of development going on.
• 40:57 The trick to using Lightning Network is that it works best for small transactions like donations.

Importance of Small Donations¶

• 41:18 Small donations are important because they add up quickly when many people contribute.
• 41:41 QR codes make it easy to donate small amounts through Lightning Network.
• 42:00 Patronization will likely increase through Lightning Network due to its ease of use.

Demographics of Bitcoin Users in El Salvador¶

• 42:21 The demographic skews younger, but there are older individuals who attend meetups as well.
• 43:20 There is a wide variety of people who attend meetups, including those who have never used Bitcoin before.

Trends in Bitcoin Adoption¶

• 44:22 Adoption rates cannot be expected to reach 100% just because something is legal tender.
• 45:02 The trend towards using Bitcoin as a form of payment has been increasing steadily over time.

45:51 The Trend of Bitcoin Adoption¶

In this section, the speaker discusses the trend of Bitcoin adoption and how it has evolved over time.¶

Perception of Bitcoin¶

• 45:51 Initially, Bitcoin was perceived as being political due to its association with the government.
• 46:10 However, people now recognize that Bitcoin exists independently from the government.

Education on Bitcoin¶

• 46:32 Lack of education can lead to misconceptions about Bitcoin.
• 47:01 Education is key in helping people understand Bitcoin better.

Understanding of Bitcoin¶

• 47:24 People's understanding of Bitcoin has improved over time.
• 47:44 Misinformation about Bitcoin has reduced significantly.

48:14 Volatility and Adoption Strategy¶

In this section, the speaker talks about the volatility of bitcoin and how it affects adoption strategy.¶

Volatility of Price¶

• 48:14 The volatility of bitcoin makes it difficult for some to adopt it as legal tender.
• 48:35 It is easy to criticize bitcoin because its value fluctuates so much.

Adoption Strategy¶

• 48:59 Encouraging people to use wallets like Strike can help them understand how easy it is to use bitcoin for transactions.
• 49:17 It is not advisable for someone to save bitcoin unless they have spare cash that they won't touch for 10 years.

49:40 Discouraging Trading in Classes¶

In this section, the speaker talks about discouraging trading in classes and how it affects their project.¶

Principle Against Trading¶

• 49:40 The project actively discourages trading in their classes.
• 50:01 The project believes that Bitcoin is a tool that can empower individuals.

Impact of Trading¶

• 50:23 Students are less interested in learning about bitcoin when the price is going down.
• 50:46 Donors and sponsors are less generous when the price of bitcoin is going down.

51:26 Bitcoin Education and Empowerment¶

In this section, the speaker discusses how volatility impacts their work and how they offer Bitcoin as a way to mitigate it. They also emphasize the importance of impartiality and independence in their content, with the goal of empowering individuals to have self-sovereignty.¶

Mitigating Volatility with Bitcoin¶

• 51:26 Volatility impacts their work, but they offer Bitcoin as a way to mitigate it.
• 51:48 Accepting Bitcoin limits downside risk but takes away upside potential.
• 52:16 Farmer who received Bitcoin started asking how to save it after experiencing volatility.

Impartiality and Independence in Content¶

• 53:01 The point is for individuals to have more control over their own lives.
• 53:24 All content must be impartial and independent, allowing students to come to their own conclusions.
• 53:45 Telling students what to do defeats the purpose of empowering them.

Other Cryptocurrencies¶

• 55:07 They only teach Bitcoin but encourage students to do their own research on other cryptocurrencies.
• 55:36 Unit bias is a common problem in the cryptocurrency space.
• 56:03 Education can help prevent people from falling into scams or losing money.

57:29 Bitcoin's Design and Incentive Structure¶

In this section, the speakers discuss how Bitcoin's design appeals to human psychology and incentivizes positive outcomes. They also talk about the unit bias problem and Satoshi's lack of anticipation for it.¶

Bitcoin's Concise and Beautiful Design¶

• Bitcoin is a concise, succinct, and beautiful invention that appeals to human psychology.
• Satoshi did not anticipate the unit bias problem, which is a big deal in Bitcoin.
• The unit bias problem tricks many people into thinking they can make more money with Bitcoin.

Greed as a Positive Incentive¶

• Bitcoin appeals to people's greed, which is part of its design.
• Many people get into Bitcoin because they think they can make more money.
• Once in, people realize that Bitcoin has other benefits beyond making money.

Flipping the Incentive Structure¶

• Unlike other movements that tell you what not to do, Bitcoin allows you to be as greedy as you want while producing positive outcomes.
• Everyone in the system does what is best for them but ends up strengthening each other.
• This flipping of incentive structure is an incredible aspect of Bitcoin.

Discovery or Invention?¶

• The discovery/invention of Bitcoin was necessary for this time due to the state of the world.
• It turns things that are destroying the world on their heads to work for everyone's good.
• Satoshi did not anticipate everything, but his creation remains a phenomenal discovery/invention.

01:03:12 The Importance of Critical Thinking and Unit Bias¶

In this section, the speaker discusses the importance of critical thinking in Bitcoin and how unit bias can hinder it.¶

Benefits of Critical Thinking¶

• 01:03:12 Bitcoin is a tool to empower individuals and encourages critical thinking.
• 01:03:40 People who understand the importance of critical thinking will benefit from it in the long run.
• 01:04:04 It is necessary to analyze things critically and come to intelligent decisions and conclusions.

Drawbacks of Unit Bias¶

• 01:04:22 Unit bias doesn't encourage critical thinking as people tend to make assumptions without actually looking into it.
• 01:04:22 People who don't understand unit bias will be punished for their lack of due diligence.
• 01:05:10 Failure is necessary for learning, but people often avoid failure in today's world.

01:06:20 Free Cities Movement and Bitcoin¶

In this section, the speaker talks about the free cities movement and its relation to Bitcoin.¶

Experimentation is Necessary¶

• 01:06:20 In order to succeed, we often have to fail first. We need to experiment in every direction, including governance and cities.
• 01:07:07 Arbitrary limits on our potential are put when we're afraid to experiment.

Power Dynamics with Bitcoin¶

• 01:07:26 The most exciting innovation with Bitcoin is power. It's a new way to think about our relationship with power and who wields it.

Free Jurisdictions¶

• 01:07:59 Free jurisdictions may be possible without Bitcoin but having a currency controlled by another state or making their own currency could be vulnerable.

01:09:47 The Importance of Bitcoin and Journalism¶

In this section, the speaker discusses the importance of Bitcoin and journalism in acting as a check against power. He also talks about how journalism has strayed from its ideal and become more focused on entertainment.¶

Quitting Journalism for Bitcoin¶

• The speaker used to work as a journalist before coming to Central America.
• He covered legal tender day for BBC and Al Jazeera.
• He quit his job because he couldn't be impartial, and he has an opinion on Bitcoin.

Importance of Journalism¶

• When done correctly, journalism can act as a check against power.
• Unfortunately, the current iteration of journalism is stuck in a catch-22 situation with power because if it decides to report against power, it loses access to power.
• Parallel systems are needed to counteract this issue.

Importance of Bitcoin¶

• The speaker believes that Bitcoin is the most important place in the world right now.
• When done correctly, Bitcoin can also act as a check against power.

Straying from Ideal¶

• Journalism has become more focused on entertainment rather than reporting what people need to hear.
• This strays from the ideal of journalism which should be about reporting truthfully without bias.

01:12:18 Successes and Obstacles in Starting a School in Central America¶

In this section, the speaker talks about his experience starting a school in Central America. He discusses his initial doubts about whether it would succeed or not and how he overcame obstacles along the way.¶

Starting Out¶

• The speaker quit his job as a journalist and traveled to Central America with a syllabus.
• He acknowledged that there was a good chance that it wouldn't work out but hoped that someone else would do something similar if it didn't.

Overcoming Obstacles¶

• The school faced obstacles such as finding good teachers and connecting with donors.
• Despite these obstacles, the school succeeded beyond the speaker's expectations.

Congratulations¶

• The interviewer congratulates the speaker on his achievements and thanks him for his contribution to education in Central America.

01:15:36 Feeling Purposeful¶

In this section, the speaker expresses how overwhelmed they are with the support and inspiration they have received from others. They feel purposeful and inspired by those around them.¶

Living a Dream¶

• 01:15:47 The speaker feels like they are living a dream.
• 01:16:16 They have never felt more purpose in their life.
• 01:16:40 The speaker is where they want to be.

Gratitude¶

• The speaker expresses gratitude for the support and help they have received.
• Many people have joined, helped, supported, and poured themselves into it.
• The initiative seems to be changing lives on the ground.