Sir Tim Berners-Lee, pc scientist, inventor of the net and an all-round good man, wrote some phrases in The Evening Standard earlier this week, arguing that polarization, conspiracy and psychological well being crises on-line stem from design flaws that should be corrected — even when that requires regulation.
The piece attracts instantly from chapter 13, “Design Points,” of his lately launched e book “This Is for Everyone: The Unfinished Story of the World Wide Web,” which I encourage everybody to learn.
I agree with Berners-Lee’s prognosis. However regulation is just not the treatment. The online’s decline is just not merely a design failure; additionally it is an financial one. Design selections observe incentives, and people incentives have been distorted by fiat cash and the promoting mannequin it props up. Low-cost credit score from the fiat-fuelled enterprise capital system pushed Silicon Valley away from hacker-led engineering and towards surveillance-driven revenue extraction.
To repair the net, we want open supply protocols and open supply cash.
The web may be mounted with out regulation. However we can not engineer an answer whereas ignoring the financial headwinds that form design. The financial system — quarterly shareholder primacy and fiat inflation — pressures corporations to prioritize engagement, outrage and surveillance promoting. Bitcoin adjustments this equation. It removes inflationary stress, doubtlessly breaks the advert mannequin by enabling new forms of monetization that align with consumer pursuits moderately than exploit them. Mixed with open protocols, Bitcoin is the enabler of a freer, extra moral internet.
What Went Unsuitable With World Vast Internet
Berners-Lee highlights two principal signs: polarization and psychological well being injury. He’s proper.
1. Polarization and Collapse of Shared Actuality
Berners-Lee says:
“Probably the most egregious symptom is polarisation. Social media, as presently constructed, leads customers to take excessive political positions and demonise the opposing facet. This makes constructive engagement tough, permits outlandish conspiracy theories to flourish, and promotes demagoguery over deliberation.”
Polarization is actual. However amplification cuts each methods. The identical algorithms that floor conspiracy theories additionally amplify truths that the mainstream media suppresses. In an age of censorship and propaganda, this amplification has typically been the one manner fact surfaces.
The deeper difficulty is that folks now not share the identical actuality. A breaking story fractures into irreconcilable narratives relying on whether or not it spreads through Twitter, TikTok, Bluesky or Reddit; whether or not filtered by left-leaning fact-checkers or right-leaning commentators; whether or not summarized by Grok or ChatGPT. Every tribe outsources “fact formation” to its personal authorities, who’re incentivized to ship emotionally handy details. LLMs also can generate artificial personalities to disrupt discourse at scale. Regulation is not going to restore belief right here — as a result of the issue isn’t just what flows, however how belief is established within the first place.
That mentioned, algorithms are optimized for outrage as a result of outrage is worthwhile. Regulation is not going to change this, because it’s as a lot an financial drawback as it’s a technical one.
As Neal Howe and William Strauss describe in “The Fourth Turning,” we’re in a disaster period: Consensus frays, energy realigns and previous preparations give manner. In observe, meaning extra friction on-line — tribal feeds, narrative knife fights and rising coordination prices. In different phrases, we must always anticipate to see a few of the carnage we’re seeing at present, and we are able to do one thing about it.
2. Psychological Well being and Addictive Algorithms
Berners-Lee says:
“Many social media customers report struggling psychological well being points after extended utilization. {The catalogue} of ills associated to social media is alarming: anxiousness, despair, jealousy, inadequacy, emotions of isolation, physique picture points.”
I agree, social media is liberating and harmful in equal measure. Search queries for anxiousness rise in parallel with utilization, and {the catalogue} of harms is lengthy: despair, inadequacy, physique picture points, isolation. That is definitely one thing that wants fixing.
Berners-Lee says:
“Social media corporations are utilizing machine-learning methods to make customers hooked on their platforms. These programs are designed to be addictive, feeding folks increasingly more excessive content material, making them alternately indignant and unhappy.”
This isn’t unintended. Twenty-plus years in the past, Silicon Valley execs and engineers had been taught how one can design addictive programs at BJ Fogg’s Persuasive Know-how Lab at Stanford (his e book, for anybody , is named “Persuasive Technology”), with some even attending retreats at his house the place these concepts had been explored additional. The *Like* button, infinite scroll and crimson notification badges all got here from his teachings and had been engineered to hijack dopamine pathways.
Jack Dorsey, talking on the Oslo Freedom Forum in 2024, spoke in regards to the injury attributable to the algorithms designed by these corporations:
“The true debate needs to be about free will. We’re being programmed primarily based on what we are saying we’re fascinated with, and we’re instructed by these discovery mechanisms what’s fascinating — and as we have interaction and work together with this content material, the algorithm continues to construct increasingly more of this bias.”
Dorsey has beforehand spoken about how Twitter began as a protocol imaginative and prescient earlier than enterprise capital steered it towards development, management and advert monetization. Having seen the corruption of that imaginative and prescient, it’s no coincidence that Dorsey now backs open supply protocols like Nostr, Bitchat and beforehand Bluesky. His investments are a affirmation that platforms can’t be reformed from inside. Solely protocols, open by design, can defend free will from algorithmic seize.
Berners-Lee has recommended that algorithms could possibly be rebuilt to maximise pleasure moderately than outrage. It’s a noble imaginative and prescient, one I want had been life like — however underneath present incentives, it isn’t. Analysis reveals that high-arousal feelings, especially anger, spread faster than calm or optimistic feelings.
Makes an attempt to pivot have confirmed pricey earlier than. For example, when Fb adjusted its Information Feed in 2018 to cut back dangerous content material, users spent 50 million fewer hours per day on the site and publishers noticed visitors collapse. More moderen audits verify the identical sample: Platforms that downrank divisive content material see measurable drops in engagement and income. (You will discover associated research here, here, here and here.)
So long as corporations are sure by their fiduciary responsibility to maximise shareholder worth, regulators can not power them to intentionally make much less cash as long as outrage stays extra worthwhile than pleasure.
Regulation of the Web
Berners-Lee has lengthy been one of many web’s strongest defenders. He fought for web neutrality, encryption and decentralization. He warned of surveillance lengthy earlier than it was trendy. He has stood on the facet of open participation and consumer empowerment.
So it comes as considerably of a shock when Berners-Lee concedes that regulation may be essential. He even quotes bad-faith actor Yuval Noah Harari to assist this case:
“If a social media algorithm recommends to folks a hate-filled conspiracy concept, that is the fault not of the one who produced the conspiracy concept, it’s the fault of the individuals who designed and let unfastened the algorithm.”
Whereas I begrudgingly agree with Harari on this occasion, let’s not lose sight of who we’re coping with. He’s a World Economic Forum favourite, a constant advocate of technocratic options and somebody who has described bitcoin as a currency of distrust. His worldview defaults to centralization, surveillance and state energy. His arguments are wearing purpose however advance much less autonomy and extra management.
Berners-Lee admits: “Whereas I usually oppose the regulation of the net, on this occasion I agree.” I’m sorry, however regulation is a slippery slope that we must always do our utmost to keep away from.
It’s as a result of Berners-Lee has been such a defender of the web that his concession to regulation feels a little bit defeatist. Has the relentless rise of algorithmic seize, misinformation and addictive design worn him down? Maybe. However regulation is just not the reply.
One other phrase on regulation… When governments regulate, they entrench incumbents and weaponize “security” to justify censorship. They’re additionally hopelessly incompetent — the EU’s cookie law is an ideal instance: It protected no one, achieved nothing and left customers coping with annoying pop-ups.
True democracy on-line needs to be crowdsourced and constructed with open protocols — guidelines with out rulers.
The Financial Headwind of a Free and Flourishing Web
Now let’s get to the crux of the matter. The most important difficulty is fiat cash. Its full implementation in 1971 marked a fork within the highway: productiveness stored climbing, however wages stagnated in actual phrases. WTF Happened in 1971? reveals the divergence clearly — inequality, debt, housing prices and social decay all accelerating after Nixon severed the ultimate tie to gold.
Earlier than 1971, costs and wages remained comparatively secure. For hundreds of years, underneath exhausting cash, there was equilibrium. In the course of the short-lived classical gold customary, the Belle Époque delivered a golden age of invention and relative prosperity. Costs stayed secure, and by most accounts, life flourished. That stability vanished as soon as fiat cash grew to become the norm.
Since then, and at an accelerating tempo, folks have needed to work tougher for much less. Corporations have been compelled to extract extra productiveness whereas turning into much less moral. Bear in mind Google’s “Don’t be evil” motto? That is seemingly the malevolent power that brought about Sergey, Larry and Eric to lose their innocence.
Talking of Google, its advert mannequin killed conventional media’s enterprise mannequin, leaving it depending on state subsidies and company sponsorships. Governments now use media as PR machines, which is a big a part of the polarization drawback we’re witnessing on-line.
The enterprise capital mannequin, fuelled by low cost fiat credit score, warped Silicon Valley incentives from hacker-led engineering to surveillance-led revenue extraction. Centralization and monopolization are hallmarks of straightforward credit score and the Cantillon effect.
Jeff Sales space estimates know-how applies a natural deflationary force of ~5% per year, whereas Saifedean Ammous argues that actual inflation — not CPI, however financial enlargement — runs nearer to 15-16%. Governments offset deflation with cash printing; corporations reply by extracting extra from customers in an ever-increasing race to the underside.
The result is seen in fairness markets: the Mediocre 493 corporations listed on the S&P 500 are structurally failing, and the S&P, powered by the Magnificent 7, mainly mirrors the cash provide.
And layered on prime of fiat, fiduciary responsibility and quarterly reporting locked corporations right into a head-on battle with inflation. Fiduciary responsibility, codified in Nineteenth-century U.S. legislation, merely required administrators to behave in shareholders’ finest pursuits. However the SEC’s 1970 mandate for quarterly 10-Q reporting — mixed with Milton Friedman’s 1970 essay in the New York Times proclaiming that the only accountability of enterprise is to extend income — hardened the tradition of “quarterly capitalism.”
| 12 months | Occasion | Impression on Company Governance / Incentives |
| Nineteenth century | Fiduciary duties codified in U.S. company legislation. | CEOs and administrators should act in the very best pursuits of shareholders. |
| 1934 | U.S. Securities Trade Act | Gave SEC authority to require periodic reporting from public corporations. |
| 1970 | SEC mandates quarterly 10-Q reporting | Begins the tradition of Wall Road earnings seasons, with common short-term efficiency checks. |
| 1970 | Milton Friedman publishes “The Social Accountability of Enterprise is to Improve Its Earnings” (NYT). | Popularizes shareholder primacy as company goal. |
| 1971 | Nixon suspends gold convertibility — fiat period begins. | Rising inflation means corporations should beat not simply development expectations, however inflationary stress too. |
| Nineteen Eighties | Wall Road’s leveraged buyouts + stock-based CEO pay. | Locks in short-term earnings focus: Lacking 1 / 4 turns into harmful for CEOs. |
| 2000s–current | “Quarterly capitalism” dominates. | CEOs are pressured by markets, and shareholders to hit quarterly EPS targets. |
This convergence — fiat cash, shareholder primacy, quarterly reporting and venture-funded adtech — created the right storm. Corporations are structurally incentivized to gasoline outrage, dependancy, and mine consumer knowledge. Regulation can not change this as long as the underlying cash system is damaged. Till we modify course and return to sound cash, design fixes will at all times fail underneath financial stress.
Tim Berners-Lee, Bitcoin is the Panacea!
Bitcoin is each a treatment for damaged cash and a basis for brand spanking new enterprise fashions on-line. It isn’t an app or an organization — it’s a financial base layer that resets incentives on the root.
I don’t know the place Berners-Lee stands on Bitcoin particularly. Publicly, he’s dismissed crypto as a speculative on line casino. On that, I agree. Bitcoin is completely different: no insiders, no enterprise fund, no basis, no mutable guidelines. If he sees that distinction, good; if not but, possibly quickly.
Fixing cash
Bitcoin combines the very best properties of gold — sturdiness, shortage, uniformity, unforgeable costliness — with the very best properties of fiat — divisibility, portability. The result’s unequivocally the very best money ever designed: It’s additionally borderless, censorship-resistant, decentralized, brazenly programmable, sure by thermodynamics and internet-native.
In distinction to Bitcoin, it’s turning into clearer with every passing yr that the fiat system is crumbling beneath our toes, as bitcoin monetizes in its shadow. Bitcoin gives a method to diffuse the worldwide debt bubble moderately than let it implode, correcting the course of monetary history by inserting world a refund on a sound footing.
The implications are monumental, if/when bitcoin turns into fiat’s successor. For the primary time in residing reminiscence, society would now not need to swim in opposition to the tide simply to remain nonetheless. With sound cash, the pure deflationary advantages of technological progress can accrue to all, not be siphoned away by these closest to the spigot.
Jeff Sales space, in “The Price of Tomorrow,” makes the purpose that know-how is inherently deflationary, i.e., it delivers extra for much less. However underneath fiat cash, this deflation is papered over with inflation, debt and development targets. Bitcoin harmonizes cash with know-how. Its mounted provide means the beneficial properties of technological deflation accrue to everybody, moderately than being siphoned away.
Fixing incentives on-line
“In the event you think about the web to be the equal to a nation state, it can have a forex native to itself, and there’s not going to be anybody social gathering or establishment that makes this occur, and there’s not going to be anybody social gathering or establishment that may cease it from occurring.” – (Jack Dorsey, Quartz)
Now that we’ve got an web native forex, the query is… what can it allow?
Nicely, to begin with, bitcoin can reshape incentives on-line. It might probably do that by enabling micropayments, streaming sats and peer-to-peer monetization, that means customers can assist creators instantly. Platforms can earn cash with out promoting their customers’ knowledge to advertisers. This might reduce the impact and even put off an ad-driven, knowledge mining mannequin that forces platforms to optimize for outrage.
It’s going to additionally upend the venture capital model, as presently those that are closest to the cash spigot profit in larger proportion. As Bitcoin has no central financial institution to create more cash, everybody has a comparatively equal footing, and thus funding ought to develop into extra decentralized, as soon as once more.
From there, solely new dynamics can emerge. Protocols and functions gained’t be beholden to growth-at-all-costs fashions dictated by enterprise funds; they will scale organically, funded by the very customers who depend on them. Worth turns into the metric, not quarterly development or advert impressions. Builders can ship merchandise that clear up actual issues, and be rewarded instantly in sats. Communities can pool capital with out intermediaries, seeding initiatives from the underside up moderately than ready for approval from the highest down.
On this setting, the web can lastly align with its unique ethos — open, interoperable and user-driven — as a result of the financial layer itself is open, interoperable and user-driven. Bitcoin clears the bottom for that alignment.
Bitcoin is just not restricted to fixing the net — it’s upstream of it. With out sound cash, design fixes will at all times be bent again towards exploitation. With sound cash, platforms can undertake fashions which might be moral by default. With internet-native cash, creators may be paid instantly. Bitcoin is the fulcrum the place damaged incentives give method to more healthy programs — on-line and off.
“The web, our biggest instrument of emancipation, has been remodeled into probably the most harmful facilitator of totalitarianism we’ve got ever seen.” – Julian Assange
Fixing this doesn’t require authorities regulation. It requires realigning incentives — with open protocols and Sound Cash.
Open Supply Options
Berners-Lee factors to open supply instruments like Polis, Mastodon and Fora as promising experiments in more healthy on-line discourse. Constructing on these efforts, a brand new wave of protocols combines the identical open ethos with a local web cash, aligning incentives in ways in which advertising-driven fashions by no means may.
With Bitcoin because the financial base, protocols can tackle the design layer. These programs are reside, early and want broader adoption and a killer utility — however they already present how one can realign incentives with out regulation.
Mastodon demonstrates what’s attainable with open supply federation and timelines constructed from folks you select to observe, moderately than engagement-driven algorithms. And whereas its refusal to depend on promoting is a energy, the absence of a local funds system is a limitation.
Enter Nostr
Launched in late 2019 by Fiatjaf, Nostr (“Notes and Different Stuff Transmitted by Relays”) is an easy protocol that decouples identification and content material from any single app. Keys establish customers; relays transmit signed occasions. A number of purchasers (Damus, Amethyst, Primal, Iris, Alby) learn and write to the identical social graph, delivering actual interoperability — the form of cross-client, cross-app portability Berners-Lee requires.
Customers choose relays and form their very own feeds, placing algorithmic selection firmly of their arms. This echoes the concept Harvard professor Jonathan Zittrain proposed — and which Berners-Lee spotlights in his e book — for fine-tuned controls to steer content material away from conspiracy rabbit holes. Not like that platform-driven imaginative and prescient, Nostr empowers customers instantly, with its algorithmic flexibility restricted solely by the protocol’s younger age.
Whereas funds aren’t a part of the bottom design, Lightning “zaps” are actually frequent — native, on the spot tipping and funds tied to posts and profiles. That pairing — open communication plus open cash — permits bottom-up coordination and fast iteration with out gatekeepers. Deletion is advisory (purchasers/relays could honor it), so there’s sensible permanence and accountability throughout the community.
Learn extra: Nostr: censorship-resistant communication
Protocols, Infused with Bitcoin
Chaumian Mints
Cashu by Calle brings Chaumian eCash to Bitcoin — personal, bearer-style tokens that may run alongside Nostr or standalone. It permits quick, personal micro-flows; Calle additionally co-founded BitChat with Jack Dorsey, taking these concepts right into a user-facing chat context.
Status Techniques
Group Notes proves cross-faction context can sluggish misinformation. Add clear weighting, DIDs and Internet-of-Belief primitives and also you get a sturdy, moveable repute. Put sats as skin-in-the-game (bonds/slashing for dishonest alerts) and the mechanism strengthens with out central censors.
Spam Resistance
Spam isn’t new, and it isn’t purely on-line. Usenet has dealt with floods for many years as a decentralized, user-run community with no central regulator. Adam Again’s Hashcash confirmed the core precept: connect a small proof-of-work price and abuse drops. The identical economics apply now with bitcoin — sats-priced frictions through Lightning (or Ark Protocol) make bot farms and propaganda costly whereas retaining sincere participation low cost.
Spam is mainly a numbers recreation: When it’s free, it scales; add price and also you restore the sign. Suppose refundable per-post/per-DM deposits, PoW stamps or price limits priced in sats— good-faith interplay stays sustainable whereas mass manipulation turns into uneconomic.
In Conclusion
Sir Tim Berners-Lee is true in regards to the signs. Our opinions differ concerning the treatment. Regulation can not reverse centralization engineered by states and companies; it merely entrenches governments into the issue it partly created.
The drift didn’t begin with dangerous UX. It began with damaged cash (and all the issues therein) and the tip of sound cash (1971), along with shareholder-primacy dogma, bent incentives towards short-term nominal beneficial properties and surveillance promoting. From there, outrage paid the payments, whereas integrity fell by the way in which.
The treatment is Bitcoin returning the world to sound cash, which is able to allow open protocols to raised energy the net.
Screw the regulators.
Repair the cash, repair the world.
