The vast majority of people would rather simply rely on someone than worry about seeking the facts. Accepted, but Fiat verification is difficult. Fiat verification is laborious, time-consuming, and mentally taxing. The truth is not always in light, especially when it is concealed by someone looking to get away with something. Additionally, learning the requisite research, analytical, and critical thinking abilities is challenging.

Unfortunately, as fewer people verify, the risk of trusting third sources increases, this is valid across a wide range of industries, not only bitcoin custody, which we are all too aware of, thanks to 3 Arrows Capital, Voyager, and BlockFi.
Reliable outsiders find the metaphorical cookie jar to be highly enticing.

UNDERSTANDING OF FIAT

There are two forms of knowledge. There are two kinds of knowledge.

“The kind you can personally attest to (this bed is comfortable) and the kind you are aware of (unless you’re an experimental physicist, in which case E=mc2). We should be more willing to take on all the risks necessary to obtain the kind of information that we have independently verified.”

A well-known psychological experiment that demonstrates this effect is the Solomon-Ash Conformity Experiment. It was determined whether the participants were willing to give the true answer or a falsified one to match everyone else’s responses. Simple line-length comparisons made up the experiment. About two-thirds of the respondents chose the majority’s phony response rather than being the lone voice of truth.

The government makes use of this propensity. Many people would rather keep quiet than stand up for what they believe in. Trusted third parties are aware that they can get away with lying because the majority of people will follow what they consider to be the general consensus. In essence, the government has the power to direct our thoughts. Given that it is what I refer to as “fiat verification knowledge,” this is a substantial instrument for manipulation.

TRUST BUT DO NOT VERIFY

It makes sense that we should have more suspicion for information given to us by another individual than for information we have ourselves learned. However, when faced with a challenge from peers or authorities, we quickly lose faith in our expertise unless it agrees with what other people believe or unless it makes logic.
For the knowledge that is specialized or technical, this is especially true. It is much easier to rely on the conclusions of an authority than to come to our own conclusions. Being incorrect in the presence of people is more enjoyable than being correct by yourself. Costs in terms of effort, money, and time are also involved. Do you wish to go through hundreds of pages, find every mistake, and perform a comprehensive analysis? The majority of technical Fiat verification is simply not worthwhile.

As a result, trustworthy third parties have the ability to have an impact on everyone who depends on them. Since they are the source of both knowledge and the acts that should be taken in response to that knowledge, the trusted few can get away with participating in immoral behavior that hurts people.

The most obvious example is what the health authorities did during COVID-19. Certain requests from reliable third parties swiftly turned into rules. Anyone who disagreed with the main idea was disparaged and called an extremist. Instead of seeking out the truth and defending it, the majority of people took the intellectually simpler route of defending whatever the authorities claimed. Even if the reality is distorted, it is just much easier to obey orders.

Fiat verification is simply too pricey. Some of these costs include numerous foes, extreme harassment, and lost opportunities. In general, faith rather than verification is needed to cooperate with the establishment.

Also, read – Everything you need to know about Crypto Gambling

Uncertain costs of trust

Trusting authorities is, of course, a Faustian bargain. No surrender of the truth can be made without dire consequences.

The first is that trusting means allowing yourself to be manipulated by those in positions of authority. Gaining trust is a struggle for power. To yield, you must inevitably give up some control. One of these is the capacity to object or to think independently. The authorities will demand ever-crazier beliefs as a compliance check. Stalin, for example, insisted that everyone dance during meetings that started at 4:00 AM and had music playing, with the exception of himself. Although it may sound absurd, is masking outside in the summer more absurd than this truth?

Second, trusting causes a significant distortion in how you perceive the world. Every argument has reasonable areas of dispute on both sides. There will be a tendency to decide what you want to be true first and then adopt the arguments for that side rather than verifying it. This not only makes you incredibly lazy, but it also leaves you open to many lies. This is a great method to lose touch with reality and suffer when your favorite belief is revealed to be false. Think of all the people who suffered significant financial losses due to Ponzi schemes. Because most of them wanted to believe and did not seek the truth, they suffered.

Thirdly, you can never learn to take responsibility if you always trust. It is always far easier to go with the flow than to learn to stand up for what you believe in. However, it also makes you dependent on others to support your claims. You never really learn the arguments the same way you value truth over argument. Many people never learn how to verify, just as many people never learn how to retain their keys. Nobody wants to carry the weight of accountability. They prefer to live their lives while leaving the difficult tasks to others. This is the mindset of young children, not of mature adults. Sadly, immaturity and careless behavior seem to be the norm even among elderly people.