Bitcoin: The first monetary energy network

By mystic_abhi | The Future of Money | 17 Aug 2021

To understand what Bitcoin is, we need to first know the fundamental principles of money. One of the main reasons why humans rule the planet today is human cooperation. We lived in communities, traded and cooperated to create the world we live in today. Each one of us has one or the other skill which we use to produce something of value in the society. Since money has been the expression of the value you have created, it is the monetary value that helps us make decisions based on the relative value hierarchy. When humans started trading, they also started to prosper. They exchanged values and found that they could meet the demands more easily and quickly if they cooperated with each other. This created collective wealth that now needed to be stored. 

For a long time, humans did not have any device that could store and move value across space and time. Fiat money helps us move value across space as its very convenient as a medium of exchange especially digital money where you could move value in an instant. But fiat money is terrible at moving value across time because its subject to counterparty risks, inflation etc. On the other hand, Gold is very suitable for moving value across time and it was the best option as a store of value until the 21st century. There are still counterparty risks to gold but it has been considered as hedge against inflation for a long time. But gold is not a suitable device if you want to move value across space. It is very heavy and takes a long time and a huge cost to move form one place to another. Therefore, we did not have an optimal way to move value across space and time until the invention of Satoshi Nakamoto.

Bitcoin is, so far, the best candidate that can solve this challenge. It is primarily used as a store of value and is known as the digital gold. Although in the short term it might seem as a highly volatile asset, over the past 10 years, the growth has always been exponential and toward the upside. It can also be moved across space almost instantly with very minimal transaction fees. It also satisfies the 5 superior monetary traits that a currency should have- Durability, Divisibility, Portability, Recognizability and most importantly, Scarcity. There are only 21 million bitcoins and its scarcity drives its price even higher to qualify as the best asset class of the 21st century. It is the only invention that mankind has seen which stores and channels monetary energy securely and efficiently without any energy loss like you would see in the case of gold or fiat money. Bitcoin cannot be compared with other crypto projects as it has the highest monetary energy and network effect as of today. Therefore it is not only the perfect digital monetary asset class of the future but the birth of a new monetary network that can channel human ingenuity to make it better in a way that was never seen in human history.

To understand this better, do check out Robert Breedlove's podcast with Micheal Saylor.

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The Future of Money
The Future of Money

Highlighting the importance of Bitcoin while covering not only the technological but also the historical and the philosophical aspect of Satoshi Nakamoto's invention.

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