Just had a very simple exchange with my plumber about #Bitcoin that seemed to resonate with him…

He asked what made it valuable and why would it go up in price.

I said, if you could know that the set of rules for the economy were perfectly fair, where everyone had to put in value to get it out and nobody could cheat, would that be worth something to you?

Him: hell yeah.

Me: well we clearly don’t have that when someone can print trillions of dollars and just consume a horrific amount of capital without doing anything at all, right? Causing the price of everything to double, just like the PVC price we were just talking about.

So imagine you could just know, that whatever someone else did to get those bitcoin, you could *know* beyond any doubt, that they didn’t cheat the money. That they couldn’t print them out of thin air. They had to work within the rules. Would that be valuable?

Him: Yeah. So there’s a certain amount or something?

Me: Yes, 21 million forever. There will never be any more.

Him: So if inflation keeps happening Bitcoin will go up?

Me: Well it’s far more perfectly scarce than PVC pipe and housing and what has happened to the price of those things?

——

We got distracted with a leak issue after that, but he seemed to really follow this line of thinking.