A New Measuring Stick For Value

In this new multi polar currency world USD will no longer be the preferred measuring stick for value. Unpredictable USD inflation and deflation cannot compete with the predictability of bitcoin in this regard.

While the USD system uses cartels, violence, lies and deception to force people to use it, Bitcoin uses an open source and voluntary opt-in system. It tells the truth and anyone can verify it. No sleight of hand and sleight of mouth is needed to make it work.

Bitcoin’s inelastic supply and hard cap of 21 000 000 make it the first absolutely scarce commodity the world has ever seen. Unlike gold, an increase in mining power would not increase supply above the exponential decay set in the protocol rules.

The consensus rules are protected by the fear, greed, and power of the participants and are very hard if not impossible to change.

Every 4 years the new supply of bitcoin is halved. This is believed to be one of the most important driving forces of Bitcoin’s boom and bust cycle of adoption.

A lot of new innovations are happening in and around Bitcoin.

One of the more promising additions is the second layer network technology called the Lightning Network which can facilitate scaling of retail transactions, and a host of new services built on top of Bitcoin via payment channels.

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Discussion

The Truth Machine

As you may begin to understand, the leveling of the playing field by the introduction of the Internet and the culture of free open source software development has now given us digital scarcity, and a basis of truth for society to rally around and build upon.

“What it is is an invention, and I think it should be referred to as an invention rather than all the other things. It’s a, you know, what it really is[…] It’s a truth machine.[…] It’s a way to eradicate all fraud or lying by human beings.”

— Dan Tapiero, Macro Investor

Gold will always have demand and a role to play as a vehicle for final settlement of debt and long term store of value, but I believe that in much the same way as gold is king in the analog world, Bitcoin will be king in the digital world of money.

Bitcoin is the base money of the internet and a source of truth and consensus we as a society so desperately need in order to build a better world.