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That's great! Except I don't know what nests is 😅 .

I'll fire off the first question by text. In your recent interview on the Block Reward podcast, you said that Bitcoin was repricing everything forever. I believe the same thing, but at the moment, there is another (stronger) dynamic at play: Bitcoin is being monetized. People are putting monetary energy into Bitcoin, by buying and holding it, i.e. transferring monetary energy from fiat and other assets to Bitcoin. I would expect this dynamic to slow down by a lot at some point - at the latest when essentially most of the world's value is stored in Bitcoin. Only at that point (IMO) could we really measure the dynamic that you described, in which the gains due to technology accrue to us instead of being stolen from us.

I would be grateful for your thoughts on this!

Jeff Booth 1y ago

It is happening at the same time, but I agree. The bigger impact “currently” is the one you mention above.

Today world’s balance sheet is approximately 900 trillion divided by 21 million (minus lost coins) to get a reference point of the purchasing power of the transition in today’s terms.

Two concurrent things are happening:

1) The world’s balance sheet will likely expand greatly in the coming years to quadrillions - and #Bitcoin (at that time will rise higher in those terms to measure accurately the real purchasing power) keep dividing new balance sheet by Bitcoin.

2) All prices are falling to the marginal

cost of production (in Bitcoin) meaning the purchasing power of the above is #’s is rising exponentially.

Which is why putting a number on what it is worth in fiat is a crazy way to look at it.

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Discussion

Toasty, the Oregon Forest HODLer 1y ago

I agree but don’t you think $900 trillion is an inflated price already. Shouldn’t we look at it from a real inflation adjusted value?

DataNostrum 1y ago

I'm with you, measuring in fiat is a crazy way to look at the world because its supply increases arbitrarily. On the other hand, how will we measure growth in Bitcoin terms, once fiat is out the window? In your calculation above, you divide 900 trillion by 21 million, which makes sense for right now. But once there is no more fiat, what is the denominator? I know the meme, "infinity divided by 21 million", but concretely how will we measure e.g. economic growth in a Bitcoin denominated world?

DataNostrum 1y ago

* numerator, not denominator

Jeff Booth 1y ago

By the prices falling forever in #Bitcoin terms. Productivity “growth” is deflationary.