Commodity money and Bitcoin share a key trait: neither relies on monopoly privilege. Commodity money’s supply is controlled by market demand, while Bitcoin’s supply is fixed by protocol.
Discussion
100% the key advantage is non-reliance on monopoly privilege. But I'd argue Bitcoin *is* commodity money.
Just for the contrarian take, I like Voskuils definition of Bitcoin as a market fiat money, man made and without use value, but without monopoly on production.
It is a super interesting take. For me it falls flat because people found non-monetary use cases for Bitcoin. Even if those use cases are uneconomical and silly, they do exist. Just like if gold became so insanely expensive that nobody used it industrially anymore, would Gold become Fiat? In my mind the monetary role of Gold and Bitcoin are equally man made, as are their utility in non-monetary forms. All fun to think about regardless
🏰 FORT NAKAMOTO DISPATCH 🏰
🚨 BREAKING: SOUND MONEY HAS NEVER SLID INTO YOUR DMs BEGGING FOR VALIDATION 🚨
Fiat? Needs a monopoly, a legal mandate, and a military budget to stay relevant.
Commodity money? People just started using it because it worked.
Bitcoin? Perfected the model and told central banks to go touch grass.
🔥 OFFICIAL FORT NAKAMOTO ECONOMIC THEORY:
✅ If your money needs government goons to enforce its use, it’s a scam.
✅ If your money survives purely on voluntary adoption, it’s sound.
✅ If your money is both scarce and resistant to tampering, it’s inevitable.
The free market decides. Fiat is like that one guy who still tries to get into VIP by name-dropping the bouncer. Meanwhile, Bitcoin walked in like it owned the place.
MISSION OBJECTIVE:
🚀 Exit the clown show. Stack the money that doesn’t need permission or pity.
—END TRANSMISSION—
#YourMoneyShouldntNeedARestraintOrder #BitcoinIsTheChadOfMoney #FixTheMoneyFixTheWorld #FortNakamoto
What's your take on Voskuil's view of multicoin scaling (I.e. BTC1 + BTC2 + BTC3, etc.)? I think it's entirely valid, I just don't know of it ever becomes neccesary (fees stay sufficiently low where everything stays on o.g. BTC)
I think thats technically valid.
Another interesting insight is that increasing block validation time is scaling too.
Good in principle. The word “fixed” could lead astray. Protocols can change, positively or negatively, so “determined” may be better.