Einstein and Bitcoin
At some point in our lives we have all come across Einstein’s famous energy-mass equivalence equation or, E=mc2. This simple, yet very powerful equation states that energy and mass are one and the same. We experience this formula everyday of our lives from the moment we use a GPS to help us navigate, to the sunlight that we receive from our own Sun. Without us being aware, this equation is embedded in our daily lives and it’s not necessary for us to know or care about, although learning about it can be out of curiosity but not necessity.
The great majority of the world is still unaware of the positive implications that bitcoin is bringing to several aspects of our daily lives; predominantly the financial aspects. We live in a world where fiat currencies (USD, EUR, GBP, JPY, etc.) are being printed without limits, causing all kinds of havoc to our purchasing power across time (i.e. it will require more dollars in the future to buy the same bottle of CocaCola today.) I do see a future where currencies will be priced off bitcoin, which will allow the citizens of all countries to transact with their own currencies in a much cheaper, faster, open and less intermediated manner. This will be possible due to the fact that all currencies will “speak bitcoin,” but no person will really have to hold onto bitcoin if they don’t want to or even know about it. The infrastructure to this system is already in the process of being tested in the Global South and will slowly grow from there.
Fiat currencies have an infinite supply, whereas there will only ever be 21,000,000 bitcoin in circulation. The very simple, yet powerful formula of ∞/21,000,000 (infinity divided by 21,000,000) demonstrates a path of where bitcoin price can go. What happens to bitcoin’s price when you divide large amounts of fiat (or infinite amounts) by 21,000,000 bitcoin? It can only trend up. While there are still several challenges in the road to fiat currencies “speaking bitcoin,” its protection against debasement and severe inflation has already been proven in currencies like the Argentine and Cuban Pesos, Egyptian Pounds and others.
∞/21,000,000 will become as powerful as E=mc2, it will just take more time and when it happens, not that many will really know or care about it, except those that bought bitcoin in anticipation to this.