Money measures the value of human labor and productivity. It helps meet personal needs and wants, representing the limited and priceless nature of human time and effort. In a free market, money serves four key roles: a medium of exchange, a store of value, a unit of account, and a standard of deferred payment. This enables efficient trade of labor’s output. The best way to manage money is through an unforgeable record of ownership. #Bitcoin is the most secure and transparent record available. With its fixed supply and decentralized nature, Bitcoin preserves the value of labor over time, making it a reliable and unchangeable standard for human labor’s worth.
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Fiat Currency: A Modern Form of Slavery
What is Fiat Currency?
Fiat currency, the lifeblood of modern economies, is government-issued money with no backing from physical commodities like gold or silver. Its value hinges on the trust and authority of the government that prints it. While it’s the global go-to for buying, selling, and saving, this trust is a slippery slope, always leading to economic consequences that feel like modern-day slavery.
Historical Evolution of Fiat Currency
Money has had quite the makeover through the ages: from the good ol’ days of bartering goats for grains to shiny metal coins and now to the intangible digits in our bank accounts. The big shift to fiat currency gave governments a magic money-printing wand. However, this transition has also led to inflation roller coasters, economic puppeteering, and a loss of personal financial freedom.
Fiat Currency: Economic Slavery with Extra Steps
Here’s why fiat currency feels like being stuck in an financial hamster wheel:
Inflation and Devaluation
Imagine saving up for years, only to find your money buys less and less each day. That’s inflation for you — a sneaky thief eroding your purchasing power. Governments and central banks can print money faster than you can say “hyperinflation,” effectively taxing your savings without you even realizing it.
Centralized Control and Surveillance
Fiat systems are like the ultimate Big Brother. Central authorities can track, restrict, and manipulate your financial transactions. This means your privacy takes a back seat, and a few entities hold the reins of power. Your accounts can be frozen, transactions monitored, and financial activities controlled — all limiting your personal freedom.
Debt and Economic Dependence
Most fiat money is born out of debt. Governments issue bonds, which are bought with newly created money. This debt cycle burdens taxpayers, turning them into debt slaves. Central banks play with interest rates and credit supply, often causing economic chaos that hits ordinary folks the hardest.
Legal Tender Laws and Forced Acceptance
Legal tender laws mandate that everyone must accept fiat currency for payments and debts. This coercion shuts down competition from more stable and valuable forms of money, trapping you in a system that mainly benefits the state and financial bigwigs.
Wealth Redistribution
Inflation and monetary policies often shuffle wealth from the poor and middle class to the rich. While the left often shouts “tax the rich” with fiat government will just inflate on the poor. Those with capital can shield themselves from inflation and even profit, while regular workers watch their wages stagnate and savings shrink. This deepens economic inequality and keeps many financially dependent.
Economic Manipulation
Governments and central banks use fiat money to play economic whack a mole. By tweaking interest rates and controlling money supply, they create economic booms and busts that often serve their own interests, leaving the general populace to pick up the pieces.
Conclusion
Fiat currency, with its built-in inflation, centralized control, and debt-driven nature, acts like a modern form of slavery. It chips away at your savings, invades your financial privacy, and amplifies economic inequality. This system keeps you tied to the whims of central authorities and financial elites, curbing your freedom.
But there’s a beacon of hope: Bitcoin. This decentralized, purified money, deflationary alternative to fiat currency offers financial sovereignty and protects your wealth from fiat’s erosive effects. With a fixed supply and a transparent, immutable record, Bitcoin paves the way for true freedom, breaking the chains of modern financial enslavement.
The Role of Money and the Rise of Bitcoin
What is money?
Money is the best-known mechanism for fulfilling personal needs and wants.
Money is fundamentally a tool that allows humans to exchange value. It is not valuable in itself but serves as a medium through which goods and services of value can be obtained. This concept extends beyond mere physical forms like paper bills or coins; money, in essence, is a language created by humans to communicate value among each other. It transcends authoritative constructs, meaning it doesn’t need to be issued by a central authority to hold its value.
Historical Evolution of Money
Historically, various forms of money have served this purpose, evolving from barter systems to precious metals to fiat currencies. However, these traditional forms of money are susceptible to manipulation, inflation, and central control, which has always eroded their value and reliability over time.
Bitcoin: The Most Incorruptible Form of Money
Enter Bitcoin, which stands as the most incorruptible form of money known to date. Bitcoin is a digital, decentralized form of money that operates on a secure, transparent ledger called the blockchain. This ledger is actually an unforgeable record of transactions, ensuring effective and immutable possession. Unlike fiat currencies, Bitcoin’s supply is limited and predictable, governed by code rather than the whims of central authorities. This makes Bitcoin not just a revolutionary form of money, but the most reliable solution for managing and preserving wealth.
“The most reliable solution for managing money is an unforgeable record of effective possession, and Bitcoin stands as the most incorruptible record known to date.”
The Complexity and Security of Bitcoin
Bitcoin’s design maintains its simplicity and security, avoiding the pitfalls of traditional money systems. The limited and predictable supply of Bitcoin eliminates the risk of inflation and central control. Unlike complex financial systems, Bitcoin’s straightforward protocol reduces vulnerabilities and ensures network integrity.
Bitcoin’s Economic Integrity
Bitcoin’s economic model supports its role as a purified form of money. Its fixed supply and predictable issuance rate are crucial for maintaining its value. This clarity of purpose builds trust and drives adoption, as users and investors recognize Bitcoin’s unique value proposition.
Conclusion
In summary, money is a technological innovation that enables the transfer and preservation of value. Bitcoin represents the pinnacle of this innovation, providing an unforgeable, decentralized, and incorruptible record of ownership and transactions. By maintaining its unique position as purified money, Bitcoin stands as the most reliable solution for managing and preserving wealth, ensuring its place as the premier form of money in the modern world.
The Fallacy of Diversifying Bitcoin’s Purpose
Diversifying Bitcoin’s purpose beyond being money undermines its effectiveness and stability. Here’s why Bitcoin should remain focused solely on its primary role as purified money.
Increased Complexity and Security Risks
Introducing additional functions to Bitcoin increases complexity, leading to vulnerabilities. More complex protocols are prone to bugs and security issues, creating a larger attack surface. For instance, adding non-monetary features can introduce coding errors that compromise the network’s integrity. Additionally, maintaining a more complex system requires significant resources, challenging Bitcoin’s decentralized nature and making it harder for individual nodes to participate.
Imagine an airplane where anyone can add new controls or gadgets without thorough vetting. The plane becomes harder to operate and more susceptible to malfunctions, endangering everyone on board. Similarly, a more complex Bitcoin network is harder to secure and maintain, increasing the risk of catastrophic failures.
Disruption of Economic Integrity
Bitcoin’s economic model is designed to support its role as purified money. Diversifying its purpose will disrupt this model, creating conflicting priorities. Bitcoin’s fixed supply and predictable issuance rate are crucial for maintaining its value. Introducing additional functions will lead to economic incentives that conflict with its monetary policy.
Dilution of Value Proposition
Bitcoin’s value proposition is strongest when it is perceived and used as money. A clear and singular purpose helps build trust and drive adoption. When Bitcoin tries to serve multiple roles, it creates confusion among users and investors about its primary value proposition, eroding trust.
Think of a chef who specializes in Italian cuisine but suddenly starts offering sushi and tacos. While the variety might seem appealing, the chef’s expertise in Italian cooking becomes diluted, and customers will lose confidence in the quality of their favorite dishes. In the same way, Bitcoin’s effectiveness as money is diluted if it takes on multiple roles, weakening its position as the purist money.
Preserving Bitcoin’s Unique Position
Bitcoin’s unique selling point is its unparalleled characteristics as money. It operates without central authority, has a fixed supply, and offers a censorship-resistant medium of exchange. These qualities are compromised when Bitcoin is repurposed for other uses. For example, if Bitcoin starts being used for non-monetary functions, its primary use case as money will be overshadowed, leading to reduced adoption and effectiveness.
Conclusion
Bitcoin’s success lies in its singular focus on being a superior form of money. Diversifying its purpose introduces complexity, security risks, and economic instability, undermining its core strengths. By maintaining its focus as money, Bitcoin ensures its integrity, security, and effectiveness, safeguarding its position as the best form of money humanity has ever seen. This clarity of purpose is essential for driving adoption, maintaining trust, and preserving its value proposition in an uncertain fiat world.
iNtRiNsIc vAlUe 🤪
Misunderstanding Intrinsic Value
The notion that something must possess intrinsic value to function as money stems from a fundamental misunderstanding of how value is determined.
Subjectivity of Value 🎭
Value is Subjective:
Individual Preferences: Value is like beauty — it’s in the eye of the beholder! 👁️💎 According to Austrian economics, value comes from how much we want something, not from any magical properties it might have.
Ludwig von Mises: This economics wizard 🧙♂️ said that the value of anything, including money, depends on how well it satisfies our desires. So, value is subjective, just like how you might love pineapple on pizza 🍍🍕, but your friend thinks it’s an abomination!
Utility Over Intrinsic Value 💡
Money’s Primary Role:
Medium of Exchange: Money’s main job is to help us trade stuff. It doesn’t need to do anything else. Gold might look fancy and have some industrial uses, but it got famous because it was good at being money 💰✨.
Attributes of Bitcoin 🪙
Scarcity:
Limited Supply: Bitcoin has a fixed supply of 21 million coins. That’s like having only one perfect slice of pizza 🍕 at a party — everyone wants it because there’s not enough to go around!
Security:
Decentralization: Bitcoin’s security comes from its decentralized nature. It’s like a neighborhood watch 🕵️♀️ that doesn’t need a boss, making sure everything stays safe and sound.
Utility and Demand:
Effective Medium of Exchange: Bitcoin’s cool features like security, decentralization, and limited supply give it utility. It’s like the Swiss Army knife of money 🛠️ — useful in many ways!
Historical and Modern Perspectives 📜📱
Historical Examples:
Various Forms of Money: Throughout history, people have used everything from shells 🐚 to beads 📿 as money. These items were chosen for their ability to make trade easier, not because they had intrinsic value.
Modern Digital Money:
Challenge to Traditional Notions: Bitcoin is the rebel (thanks Samantha LaDuc) of the money world 🕶️😎. It challenges old ideas about needing to be physical or have intrinsic value.
Conclusion 🎉
The belief that money must have intrinsic value is a misconception. Value is subjective, based on the utility provided to individuals. Bitcoin, despite lacking traditional intrinsic value, has attributes such as scarcity, security, and decentralization, making it an effective and valuable medium of exchange and store of value. This demonstrates that intrinsic value is not a necessary criterion for money.
My little AI-enhanced highlight of The Hidden Cost of Money by Seb Bunney, a book I feel is extremely underrated.
The forward immediately grabs your attention with intriguing questions about the hidden costs of money and their far-reaching impacts.
Chapter Highlights
Chapter 4: The Link Between Money & Behaviour
This chapter was a revelation for me. I always knew money influenced behavior, but I had no idea how deep it went. The insights into how money primes us for certain behaviors—like fostering independence or isolation—were eye-opening. It made me rethink how money affects my own interactions and decisions. It’s not just about spending or saving; it’s about understanding the psychological grip fiat money has on us and why Bitcoin offers a way out.
Chapter 5: Money, Parenthood & Self-Identity
Reading this chapter felt like looking into a mirror. How financial pressures shape parenting and family dynamics hit home. It’s a stark reminder of the unseen influence fiat money has on our identity and relationships. The contrast between modern utilitarian views and the intrinsic value of family life resonated deeply with me. This chapter is a must-read for anyone balancing financial responsibilities with family life.
Chapter 7: Short-term Thinking = Long-term Problems
This chapter highlighted the dangers of prioritizing immediate fiat gains over long-term benefits. The examples of underinvestment and environmental neglect were startling. The call for sound money policies and a future-oriented mindset is something we all need to hear and act upon.
If you have ever wondered how any of this affects your everyday life then seb’s book is for you. Thank you @sebbunney for taking the countless hours of research to make this book.
Was just studying #bitcoin with nostr:npub1tayp5jjjfqx4ufukxqamsl28wd5pggvteqe6u9n3svjn62lfr0hsp89l42 and said this “this is great makes me think of like a 10 commandments of bitcoin: Property rights are derived from actions rather than mere possession or legal titles.” And it went on to make to make it. I’m sure it could be critiqued but I didn’t find anything I disagreed with.
Thou shalt derive property rights from actions, not mere possession or legal titles.
Thou shalt honor decentralization and reject central authority.
Thou shalt recognize Bitcoin as digital gold, scarce and valuable.
Thou shalt not covet other currencies.
Thou shalt uphold privacy and liberty in all transactions.
Thou shalt respect the sovereignty of individual nodes.
Thou shalt validate and verify all transactions independently.
Thou shalt honor the principle of voluntary exchange.
Thou shalt protect your private keys as your most sacred possession.
Thou shalt build and support layers atop Bitcoin for scalability and innovation.
Because I believe in nostr I’ve decided to do my best to provide signal on nostr first then only
Ordinals are like attempting to kill the golden goose for a kinder egg -nostr:npub1jt97tpsul3fp8hvf7zn0vzzysmu9umcrel4hpgflg4vnsytyxwuqt8la9y and nostr:npub1ennnsnsfpyryue6fncmwh7fh36k5k46f8z97nc65usdxllwrxm2qxdsd40
Eventually they will find the signal. Your appearance on freedom footprint was great!
Today makes 7 days caffeine free for me. Normally I’m up before the sun and watch it rise however staying up late for northern lights has me in bed still 😁
#GN
Sadly I can’t even mention bitcoin at work again unless I want to get fired. Wrote up twice for it already 😕
#gm
This is the way
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