Bitcoinist Book Club: “The Bitcoin Standard” (Chapter 9, Part 1, Buy The Future) | Bitcoinist.com
Again to The Bitcoin Standard, as we speak we’ll clarify this sentence: “Bitcoin is the cheapest way to buy the future, because Bitcoin is the only medium guaranteed to not be debased, no matter how much its value rises.” This isn’t a trivial matter, in truth, it’s one of many defining traits of the community. The world tends in the direction of a bitcoin customary as a result of bitcoin is the reply to an issue humanity’s been fighting for ages. And the truth that it will possibly’t and gained’t be debased is a giant a part of the successful equation.
Let’s dive into The Bitcoin Standard, however first…
About The Coolest Book Club On Earth
The Bitcoinist Book Club has two totally different use instances:
1.- For the superstar-executive-investor on the run, we’ll summarize the must-read books for cryptocurrency fans. One after the other. Chapter by chapter. We learn them so that you don’t need to, and provide you with simply the meaty bits.
2.- For the meditative bookworm who’s right here for the analysis, we’ll present liner notes to accompany your studying. After our e book membership finishes with the e book, you possibly can at all times come again to refresh the ideas and discover essential quotes.
Everyone wins.
To this point, we’ve coated:
Prologue and Chapter 1
Primitive Moneys (Chapter 2)
Why Gold? (Chapter 3, Part 1)
Historical past (Chapter 3, Part 2)
Gold Standard (Chapter 4, Part 1)
Authorities Cash (Chapter 4, Part 2)
Cash and Hyperinflation (Chapter 4, Part 3)
Time Choice (Chapter 5, Part 1)
Capital Accumulation (Chapter 5, Part 2)
Value (Chapter 6, Part 1)
Unsound Cash (Chapter 6, Part 2)
Financial Thought (Chapter 7, Part 1)
Inflation (Chapter 7, Part 2)
Digital Cash (Chapter 8, Part 1)
Proof-Of-Work (Chapter 8, Part 2)
And now, let’s return to The Bitcoin Standard: “Chapter 9, Part 1: Buy The Future”
Some say “time is money,” however the reality of the matter is you possibly can recuperate cash, however by no means time. And all the governments print cash continuous. The arrow of time, although, strikes ahead and solely ahead.
“What constitutes the practical and realistic limit to the quantity of any resource is always the amount of human time that is directed toward producing it, as that is the only real scarce resource (until the creation of Bitcoin).”
As we informed you, this isn’t a trivial matter. The bitcoin customary is inevitable as a result of:
“In all human history, we have never run out of any single raw material or resource, and the price of virtually all resources is lower today than it was in past points in history, because our technological advancement allows us to produce them at a lower cost in terms of our time.”
So, “human time is finite, everything else is practically infinite, and more of it can be produced if more human time is directed at it.” Every unit of one thing routinely makes all of the others in existence price much less. If that’s a reality, how can people successfully retailer the worth they produce?
Till bitcoin, gold was probably the most satisfying reply to that query. Nonetheless, “the rarest metal in the crust of the earth, gold, has been mined for thousands of years and continues to be mined in increasing quantities as technology advances over time.” And bear in mind, since gold is virtually indestructible, newly mined gold has to compete with all the gold already in existence and vice versa.
That is the place bitcoin shines. That’s the reason we’re shifting ahead towards a bitcoin customary.
BTC worth chart for 08/22/2022 on Bitstamp | Supply: BTC/USD on TradingView.com
There Can Solely Ever Be 21 Million
Bitcoin’s capped provide means “digital scarcity:”
“This sheds some light on an astonishing facet of the technical accomplishment that is Bitcoin. For the first time, humanity has recourse to a commodity whose supply is strictly limited. No matter how many people use the network, how much its value rises, and how advanced the equipment used to produce it, there can only ever be 21 million bitcoins in existence.”
Keep in mind that “digital scarcity” is a phenomenon that was found as a substitute of invented, and may solely be found as soon as. The entire different cash are attempting to create “more digital scarcity,” which doesn’t make sense. “Bitcoin, by not having any physical presence, and being purely digital, is able to achieve strict scarcity. No divisible and transportable physical material had ever achieved this before.”
Bitcoin is digital shortage. And it options one other essential attribute that foreshadows the bitcoin customary:
“Because each bitcoin is divisible into 100 million satoshis, there is plenty of room for the growth of Bitcoin through the use of ever-smaller units of it as the value appreciates. This creates a new type of asset well-suited for playing the role of store of value.”
Particular person Sovereignty And The Bitcoin Standard
Bitcoin implies a peaceable revolution, one thing that wasn’t potential earlier than its invention
“Bitcoin, and cryptography in general, are defensive technologies that make the cost of defending property and information far lower than the cost of attacking them. It makes theft extremely expensive and uncertain, and thus favors whoever wants to live in peace without aggression toward others.”
The reality of the matter is that “Bitcoin provides a cost-effective option for people needing to get around government restrictions on the banking sector.” If the bitcoin customary “grows and succeeds, it will be for its own merits as a peaceful neutral technology for money and settlement, not through it being forced on others.” This can be a once-in-a-lifetime alternative for mankind.
“Any person who owns Bitcoin achieves a degree of economic freedom which was not possible before its invention. Bitcoin holders can send large amounts of value across the planet without having to ask for the permission of anyone. Bitcoin’s value is not reliant on anything physical anywhere in the world and thus can never be completely impeded, destroyed, or confiscated by any of the physical forces of the political or criminal worlds.”
The bitcoin customary is coming, it’s inevitable, and it’ll not be compelled on anybody. How stunning is that?
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