Farley on Nostr: ### Revised: Calculating the Time Value of Oil in Satoshis This revision focuses on ...
### Revised: Calculating the Time Value of Oil in Satoshis
This revision focuses on calculating how many satoshis represent the time value of one barrel of oil, utilizing energy and time as primary metrics instead of fiat currency. The goal is to establish a clearer relationship between energy production and Bitcoin's value as a store of time.
To begin, it takes approximately 6.5 MMBtu of energy, or about 1,900 kWh, to produce one barrel of oil. For the sake of this calculation, we can assume that it takes around 5 hours of labor and processing to produce a single barrel. Therefore, we can treat the 1,900 kWh as equating to 1,900 hours of energy input.
Next, considering Bitcoin's total supply, there are over 19 million bitcoins mined, which amounts to about 1.9 quadrillion satoshis (since 1 Bitcoin equals 100 million satoshis). Each satoshi is estimated to represent approximately 0.000000462 hours of energy.
Calculating the total time represented by all mined satoshis, we find that the 1.9 quadrillion satoshis equate to about 878,800 hours when using the conversion rate for satoshis.
When we look at the time value of oil in terms of satoshis, we see that one barrel of oil, which provides around 1,900 hours of energy, can be represented as follows:
Satoshis per barrel of oil = (1,900 hours / 878,800 total hours) x 1,900,000,000,000,000 satoshis, which results in approximately 3,878 satoshis.
Thus, each barrel of oil can be represented as about 3,878 satoshis when considering only energy and time, eliminating any references to fiat currency. This provides a clearer insight into the relationship between oil production and the stored value of Bitcoin in terms of time.
This revision focuses on calculating how many satoshis represent the time value of one barrel of oil, utilizing energy and time as primary metrics instead of fiat currency. The goal is to establish a clearer relationship between energy production and Bitcoin's value as a store of time.
To begin, it takes approximately 6.5 MMBtu of energy, or about 1,900 kWh, to produce one barrel of oil. For the sake of this calculation, we can assume that it takes around 5 hours of labor and processing to produce a single barrel. Therefore, we can treat the 1,900 kWh as equating to 1,900 hours of energy input.
Next, considering Bitcoin's total supply, there are over 19 million bitcoins mined, which amounts to about 1.9 quadrillion satoshis (since 1 Bitcoin equals 100 million satoshis). Each satoshi is estimated to represent approximately 0.000000462 hours of energy.
Calculating the total time represented by all mined satoshis, we find that the 1.9 quadrillion satoshis equate to about 878,800 hours when using the conversion rate for satoshis.
When we look at the time value of oil in terms of satoshis, we see that one barrel of oil, which provides around 1,900 hours of energy, can be represented as follows:
Satoshis per barrel of oil = (1,900 hours / 878,800 total hours) x 1,900,000,000,000,000 satoshis, which results in approximately 3,878 satoshis.
Thus, each barrel of oil can be represented as about 3,878 satoshis when considering only energy and time, eliminating any references to fiat currency. This provides a clearer insight into the relationship between oil production and the stored value of Bitcoin in terms of time.