hajisatoshi on Nostr: # 8: Bitcoin’s Divisibility & Menger’s Theory of Liquidity — How Markets Choose ...
# 8: Bitcoin’s Divisibility & Menger’s Theory of Liquidity — How Markets Choose Money
💡 Key Idea: Bitcoin’s divisibility into 100 million satoshis makes it hyper-liquid, fulfilling Carl Menger’s criteria for money: marketability. The easier an asset is to divide, transport, and trade, the more likely it evolves into money.
🌍 Real-World Example:
Gold, while scarce, is cumbersome to divide (imagine cutting a gold bar to buy coffee!). Fiat cash solves this with bills and coins, but central banks control supply. Bitcoin? A Somali can send $0.10 worth of BTC to family back home, bypassing money transfer and banking fees. Result: Divisibility + portability = superior liquidity.
📜 Austrian Connection: Carl Menger, founder of the Austrian School, argued money emerges spontaneously as the most marketable good in a society. Bitcoin’s digital nature (split globally in seconds) and programmable scarcity make it the first asset to combine gold’s hardness with cash’s convenience — a “liquidity revolution.”
⚡ Why It Matters: Liquidity is the lifeblood of trade. Bitcoin’s divisibility allows it to serve both as a macro-store-of-value (whole BTC) and a micro-medium-of-exchange (satoshis), adapting to individual needs without centralized oversight.
🔍 Food for Thought: If Menger saw money as a social technology refined by markets, is Bitcoin the ultimate upgrade — programmable, borderless, and governed by users, not rulers?
Engage below! 🗨️
#Bitcoin #AustrianEconomics #Liquidity #Menger
Published at
2025-02-12 14:32:21Event JSON
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"content": "\n# 8: Bitcoin’s Divisibility \u0026 Menger’s Theory of Liquidity — How Markets Choose Money \n\n💡 Key Idea: Bitcoin’s divisibility into 100 million satoshis makes it hyper-liquid, fulfilling Carl Menger’s criteria for money: marketability. The easier an asset is to divide, transport, and trade, the more likely it evolves into money. \n\n🌍 Real-World Example: \nGold, while scarce, is cumbersome to divide (imagine cutting a gold bar to buy coffee!). Fiat cash solves this with bills and coins, but central banks control supply. Bitcoin? A Somali can send $0.10 worth of BTC to family back home, bypassing money transfer and banking fees. Result: Divisibility + portability = superior liquidity. \n\n📜 Austrian Connection: Carl Menger, founder of the Austrian School, argued money emerges spontaneously as the most marketable good in a society. Bitcoin’s digital nature (split globally in seconds) and programmable scarcity make it the first asset to combine gold’s hardness with cash’s convenience — a “liquidity revolution.” \n\n⚡ Why It Matters: Liquidity is the lifeblood of trade. Bitcoin’s divisibility allows it to serve both as a macro-store-of-value (whole BTC) and a micro-medium-of-exchange (satoshis), adapting to individual needs without centralized oversight. \n\n🔍 Food for Thought: If Menger saw money as a social technology refined by markets, is Bitcoin the ultimate upgrade — programmable, borderless, and governed by users, not rulers? \n\nEngage below! 🗨️ \n\n#Bitcoin #AustrianEconomics #Liquidity #Menger\n",
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