MBitcoiner on Nostr: Fiat money still operates on a sort of "proof-of-work" consensus model, where ...

Fiat money still operates on a sort of "proof-of-work" consensus model, where political power and military conflict are required to control its global ledger, with U.S. dominance maintained through war and military force to keep the dollar as the world’s reserve currency. Simon Dixon brilliantly calls this the "proof of weapons" network.

Bitcoin shifts this dynamic by basically front-loading the energy expenditure into mining which allows anyone to permissionlessly update and secure the ledger through market-based, rather than conflict-based, competition.

Essentially, any type of economic consensus model for a global monetary system ultimately requires some sort of energy expenditure, whether it be hashing or military conflict.

Relevant excerpts from The Fiat Standard by saifedean (nprofile…93dl) 👇