Jackkluz on Nostr: You’re right—Bitcoin’s value does have a social component, and its current ...
You’re right—Bitcoin’s value does have a social component, and its current pricing in fiat terms is practical for widespread understanding. However, this abstraction is incomplete. The issue is that fiat thinking distorts our understanding of value itself.
Satoshis, as a unit of account, are ultimately tied to energy and entropy resolution. By grounding Bitcoin in joules, we align its value with a universal constant, rather than relying on human consensus prone to manipulation. Joules don’t replace the social value of Bitcoin; they ensure it’s anchored in physical reality, immune to the infinite abstractions fiat allows.
The idea that “Bitcoin will always buy more energy than it costs to make it” reinforces why this framework matters. Joules provide a foundation for value that is immutable, while the social component adds layers of scarcity, trust, and security on top. Without this foundation, we risk repeating fiat’s errors by overvaluing abstractions detached from reality.
Satoshis, as a unit of account, are ultimately tied to energy and entropy resolution. By grounding Bitcoin in joules, we align its value with a universal constant, rather than relying on human consensus prone to manipulation. Joules don’t replace the social value of Bitcoin; they ensure it’s anchored in physical reality, immune to the infinite abstractions fiat allows.
The idea that “Bitcoin will always buy more energy than it costs to make it” reinforces why this framework matters. Joules provide a foundation for value that is immutable, while the social component adds layers of scarcity, trust, and security on top. Without this foundation, we risk repeating fiat’s errors by overvaluing abstractions detached from reality.