Peyton Allworth on Nostr: Peyton Allworth Bitcoin is the new CPI -CPI will be looked back on as being a federal ...
Peyton Allworth (npub16eq…u3m6) Bitcoin is the new CPI
-CPI will be looked back on as being a federal reserve scam.
-It is adjusted to be filled with things that money printing makes cheaper like corn rather then a grass fed steak. Therefore it does not measure cost of living expenses but rather cost of living expenses for a worsening quality of life as incentive structures get broken. If your stubborn about maintaining certain things of quality that existed in past generations before today your inflation rate is higher then what the fed claims it to be.
-A Bitcoin based economy can measure inflation or rather deflation accurately in a impossible to manipulate way in the two worlds that we will have, physical and digital.
Physical: inflation or deflation can be measured over periods of time by comparing the formula for energy value of 1 Bitcoin.
10 minutes of energy used by the Bitcoin network ➗total block reward = physical value of 1 bitcoin at time of being mined.
Digital: inflation or deflation can similarly be measured over periods of time by comparing the formula for computational or digital value of 1 Bitcoin.
Average hashes used by the Bitcoin network for 1 block➗total block reward = digital value of 1 bitcoin at time of being mined.
For example, if the Bitcoin network never used more energy, the block reward stayed the same rather then decreasing, and new technologies to make production of new goods and services more efficient stopped being produced then the physical economy would have a 0% inflation rate.
If Moores law continued as is the digital economy would experience deflation. Digital deflation can happen without physical as it is today but when both are happening at the same time things will begin to look very different.
What happens when Bitcoin mining itself incentivizes the very variables that will drive hyper deflation in the physical and digital when most the world is on the opposite fiat system?
-CPI will be looked back on as being a federal reserve scam.
-It is adjusted to be filled with things that money printing makes cheaper like corn rather then a grass fed steak. Therefore it does not measure cost of living expenses but rather cost of living expenses for a worsening quality of life as incentive structures get broken. If your stubborn about maintaining certain things of quality that existed in past generations before today your inflation rate is higher then what the fed claims it to be.
-A Bitcoin based economy can measure inflation or rather deflation accurately in a impossible to manipulate way in the two worlds that we will have, physical and digital.
Physical: inflation or deflation can be measured over periods of time by comparing the formula for energy value of 1 Bitcoin.
10 minutes of energy used by the Bitcoin network ➗total block reward = physical value of 1 bitcoin at time of being mined.
Digital: inflation or deflation can similarly be measured over periods of time by comparing the formula for computational or digital value of 1 Bitcoin.
Average hashes used by the Bitcoin network for 1 block➗total block reward = digital value of 1 bitcoin at time of being mined.
For example, if the Bitcoin network never used more energy, the block reward stayed the same rather then decreasing, and new technologies to make production of new goods and services more efficient stopped being produced then the physical economy would have a 0% inflation rate.
If Moores law continued as is the digital economy would experience deflation. Digital deflation can happen without physical as it is today but when both are happening at the same time things will begin to look very different.
What happens when Bitcoin mining itself incentivizes the very variables that will drive hyper deflation in the physical and digital when most the world is on the opposite fiat system?