AgoristView on Nostr: Bitcoin is not a credit instrument. Energy was invested in the unlocking of even the ...
Bitcoin is not a credit instrument. Energy was invested in the unlocking of even the first of the available units. Now each additional unit requires the expendature of a significant amount if energy to unlock. Generally a pretty significant investment in tools/hardware is required too (much like gold mining).
The properties needed for something to be an ideal money do not include physicality. In fact pysicality increases transaction costs to such a degree that fiat tokens will always replace physical gold & the trust in said tokens will always eventually be violated.
Gresham's law is not some eternal absolute. It actually primarily applies to sound money vs cheap money with the same face value. People may always prefer to give away trash instead of good money, but producers are not always willing to accept it. Thier's law is the flip side of the coin. The growth of Bitcoin adoption & gradual increase in the transactional use of Bitcoin demonstrates this.
The properties needed for something to be an ideal money do not include physicality. In fact pysicality increases transaction costs to such a degree that fiat tokens will always replace physical gold & the trust in said tokens will always eventually be violated.
Gresham's law is not some eternal absolute. It actually primarily applies to sound money vs cheap money with the same face value. People may always prefer to give away trash instead of good money, but producers are not always willing to accept it. Thier's law is the flip side of the coin. The growth of Bitcoin adoption & gradual increase in the transactional use of Bitcoin demonstrates this.