Bodhicitta777 on Nostr: Assuming John nash is satoshi, in his writings about inflation in ideal money, he ...

Assuming John nash is satoshi, in his writings about inflation in ideal money, he talked about having a "completely steady constant rate of inflation." I think just to bootstrap the network but it's not clear in his words. It is clear in bitcoin though since he chose to cap supply at 21 million. He was concerned about it not circulating but also recognized the need for good money to be desirable to hoard. Money In the process of monetization (if you game it out) first is a store of value because it fits the 7 properties of good money.



I want to hold this thing because it had properties of money and increasing my bargaining power in the future. I am going to hoard it until people demand to be paid in this ideal money for their goods/ services. The incentive at the beginning for me as someone with information asymmetry is to collect as much as possible and not let it go. It becomes a medium of exchange when people demand that I give up some of my superior money for their goods and services if I really want what they have.

There are steps in the monetization process and while the lines can be blurred like for example someone with information asymmetry has fully adopted bitcoin as unit of account, store of value, even if not using it as medium of exchange yet.