Bitcoin's Circular Economy

Looked at through the lens of necessity, we can better understand Bitcoin’s progression toward a broader, circular economy. 🧵

https://bitcoinmagazine.com/culture/bitcoin-economy-is-circular

Bitcoin is the perfect money.

It embodies all the properties & functions of money;

- Store of Value (SoV)

- Medium of Exchange (MoE)

- Unit of Account (UoA)

and does so in a way that any person or participant, from anywhere in the world can....

(A) SAVE without having their wealth invisibly stolen

(B) SPEND without some big brother type institution telling them what or with whom they’re allowed

(C) ACCOUNT, audit and verify what they have, when they received it and how much it is in relation to the whole.

Furthermore, this is all possible sans any form of trusted intermediary, government regulation, prudential oversight or 'decree by the anointed’.

So why is this important?

Read on..

Money is arguably the most important invention of mankind because it is a social technology, and we are by definition the social species.

"Money is the language of value"

Money is the mechanism by which we measure or attempt to quantify complex things in both the material realm, such as time, energy and material resources, alongside things more metaphysical in nature, such as ‘value’, ‘reputation’ or ‘quality’.

Money is not just a ‘measuring stick’, but a communication network. It is a medium through which higher order collaboration is made possible. It is critical for the formation of any complex society, and without it we simply cannot scale civilization up.

So what does this have to do with Bitcoin’s circularity ?

If it's the next and final global money, then by design it is already circular.

It’s a monetary unit AND a financial network which already embodies all of the elements required for a global economic system.

Circularity is not a question of “if”, or even “when”, but more a question of progress, magnitude & necessity.

When circularity? —> “As it becomes more of a necessity”.

"Necessity is not only the mother of all invention, but is the grandmother of all change”

In 2020 I wrote an article entitled “Bitcoin & Lockdowns”, in which I put forward a model of understanding Bitcoin’s long term adoption curve, through the lens of necessity. It's a classic.

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