Des Imoto マキシ on Nostr: So it’s not a commodity (since you can’t eat it, like wheat; and it’s not a raw ...

So it’s not a commodity (since you can’t eat it, like wheat; and it’s not a raw material, like oil or gold). And it is indeed money (UoA, MoE, SoV).

In the past people used commodities also as money or to back money to approximate scarcity. Scarcity is the key. So gold, for example was both, a commodity and money. Interestingly valued differently for each function.

For the first time in human history, Satoshi-san invented pure money with absolute scarcity. Nothing else exists that cannot be corrupted, like #Bitcoin.

There are a lot of confusing forces at play. Like shitcoins pretending to „improve“ on Bitcoin in some way, but compromising one of the key attributes of Bitcoin like decentralization or PoW and hence enabling corruption for private gain. Or governments and corporations changing the meaning of words like cryptocurrency, stablecoins and yes, money vs commodities, to attack and control Bitcoin or move it into another realm.

The other big confusing factor is that during the adoption toward hyperbitcoinization, the purchasing power of your money, Bitcoin, actually increases. Which makes Bitcoin behave like an investment not a savings (SoV). The price of goods and services decreases far beyond the natural decrease in prices due to increased productivity and innovation. So you have a lot of fiat behavior going on, like trading, etf‘s, options etc.

Once Bitcoin adoption reaches critical mass, it’s simply money. Goods and Services will be priced and exchanged for Bitcoin. You can’t invest in money, because how would that work? I earned one Bitcoin, and invest one Bitcoin, so I still just have one Bitcoin. And, because Bitcoin is THE money, not a commodity, you don’t trade it for another money.

The beauty of scarce money is, society will be able to harvest the benefits of innovation and technology. Abundance. Existing things will get cheaper. People will have time to focus on new inventions (at premium prices), art, architecture and beauty. It’ll be a beautiful new world, not a brave new world.

During adoption to hyperbitcoinization Bitcoin will turn greed in altruism. Due to scarcity, Bitcoin will flow to value. So even when bad guys start with more Bitcoin, unless they become productive stewards of our earth, they’ll spend more than they make.

So it’ll all work out. Fix the money, fix the world.