Here's how I see it. 👇
- Of the three functions of money, Medium of Exchange is least important.
- Store of Value is extremely important.
- Unit of Account is most important because it's where Store of Value really shines, and it's where all perceieved volatility disappears for good.
Think about it. Everyone has heard of #Bitcoin . And while the protocol itself is extremely predictable and stable, the reason most people don't own it because of the volatility in the fiat exchange rate.
When #BTC is the UoA, all prices will be denominated in BTC/Sats. At that point, all volatility disappears. You won't be exchanging it for other forms of money. You'll be exchanging it for real stuff, like goods and services.
It shines as a UoA because the fixed supply acts as a ruler against which all things in the economy are measured. It'll make our current fiat economy look silly by comparison. We will wonder how we ever priced goods and services using 160+ currencies, each with an infinite supply.
On a Bitcoin Standard, every time a new house is built, you, as a buyer will have to ask yourself, how much is this home worth out of all the money there is? Every year, as more homes are built, the value of each marginal new home has to be worth less against a fixed unit of measurement.
And then there's the productivity gains. Humans are always getting better at making things. Companies don't invest in tech to make products more slowly and more expensively. They invest in tech to make products cheaply and more efficiently, right? This means they can make more with less. So it follows that the natural order of things is for prices to remain in a state of decline, forever, Laura.
#BTC as the unit of account is what unlocks an ocean of abundance for humanity through the perpetual and relentless decline of all prices against the hardest money ever known.
And then the Renaissance will begin.
