Our perception of money is growing. The way people think, understand, discuss, and interact with money is changing. As a reversal to earlier regressions in freedom such as the transition from the gold standard to the fiat standard, we now come to the inevitably more advanced money of the modern age.
In a world with the Internet, fiat money is out of date. Immediate global value transfer is not just a necessity, it is a reality now. An immutable, deflationary computer program that will take over the global monetary system is to be expected. If people want to go to Mars, they need Bitcoin.
As our perception of money expands, the opening of money contracts
Since we are from a century of financialization around the world, we have an excess of “monetary light”. Money, as this essay defines it, is simply the excess energy that is expended for this financialization of the world economy. Bitcoin focuses this light through an increasingly narrowing aperture and slowly directs this enormous value energy onto a single focus point.
It’s early in the process. As William Clemente III so beautifully illustrated for Bitcoin Magazine, Bitcoin will compress trillions of monetary energy into just 21 million BTC. The shift in reality required for this will be dramatic and, in fact, completely unpredictable.
The future will be determined by the actions of the individual, and the effects of those actions will determine the direction Bitcoin goes. This shift will most likely result in major changes in the traditional financial industry.
Regardless of what it looks like, the monetary energy focus will certainly take place via Bitcoin. Similar to the black hole analogy, suffice it to say that Bitcoin is extremely effective at collecting energy in a single point. Once this energy is focused on that point, it is reasonable to expect excitation of the point itself – like a fire kindled through a magnifying glass, the concentration of monetary energy in Bitcoin will stimulate and further attract innovations within the Bitcoin network and consume more monetary energy.
This positive feedback loop is indelible and already working. It is what allows me and so many others to contribute to this magazine. With Bitcoin, you are rewarded for helping to strengthen the network, which in turn increases the reward.
The earliest bitcoiners know this, as evidenced by their accumulation of wealth over years of work in space. What goes around comes around, and when you start sending hard work into the Bitcoin universe, Bitcoin will come back to you. and if you understand the scarcity of this bitcoin, you will appreciate it.
We can change this analogy; Bitcoin is an opening that fixes the energy of technological progress on money
Bitcoin is the natural result of human progress. The invention of the Internet, the creation of a connecting virtual reality that can be freely designed by the user, was the forerunner of a form of money based on these ideals. Satoshi Nakamoto created an interconnected virtual reality of money by creating solid technology that allowed the user to freely shape the market (price) and industry.
“The nature of Bitcoin is such that after version 0.1 was released, its core design was set in stone for the rest of its life.” -Satoshi Nakamoto
To reiterate, it is actually the rigidity of Bitcoin that allows it to be shaped by the users of the network. This is no different than the protocols by which the Internet as we know it exists. Consensus is necessary in order to connect virtual realities with one another.
When Bitcoin was created, the technological advancement that made the internet possible shifted to money, if only to a small extent. As the network has grown and absorbed the brain power of other industries and with it the time and effort of fantastic people, the opening up of this technological advancement has continued to focus on money.
The existence of the network, which is completely dependent on the users, is now strengthened by any work on it. In addition, the layers present in the network serve as applications and uses for Bitcoin and further strengthen the network.
Bitcoin’s network is a product of human ingenuity and is based on the same technological innovation that serves to implement the great economic change that Bitcoin requires. That said, the work that Bitcoin originally created is now being applied to make Bitcoin accessible to the whole world.
Since we’ve never seen anything like Bitcoin before, the potential is not yet known. For one thing, I’m excited to see what human progress will bring next.