CoinGeek Weekly Livestream Episode 14 with Daniel Krawisz: The concept of measuring Bitcoin value is flawed
This week’s guest is Bitcoin and Blockchain author and co-founder of Nakamoto Studies, Daniel Krawisz.
Considering himself an economist rather than a philosopher – something most people consider him to be – Daniel provides in-depth analysis, insights, and analogies about the Bitcoin economy in this episode of CoinGeek Weekly Livestream.
As Daniel Kurt Wuckert Jr. relates, the concept of measuring the value of Bitcoin is flawed. “Bitcoin is not a measure of value as the depreciation of the coin will change in relation to the overall economy.” He said the same goes for the fiat currency – the idea of keeping it stable is a scam: “There is no stable value because the economy changes not only quantitatively but qualitatively over time.” Instead, sees he money as a concept of efficiency that he believes no longer exists. “We have an economy in which nothing is efficient because we don’t know what efficiency is.”
On the contrary, he said Bitcoin has a firm supply and it gives people a reason to think further into the future. “I think the Bitcoin economy will grow a lot easier than the dollar economy over time.”
In an analogy, Daniel compares Bitcoin to the black hole, which sucks in the entire mass – which he equates with money – in the system. “The whole world economy is being drawn into Bitcoin, it will eventually run on Bitcoin.” But to make Bitcoin a success, Bitcoiners have to be better employees. He cites Dogecoin as an example of a working cooperative system. “They have a common identity, it would be good if we had something like what they do, except that it’s an actual economy.” He identifies a cooperative system as a group of people doing things for one another. “It would be better not to concentrate on people outside and to attract them, but to concentrate more on each other.”
Kurt and Daniel also discussed whether boosting non-fungible tokens or NFTs would make Bitcoin more valuable. “A thrust is all about getting attention,” says Daniel. “There is rational evidence of work or promoted content.” Daniel theorized that the attention drawn by NFTs is only the first round. He says people need to like the content in order to entice them to look further into the network.
In recent months, major banks and institutions around the world have become increasingly interested in the BTC and Ethereum blockchain network. As Daniel explains, there are certain drawbacks to using these networks over the Bitcoin SV blockchain. “In Bitcoin we have a Byzantine fault tolerance. We don’t have to accept a certain percentage of fraud. And that’s why it works so well … transactions can be processed very quickly. So much more can happen in the Bitcoin economy than what MasterCard and PayPal do in the credit dollar economy and the credit BTC economy. “
To hear more, check out the full episode of CoinGeek Weekly Livestream on YouTube.
New to Bitcoin? Read CoinGeek’s Bitcoin For Beginners section, the ultimate resource guide, to learn more about Bitcoin – as originally envisaged by Satoshi Nakamoto – and blockchain.