TD₿: Bitcoin Obsoletes All Other Money by Parker Lewis
TL;DR Monetary economics tells us that all economic activity will converge onto one single medium, Bitcoin.
Hey Bitcoiners,
Money is a monetary good that’s chosen by market participants based on specific traits in order to communicate value between one another and facilitate trade.
Much like a language, it’s not ideal or an efficient means of communication to have individuals expressing value with different monies at the same time.
This would only make it more difficult for participants to coordinate with one another and would make each of the monies less effective at serving their purpose as money.
Therefore, we see throughout history that monetary systems converge onto a single medium to serve the function of money. The medium that has the best traits to serve as that money, is unconsciously adopted by participants over time.
Parker Lewis explains this idea in his blog post “Bitcoin Obsoletes All Other Money” (01/24/2020).
This concept is lost on many and it’s key to understanding why Bitcoin will likely capture most, if not all, of the value in the “crypto” ecosystem today.
Tick tock next block,
Cory Klippsten
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Quote of the Day
“A fixed money supply, or a supply altered only in accord with objective and calculable criteria, is a necessary condition to a meaningful just price of money.” - Fr. Bernard W. Dempsey, SJ, Economist
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