In money systems of today, there exists nowhere near as accurate measuring tools for credit supply as there exists in cryptocurrency economies governed by source-code. Floating money supplies of M1, M2, M3 (measures of various money stock in circulation) are a far-flung estimate in our economies of today. There exists too many hidden, and loose channels for credit expansion to accurately measure the availability of credit. With bitcoin, we know for fact there will be 21 million units. We also know for certain how many new bitcoin will be released in the next 10 minutes.

When you own 21 bitcoin, you own 0.0001% of the bitcoin economy. We cannot dispute this, and because it is accurate and undeniable, it instills a perception of ownership in the mind of the consumer that constantly-expanding credit supplies never could. These more accurate measuring tools allow for the perception of credit, something that gives rise to agreement and adoption, to establish itself firmly in the mind of the consumer.

As one of the most common stores of wealth today, gold if often compared to bitcoin. We recently asked ourselves if bitcoin is superior to gold. We believe it is indeed superior. As a form of “digital gold”, bitcoin inherits many of the best characteristics of gold and improves upon them.

It matters not that gold has been around for centuries, but that gold has perceived scarcity and usefulness. Bitcoin as well has scarcity, but it has the measuring tools to prove it. Add on the fact that bitcoin is infinitely more portable and divisible than gold, and you have a case for supremacy.

As our availability of resources grows with global economic development and we continue to use the bitcoin network as a ledger to appropriate ownership of those resources, we will see its purchasing power increase proportionately. As a universal law, until our worldly physical resources are not in fixed supply, money must also be in fixed supply.

Author

Travis Patron

Travis Patron is the curator of Diginomics and the author of The Bitcoin Revolution: An Internet Of Money. He was an early adopter of both bitcoin and ethereum technology, and continues to educate audiences on emerging opportunities in the digital economy.

Your email address will not be published. Required fields are marked *