GM π
No matter how high we go, you don't have to sell your corn to spend fiat, just wait for the right multi-sig setup so you can borrow fiat against BTC. π
Once bitcoin is fully monetized and becomes the worldβs reserve currency, its value would represent global productivity, acting as a global index of productivity.
Bitcoinβs change in value would be related to the world's economic output, with its purchasing power adjusting to the economic climate. The price will rise with expected productivity gains and fall in line with expected losses, such as after natural disasters.
This transformation will take a long time, possibly decades or even a century, to fully materialize. But it will happen!
In the 26th edition of my newsletter, I explore the history and mechanisms that enable Bitcoin and Nostr to act as catalysts for innovation and human progress.
I would like to thank @UNCLE ROCKSTAR for the inspiring discussions and encouraging words. What began as a conversation before my trip to Nostrica led to months of introspection and ultimately this article.
I would also like to thank @gsovereignty for his work with Nostrocket and our exchange of ideas that led to the publication of this piece! I look forward to exploring and understanding the possibilities of Nostr deeper as I continue my journey.
I'm currently in the process of writing the third and final chapter of my book "Digital Real Estate".
In Chapter 3, I will examine how a hypothetical Bitcoin standard would change #lending practices:
Under a Bitcoin standard, debt denominated in bitcoin would increase in value over time due to bitcoin's disinflationary nature and limited supply.
This requires careful consideration of the amount of debt one is willing to incur.
While a Keynesian would argue that such a system could harm short-term productivity by discouraging borrowing, this view overlooks a crucial long-term benefit: A Bitcoin standard encourages more responsible economic behavior by compelling individuals and businesses to carefully evaluate their financial decisions.
This shift addresses a significant issue in the current fiat system, where individuals and institutions are often incentivized to take on excessive risk and accumulate unnecessary debt, while savers are penalized as the money supply increases and purchasing power of savings decreases.
By fostering accountability and prudent decision-making, a Bitcoin standard can lead to a more stable and disciplined economic environment.
#DigitalRealEstate
