Until the emergence of Bitcoin, we humans were forced to choose goods that exist in meat space to store our wealth over time. Over thousands of years, a few hard commodities and assets have attained dominance in our minds as quality stores of value.
The above snippet is from a piece published yesterday by our boy Conner Brown which attempts to rid the world of the notion that sound money needs some sort of intrinsic value. Until the emergence of Bitcoin, we humans were forced to choose goods that exist in meat space to store our wealth over time. Over thousands of years, a few hard commodities and assets have attained dominance in our minds as quality stores of value. The two most popular being gold and real estate.
This has allowed inefficiencies in the market to arise in at least a couple of ways. One being gold hoarding for value storage purposes instead of putting it to use in industrial goods that could help us build better hardware and technology that could take us further into space. (Potentially to mine asteroids for more gold to be used to build more technologies to take us even further into space.) Another being real estate. When one looks at particular real estate markets across the world there are a couple obvious market distortions that have arisen as the world's ultra-rich have decided to park their wealth in high-end real estate in major cities around the world, and very rarely spending any time in them while driving up rents for everyone else in that market. While in some markets, entrenched homeowners are not allowing new supply to be built in an effort to protect the wealth stored in their properties.
Imagine if there was a digitally scarce asset that these people could store their wealth in. A digital (better) gold, if you will, that gives these people storing their wealth in real gold and real estate better user experience and guarantees when it comes to portability, its ability to be confiscated, and the threat of having your share of the pie devalued via increased production. That would be pretty chill.
Imagine the efficiencies that could be gained by freeing up our current stores of value for more productive uses. The mind races while thinking of the possibilities.
Really wish I had a printer right now.