The Weight of Digital Gold

Digital Gold Sep 27, 2020

It is not right to think of Bitcoin as digital gold, as this is premised upon the idea that the 21 million is the endgame or the genius behind Bitcoin.

Most support for BTC is reflectant of and motivated by a belief built upon the idea of accumulating a scarce asset, which I don’t necessarily fault as folly. However, I believe it is the technological and economic breakthroughs behind the genesis of Bitcoin that matter more than the scarcity as such. When you accumulate the ‘digital gold’ today, what are you saying to the world of the 2100’s or that of the 2200’s? What are you leaving them?

A network that scales worldwide to hundreds of billions of transactions a second is a technological legacy worth leaving them. Leaving one that can do less than ten a second tells them that it was really about you and not them.

The chain known as BTC may be moving toward ultimate oblivion with a long drawn out, grinding end. I believe it will reach a day when the ballooned fees to move such ‘gold’ to support that network’s nodes on such a low number of transactions in a post-subsidy world (that is, once all Bitcoins are dispersed in block subsidies over a hundred years from now) would outpace the price or value any such slow asset would provide to the world. I do not believe even institutions will see benefit in paying them at a certain amount.

The weight of being the heavy asset that your ‘gold’ needed to be assumed to be today, for the enrichment of its holders in this generation, will either break the backs of future generations or just break that system altogether and show it as the untenable philosophy it was.

Bitcoin (BSV), however, represents in essence Bitcoin as a program and plan that doesn’t have an end, as small individual transaction fees from the world running upon it can subsidize it over and over and over again, even thousands of years from now. And the low fees, portability, and the velocity of money Bitcoin enables, will improve the lives of all that use the network when compared to that of the financial world we live in today.

As we today both benefit from and take for granted the ability to FaceTime anyone in the world instantaneously because of the protocols of the Internet, so too would future generations be allowed to take for granted and benefit from new and freeing financial experiences because of Bitcoin.

What’s more, it is a base layer technology that allows its users to benefit from innovation and advances not yet seen that improve the user experience, like those that unleash ever increasing network speed and connectivity.

This is one of the things I find inspiring about its economic design. It looks to build a new and better world for people its creator and proponents today will never see, and I believe that is noble.

Note: The author owned BSV and BTC at the time of publication.

Photo by Tom Parkes on Unsplash


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