From the conclusion:
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What has happened is Nash has given the proper logical and founded argument for the optimal use-case for bitcoin. While many people new to bitcoin and uneducated in economics are rallying behind a movement to scale bitcoin to be an everyday coffee money that anyone in the world can use for a low fee bitcoin is slowly showing itself to be resilient towards this movement and instead is slowly starting to be heralded for its gold like qualities as an inflation hedge.
At the same time actual experts in the field are noting that bitcoin can’t necessarily scale to serve the entire population of the world so soon in its infancy. As a matter of fact that the transaction capacity cannot scale on the base layer may in fact lend to the predictable nature of bitcoin’s value proposition further solidifying its role as a new digital gold.
As bitcoin’s fees rise the average user that doesn’t understand the macro-economic implications of bitcoin starts to get frustrated. But as the currency’s inflation rate continues to decline bitcoin will eventually be effectively scarcer in supply than gold. As the network effect continues to drive the price the fees increase. This cannot be seen as a fatal flaw since the high fees are in fact an indicator that there is such a demand for the limited transaction space. As this demand for a stable store of wealth increases the price of bitcoin in respective fiat money increases which allows higher and higher value players to enter the market. Eventually we should expect large hedge funds and even central banks to hold substantial positions in bitcoin.
At this point bitcoin as a settlement system will serve as the perfect catalyst John Nash described that will “asymptotically” take the power from central banks to arbitrarily print money against the ultimate good of the people.
It’s been suggested Nash might be the mastermind behind bitcoin, but whether he had something to do with the project or not does not take away from the specialness of the proposal Ideal Money. Nash’s Ideal Money is clearly premised on bitcoin, whether he knew about it or not, and more importantly Nash left us the logical founded argument for how bitcoin should be scaled well before the technology existed.
As more and more academic and economic professors learn about bitcoin and Nash’s argument a new revolution of people will lend support to this theory. At this point bitcoin nature as a digital gold will be preserved by knowledge economic experts and professors around the world. Nash’s proposal will be the foundation for such a movement.
At the same time actual experts in the field are noting that bitcoin can’t necessarily scale to serve the entire population of the world so soon in its infancy. As a matter of fact that the transaction capacity cannot scale on the base layer may in fact lend to the predictable nature of bitcoin’s value proposition further solidifying its role as a new digital gold.
As bitcoin’s fees rise the average user that doesn’t understand the macro-economic implications of bitcoin starts to get frustrated. But as the currency’s inflation rate continues to decline bitcoin will eventually be effectively scarcer in supply than gold. As the network effect continues to drive the price the fees increase. This cannot be seen as a fatal flaw since the high fees are in fact an indicator that there is such a demand for the limited transaction space. As this demand for a stable store of wealth increases the price of bitcoin in respective fiat money increases which allows higher and higher value players to enter the market. Eventually we should expect large hedge funds and even central banks to hold substantial positions in bitcoin.
At this point bitcoin as a settlement system will serve as the perfect catalyst John Nash described that will “asymptotically” take the power from central banks to arbitrarily print money against the ultimate good of the people.
It’s been suggested Nash might be the mastermind behind bitcoin, but whether he had something to do with the project or not does not take away from the specialness of the proposal Ideal Money. Nash’s Ideal Money is clearly premised on bitcoin, whether he knew about it or not, and more importantly Nash left us the logical founded argument for how bitcoin should be scaled well before the technology existed.
As more and more academic and economic professors learn about bitcoin and Nash’s argument a new revolution of people will lend support to this theory. At this point bitcoin nature as a digital gold will be preserved by knowledge economic experts and professors around the world. Nash’s proposal will be the foundation for such a movement.