Like this piece, however, I found the link to inflation needed some more explanation. An interesting idea to consider in explaining inflation (roughly):
Money is a technology, called a medium of exchange, that facilitates the flow of value through trade. However, every form of money has a flaw: an activity that doesn't produce value, but can enrich the one doing it.
I am talking about the production of money.
If money were shells, you could spend all day on the beach getting sunburned collecting shells. This activity doesn't produce value, but it does produce money, which you can use to buy valuable things. This is obviously a bug, and if everyone did it, we would be full of shells but without food.
It's not possible to fix this bug completely, because markets and incentives always find a way around regulations. For this reason, humanity has found a way to limit this bug by choosing scarce metals like gold as money. By making it hard to find, this limits inflation. Fiat money makes it so that only politicians can create money, which is even worse than it sounds. Bitcoin instead makes the most optimal choice: money creation is tied to a real service that strengthens the network.
Miners use electricity to protect nodes from spam, which is a valuable service paid for by the network itself.
pippellia / Pip the social graph guy
npub176…7vgup
2025-03-27 09:55:06
in reply to naddr1qp…8sl9
Author Public Key
npub176p7sup477k5738qhxx0hk2n0cty2k5je5uvalzvkvwmw4tltmeqw7vgupPublished at
2025-03-27 09:55:06Event JSON
{
"id": "c51baf1b8669ff458e0708157d533a4bf2c09199cdadd38f2e947e3d9e46eb01",
"pubkey": "f683e87035f7ad4f44e0b98cfbd9537e16455a92cd38cefc4cb31db7557f5ef2",
"created_at": 1743069306,
"kind": 1,
"tags": [
[
"a",
"30023:bf95e1a45bd5ec5ca0d420f4f55cd01645c7849f57fdd13b8c5afec4ebdcc848:Sovereignty-Through-Mathematics-Chater-1-Everything-A-Trade-pchmkr",
"",
"root"
],
[
"p",
"bf95e1a45bd5ec5ca0d420f4f55cd01645c7849f57fdd13b8c5afec4ebdcc848"
],
[
"r",
"wss://mleku.realy.lol/"
],
[
"r",
"wss://relay.damus.io/"
],
[
"r",
"wss://relay.nostr.band/"
],
[
"r",
"wss://relay.primal.net/"
],
[
"r",
"wss://auth.nostr1.com/"
]
],
"content": "Like this piece, however, I found the link to inflation needed some more explanation. An interesting idea to consider in explaining inflation (roughly):\n\nMoney is a technology, called a medium of exchange, that facilitates the flow of value through trade. However, every form of money has a flaw: an activity that doesn't produce value, but can enrich the one doing it.\nI am talking about the production of money.\n\nIf money were shells, you could spend all day on the beach getting sunburned collecting shells. This activity doesn't produce value, but it does produce money, which you can use to buy valuable things. This is obviously a bug, and if everyone did it, we would be full of shells but without food.\n\nIt's not possible to fix this bug completely, because markets and incentives always find a way around regulations. For this reason, humanity has found a way to limit this bug by choosing scarce metals like gold as money. By making it hard to find, this limits inflation. Fiat money makes it so that only politicians can create money, which is even worse than it sounds. Bitcoin instead makes the most optimal choice: money creation is tied to a real service that strengthens the network.\n\nMiners use electricity to protect nodes from spam, which is a valuable service paid for by the network itself.",
"sig": "1dae4a1631b71b7f3f63e28763f23b7fe84b2c5e0931da673cb8ddc7b612b4dbda2325e27487b2b6a6c937d92fe91ddab7f458fac084531414ae5edb148266de"
}