Bitcoin’s Value is Not in Price, but in Purchasing Power
Authored by Luke Broyles via BitcoinMagazine.com
January 2009 was BTC’s first price prediction. Hal Finney predicted that bitcoin could become the global-dominant payment system, or $10 million per coin (Finney’s calculation would be closer to $40 million today). But bitcoin would not surpass $1.00 until April 2011, over two full years later. What Finney understood is that upon the invention of perfect money, all global wealth would inevitably consolidate into it. Henry Ford, Nikola Tesla and others also foresaw this.
A closed (monetary) system inevitably absorbs all open (productivity) systems. Money is the technology that prices everything else within its ledger. There is no “top” price prediction for an immutable monetary standard of the human race, the standard.
So, a better way to think of bitcoin’s value is not in price, but in purchasing power. Overlaying a share of monetary stock with a given amount of productivity (or economic value) is a better way to predict the money’s value. It’s worth noting that in a finite ledger, wealth inequality as we know it today does the reverse as we expect today.
