• Bitcoin drastically improves humanity’s relationship with both energy and money.
• Government regulations, subsidies and bans will continue to have sway in the energy sector.
• Governments will likely continue to employ second-layer fiat money that citizens are forced to use.
Money and energy are two of the most essential components of a functioning economy. Money, which is used to store wealth, calculate revenue and losses, and trade for goods and services, is necessary to facilitate the exchange of goods and services. Energy, which is required to transform raw materials into useful goods and services, performs an equally important role in the economy. With the advent of Bitcoin, both money and energy have been drastically improved, but the issues that plague both are likely to persist in a Bitcoin standard, though they may be lesser in severity.
When it comes to energy, government regulations, subsidies, and bans will continue to be a factor. For example, the United States government has been trying to centrally plan the energy sector since 1789, well before fiat currency reached its “final form” in 1971. A tariff was raised on the sale of British coal in 1789 in order to benefit the American coal industry. This regulation was in place even prior to the Constitutional Convention delegates fighting for the inclusion of the “gold and silver clause” in the Constitution. This clause states that individual states will not have the ability to make their own currency.
When it comes to money, governments will likely continue to employ second-layer fiat money that citizens are forced to use. This fiat money is a form of currency that is not backed by any commodity or physical asset, and is instead regulated by the government that issues it. It is used to facilitate trading and commerce, and is subject to the whims of the government and its policies. Governments are likely to continue to use this form of currency, even in a Bitcoin standard, as it allows them to exert control over their citizens and the economy.
Though Bitcoin may be able to drastically improve humanity’s relationship with both energy and money, it is likely that the issues that plague both are likely to persist in a Bitcoin standard. Government regulations, subsidies and bans will continue to have sway in the energy sector, while governments will likely continue to employ second-layer fiat money that citizens are forced to use. Despite this, Bitcoin still stands to improve both sectors, and could potentially lead to a more efficient and equitable economy.