Very good article. Thanks for posting.

Yes, calculations are next to impossible without a fixed unit / constant to reference measurements against.

In terms of economics, the lack of a constant screws with basically every metric. Inflation is distorted because you cannot distinguish between a supply shock vs. monetary debasement. Asset management is distorted because you cannot distinguish between real vs. nominal yield. GDP is distorted because you cannot distinguish between productive output vs. paper notes. So on and so forth.

Perhaps Bitcoin is not perfect in this regard as you can never quite tell how much of it is in circulation due to lost keys. But at least it has a cap.

‘Even if [Bitcoin] is not yet universally understood, the complexity of economic relationships, both spatial and temporal, makes an economic standard necessary.

Most importantly, no other currency serves as a valid economic standard because it lacks the crucial criterion: a fixed boundary. Moreover, since money is handed over in exchange for a service, it embodies a claim on the entire market, which is distorted if the total money supply is increased.’