0 sats \ 5 replies \ @Undisciplined 21 Sep 2023 \ parent \ on: What is the issue with Michael Saylor's Bitcoin is "Digital Energy" Idea bitcoin
I've never had an issue with it being used as an analogy to get people thinking about money in a more useful way.
However, the implication that transactions just involve swapping things of equal value (conserving energy) is an enormous step backwards in economic thought and misses the beautiful way markets generate prosperity.
I'm not familiar with the conserving energy idea? Do you mean the idea of a battery? The idea of a store of value? Maybe I haven't heard Saylor say this or it just went through me.
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I don't know how explicitly he has stated the conservation of value idea, but it has been a clear implication of his metaphor in the instances where I've heard him talk about this.
Conservation of energy is the central concept of physics. In every interaction, total energy before equals total energy after.
By contrast, the central insight of economics is that in every voluntary interaction, total value before is less than total value after.
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Hold up...
central insight of economics is that in every voluntary interaction, total value before is less than total value after.
Is this always true? I doubt it. People make mistakes. Value is lost at times. On the whole we see free markets increase the size of the pie. Its not zero sum. I'd love to hear Saylor asked questions like this.
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You're exactly right about that correction. I was speaking a bit too loosely. What we actually say is that value after is expected to be greater than value before, otherwise the parties involved wouldn't agree to the transaction. People can, of course, misjudge these things and end up regretting a decision.
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Ah! I see what you are saying.
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