That's not how money works. All money is an asset. Cash is a coupon for the asset. In essence layer 2s like lightning and liquid are cash. Bitcoin is digital gold but better.
Jack is incorrect just from an economics standpoint. Currency never was supposed to hold value. The deed to a house is not the asset, it is a coupon claim for the asset.
Cypherpunks and economists need to talk to each other more.
Replies (4)
I didn't say it's not an asset, I said the FOCUS is bs.
You have BTC in your stash ("asset"), fine, but please use lightning to pay your bills.
That's what I wrote.
Cash is not a saving vehicle, the asset is. That's what I wrote. Cash≠ asset. It is liability.
But what about when gold was used as currency/cash? What was the coupon then? Thanks.
It wasn't used as cash. People were settling debts on the spot. Cash is a debt. Cash/currency is a claim to gold. It means if I have $35 I can exchange those dollars for gold. They have no other purpose. When you exchange gold for goods you are exchanging money for a consumable commodity.
The purpose of currency is to allow money to be exchanged at a level that the market needs. Gold is heavy making transactions involving commodities more than an ounce or two in value, unfeasible. The same goes for Bitcoin but with settlement velocity. Because confirmation takes at least 10 minutes, the coupon has to move faster than that to facilitate trade. Lightning solves this with instant transactions that settle later during a channel close. The twist is that Bitcoin is faster and cheaper for larger transactions on-chain than smaller ones like gold.
