On why Bitcoin could fit the bill as a MoE, SoV and UoA, part 2.

Bitcoin's Saleability

Bitcoin exhibits exceptional saleability across various dimensions:

Scalability: Bitcoin can be conveniently divided into smaller units called satoshis, or combined into larger units known as bitcoins, allowing users to trade any desired quantity. This divisibility provides immense flexibility in conducting transactions, whether it involves microtransactions or substantial transfers.

Portability: Being a digital asset, Bitcoin is inherently location-independent. It can be transmitted swiftly and securely over the internet, making it a versatile medium of exchange that can be seamlessly transported or carried during travels. This feature is particularly valuable in our increasingly globalized and digital world.

Scarcity: Bitcoin's supply is strictly controlled and capped at 21 million coins. This predetermined scarcity ensures its saleability over time. Unlike traditional fiat currencies subject to inflation, Bitcoin's fixed supply makes it an attractive store of value and a reliable medium of exchange.

These aspects of saleability make Bitcoin a versatile and effective medium of exchange that addresses the fundamental challenges of matching needs across scales, space, and time, making it an excellent candidate for the role of money in the digital age.

Bitcoin's Storage of Value

Bitcoin excels as a store of value due to its unique characteristics:

Immunity to Decay: Bitcoin exists exclusively in digital form, making it impervious to physical decay, corrosion, or spoilage. This immunity sets it apart from physical assets and even some digital representations of value.

Decentralization: Bitcoin operates on a decentralized network of nodes, rendering it resistant to censorship, control, or shutdown attempts. No central authority has the power to manipulate or confiscate Bitcoin, reinforcing its status as a secure store of value.

Verifiable Scarcity: Bitcoin's protocol mandates a maximum supply of 21 million coins. This verifiable scarcity ensures that Bitcoin retains its value over time. The predictability of supply, coupled with its decentralized nature, makes Bitcoin an attractive choice for individuals seeking a long-term store of value.

Incorporation of Real-World Costs: The process of creating new Bitcoin units, also known as mining, necessitates the expenditure of physical resources, primarily electricity. This real-world cost anchors Bitcoin's value in the physical world, making it resilient against arbitrary increases in supply.

These features collectively contribute to Bitcoin's robust ability to serve as a store of value, offering a dependable option for safeguarding wealth and assets in an increasingly digital and globalized economy.

Bitcoin as a Unit of Account

Bitcoin excels as a unit of account, serving as a common standard for measuring value across various dimensions:

Divisibility: Bitcoin's inherent divisibility into smaller units or larger aggregates, combined with its digital nature, allows it to be used as a precise measure for transactions and the expression of value. This flexibility simplifies economic calculations and enables seamless price comparisons.

Global Compatibility: Bitcoin's decentralized nature and global accessibility make it an ideal unit of account for international trade and financial transactions. It provides a common denominator that transcends geographical boundaries, fostering a borderless and efficient marketplace.

Scarcity Benchmark: Bitcoin's verifiable scarcity, with a fixed supply cap of 21 million coins, provides a reliable benchmark for evaluating the relative scarcity of other goods and assets. It offers a stable reference point for assessing value in an ever-changing economic landscape.

Trust and Consensus: As a decentralized digital currency, Bitcoin relies on a network of nodes to validate and record transactions. This distributed consensus mechanism ensures trust in the system and makes Bitcoin a dependable unit of account for economic participants.

These attributes collectively position Bitcoin as a versatile unit of account, facilitating complex economic calculations, fostering global trade, and providing a solid foundation for evaluating the relative value of goods and assets. Bitcoin's role in this capacity reflects its growing significance in the contemporary financial landscape.