Written by xm7x.
I think in some ways the basic idea presented in the above video, is an analogue of something I have been wondering since the start of Bitcoin’s recent explosive rise.
This is whether this increase in value against various fiat currencies is more likely a representation of the inflationary effects that the printing of money has on currency supplies.
The nature of the concept of value makes its grasping impossible, it can only be viewed in relation. This means that the value of a thing exists only in terms of its relational value to all of the other things, this has been simplified for millennia since the invention of simple currencies.
Currencies can be classified by what guarantees a currency’s value: as in representative money, think gold backed paper money; commodity money, as in grains; and fiat money, which has value because ‘we‘ ‘say‘ it does.
The idea of consensus based representations of value is a blending of elements of existing ideas of currency, or representations of value, as in bitcoins, are a finite form of commodity money, which has value because a large enough group of owners of bitcoins came to ‘consensus‘ that it has value.
The problem of an inherently finite form of commodity money for traditional monetary systems is that their potential value is infinite, as the arena in which the currency operates increases, the larger the pool the representative value arises from. Everything that is related to Bitcoin, due to the nature of commodity money, that they are a store of value in and of themselves, simultaneous to their value as the medium of exchange.
This is technological development on paradigm shifting proportions, the fundamental level at which the structure of civilisation has been constructed upon is in the process of being deterritorialised by decentralised technological systems which are simultaneously stores of value and mediums of transaction.
As with technological, scientific, and industrial revolutions, the path into the future becomes even more than it ever is an obscure field of potential probabilities. Time can only tell what will come, if the high-art world is taking note, which at this point I think is undeniable, a change of fundamental proportions is incoming, what will come of that; in a world of decentralisation, transparency, and collaboration, I think anyone who is willing to participate is able to help decide.
That is what centralised structures are trying to fight. The idea that Value is, and never has been, tied to physical money. And they laid it bare, as financial systems and the money we all use became further and further disconnected from any ‘real‘ value, whatever that means, the illusion breaks.