🚨 JACK MALLERS JUST DELIVERED THE CLEAREST EXPLANATION OF WHY BITCOIN NOT HAVING OTHER USE CASES IS THE WHOLE POINT
Someone asked if Bitcoin is the greater fool theory because it has zero non-monetary uses.
His response:
"Money doesn't need non-monetary uses. In fact, non-monetary uses that compete for monetary uses are bad for the money itself."
Here is his framework:
"Money is a market good, except there's one very unique property. You acquire money not to consume it. You acquire money to save it and later exchange it for the things you need."
On why gold beats silver despite silver being everywhere:
"Silver has more non-monetary demand than gold. It's in your laptop, your walls, your silverware. Why is silver not better money? Because that's not the point. The point is to be only monetary."
On the stock-to-flow argument:
"When something is used non-monetarily, it reduces the stock. You don't want the money to be consumed. You want the thing people acquire not to eat it, not to wear it, not to build with it. You want the thing they acquire to save because then the monetary stockpile will be as big as possible."
On Bitcoin specifically:
"For Bitcoin, the flow ends up being zero. It's the only thing where the flow gets to zero. Twenty-one million. That's it. And when idiots like Peter Schiff say Bitcoin can't be used in jewelry and gold can, there is a fundamental misunderstanding of how basic economics works."
Bitcoin having no industrial use is not a bug.
It is the most important feature.
The entire point of money is that nobody consumes it.
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