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The Benefits of a Return To Sound Money

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As part of an on-going Tweetstorm Series, we showcase excellent Twitter threads on the most interesting topics in the industry and publish them here in blog format for easier consumption and sharing beyond twitter.

Today, we feature the work of Ben Prentice, an independent researcher focused on understanding the effects of fiat money and the prospects of a Bitcoin paradigm. In this thread, he explores how society will benefit from the implications of a return to a liquid store of value. You can find him on Twitter as @mrcoolbp for more of his thought-provoking Bitcoin tweetstorms. 


Sound Money Can Change The World 

We don't realize yet how a liquid store-of-value (SoV) money will change the world. Prices of everything will decline, everything will be more affordable in due time. Our time-preference will shift to consider the future. Productivity improvements will be shared by all.

Right now the only SoV we have is inflating assets. These assets have economic and investment use that has been hijacked for monetary SoV use, the discrepancy between these uses introduces volatility for both monetary and economic cases destroying both.

​The constant search for SoV, under the guise of "investment" to beat inflation has diverted our attention away from real productive activities. Vacant "Zombie Houses" emerge in dense cities and drive housing for real tenants through the roof, while wealthy profit.

Real sound investment in valuable businesses has dwindled and distorted by cheap credit (borrowing for free) and the need for SoV. Assets have become money, and only wealthy can hold significant % of wealth in illiquid assets. The more wealthy, the more/better assets.

Fixing this use-case mismatch will return economic activity to appropriate use, returning society to competition and progress. Minimum wage, retirement woes, rising rent, stagnant wages, all illusions of this corrupt system which steals from the poor and gives to the rich.

A return to sound money will be a rising tide lifting all boats, instead of an arbitrary wall between the wealthy and the poor; a divide separating those with access to SoV and those without. The benefits of liquid SoV money will exponentially propel civilization into a new era.

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Tuesday, 12 November 2019
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