Have you ever thought of money as energy?
Although nobody taught us, it certainly is.
Why do we need money in the first place?
Because in order to live a fulfilling life, we have to depend on others to have the things that we ourselves cannot produce. Let me simplify it:
If you are a renowned chef, you probably have mastered the skill of cooking. You don’t need to depend upon others to make you food. Being a chef, you don’t know how to build houses. Therefore, if you want to live in a house, you have to depend upon others who have mastered this skill.
If you want to buy the house, you have to offer the housebuilder something that closely represents the energy he expends to build that house. That ‘something’ is money.
This means since we expend our energy to produce goods/services FOR others, we need to get that energy back in the form of money from the people who buy our goods/services so that we can trade it later with people who produce goods/services we ourselves can’t produce.
Now that we agree that money is energy. Let’s take a look at what the first law of thermodynamics says:
You might also agree that if money is energy, then money - like energy - cannot be created or destroyed.
That’s where the currencies we use today as money are in complete and obvious violation of the first law of thermodynamics. Currencies - unlike energy - can be created in infinite numbers with the stroke of a button by a few selected individuals.
Energy is limited. Our bodies don’t run around full of energy all day long. Therefore, when we trade our limited bodily energy for something (dollar, euro, yen, etc.) that has no limit, we are doing an unfavor to ourselves and the energy we spent.
Currencies don’t represent the energy we spend to obtain them. Bitcoin does.
Bitcoin has a fixed supply of 21M coins. It is the kind of money that represents the limited nature of energy. It is thermodynamically sound money
The choice is yours: Whether you want to trade your limited energy for dollars that can be printed infinitely OR for Bitcoin that represents the scarcity of energy we expend at work or anywhere for that matter.
TODAY’S STOIC LESSON:
“Being busy with things we don’t like is the greatest distraction from living.”