Using a Mental Modeling approach borrowed from Hannibal Lecter of Silence of the Lambs, Jeremy and Myron discuss Bitcoin.
4-level model of Bitcoin:
- Essence
- Protocol
- Function
- Ledger
- Characteristics
- Cryptographically secure
- Fixed supply
- Decentralized
- Intangible
- Something you know, not something you have
- Novel
- Role
- Bitcoin is money
- Characteristics of a Money Commodity
- Scarce
- Fungible
- Divisible
- Portable
- Transferrable
- Functions of Money
- Store of value
- Medium of Exchange
- Unit of account
- What about the Regression Theorem?
- Bitcoin had subjective value to early adopters because of its novelty and its recognizable monetary potential
- The theory and historical understanding of money was well established – we didn’t need a slow evolution from commodity to money. It was very fast because it was obvious to some people.
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