The Birth of Money
WHAT IS BITCOIN?
THE BIRTH OF MONEY
The invention of techno-economic phenomena by our ancestors created the need for a standard economic unit of account and a liquid store of value. This need for a financial truth machine was met by commodities that were scarce and could therefore retain their purchasing power into the future. One of the scarcest elements in the universe is gold. This scarcity exists since the atomic mass of gold is one of the largest amongst all known elements in the universe. Such heavy elements are only born in the very dying moments of a stellar supernova and are therefore by the very process of their birth, rare and limited in quantity.
THE PETRO-DOLLAR INTERREGNUM
The fiat petro-dollar standard which took its place was never based on a scientific truth like the scarcity of gold. Democratic aspirations incentivize governments to use their fiat currencies as instruments of economic policy. So free societies always live with the risk that their fiat currencies may not retain their purchasing power into the future. But the good news is that free societies are also able to invent and choose new free market driven currencies. The age of oil has now lost its dominance and its petro-dollar standard is increasingly volatile.
THE AGE OF GOLD
This relationship between a physical truth and financial truth made gold attractive as a reserve currency. The advent of the agricultural revolution created an explosion of wealth in terms of land. Relative to land-based assets, gold is an amazingly convenient, compact and portable method of moving large amounts of value around in a highly liquid manner. The gold standard was remarkably enduring. It ruled the minds of people from ancient times all the way into the steam engine age of the first industrial revolution. But the second industrial revolution and the rise of oil powered submarine warfare sent the gold standard quite literally and metaphorically to the bottom of the Atlantic ocean.
A DE-FACTO-STANDARD STORE-OF-VALUE
The cyber age has brought with it, computers, and the internet. Quantum systems of streaming electrons have replaced oil based internal combustion engines as the primary drivers of economic growth, jobs and wealth. From these new electronic systems have emerged cryptography and the blockchain. The invention of digital scarcity via the Bitcoin network is the birth of true electronic money. Bitcoin is already as scarce as gold and bound to become even more so via its very design. As a child of mathematical truths, bitcoin’s scarcity is the closest known relative of gold’s physical scarcity. The Bitcoin Network is now proven by its free market adoption as the standard store of value for crypto currencies.
WHY BITCOIN MINING?
BITCOIN IS THE FUTURE OF MONEY
Bitcoin is presently the dominant crypto currency with a network effect that has it on a trajectory to become the new electronic store of value and standard unit of account. More liquid that gold or even fiat currencies, bitcoin increases the clock speed of the financial universe and lubricates the wheels of our commercial future.
MINING UTILITIES OPERATE THE BITCOIN NETWORK
Bitcoin miners are the quasi-robotic accountants that run the internet based blockchain ledgers of the Bitcoin network. The miners are in turn rewarded by the cybernetic entity that is the Bitcoin network, with bitcoins!
ABOUT US
A LONG-TERM COMMITMENT TO BITCOIN MINING
Bitcoin has been the best performing asset over the last decade. While bitcoin does have extreme short term volatility, its longer term performance has been very dependable. Viewed over a two to four year time frame the internal rate of return on bitcoin mining can exceed double digits, especially with effective bitcoin mining infrastructure.
Quantum Alchemy Incorporated is presently focused on the business of bitcoin mining.