Timechain Newsletter 06: The Bitcoin Singularity

Newsletter 19.06.2023

Timechain Newsletter 06: The Bitcoin Singularity

#6 - The Bitcoin Singularity

Singularity; a point at which a function takes an infinite value, especially in space–time when matter is infinitely dense, such as at the centre of a black hole


A set-in-code fixed bitcoin supply and known issuance schedule is the core of why bitcoin has value

It is the only asset in the history of human civilisation where supply is completely unresponsive to increases in demand

Against all other assets, bitcoin is consuming value like a black hole (or singularity) consumes matter

In a digital world, where the marginal cost of production of everything is falling to 0, bitcoin is unique

It is a digital asset for which the marginal cost of production can never be 0, because energy must be expended and energy is never free

In other words, bitcoin is a non-physical and entirely digital asset that cannot be copied and pasted. It is the invention of digital scarcity

Bitcoin introduces the laws of physics to the digital world. As such, AI is perfectly complementary to bitcoin because even an AI must marshal physical resources

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