Monetary maximalism is the idea that in a free market for money one big winner will emerge and that the “soundest” money is in the best position to do so.
In a previous post, I wrote that “every token competes in one massive power law distribution for the title of dominant non-sovereign monetary store of value. If it does not win this rat race (or comes to a close second or third place), its market share will, effectively, be zero.”
The most popular argument for why that should be the case is that it already happened once — with gold.
There are two big assumptions baked into the grand narrative of monetary maximalism today. First, that the world will gravitate towards the soundest monetary-policy coin. And second, that gold-analogies are apt in describing Bitcoin.
We would argue that this is reasoning by analogy, and that the analogy is not self-evident even for many people inside crypto, let alone outside. We should steer clear of suggesting that we can use logic to determine how this will all play out.
Instead, we should realize that for Bitcoin to become what most of the community wishes it to be, there are multiple challenges to overcome that work as counterforces to the consolidation into one…
