Natural vs Artificial Money and why Bitcoin is the greatest thing to happen for alternative energy.

  1. Natural (adj.)source
    a. existing in or formed by nature (opposed to artificial ):
    b. based on the state of things in nature; constituted by nature:
    c. of or relating to nature or the universe:
  2. Artificial (adj.)source
    a. made by human skill; produced by humans (opposed to natural ):
    b. imitation; simulated; sham:
    c. lacking naturalness or spontaneity; forced; contrived; feigned:
  1. Natural Money —forms of money that derive from energy.
  2. Artificial Money —forms of money that derive from human will or agreement.

Natural Money

Humans have historically relied on various objects to serve the function of their money, this includes everything from shells to stones to precious metals such as gold and silver. We commonly refer to these as commodity money. Commodity money refer to objects that are believed to carry intrinsic value, for example it is believed that gold carries or contains value in itself.

Artificial Money

The other form of money is artificial money. While natural money is created from raw energy, artificial money relies only on human will and agreement which is entirely relative. Just as we have had various forms of natural money, there are various forms of artificial money which includes, but is not limited to fiat or government money, promissory notes, and credit. Artificial money is not dependent on an absolute property such as energy, but and as a result will always end in what I like to call inflationary death spirals or more commonly known as hyperinflation. This is due to the low or 0 cost of energy required to produce it. Such scenarios, result in a loss of trust or faith in the ‘social fabric’ or ‘agreement’ that created this form of money in the first place.

Bitcoin, a natural incentive for alternative energy

As stated before, natural money is better than artificial money. For a society or economy to reach sound money, money must derive from an absolute property such as energy rather than a relative one such as human agreement. Energy can be objectively measured and calculated whereas human agreement cannot. This is vital for us to be able to measure goods and services and counterbalance their kinetic economic energy.

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