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The Energy Standard

8 min readJan 21, 2020

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The New-York Tribune article in 1921

Ford’s Energy Currency

“The essential evil of gold in its relation to war is the fact that it can be controlled. Break the control and you stop war.” New-York Tribune, 1921

Henry Ford at Wilson Dam, Muscle Shoals 1921

Bitcoin meets Ford’s definition for an energy currency

“Under the energy currency system the standard would be a certain amount of energy exerted for one hour that would be equal to $1.”

“Mr Ford proposes that this currency be issued only to a certain definite amount and for a specific purpose.”

Bitcoin’s value using Ford’s energy standard

7.2E–9

Bitcoin’s Energy Value in “$/kWh”

It didn’t work out for Ford

“A simple affair of business which should have been decided by anyone within a week has become a complicated political affair.”

“I don’t believe we shall ever have a good money again before we take the thing out of the hands of government. That is, we can’t take it violently out of the hands of government, all we can do is by some sly roundabout way introduce something that they can’t stop.”

Friedrick Hayek

The 21st century energy currency

“The Lindy effect is a theory that the future life expectancy of some non-perishable things like a technology or an idea is proportional to their current age, so that every additional period of survival implies a longer remaining life expectancy.” Wikipedia

Bitcoin has never been worth more than today (20 January 2020)
[Live metric available on TradingView here]

The Energy Standard

“It’s simply a case of thinking and calculating in terms different from those laid down to us by the international banking group to which we have grown so accustomed that we think there is no other desirable standard.”

Disclaimer

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Capriole
Capriole

Published in Capriole

www.capriole.com | Digital Asset Management | Autonomous quantitative cryptocurrency trading.

Charles Edwards
Charles Edwards

Written by Charles Edwards

Digital asset management | Quantitative autonomous algo-trading. Follow me on Twitter: @caprioleio

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